Issuance of general obligation bonds and/or Sales Tax Securitization Corporation sales tax revenue bonds for refunding outstanding general obligation bonds and/or sales tax revenue bonds

Record number: O2025-0021096
Type: Ordinance; category: Bonds & Bond Issues
Status: Final
Sponsor: Dept./Agency
Committee: Committee on Finance
Introduction Date: Nov 17, 2025
Final Action Date: Dec 19, 2025
Official record: Office of the City Clerk

Roll call: Passed Dec 19, 2025

50 yea, 0 nay. On motion of Alderperson Dowell, and unsuccessful motion to reconsider by Alderperson Mitchell, the matter was Passed. Voted at the City Council meeting of Dec 19, 2025.

Yea (50): Daniel La Spata (1), Brian Hopkins (2), Pat Dowell (3), Lamont J. Robinson (4), Desmon C. Yancy (5), William E. Hall (6), Gregory I. Mitchell (7), Michelle A. Harris (8), Anthony Beale (9), Peter Chico (10), Nicole T. Lee (11), Julia M. Ramirez (12), Marty Quinn (13), Jeylú B. Gutiérrez (14), Raymond A. Lopez (15), Stephanie D. Coleman (16), David H. Moore (17), Derrick G. Curtis (18), Matthew J. O'Shea (19), Jeanette B. Taylor (20), Ronnie L. Mosley (21), Michael D. Rodriguez (22), Silvana Tabares (23), Monique L. Scott (24), Byron Sigcho-López (25), Jessica L. Fuentes (26), Walter R. Burnett (27), Jason C. Ervin (28), Chris Taliaferro (29), Ruth Cruz (30), Felix Cardona Jr. (31), Scott Waguespack (32), Rossana Rodríguez Sánchez (33), William Conway (34), Anthony J. Quezada (35), Gilbert Villegas (36), Emma Mitts (37), Nicholas Sposato (38), Samantha Nugent (39), Andre Vasquez Jr. (40), Anthony V. Napolitano (41), Brendan Reilly (42), Timothy R. Knudsen (43), Bennett R. Lawson (44), James M. Gardiner (45), Angela Clay (46), Matthew J. Martin (47), Leni Manaa-Hoppenworth (48), Maria E. Hadden (49), Debra L. Silverstein (50)

Plain-language summary

Written by AI (claude-opus-5-5) from the ordinance text only: O2025-0021096 Revised Ordinance.pdf. AI can make mistakes; the official document always wins.

This ordinance lets the City of Chicago borrow up to $1 billion total by selling general obligation bonds, by having the Sales Tax Securitization Corporation sell sales tax revenue bonds, or both. The money would be used to pay off or replace some of the City's existing debt in order to save on debt payments or restructure them. City officials such as the Mayor, Chief Financial Officer, or City Comptroller would decide when and how to sell the bonds, within limits set in the ordinance.

Combined total of new general obligation bonds and new sales tax bonds cannot exceed $1 billion.
Purpose is to refund existing City debt (bonds, lines of credit, commercial paper, TIF notes, and sales tax bonds) to achieve savings or restructure payments.
Bonds can last up to 40 years, carry interest up to 12% per year, and must sell for at least 85% of face value; underwriter or direct purchaser pay is capped at 5%.
General obligation bonds are backed by the City's full faith and credit and a property tax levy on all taxable property in the City, which is not subject to the City's property tax limit ordinance.
Sales tax bonds are repaid from sales tax revenues and are not an obligation of the City or backed by its full faith and credit.

Money

$1,000,000,000: maximum combined amount of general obligation bonds and additional sales tax bonds for refunding existing debt
$300,000,000: maximum property tax levy in any single year to repay the general obligation bonds and related fees
$1,000,000: minimum bond holdings needed for an owner to request interest payments by wire transfer

Who: Chicago property owners, whose property taxes may be levied to repay the general obligation bonds, along with the City, bond buyers, and holders of existing City and Sales Tax Securitization Corporation debt being refunded, are affected.

Where: City of Chicago (taxes filed with Cook County and DuPage County)

Timeline

Dec 16, 2025: Recommended to Pass, Committee on Finance. The matter was recommended to Pass by controlling legislative body.
Dec 18, 2025: Deferred and Published, City Council. On request of Alderperson Dowell and Alderperson Ervin, the matter was Deferred and Published.
Dec 19, 2025: Signed by Mayor, City Council. The matter was Signed by the Mayor.
Dec 19, 2025: Passed, City Council (50 yea, 0 nay), at the City Council meeting. On motion of Alderperson Dowell, and unsuccessful motion to reconsider by Alderperson Mitchell, the matter was Passed.