Yvette Shields

CHICAGO — Lawyers for former Illinois Gov. Rod Blagojevich and his older brother Robert launched their defense Monday against allegations the ex-governor sought to use his official powers to personally profit and build his campaign coffers.

CHICAGO — Even with a water rate increase expected to boost revenues, the Xenia Rural Water District still faces possible insolvency as its revenues can’t keep up with repayment of its $140 million of debt, according to a new Iowa state auditor’s report.

CHICAGO — A federal court ruling that lets the Lac du Flambeau tribe off the hook for repayment of $46.6 million of tribal gaming revenue bonds could harm the municipal market as a whole because the ruling undercuts investor rights in bond indentures and confidence in disclosure, the National Federation of Municipal Analysts warns.

CHICAGO — Illinois and the Regional Transportation Authority of Illinois were able to overcome a steady stream of bad fiscal news as they entered the market this week with deals that drew strong-enough investor interest to keep the risk premium on interest rates down.

CHICAGO — Top-rated Minnesota plans to enter the market twice this summer, beginning early next month with the competitive sale of $865 million of new-money general obligation bonds and then in September with the negotiated sale of between $500 million and $1 billion of refunding GOs.

CHICAGO — New procurement rules aimed at curbing pay to play in contracts awarded by Illinois, its agencies, and its public universities could dampen the flow of creative financing ideas from the public finance community, some market participants believe.

CHICAGO — The Illinois Finance Authority has expanded conduit powers to issue debt on behalf of nonprofits for projects outside state borders under legislation signed this week by Illinois Gov. Pat Quinn.

Standard & Poor’s has raised the ratings on 12 school districts and municipalities in Illinois, Michigan, Missouri, Nebraska, and Ohio.

Moody’s Investors Service last week downgraded to Baa3 from Baa2 its underlying rating on Central College’s $23.5 million of outstanding variable-rate bonds from a 2008 issue.

CHICAGO — Washington Treasurer James McIntire last week chided Standard & Poor’s, charging that the rating agency inaccurately reported the funded status of his state’s pension system in a recent national report on looming pension funding and policy challenges facing states.

CHICAGO — Standard & Poor’s Thursday downgraded the already junk-bond rated Xenia Rural Water District in Iowa to D from BB after it failed to make its full June debt-service payment on $83 million of outstanding bonds from a 2006 issue.

CHICAGO — The Minneapolis-St. Paul Metropolitan Airports Commission will enter the market later this month with a nearly $150 million mostly new-money sale of senior-lien revenue bonds as it seeks to take advantage of the federal alternative minimum tax holiday.

CHICAGO — Illinois closed the books on fiscal 2010 last week in the “worst fiscal position in its history,” with a record $4.7 billion in unpaid bills as floundering revenues failed to cover spending, Comptroller Dan Hynes reported in his quarterly overview of the state’s fiscal condition.

CHICAGO — Newly proposed pension fund accounting and reporting guidance from the Governmental Accounting Standards Board could pressure some governmental units to boost their contribution levels, Moody’s Investors Service concluded in a new report.

CHICAGO — Missouri, a triple-A rated and rare borrower, will competitively sell $125 million of refunding and restructuring general obligation bonds today in a deal crafted to achieve near-term budget relief and long-term debt-service savings.

Standard & Poor last week raised to A-plus from A its rating for Missouri State University’s auxiliary enterprise system revenue bonds due to an improved balance sheet.

Iowa Gov. Chet Culver last week said revised figures from the Department of Management show the state closed out fiscal 2010 with an estimated $275 million ending balance due to cost-saving measures and the improving economy.

Chicago plans to allow for the temporary sponsorship of city bridge houses and will auction off 50 taxi medallions under a series of measures announced last week by Mayor Richard Daley to help the city’s balance sheet.

CHICAGO — The potential sale of the smaller of two facilities that make up the bondholder-owned St. Louis convention center hotel complex is on hold following a review of pending bids and in light of the generally improving economic conditions, according to a bondholder notice published last week.

CHICAGO — The Minnesota Nurses Association and 14 hospitals in the Twin Cities area reached an agreement late last week on a new contract, averting a threatened strike by 12,000 nurses that was set to start this week.