CHICAGO (AP) - The Chicago City Council has voted to borrow up to $1.1 billion to complete a debt restructuring plan and pay off short-term debt. The aldermen's action Wednesday is part of an effort to stabilize the city's finances and improve the rating of its bonds, which have been downgraded. Moody's Investors Service's downgrading of Chicago's creditworthiness to junk status has given banks the right to call in the city's debt. Chief Financial Officer Carole Brown told the aldermen there was no alternative to borrowing now that the $30 billion pension crisis and an Illinois Supreme Court ruling overturning state pension reforms has hurt Chicago's bond rating. Brown says Chicago could have faced paying nearly $2.2 billion to bankers under a series of complex deals dating back to the Richard M. Daley administration.
Chicago City Council authorizes big borrowing
