Tuesday, April 24, 2012

Tell your alderman to vote ‘no’ on the Infrastructure Trust Tuesday

Valerie Leonard via Austin Talks.  No excuses for anyone night seeing this trainwreck coming.

Tell your alderman to vote ‘no’ for the Infrastructure Trust at Tuesday’s 10 a.m. special Chicago City Council meeting.

The deal effectively transfers oversight of financing from the city to a nonprofit organization. The nonprofit is not subject to the same disclosures, open meetings and oversight as conventional general obligation bond financings orchestrated by the City of Chicago would be.

The city would be on the hook for all the expenses and liabilities of the deal, while the nonprofit trust and financing companies would control the terms and reap the financial benefits. The long-term contracts will result in higher financing costs than the city could obtain under a general obligation deal. It’s not like the city has a poor credit rating and has to settle for higher interest rates.

Tell your alderman to vote ‘no’ on the Infrastructure Trust Tuesday — AustinTalks

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