CHICAGO – The Chicago City Council narrowly approved an $830 million bond proposal on Wednesday from Mayor Brandon Johnson meant to pay for various capital projects, even though it’s drawn criticism over its long-term costs.
Opponents of the borrowing plan argued the bonds would be too costly for the city, especially in the long term.
The council voted 26-23 on the issue.
What we know:
The total cost to repay the bond would be about $2 billion, according to initial estimates.
The city would only pay interest for the first 19 years of the bond. Principal payments would not start until 2045.
After voting on the bonds started, Ald. Anthony Beale (9th Ward) appeared confused and asked for further discussion on the matter, which was allowed.
After a lengthy discussion where both supporters and opponents gave their reasons, the alders ultimately approved the deal by a three-vote margin.
“Today’s vote shows we need more common sense in the city council,” said Ald. Silvana Tabares (23rd Ward), in a statment. “That means supporting Aldermen who are willing to stand up and push against irresponsible spending and policies. And yes, it will also mean holding Aldermen accountable who cast votes that hurt our City’s future.”
Needed investments or big mistake?
The backstory:
Last week, two aldermen used a parliamentary maneuver to block the bond issue from a vote because of concerns of the back-loaded repayment schedule.
Ald. Bill Conway (34th Ward) argued at last week’s council meeting that the bond would be a major mistake.
Johnson and his aides said they’ve agreed to tighten language in the proposal to prohibit the bond funds from being used for Chicago Public Schools expenses.
The mayor argued for the need for such funding at a press conference earlier this week.
“It is not a matter of if we need to invest in these priorities, but when,” Johnson said. “This investment comes at a crucial time. For one thing, as we look forward to warmer weather in Chicago, we can expect potholes and challenges on our roads that need to be addressed, and addressed immediately.”
On Tuesday, two top city officials argued for approval of the bond in an editorial written in a local newspaper.
Tom Carney, commissioner of the Department of Transportation, Randy Conner, commissioner of the Department of Water Management, and Julie Hernandez-Tomlin, the commissioner of the Department of Fleet and Facility Management, said the funding was needed for major infrastructure needs.
They said the funding would support the resurfacing of more than 150 miles of streets each year in the city, improve street lighting, replace hazardous poles, and install new fixtures aimed at “boosting visibility and overall safety.”
The water department also needs about $100 million to upgrade the city’s water and sewer mains and replace lead service lines to households.