Jan. 11--Welcome to Clout Street: Morning Spin, our weekday feature to catch you up with what's going on in government and politics from Chicago to Springfield.
Topspin
It's Monday, Jan. 11, and Mayor Rahm Emanuel will ask the City Council Finance Committee to endorse plans to borrow up to $2.65 billion over the next three years to keep the city financially afloat, pay for long-term construction projects and further cull risky variable-rate borrowing deals from the city's loan portfolio.
The most controversial element is $335 million in scoop-and-toss borrowing over the next three years. The proceeds would be used to pay off loans coming due with money coming in from the new loans, a technique that pushes debt onto future generations at higher cost.
But the amount of scoop-and-toss would decline from the levels of previous years, and end with the bonds slated for issuance in 2018 -- in keeping with a pledge Emanuel made last year, city officials said.
The scoop-and-toss authorization would be part of $1.25 billion in debt that would be paid off with future property tax collections -- a type of debt that financial analysts keep their eye on to gauge a city's financial health. At the end of 2016, the overall level of that debt will have increased slightly, by $250 million, city officials said.
The rest of the property tax-backed debt would be used for long-term construction projects over the next two years and, if possible, refund existing debt to save money over the long haul.
The city also plans to borrow $700 million to convert $500 million in variable-rate water system debt to fixed-rate debt and pay a $200 million fee to terminate a related "swap contract" that provided a hedge to the original variable-rate debt.
Another $200 million in proposed borrowing would be paid off with sales taxes. Of that, up to $75 million would be used to pay for so-called menu construction projects approved by each of the city's 50 aldermen.
The rest of the borrowing would be paid off with dedicated revenue from Midway Airport and water and sewer fees. That money would be used to pay for construction projects and possibly to refund debt at lower cost.
Laurence Msall, president of the nonpartisan Civic Federation budget watchdog group, questioned the city's move to get upfront approval for such a large borrowing package at a time when the city's credit rating has descended into junk territory because of pension funding shortfalls.
"We're looking for more facts and more details" about the proposal, he said. (Hal Dardick)
What's on tap
*Mayor Rahm Emanuel has no public events.
*Gov. Bruce Rauner has no public schedule.
*Cook County Board President Toni Preckwinkle will join election officials to talk about a Martin Luther King Jr. weekend voter registration drive.
*Senate Republican leader Christine Radogno will address a City Club of Chicago lunch.
*The City Council Special Events, Cultural Affairs and Recreation Committee will consider the appointment of Jesse Ruiz to the Chicago Park District Board.
From the notebook
*Watching the aldermen: The City Council today will take a stab at resolving the long-running debate over whether the city inspector general should be given the authority to investigate aldermen.
Ald. Patrick O'Connor, 40th, Emanuel's council floor leader, has called a meeting of the Workforce Development and Audit Committee to consider two measures. One would give Inspector General Joseph Ferguson authority to probe aldermen and their staff; the other would expand the powers of the office of the legislative inspector general.
The LIG office was created five years ago after aldermen rejected Ferguson's oversight. The office, widely viewed as a toothless tiger, was led for four years by Faisal Khan. Aldermen did not care for Khan, who hailed from New York City, and he departed in November after council members decided to let his term expire.
O'Connor called the committee meeting after 27 of 50 aldermen filed the necessary paperwork to attempt to push for a full council vote Wednesday on the ordinance to give Ferguson council oversight -- something opposed by Finance Committee Chairman Edward Burke, 14th, and Budget Committee Chairman Carrie Austin, 34th.
O'Connor said last week that he was just keeping his promise to hold the meeting before Wednesday's council meeting and that some of his colleagues had grown "impatient." Ald. Michele Smith, 43rd, one of the leaders of the effort to give Ferguson oversight, all but conceded the point. "We think it's time to move" on the ordinance, she said. (Hal Dardick)
*Off days: House Speaker Michael Madigan has canceled session on Wednesday and Thursday. No reason was given, but Madigan, the 13th Ward Democratic committeeman, has to deal with the Cook County state's attorney's race this week. County party leaders will huddle Thursday to see whether they'll endorse challenger Kim Foxx over State's Attorney Anita Alvarez and challenger Donna More.
*Personnel: Lyndsey Walters, deputy press secretary for Gov. Rauner, is off to Washington, D.C., to be a national spokeswoman for the Republican National Committee.
*The Sunday Spin: Guests this week included Tribune architecture critic Blair Kamin on the Obama library, City Hall reporter Bill Ruthhart on the mayor and state Rep. Mike Zalewski on daily fantasy sports. Full show here.
What we're writing
*Democrats mull Foxx endorsement for state's attorney as Alvarez objects.
*Tunney introduces Wrigley Field plaza rules.
*State labor board to hear Chicago Teachers Union complaint.
*Feds investigate another Chicago Police Department shooting.
*Emanuel turns to Dan Webb to look at city Law Department.
What we're reading
*Obama chief of staff profile has chunks on Emanuel, Bill Daley turns.
*Chinese economy catches cold, rest of world sneezes.
*Was disavowed Rolling Stone gang rape story a product of catfishing?
Follow the money
*How much in campaign contributions was doled out in 2015? $168,256,115, according to Illinois Sunshine, which is put together by the Illinois Campaign for Political Reform. Check out more here.
*Track campaign contribution reports in real time with this Tribune Twitter account: https://twitter.com/ILCampaignCash
Beyond Chicago
*Presidential race, Republican side: NYT on fears of lasting GOP split.
*Presidential race, Democratic side: Clinton calls '90s scandals attacks "dead end" for GOP.
*WaPo looks at young Trump's military academy record.
*U.S. bomber flies over South Korea amid North Korea tension.
