Chicago Mayor Richard Daley is seeking City Council approval to sell up to $175 million of general obligation bonds in June to provide funding for the Chicago Public Schools for construction projects.
Daley introduced an ordinance seeking approval of the issue to the council at its meeting yesterday. The borrowing would mark the city’s second financing under the $1 billion Modern Schools Across Chicago program that Daley announced in 2006.
Under the program, the city is issuing GO debt that is to be repaid by tax-increment financing revenues collected in TIF districts that include the school projects. Chicago sold $350 million in 2007 to launch funding for the program that is also supported by CPS borrowing.
“This new round of financing is the next step in our ongoing effort to give our children the same opportunity for a good education and success in life, regardless of their background or where they live,” Daley said in a statement. CPS will have opened 11 new schools and completed three major renovations by the end of the year under the program.
CPS has about $5 billion of outstanding debt issued to fund a massive, ongoing capital program. Officials have said the city’s borrowing program has helped keep the capital program on track. The district plans to issue at least $1 billion of additional debt over the next two years.
Daley also introduced an ordinance seeking approval for the city’s annual GO tender note sale to provide cash-flow help to the Chicago Public Library system as it awaits its share of property tax revenues. The city plans to issue up to $80 million of two-year notes in June. BMO Capital Markets is the senior manager and Grigsby & Associates is co-manager.