Institute for Truth in Accounting - Illinois: small suburbs exploit tax loophole

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Illinois: small suburbs exploit tax loophole
Illinois has no borrowing limits for many mostly bigger cities and villages, and that has fostered risky gambles that have sent taxes skyrocketing.

(Chicago Tribune) Officials in Illinois municipalities are limited in how much they can raise property taxes and typically need voter approval for big borrowing. Yet, the latest Chicago Tribune investigation found these suburbs turning to another device — called alternate-revenue bonds — to let them borrow big. This device comes from a little-known chapter of Illinois law that lets towns borrow in a way that sidesteps voters and property tax caps.

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