Bloomberg reported on $164 million in municipal bonds issued by Chicago for upgrading schools. Uncle Sam will pick up 1/3 of the interest cost via the Build America Bonds program. The article provided details on the bond issue. It added:
Chicago has been fortunate to have built up some cash reserves prior to the economic downturn to draw from.
Those cash reserves came from selling public assets and their corresponding revenue streams.
Moody’s said 21.5 percent of the city’s $3.2 billion general- fund budget in 2010 largely came from reserves from the proceeds of leasing parking meters and the Chicago Skyway, an elevated highway that connects the city to Indiana.
Mayor Daley went through 75 years of parking meter proceeds in four short years. Hourly parking rates soared. Rumors have the city considering more asset sales. Area schools could be on the block. Rumored interested buyers? Corporations and the U.S. Military.
Mayoral hopeful Rahm Emanuel is just the man to do such deals. Once executed, he'll watch their back.
