Chicago City Council Approves $1.1 Billion Bond Plan

The Chicago City Council on Wednesday approved with no debate Mayor Rahm Emanuel's proposal to sell 1.1 billion dollars worth of bonds to continue restructuring outstanding debt and pay other obligations. The city is repairing damage from Moody's Investors Service's downgrade last month of its credit rating to junk, even as it braces for a possible further drop in the rating as pension payment pressures mount. Chicago will use the authorization to convert short-term commercial paper into long-term fixed-rate bonds and complete the refinancing of interest rate swap agreements. The bond deal will free up 170 million dollars for the city's coffers by pushing payments on outstanding bonds into future years.