Pay As You Go Revenue and Expenditure System
I will reduce the City of Chicago debt service by transitioning Chicago from the current “Debt to Fund Services” revenue and expenditure system into a “Pay As You Go” revenue and expenditure system.
This debt to fund Services system, which is like using your credit card to pay rent, is too reliant upon Municipal Bonds that result in an obligation to pay interest. When this six-year (6 year) transition is complete, the city of Chicago will save more than a Billion dollars ($1,000,000,000) in interest, annually.
Additionally, this will result in the city of Chicago having a constant reserve fund and ultimately encourage the bond rating agencies to increase the City’s weakening Bond Rating.