City Council November 13, 2019
Ordinance Chicago Municipal Banking Act
WHEREAS, the City of Chicago (the "City") is a home rule unit of local government under Article VII, Section 6(a) ofthe 1970 Constitution ofthe State of Illinois; and,
WHEREAS, the City may regulate for the protection of the public health, safety, morals and welfare; license; tax; and incur debt; and,
WEHERAS, the Illinois Banking Act outlines the powers to bank, as well as the process to incorporate and operate a bank; and,
WHEREAS, the Illinois General Assembly filed HB0454, otherwise known the Community Banking Act, to expand banking powers to include a public banking entity; and,
WHEREAS, public banking efforts are occurring across the United States, including California, where public banking was recently legalized; and,
WHEREAS, the City has unique banking and debt issuance needs in order to effectively provide infrastructure and services to its residents and businesses; and,
WHEREAS, maintaining the public health, safety, morals and welfare ofthe City requires robust financial investment, economic policy, and planning efforts; and,
WHEREAS, the City has a budgeting revenue base of more than $10 billion, which provides substantial deposits for a banking institution; and,
WHEREAS, 2020 Budget hearings revealed that the City holds more than $800 million in reserve; and,
WHEREAS, S & P Global General Obligation Ratings (March 14, 2019) stated that Chicago has very strong liquidity, "with total government available cash at 21.1% of total governmental fund expenditures and 1.9x governmental debt service in 2017" (page 8); and,
WHEREAS, the City has substantial need to issue bonds and other debt instruments in order to maintain the public health, safety, morals and welfare; and,
WHEREAS, the residents and businesses ofthe City have a vested interest in the sound economic and financial operation ofthe City; and,
WHEREAS, the residents and businesses ofthe City have an ability for dem...
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