# Johnson asks to borrow $480 million for police misconduct settlements. Here's what the bond ordinance allows

*Up to $480 million in 10-year bonds, backed by a property tax levy capped at $125 million a year. It follows the $260.8 million Guevara settlement and the failed 30-vote debt rule.*

By Chicago Politics · Updated Oct 23, 2026

Mayor Brandon Johnson wants the City to borrow up to $480 million to pay for police misconduct settlements and court judgments. The request came with his 2027 budget on Oct. 21, one week after the City Council approved the largest of those settlements and kept the Mayor's veto of a stricter rule for City borrowing.

Why it matters: borrowing spreads the cost of today's settlements over years of bond payments, with interest. The ordinance pledges a property tax levy to repay the bonds if other money does not cover them.

## What the borrowing would pay for

[Block Club Chicago reported](https://blockclubchicago.org/2026/10/21/mayor-proposes-corporate-head-tax-package-tax-in-17-6-billion-budget/) the $480 million breaks down roughly like this:

- **$260 million** for the global settlement of 16 lawsuits tied to former police detective Reynaldo Guevara, to be paid in 2027 and 2028;
- **$120 million** for settlements reached in 2026;
- **$100 million** for other expected settlements.

Block Club also reported that the 2027 operating budget sets aside about $132 million for settlements and judgments, separate from the borrowing.

In his budget address, Johnson said settling now "will save Chicago between $300 to $400 million compared to extended litigation" ([watch at 1:21:54](https://www.chicagopolitics.org/meeting/6AE8B3E3-86C9-F111-AAAE-001DD80FDA55?t=4914)).

## What the ordinance says

The [general obligation bond ordinance](https://www.chicagopolitics.org/matter/O2026-0029650-issuance-general-obligation-bonds-general-obligation) (O2026-0029650) is in the Committee on Finance. According to [its text](https://www.chicagopolitics.org/files/clerk/matterattachmentspublic/5e7f6ac6-e6d5-46c5-943d-4551869d5712.pdf):

- Bonds may be issued in one or more series up to **$480 million** to fund judgments against the City and settlements the City must pay to resolve claims, plus costs of issuing the bonds.
- Each series must be repaid within **10 years**, at an interest rate of no more than **12%** a year.
- A property tax is levied to pay the bonds, capped at **$125 million** in any one year. Money collected beyond what the bonds need can be spent for other purposes the Council sets, or abated.
- That levy is excluded from the City's property tax limitation ordinance, which otherwise caps the overall levy.
- City finance officials decide when and how much to sell, within those limits.

The ordinance also rewrites Section 2-32-130 of the Municipal Code, according to [Exhibit A](https://www.chicagopolitics.org/files/clerk/matterattachmentspublic/d81fb6fe-5fde-4ced-b030-fbf6b0f8240e.pdf). The CFO or Comptroller would have to send the Committee on Finance a quarterly report on bonds, and post it online, listing interest rates, underwriters and advisors, issuance costs, ratings, risks and how bond proceeds are being used by project and department.

## What our records add

**The settlement vote was unanimous.** The Council approved the [16 Guevara settlements](https://www.chicagopolitics.org/matter/Or2026-0029301-settlement-agreement-regarding-16-cases-regarding), $260.8 million, 49 to 0 on Oct. 14. [Our story on that vote](https://www.chicagopolitics.org/on-my-block/guevara-wrongful-conviction-settlements-260-million) covers what the Law Department told the Finance Committee about the City's exposure at trial.

**The 30-vote rule failed by one.** On the same day, an override of Johnson's veto of an ordinance that would have required 30 votes, not 26, to approve City debt got 33 votes, one short of the 34 needed, as [WTTW reported](https://news.wttw.com/2026/10/14/city-council-fails-override-mayor-s-veto-plan-require-30-city-council-votes-take-new). [Our story](https://www.chicagopolitics.org/on-my-block/city-council-30-votes-to-borrow) has the roll call. That means this bond ordinance needs a simple majority.

**Last year's borrowing passed 39 to 11.** The [2026-2027 General Obligation Borrowing Ordinance](https://www.chicagopolitics.org/matter/O2025-0021097-issuance-general-obligation-bonds-capital-projects) passed on Dec. 19, 2025, and covered capital projects and other purposes, including settlement costs, according to our summary of the ordinance. The 11 no votes were La Spata (1), Taylor (20), Conway (34), Vasquez (40), Reilly (42), Knudsen (43), Lawson (44), Clay (46), Martin (47), Manaa-Hoppenworth (48) and Hadden (49).

How each ward voted: [O2025-0021097](https://www.chicagopolitics.org/matter/O2025-0021097-issuance-general-obligation-bonds-capital-projects)

The no votes came from both sides of that day's budget vote: Conway, Reilly, Knudsen and Lawson voted for the Council's [alternative revenue plan](https://www.chicagopolitics.org/matter/SO2025-0021719-titles-1-3-4-7-8), while La Spata, Taylor, Clay, Martin, Manaa-Hoppenworth and Hadden voted against it.

## What's next

The bond ordinance will be heard in the [Committee on Finance](https://www.chicagopolitics.org/committee/finance), chaired by Ald. Pat Dowell (3rd), which next meets [Nov. 16](https://www.chicagopolitics.org/meeting/7F0B31CB-9CC9-F111-AAAE-001DD80FDA55). Budget Committee department hearings continue through Nov. 10. The Council's [public hearing on the budget](https://www.chicagopolitics.org/matter/R2026-0029546-time-fixed-public-hearing-2027-executive) is Dec. 8, and Council meetings are scheduled for Dec. 8 and 9.


## Legislation in this story

- [Issuance of general obligation bonds for capital projects and other purposes (2026-2027 General Obligation Borrowing Ordinance)](https://www.chicagopolitics.org/matter/O2025-0021097-issuance-general-obligation-bonds-capital-projects) (O2025-0021097)

## Sources

1. City Clerk: [O2025-0021097: Issuance of general obligation bonds for capital projects and other purposes (2026-2027 General Obligation Borrowing Ordinance)](https://chicityclerkelms.chicago.gov/Matter/?matterId=8C91FEA9-BCC1-F011-BBD2-001DD80C033C)
2. City Clerk: [O2025-0021097, Legislation: O2025-0021097 SIGNED BY MAYOR.pdf](https://occprodstoragev1.blob.core.usgovcloudapi.net/matterattachmentspublic/215116f0-0a6a-4973-8f79-3816bba92749.pdf)
3. City Clerk: [O2025-0021097, Miscellaneous: O2025-0021097 Transmittal.pdf](https://occprodstoragev1.blob.core.usgovcloudapi.net/matterattachmentspublic/2be3722b-b86c-432d-87ff-dfd4d2f1f9ee.pdf)
4. City Clerk: [O2025-0021097, Legislation: O2025-0021097 Revised GO Borrowing Ord clean.pdf](https://occprodstoragev1.blob.core.usgovcloudapi.net/matterattachmentspublic/4909119d-a76e-4318-85e3-0443c7f9a9e7.pdf)
5. City Clerk: [O2025-0021097, Exhibits: O2025-0021097 Exhibit A.pdf](https://occprodstoragev1.blob.core.usgovcloudapi.net/matterattachmentspublic/67f38d68-9c79-4af4-bd17-4c93a554d9c1.pdf)
6. City of Chicago: [City Council, Dec 19, 2025: meeting video](https://vimeo.com/1147756540)
7. City Clerk: [City Council, Dec 19, 2025: Agenda](https://occprodstoragev1.blob.core.usgovcloudapi.net/meetingattachmentspublic/53e4dd02-fec2-4762-b368-34b24a23eaca.pdf)
8. City Clerk: [City Council, Dec 19, 2025: Notice](https://occprodstoragev1.blob.core.usgovcloudapi.net/meetingattachmentspublic/f47bf8a5-b0da-f011-8543-001dd80c6da5.pdf)
9. Block Club Chicago: [Block Club Chicago reported](https://blockclubchicago.org/2026/10/21/mayor-proposes-corporate-head-tax-package-tax-in-17-6-billion-budget/)
10. WTTW: [WTTW reported](https://news.wttw.com/2026/10/14/city-council-fails-override-mayor-s-veto-plan-require-30-city-council-votes-take-new)
11. Chicago Politics: [O2025-0021097: votes, timeline and summary](https://www.chicagopolitics.org/matter/O2025-0021097-issuance-general-obligation-bonds-capital-projects)
12. Chicago Politics: [City Council, Dec 19, 2025: transcript](https://www.chicagopolitics.org/files/transcripts/1147756540.txt)

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Source: https://www.chicagopolitics.org/on-my-block/chicago-480-million-police-settlement-borrowing-2027 · Chicago Politics, an independent tracker of the Chicago City Council. Guide for agents: https://www.chicagopolitics.org/llms.txt