February 4, 2014
This article discusses a proposed ordinance for the City of Chicago to issue up to $900 million in general obligation bonds, with over $100 million used to push upcoming debt payments into the future. The Civic Federation said this practice, known as “scoop and toss,” increases the total cost of borrowing and the burden to taxpayers. The practice is prohibited under State law, but remains an option for municipalities.
The ordinance passed the City Council’s Finance Committee on February 3 and is expected to go before the full City Council February 5.