# Committee on Finance meeting, June 3, 2025

- When: Tue, Jun 3, 2025, 10:00 AM (Chicago time)
- Where: City Council Chamber, 2nd Floor, City Hall, 121 North LaSalle Street - Chicago, IL 60602
- Status: Scheduled & Published
- Committee: [Committee on Finance](https://www.chicagopolitics.org/committee/finance)
- Video: https://vimeo.com/showcase/8928482/video/1088508794
- Transcript: [full text](https://www.chicagopolitics.org/files/transcripts/1088508794.txt) (30,999 words, official captions)

## Meeting notes

> AI-written from the transcript. Speakers are inferred from cues in the recording, so treat names as estimates and check the video at the linked time.

The Committee on Finance, chaired by Alderperson Pat Dowell, held a subject matter hearing on a resolution introduced by Alderperson Anthony Beale and 32 others on the impact of recent credit rating agency downgrades; no votes were taken. Five public commenters spoke, several of them rideshare drivers urging support for the Fair Share ordinance. Three outside witnesses invited by Alderperson Anthony Beale and the city's CFO and finance staff described how pension liabilities and reliance on one-time budget measures drive the city's general obligation ratings, with S&P and Kroll downgrades in January and a negative outlook from Fitch, and the CFO said a structurally balanced 2026 budget and continued advance pension payments are key. Members debated rising borrowing costs, whether the administration had told council the 2025 budget would avoid a downgrade, responsibility for the final budget, borrowing for operations, cuts and efficiencies, Springfield revenue, and the credentials of a witness. A second resolution by Alderperson Gilbert Villegas on preserving the tax-exempt status of municipal bonds was postponed to another day.

Topics: credit rating downgrades, structural budget deficit, pension liabilities, borrowing costs, one-time budget measures, 2026 budget, property tax, cuts and efficiencies, Fair Share ordinance, public comment

### Agenda items discussed

- [18:09](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=1089) Public comment: discussed
- [32:41](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=1961) Subject matter hearing on resolution regarding impacts of recent credit rating agency downgrades (Alderperson Anthony Beale): discussed
- [2:28:18](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=8898) Resolution calling on Congress to preserve tax-exempt status of municipal bonds (Alderperson Gilbert Villegas): deferred

### Alderpersons who spoke

- [Pat Dowell](https://www.chicagopolitics.org/ward/3) (chair): Said the outside witness was not a municipal finance expert and could not opine on whether a property tax increase is necessary. ([1:36:56](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=5816)); Told Alderperson Anthony Beale the budget director had answered his question and asked him to move on. ([1:49:14](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=6554)); Said balancing revenue and efficiencies will be needed later in the year. ([2:01:20](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=7280))
- [Anthony Beale](https://www.chicagopolitics.org/ward/9) (alderperson): Said the hearing would inform the public about the impact of downgrades and called for the council to have its own financial analysis office. ([34:07](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=2047)); Asked the outside witness about the city's borrowing condition and whether another downgrade is likely. ([1:37:36](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=5856)); Said council understood the 2025 budget would not lead to a downgrade and that council rejected the proposed budget because it sought cuts before property taxes. ([1:38:57](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=5937))
- [William Conway](https://www.chicagopolitics.org/ward/34) (alderperson): Estimated that a 70 basis point increase on $830 million of 30-year debt would cost taxpayers over $130 million. ([1:18:38](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=4718)); Cited the CFO's earlier statements that bond issuance and the budget would not affect ratings and asked her to respond. ([1:19:52](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=4792)); Said the concern was the backloaded structure of the debt and asked the CFO to concede downgrades raise borrowing costs. ([1:24:57](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=5097))
- [David H. Moore](https://www.chicagopolitics.org/ward/17) (alderperson): Asked the outside witness whether he disagreed with anything in the CFO's presentation and what efficiencies he recommended. ([1:31:29](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=5489)); Said past administrations should have raised property taxes more consistently and asked whether the budget could be balanced without a property tax increase. ([1:35:20](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=5720)); Asked through a point of information whether the city borrows for operations, saying he had trusted the budget director's statement. ([2:50:07](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=10207))
- [Michael D. Rodriguez](https://www.chicagopolitics.org/ward/22) (alderperson): Asked the CFO and a witness about their professional backgrounds. ([1:53:28](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=6808)); Asked for an analysis of lost pension contributions from the 6.5 percent drop in city positions and said cutting FTEs means fewer workers paying into pensions. ([1:55:14](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=6914)); Said the downgrade was not caused by the infrastructure bond and that advance pension payments and reserves are critical. ([1:59:02](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=7142))
- [Daniel La Spata](https://www.chicagopolitics.org/ward/1) (alderperson): Asked the outside witness about his experience with municipal finance and bond transactions. ([2:01:49](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=7309)); Asked about credit default swaps on Chicago debt and whether the witness trades them, and asked whether ethics rules bar officials from holding such swaps. ([2:04:42](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=7482)); Said cuts are not rhetorical, blame for the budget is shared, and credited the budget director's team for proposing structural solutions. ([2:08:14](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=7694))
- [Raymond A. Lopez](https://www.chicagopolitics.org/ward/15) (alderperson): Raised a point of information objecting to members questioning the expert witness's resume. ([2:03:10](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=7390)); Said the budget passed 27 to 23 and that members who opposed it warned of structural imbalance, adding he felt council was being deceived. ([2:39:26](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=9566)); Asked why the city did not cap pay increases for exempt employees it controls. ([2:43:00](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=9780))
- [Scott Waguespack](https://www.chicagopolitics.org/ward/32) (alderperson): Defended the outside witness and said a Loop Capital witness did not disclose the firm's underwriting role on the city's recent bond deal. ([2:10:03](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=7803)); Said the city is behind partly due to management and the mayor's late efforts in Springfield. ([2:11:42](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=7902)); Asked the CFO how rating agencies weight each credit factor and requested the breakdown through the chair. ([2:12:14](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=7934))
- [Walter R. Burnett](https://www.chicagopolitics.org/ward/27) (alderperson): Thanked the witnesses and asked the administration to explain how proposed property tax increases related to avoiding downgrades. ([2:29:03](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=8943)); Asked the outside witness about his relationship with the state comptroller and whether his testimony was political. ([2:34:46](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=9286)); Asked whether the originally proposed mix of cuts and tax increases would have been viewed favorably by markets. ([2:37:39](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=9459))
- [Brendan Reilly](https://www.chicagopolitics.org/ward/42) (alderperson): Said the presentation's timeline shifted blame to council while the budget was passed by the mayor and his allies 27 to 23. ([2:55:37](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=10537)); Read statements from the budget director and CFO praising the 2025 budget after it passed. ([2:57:30](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=10650)); Asked about exemptions from the mayor's hiring freeze and how much of the $830 million bond had been issued. ([3:00:01](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=10801))
- [Andre Vasquez Jr.](https://www.chicagopolitics.org/ward/40) (alderperson): Asked what the 80 percent structural figure in the proposed budget included. ([3:08:47](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=11327)); Said colleagues presented spending ultimatums rather than specific efficiencies, while council also was not engaged on revenue. ([3:09:23](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=11363)); Said the downgrade reflects a dysfunctional budget process rather than borrowing, citing removal of the CPI property tax adjustment. ([3:10:59](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=11459))
- [Gilbert Villegas](https://www.chicagopolitics.org/ward/36) (alderperson): Asked whether enterprise funds or water bonds pay for employees, to clarify whether bond funds are used for operations. ([3:15:14](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=11714))
- [Jason C. Ervin](https://www.chicagopolitics.org/ward/28) (alderperson): Asked whether structural budget solutions and pensions are the main rating drivers and what path would lead to a higher rating. ([3:19:42](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=11982)); Asked the CFO's view on pension obligation bonds. ([3:23:40](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=12220)); Said the information will help the council make rational decisions in upcoming budget deliberations. ([3:25:51](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=12351))

### Exchanges between members

- [1:39:04](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=5944) Alderperson Anthony Beale followed up on Alderperson William Conway question about the CFO's prior statements.
- [1:49:14](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=6554) The chair told Alderperson Anthony Beale the budget director had answered his question.
- [1:51:52](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=6712) The chair urged Alderperson Anthony Beale to continue with his remaining questions.
- [2:01:20](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=7280) The chair thanked Alderperson Michael D. Rodriguez and said she hoped he would help with efficiencies later in the year.
- [2:03:10](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=7390) Alderperson Raymond A. Lopez raised a point of information asking the chair whether members would question every witness's resume.
- [2:03:41](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=7421) Alderperson Daniel La Spata noted Alderperson Michael D. Rodriguez had asked other witnesses the same background questions.
- [2:30:19](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=9019) Alderperson Walter R. Burnett referred to Alderperson David H. Moore remark about voting for a property tax increase.
- [2:38:42](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=9522) Alderperson Brendan Reilly yielded his turn to Alderperson Raymond A. Lopez.
- [2:49:53](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=10193) The chair asked Alderperson Raymond A. Lopez whether he had other questions given the late hour.
- [2:50:11](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=10211) Alderperson David H. Moore raised a point of information on Alderperson Raymond A. Lopez claim that the city borrows for operations.
- [2:56:02](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=10562) Alderperson Brendan Reilly echoed Alderperson Raymond A. Lopez point that the budget passed 27 to 23.
- [2:59:59](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=10799) The chair asked Alderperson Brendan Reilly whether he had a question.
- [3:08:08](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=11288) The chair called Alderperson Brendan Reilly closing point fair.
- [3:08:20](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=11300) Alderperson Andre Vasquez Jr. said Alderperson Brendan Reilly raised valid points and that he also did not support the budget.
- [3:10:49](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=11449) The chair told Alderperson Andre Vasquez Jr. the discussion was getting off topic.
- [3:14:54](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=11694) The chair agreed with Alderperson Andre Vasquez Jr. point and said members will get data.
- [3:26:30](https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A?t=12390) The chair added to Alderperson Jason C. Ervin question about reaching a higher rating.

## Documents

- [Summary](https://www.chicagopolitics.org/files/clerk/meetingattachmentspublic/2180329a-7d76-408b-9420-fb69a3f39c1d.pdf)
- [Notice](https://www.chicagopolitics.org/files/clerk/meetingattachmentspublic/81842d8a-84c7-4e0c-aa76-d6d8ca63dd33.pdf)
- [Agenda](https://www.chicagopolitics.org/files/clerk/meetingattachmentspublic/39061959-86d5-4b8f-8d4e-2f95be0141e5.pdf)

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Source: https://www.chicagopolitics.org/meeting/C6F107B9-FD2F-F011-8C4D-001DD806CB3A · Chicago Politics, an independent, nonpartisan tracker of the Chicago City Council. Guide for agents: https://www.chicagopolitics.org/llms.txt