Harvey, Illinois, revenue bondholders won a partial victory this week when the state comptroller concluded they will continue to get first crack on local home rule sales tax collections.
But the comptroller’s ruling sets a precedent that is worrisome for many other local bondholders around the state who fear they will fall behind pension funds in competition for a limited pot of revenue.”
Holders of the Harvey’s $6 million Hotel-Motel Sales Tax Revenue Bonds issued in 2008 will continue to receive the city’s home rule taxes collected on its behalf by the state — likely enough to cover debt service.