A $1.25 billion bond plan championed by Mayor Brandon Johnson stalled Monday as pushback from aldermen prompted the fundraising effort to be held in committee.
The plan was scheduled to face a Finance Committee vote, but chair Ald. Pat Dowell, 3rd, tabled the measure after Ald. Bill Conway, 34th, tried to force major revisions. Conway’s effort to cut the deal’s size and require more council oversight of spending failed, but signaled challenges ahead for the ambitious bond plan.
Conway proposed the bond be cut from $1.25 billion to $350 million. He also proposed expenditures larger than $1 million require the City Council’s approval — a sharp reduction from the current $5 million threshold. Conway’s proposed revision fell 18-13, but the effort led Dowell to call the committee into recess before returning and announcing the legislation would be held.
“I think that there’s a lot of rebuilding of trust that needs to be done between not only this council and the mayor’s office, but also the citizens and city government,” Conway said after the meeting. “Doing this in a smaller way at first will help us rebuild that trust.”
Dowell plans to hold another Finance Committee meeting Wednesday at 9:15 a.m. just before the full City Council meets at 10 a.m. She might bring the measure up for another vote then, she said, meaning the high-stakes bond project could still advance from committee and be passed by the full council this week.
Johnson’s proposal has already undergone significant changes in a winding path through City Hall. After first being sent to Rules Committee by opponents who wanted to slow its progress, the borrowing plan was the subject of two recent special subject matter hearings.
In one such hearing last Thursday, aldermen discussed revisions made to the plan aimed at adding accountability — and building council support. The changes proposed by Johnson’s administration include a new requirement that the City Council approve expenditures greater than $5 million, heightened transparency on project selection and more frequent public reports.
The bond plan seeks to raise money to be spent on housing, job growth and cultural projects over the course of five years. The city would pay off $2.4 billion in accumulated debt through 2061 by using property tax revenues that would become available thanks to expiring tax increment financing, or TIF, districts.
Dowell appeared caught off guard by the pushback the plan faced Monday when just moments after telling aldermen it would be held she added that she wasn’t sure if it would come up for a vote later in the meeting or on another day.
“We haven’t decided yet, but it will probably be another day,” she said.
After the meeting ended, Dowell said she decided to hold the legislation so the committee could further consider where the threshold for council approval on expenditures should be set. However, she does not plan to consider whether or not the total bond amount should change, she added.
“This is the first that I’m hearing today about lowering the amount,” she said of the $350 million proposal. “That’s ridiculous. That’s not enough money to support the affordable housing and economic development needs we have.”
Conway later said the lower amount would give the city flexibility to raise more in the future. It would force Johnson’s administration to work closer with the council and make changes where needed, he added.
“I’m very concerned about the fragile fiscal health of the city,” Conway said. “By doing this ordinance in its current size, it will limit our ability to use TIF surplus to help the budget in the future.”
The Finance Committee also approved three legal settlements between Chicago and people suing the city. The settlements, totaling around $1.2 million, will face a final vote Wednesday.
The deals included $750,000 for Bryan Mejia, who alleged police brutality left him with a torn ACL and broken tibial plateau during protests shortly after Minneapolis police murdered George Floyd in May 2020. Meija alleged a Chicago officer called him a racial slur after hitting and injuring him.
jsheridan@chicagotribune.com
