Emanuel Outlines Plan to end longtime debt practices

CHICAGO (AP) — Mayor Rahm Emanuel has offered steps to phase out years-old debt practices he hopes will help improve Chicago’s financial problems.

Emanuel spoke Wednesday before business leaders of the Civic Federation. He was re-elected to a second term this month during a campaign where questions about Chicago’s finances were a key issue.

He says he wants Chicago to end “unsustainable financial practices.” That includes terminating by 2019 a repayment delay tactic, phasing out borrowing for paying out Chicago’s legal settlements, shoring up the city’s rainy day fund and converting variable-rate debt to fixed-rate securities.

Civic Federation President Laurence Msall says the steps could move Chicago in the right direction fiscally. But he says there could be penalty payments for some changes.

Emanuel didn’t provide expansive details or take questions from reporters.

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