Press Detail

Watchdog group: Quit pushing off massive debt payments

Posted on November 14, 2013

Chicago Tribune

This article discusses the City’s practice of “scoop and toss,” which refunds bonds to reduce current year payments by pushing off large principal debt payments to future years and increasing the total cost of borrowing. The Civic Federation’s FY2014 City of Chicago Budget Analysis recommends that the City update its debt management policy to require level debt service payments for new bond issuances in order to prevent backloading of principal.