Chicago may sell even more than $10 billion in pension obligation bonds if there’s enough available city revenue to support it, and a final decision will be made as soon as next week, aldermen were told Thursday. Chief Financial Officer Carole Brown “took the temperature” of the City Council on what would be the largest pension bond ever attempted by a municipality and found it to be “lukewarm,” as Hispanic Caucus Chairman Gilbert Villegas (36th) put it. Aldermen emerged from closed-door briefings with the same questions asked by municipal finance experts. If it’s such a great idea to issue billions in pension bonds to minimize the need for post-election tax increases, why did pension bonds default in Detroit, California and Puerto Rico? What specific city revenue would be used to back the bonds now that Mayor Rahm Emanuel has isolated sales tax revenue in a special fund and used that “securitization” structure to refinance $3 billion in … [Read more...] about Aldermen ‘lukewarm’ as they are briefed that pension borrowing could top $10B
Chicago’s chief financial officer will sound out aldermen Thursday on the possibility of issuing $10 billion in pension obligation bonds amid widespread skepticism from municipal finance experts about Mayor Rahm Emanuel’s plan. Mayoral challenger Paul Vallas has urged the City Council to stop that train from leaving the station to avoid putting Chicago taxpayers in a “financial straightjacket” — though CFO Carole Brown has insisted no final decision has been made. Richard Ciccarone, president of Chicago-based Merritt Research Services LLC, shares Vallas’ skeptical view. He called the plan to minimize the need for another punishing round of post-election tax increases “not the solution I wanted to see” from Chicago. Not even after dedicated funding sources have now identified for all four city employee pension funds. “We just cannot continue to defer this problem to future generations. You have to step up in taxes and revenues to … [Read more...] about Amid skepticism, aldermen to be briefed on $10 billion pension borrowing plan
Arlington Heights trustees Monday authorized borrowing nearly $10 million to help pay for infrastructure projects aimed at alleviating flooding throughout the village. The funds -- available through a $9.9 million bond issuance at a 3.31 percent interest rate -- will be used to fund stormwater control measures identified following a massive July 2011 storm. First up on the list is the $5.8 million project to increase the capacity of an existing stormwater detention basin on the northwest corner of Arlington Heights Road and Cypress Street. Engineering and design for the work began last month, with construction expected to run into late 2019 or early 2020.The village also plans to spend $2.1 million to install larger sewer mains in the downtown area to reduce street and surface flooding. A $3.1 million project calls for larger storm pipes and more storage in the Greenbrier Park neighborhood. Some $700,000 also is budgeted for drainage improvements at Orchard Street and Burton Place … [Read more...] about Arlington Heights borrows $10 million for flooding fixes
Chris Clark and Jim Heffner are making plans in their dream home. It's a place they might not have been able to buy without an emergency loan from Clark's 401K retirement plan. "Borrowing against the 401K seemed to be best option that we had," Clark said. Clark and Heffner moved from Arizona. Their money was tied up in property there. The loan allowed them to buy a home in Florida without selling the Arizona house right away. Heffner, who is a realtor, said he sees his clients do it as well. "We personally didn't feel like it was a real risk in doing it," Heffner said. Sometimes it's ok Financial adviser Eric Klaus said despite the myths, sometimes it's OK for people to consider dipping into their 401K savings. "You can only take 50 percent of your vested balance, or $50,000," said Klaus, President and owner of Klaus Financial Group. "It's a great opportunity for the right situation." An example might be paying your child's college tuition in May when you're expecting a big … [Read more...] about Consumer Wise: Borrowing from your 401K OK?
Amrita Jayakumar NerdWallet Published 10:00 p.m. UTC Aug 19, 2018 When was the last time you heard someone raving about their lender? If it's been a while, there may be a good reason for that: Predatory lending practices do exist. But if you know what to look for, it's possible to find a bank, credit union or online company you can trust. Here are the attributes of a lender that won't rip you off: Clarity. Does the company drown you in financial jargon, or does it explain things in plain English? A good lender clearly spells out how to qualify, what the loan terms are, how the application process works and what happens if you run into trouble making payments. If you encounter a confusing website or a vague customer service representative, that’s a red flag. Transparency. Do you need detective skills to hunt down the cost of your loan? “A good, honest product will tell you what the cost is going to be,” says Lauren Saunders, associate director at the … [Read more...] about Do you trust your lender? How to borrow money without being bamboozled