Illinois

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.

CHICAGO — Illinois Gov. Pat Quinn on Wednesday announced that $270 million from recent bond sales will go to 18 school districts, including $54 million for the Chicago Public Schools, for projects approved as part of the state’s multi-year, $31 billion capital program.

CHICAGO — The Metropolitan Water Reclamation District of Greater Chicago is conducting its first request for proposal process for underwriters as it prepares to sell $500 million of mostly Build America Bonds before the end of the year to help finance a long-term capital program of more than $2.5 billion.

CHICAGO — Chicago Public Schools said it was pleased with the final 1.2% rate the district will pay on its $257 million sale Thursday of qualified school construction bonds, given a round of negative rating actions and market conditions.

CHICAGO — The Illinois Finance Authority board this week advanced deals to help fund projects for the University of Chicago Medical Center and DePaul University and announced the successful pooling of federal recovery zone facility bond allocations from at least 15 cities and counties for Navistar International Corp.

CHICAGO — Retiring Chicago Mayor Richard Daley unveiled a $6.15 billion 2011 budget Wednesday that relies heavily on a series of one-time revenues from reserves, surplus tax-increment financing funds, and debt restructuring to close a record $654 million shortfall without the need for tax, fee, or fine increases.

CHICAGO — Chicago enters the market this week with $251 million of second-lien Midway International Airport bonds to refund outstanding commercial paper and wrap up financing for a new consolidated rental car facility.

CHICAGO — Moody’s Investors Service and Standard & Poor’s have revised their outlooks on the Chicago Board of Education’s bonds to negative. They cited escalating financial challenges as the district prepares to sell $418 million of new money on Wednesday and a $243 million refunding to restructure debt next week.

Fitch Ratings dropped the Chicago Board of Education's general obligation rating one level to A-plus Thursday due to mounting fiscal challenges from state aid delays and the looming expiration of federal aid and pension relief that helped close a fiscal 2011 deficit.

CHICAGO — Chicago-based BMO Capital Markets has hired senior public finance health care banker David Johnson and three of his colleagues from Ziegler Capital Markets for its merged higher education and health care practices, and named a fouth colleague to lead its strategy and analytics efforts.

CHICAGO — In a stark illustration of Illinois’ deteriorating balance sheet, the state ended the first quarter of fiscal 2011 with $5.5 billion in overdue bills and faces a possible structural deficit of at least $15 billion in the next fiscal year if no action is taken, Comptroller Dan Hynes warned in his quarterly report.