S&P: Chicago, IL GO Bond Rating Outlook Revised To Stable From Negative On Water/Sewer Tax Approval
"The outlook revision reflects our view of the Chicago city council's recent approval of a new water/sewer tax, which supports larger contributions into its poorly funded municipal employees' pension plan," said S&P Global Ratings credit analyst Helen Samuelson. "We view this as a positive step to address the city's underfunded pensions," Ms. Samuelson added.
The revenues generated by the new tax on water-sewer bills, together with increased contributions from new hires, and supplemented by corporate fund and other enterprise fund contributions, will be transferred to the general fund to cover the planned increased contributions to the city's municipal pension plan over the next five years.
We consider Chicago's economy strong. The city, with an estimated population of 2.7 million, is located in Cook County in the Chicago-Naperville-Elgin, IL-IN-WI MSA, which we consider to be broad and diverse.
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