City of Chicago, IL

The Windy City is looking to add even more savings to a $1.3 billion debt refinancing with a tender invitation for some of its older, higher-yielding bonds. “The tender is just gravy,” City CFO Jennie Huang Bennett said last week.

Demand for municipal bonds is much stronger in 2020 than it was to end 2019, illustrated by record inflows into the asset class in the latest reporting week.

Chicago is coming to market next week with its $1.3 billion debt refinancing.

While there are no major municipal bond sales slated for this week, next week is a different matter.

Chicago fared poorly in a Moody's report about the nation's largest cities and Illinois continues to stand out for budget stress and pension liabilities.

The city is folding together separate syndicate and advisor teams on $1.2 billion of general obligation and Sales Tax Securitization Corp. refunding deals.

The Illinois Finance Authority and Chicago closed on the first property assessed clean energy bond deal in the state and authorization is in place for more.

Rating agencies affirmed Chicago's GOratings and the first report also out on the new junior lien Sales Tax Securitization Corp. credit.

Mayor Lori Lightfoot's first budget cleared the City Council on a 39-11 vote.

The decision comes as the courts told the city it's on the hook to make up the roughly 2% shortfall in property tax collections to fully cover set payments.

The Finance Committee signed off on bond refinancing and revenue packages that are key to the 2020 budget, paving the way for a full city council vote.

Mayor Lori Lightfoot says the city can manage through 2020 and will wait for the 2020 session to resurrect requests.

The Chicago Civic Federation supports the proposed budget despite worries

Chicago now expects to bank $215 million in upfront debt refinancing savings from a bond refinancing it expects late this year or early next.

The junk-rated school district revised its fiscal 2020 budget to reflect the contract that ended a teachers' strike, but long-term questions remain.

The Chicago Park District would phase in actuarially determined pension payments under a funding plan that still needs state legislative approval.

Illinois lawmakers wrapped up the first half of their annual fall veto session leaving tough legislation for the second half, beginning Nov. 12.

Though the market may view Chicago's budget as heading in the right direction, relying on the state is a gamble that's a concern for aldermen, too.

Mayor Lori Lightfoot needs to achieve her 2022 target of structurally balancing the city’s books to preserve Chicago's BBB-plus rating, S&P said.

Lori Lightfoot would close an $838 million gap with a mix of permanent and one-time maneuvers including new taxes, spending cuts and debt restructuring.