CHICAGO -- Mayor Richard Daley of Chicago yesterday announced a $220 million bonding program, mainly for road and sewer work.
The mayor's plan calls for issuing $160 million of general obligation bonds for roads and other infrastructure projects. The rest, $60 million of revenue bonds, will be used to build 26 miles of new sewers and for other sewer-related projects.
The general obligation sale will be only the second for city infrastructure improvements since 1985. Last year, Chicago sold $150 million of GOs.
John Holden, a spokesman for Chicago's finance department, said that the bond issues will be submitted for city council approval, along with the mayor's proposed fiscal 1994 budget, which is scheduled to be unveiled today.
Chicago's fiscal year begins Jan. 1.
Holden said that if approved, the bond issues would be sold by the end of the year. Underwriters for the issues are expected to be picked next week, he said.
Daley proposed raising sewer fees an average of $4 a year per household to pay debt service on the revenue bonds. The mayor plans to retire the GO bonds with existing property tax revenues.
"We will not have to raise property taxes," Daley said in a statement. "The only thing we're raising is the quality of life in our neighborhoods."
