Illinois

CHICAGO — The Metropolitan Water Reclamation District of Greater Chicago board of commissioners on Thursday advanced the plans for a $500 million sale of mostly Build America Bond in mid-December, though officials said the timing, size, and mix of securities hinge on interest rates.

CHICAGO — The Chicago City Council overwhelmingly approved Mayor Richard Daley’s $6.15 billion budget for 2011, with only a handful of members attacking it as fiscally irresponsible because of a heavy reliance on reserves and other one-shots to eliminate a $654 million deficit without tax increases.

CHICAGO — The Metropolitan Water Reclamation District of Greater Chicago is expected to vote Thursday on an underwriting team, led by JPMorgan, for its sale next month of up to $500 million of mostly taxable Build America Bonds.

CHICAGO — The Illinois Municipal Electric Agency plans to enter the market Thursday with $130 million of mostly taxable Build America Bonds to finance its share of $1 billion in cost overruns for the controversial $4 billion Prairie State coal-fired power plant under construction in Washington County, Illinois.

CHICAGO — Illinois lawmakers return to work Tuesday for their annual fall veto session with a full plate that includes a proposed income-tax hike, a pension borrowing plan, and a gaming expansion bill — all to help address the state’s fiscal crisis.

CHICAGO — The Illinois Railsplitter Tobacco Settlement Authority hopes to sell investors on its $1.46 billion tax-exempt tobacco bond issue early next month by using a more conservative structure than seen on past deals that ensures bondholders are repaid even if cigarette consumption falls annually by 10% in the coming years.

CHICAGO — The Illinois Finance Authority board this week approved the first tranche of private-activity borrowing planned by CenterPoint Joliet Terminal Railroad LLC to finance ongoing construction at its intermodal freight-transfer facility in Joliet under a $15 billion federal government pilot program.

Chicago's heavy use of non-recurring revenues to balance its budget and sizable unfunded pension liabilities drove Standard & Poor's to drop the city's general obligation rating from the double-A category on Friday.

The Illinois Senate adjourned a one-day session Thursday after the Democratic majority failed to muster enough support to win passage of a $3.8 billion general obligation issue to cover state pension payments owed in the current fiscal year.

The Metropolitan Water Reclamation District of Greater Chicago has selected Public Financial Management Inc. and Gardner, Underwood & Bacon LLC as co-financial advisers for its sale next month of up to $500 million of new-money debt tapping the Build America Bond program.

CHICAGO — Chicago’s reliance on non-recurring revenues over deep spending cuts to balance the proposed $6.2 billion 2011 budget is costly and only delays a financial reckoning that could lead to steep tax increases and-or harsh budget cuts, a fiscal watchdog group warned.

CHICAGO — With a water revenue deal pricing Wednesday and a pending general obligation deal, Chicago has stepped up its investor-relation efforts as it seeks to minimize the premium demanded by buyers of paper from Illinois-based borrowers due to the state’s liquidity and budget crisis.

CHICAGO — The Illinois Finance Authority has launched a new state-supported borrowing program for its local government, school, not-for-profit, and business clients aimed at lowering their borrowing costs to finance energy-efficiency projects.

CHICAGO — Chicago’s heavy use of reserves and other non-recurring revenues to balance its proposed 2011 budget triggered a downgrade Thursday of its general obligation rating to AA-minus by Fitch Ratings.

CHICAGO — The election of a new administration to rule Cook County presents a rare chance to overhaul the county’s troubled fiscal policies and government structure, a Chicago-based watchdog group says in a new report.

CHICAGO — The Chicago Park District will enter the market next week with $150 million of general obligation bonds to help finance construction of its 10th harbor on the Lake Michigan shoreline and to fund improvements and renovations to its existing harbors.

CHICAGO — Midwestern voters next week go to the polls to decide the fate of $2.16 billion worth of borrowing requests, choose new governors, and decide spending and taxing measures.

WASHINGTON — The Metropolitan Water Reclamation District of Greater Chicago has disclosed that the Internal Revenue Service is examining $600 million of Build America Bonds it issued in August 2009 — the second IRS audit of BABs announced in less than a week.

CHICAGO — Chicago will enter the market this week with $280 million of new-money and refunding wastewater revenue bonds and follow up next week with $500 million of new-money and refunding water revenue debt. The deals will include Build America Bonds and qualified energy conservation bonds.

CHICAGO — Retiring Chicago Mayor Richard Daley has tapped Martin Cabrera Jr., head of Cabrera Capital Markets LLC, to lead the City Colleges of Chicago board following the resignation last week of Gery Chico, who plans to focus on his 2011 bid for mayor.