City Council passed Mayor Brandon Johnson’s $830 million infrastructure bond program
The Chicago City Council nearly competed in a $830 million infrastructure bond program backed by Mayor Brandon Johnson on Wednesday.
After the Johnson administration proposed a clearer version of the spending guardrail, Aldermen approved the plan in 26 to 23 votes a day. Although opponents view the debt program as financially irresponsible, the mayor’s allies defended it as a typical and crucial way to fund basic infrastructure efforts.
“We have no mortgage on the future of our children. We are building the roads they will use.” Ald. third place Pat Dowell said.
The already tense controversy over bond sales began a tough start on Wednesday, when Johnson initially voted before Alderman had a chance to speak. Amid the opposition-caused uproar, the mayor reversed the course after a moment. Johnson said the vote was made mistakes and stopped it to allow debate “as courtesy.”
Over the past two weeks, the intense debate on Wednesday has gained momentum in a series of duel albums and online jabs. On the forum, Ald. Bill Conway, 34, called the plan “a way to kick cans into brick walls”, while City Council Finance Committee Chairman Dowell defended it as responsible and was accused of opposing opponents of “political grandeur”.
Critics allegedly bond income could be used to balance Chicago public schools’ budgets, an idea that Johnson repeatedly rejected. The plans he proposed on Wednesday included revised language clarifications that would not be used for purposes other than infrastructure repairs and upgrades.
But Johnson’s rivals remain questioned about Wednesday’s bond plan size and “postload” repayment schedule, which shared with municipal bond experts and the forum about credit impact.
“If you find yourself in a hole, the first thing you have to do is stop digging,” Conway said. “We can fund important projects and invest in Chicago, but we don’t have to mortgage the future of our kids and don’t have to do that with reckless debt.”
As part of the plan, the city will not pay interest until 2027 and will not pay principal until 2045. By the 2055 debt maturity date, the cost of principal will increase from $27 million to about $129 million. The total repayment cost for the bond is estimated to be $2 billion.
The plan was to vote last week at ALD. Anthony Beale, 9, used legislative maneuvers to force delays. Johnson’s team quickly arranged another meeting to finally pass. But that still faces a strong headwind on Wednesday: Johnson had to make a rare tiebreak vote after Aldermen’s motion to push the last vote to May, 25-25.
Alder. Andre Vasquez, 40, voted for the delay, but later joined the majority to pass the bond program. Vasquez said that while many mayoral allies imposed debt plans as standard city financing practices, it sparked heated debate in part because of Johnson’s lack of trust.
“Trust and confidence aren’t here to perform standard operating procedures or easier lifts,” Vasquez said. “Trust doesn’t exist. I think the public knows that, the council knows that. The mayor needs to know.”
Conway shared his plan with Aldermen on Tuesday, with the total bonds totaling about $500 million, while ALD shared his plan. Timmy Knudsen, 43, proposed an alternative ordinance this week to speed up repayment schedules and cut interest payments.
Still, Johnson sticks to his plan for the size of his bonds and timeline, even as half of the parliament support postponing the vote.
“The way we’ve done our debt in the city for a long time has brought us into where we are now,” Ald. Nicole Lee, 11, said. “I think it requires extra conversation.”
Johnson’s allies said it would be financially irresponsible not to assume debt to improve the city’s infrastructure. The bond is a “quality of life issue” and one day it may one day be refinancing under better conditions. Walter Burnett argued.
“Delayed maintenance will cost more,” Burnett said. “Potholes will grow, vacant buildings will catch fire, light poles will fall, and the bridges may deteriorate and cannot be repaired.”
According to city finance officials, approximately $108 million in bond revenue will be used for “menu” projects determined by each Alderman and supplementary work of the City Transport Department; an additional $99 million will replace or repair the bridge; $157.5 million will be used for new streetscapes and safety improvements, with up to 150 intersections most common; $74 million will be updated with urban buildings, including fire houses and buildings damaged by fires; $65 million will replace city cars, install new speed cameras and provide new equipment for firefighters.
Another $100 million will help replace lead service lines, $102 million will repave residential and arterial streets and create 50 “green” alleys to help mitigate flooding.
