(The Center Square) – Chicago aldermen may vote next week on a measure to require more city council support of new debt.
Alderman Marty Quinn’s ordinance requires three fifths of the city council to approve new debt issuance instead of a simple majority.
Before a finance committee vote to approve the measure on Monday, Alderman Bill Conway said debt is a silent killer of the city budget.
“This year we’re going to spend about $2 billion, a little more than that, on debt service, which by the way is about as much as we spend on the entire Chicago Police Department,” Conway said.
Alderman Timmy Knudsen said bonds are a great way to invest in streets, bridges, infrastructure and neighborhoods.
“This ordinance is not about stopping those investments. It’s about making sure that when we borrow, we’re cutting the best possible deal for Chicago taxpayers,” Knudsen said.
Knudsen said he and other aldermen opposed an $830 million bond authorization earlier this year because its repayment structure backloaded payments and cost the city an “outsized” amount of interest.
Former Republican gubernatorial candidate Ted Dabrowski told The Center Square the $830 million bond issue would cost taxpayers nearly $2 billion.
A recent Reason Foundation report said Chicago owes $77 billion against $49.8 billion in assets, not including Chicago Public Schools debt of $30.1 billion.
One of Mayor Brandon Johnson’s council allies, Alderman Jason Ervin told the finance committee on Monday that he does not believe in permanent solutions to temporary situations.
“Twenty-six votes is enough to pass any and every item that we do, and to allow a minority of members to effectively hold everybody hostage I don’t think is in the best interest of not only of the city but how democracy works,” Ervin said.
If the proposal is enacted, 30 votes would be required instead of 26.
Quinn urged support for his measure and said the Illinois General Assembly has had a similar policy for a long time.
The finance committee advanced the ordinance by a vote of 21-9.
The full council may consider the matter Wednesday.
