EMANUEL GETS GREENLIGHT FOR REFINANCING

Mayor Rahm Emanuel got the go- ahead Monday to save up to $ 60 million by refinancing $ 400 million in water revenue bonds at reduced interest rates.

At the same time, the CityCouncil’s Finance Committee authorized the Emanuel administration to enter into Illinois Environmental Protection Agency loans for an amount not to exceed $ 450 million.

“The IEPA loans provide lowcost funding for water capital projects, including water meter installation, replacement of aging water mains and improvements to the department’s water purification plants and pumping stations,” Chief Financial Officer Carole Brown told aldermen. “This is a continuation of the capital improvement plan that we’ve been implementing since 2012.”

After taking office, Emanuel doubled water rates over a fouryear period — followed by annual increases to match the cost of living — to rebuild Chicago’s crumbling water and sewer system.

That water bill has since become a catchall for two other fees: the $ 9.50- a- month garbage fee and 29.5 percent utility tax for pensions.

Under questioning from aldermen, Brown said she anticipates saving $ 60 million or 15 percent on the $ 400 million refinancing.

There’s also plenty of savings associated with the IEPA loans, which are “part of a revolving fund” that the city draws down as needed for individual projects.

“The rate on those loans has been historically about 1.7 percent. It’s much lower than what we would get by doing long- term bonds,” she said.

Ald. Anthony Beale ( 9th) questioned why the city is refinancing $ 400 million in water revenue bonds when it still has “$ 50 million in uncollected debt from our suburban friends.”