Chicago needs revenue strategy to continue ratings improvement, agencies say – The Bond Buyer

While the city has made some important progress on the expenditure side, the new mayor's first budget didn't make similar strides on the revenue side, according to Fitch Ratings, which upgraded Chicago's general obligation debt to BBB-plus from BBB in October. For example, the budget didn't include raising the property tax levy to account for inflation, which had been included under the previous administration. Fitch's upgrade, which didn't hinge on passage of the budget, cited "a decline in the city's long-term liability burden stemming from steady growth in the economic resource base and improved debt management practices," including making advance payments on its big pension obligations
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Ex Illini
5 months ago

There are public entities that are still using Covid funds to balance next year’s budget. Those funds are running out and either service cuts get made or the money is going to need to come from somewhere. The ratings agencies seem to be ignoring reality.

Pensions Paid First
5 months ago
Reply to  Ex Illini

“The ratings agencies seem to be ignoring reality.” How are the rating agencies “ignoring reality” when they are the same ones stating that the city needs a “revenue strategy” to continue improvements in their ratings? “While the city has made some important progress on the expenditure side, the new mayor’s first budget didn’t make similar strides on the revenue side, according to Fitch Ratings, which upgraded Chicago’s general obligation debt to BBB-plus from BBB in October. For example, the budget didn’t include raising the property tax levy to account for inflation”“Chicago’s credit quality “is heavily pressured by its expenditure burden… Read more »

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