Yesterday’s morning hearings moved quickly under the sharp tongue of Budget Chair Carrie Austin, although at one point Board of Ethics Director Steve Berlinsaid Aldermanic ethics were “doing OK.” The afternoon hearings were focused on three hours of questions for Public Health Commissioner Julie Morita on the city's mental health services and HIV clinics. Keeping things moving, Austin waived the testimony of department heads and went straight to aldermanic questions and answers.

Morning Attendance: Budget Chair Carrie Austin (34), Joe Moreno (1), Pat Dowell (3), Leslie Hairston (5), Roderick Sawyer (6), Gregory Mitchell (7), Michelle Harris (8), Sue Sadlowski Garza (10), Patrick Daley Thompson (11), Marty Quinn (14), Raymond Lopez (15), Toni Foulkes (16), David Moore (17), Matt O’Shea (19), Willie Cochran (20), Howard Brookins (21), Ricardo Munoz (22), Michael Scott Jr. (24), Roberto Maldonado (26), Walter Burnett Jr. (27), Jason Ervin (28), Chris Taliaferro (29), Milly Santiago (30), Ariel Reboyras (31), Scott Waguespack (32), Deb Mell (33), Gilbert Villegas (36), Emma Mitts (37), Nicholas Sposato (38), Marge Laurino (39), Anthony Napolitano (40), Brendan Reilly (42), Michele Smith (43), Tom Tunney (44), James Cappleman (46), Ameya Pawar (47), Harry Osterman (48), Joe Moore (49), Deb Silverstein (50)

BUILDINGS

Comm. Judy Frydland announced in her written testimony that city building permits issued increased by 2.2% in 2015, the highest number of permits in the last five years. As a response, the city will be adding 21 new inspectors before the end of the year. To help pay for growing department needs, permit fees are proposed to go up in the coming budget, the first building permit fee increase since 1999.

Her submitted written testimony.

The majority of aldermanic questions were either praise for the Commissioner and her staff or questions about how the department can assist their ward in one way or another. Although there were a few nuggets of information that came out during the Q&A.

Asking about the building registration program created in 2011 the Emanuel administration, Ald. Ariel Reboyras (30) asked if banks are being compliant with registration.

Frydland responded, “We have over 7,000 buildings that are currently registered this year. The banks seem to be very responsive when we hear something has been broken into… We’ve been focusing our efforts on buildings that don’t have a lender involved. A lot of times you have a building where an owner passed away and you don’t have someone who has inherited or there’s no probate involved... We’re putting those buildings into court.”

“Banks are no longer the primary problem. It’s now about getting people to stay current on their mortgages,” she said.

Ald. Sue Sadlowski Garza (10) asked about vacant buildings with large outstanding water bills, and whether there’s a way water bills could be waived so they could be sold and back on tax rolls.

Frydland responded, “We do have a plan to try to help find new developers and buildings that have demolition orders. In the next couple of weeks, we’ll be posting a list of all the demo orders on our website and we’ll be posting a procedure if someone is interested in [vacant property] so we can do a forfeiture in circuit court.”

 

FLEET AND FACILITIES MANAGEMENT

Interrupting a 41-minute light speed question and answer session, Comm. David Reynolds turned somber to apologize to aldermen for problems with landscaping.

“Our kickoff for the landscape season this year is one of the most embarrassing things I have overseen since I’ve been in this department… This was an aberration, I will not let it happen next year,” he said. Reynolds blamed contract transitions and claimed personal responsibility.

Reynolds’ submitted, written testimony.

Most of the aldermanic questions focused on what properties the city plans to sell or if there are ways to sell certain properties. But at one point, Ald. Marty Quinn (13) broke his long Council meeting silence when he asked how city properties are selected for sale for proceeds. Reynolds replied that the lots sold near 740 N. Sedgwick was “opportunistic” and unusual. For the most part, the city will continue to liquidate former fire and police stations and ward yards.

Finally, answering a question from Ald. Matt O’Shea (19) about how many police cars are in the entire police fleet, Reynolds listed:

• 424 marked sedans

• 692 unmarked sedans

• 852 marked SUVs

• 301 unmarked SUVs

Regarding Ford Interceptors, produced in the 10th Ward, the city has received 744 new vehicles, 132 on order.
 

BOARD OF ETHICS

Another brisk question and answer session, mostly focused on explaining city procedures, was marked by a brief exchange between Ald. Brendan Reilly (42) and Ethics Director Steve Berlin.

“How we doing ethically, we doing OK?” asked Ald. Reilly.

“Ethically, yes, I think we’re doing OK,” responded Berlin cheerily. “Yes we are. I am very happy to say that.”

As Ald. Walter Burnett (27) later called it, the Board of Ethics Q&A session was a “lovefest.”

Berlin’s submitted, written testimony.

Ald. Joe Moore (49), who requested extra time from the Chair to ask additional questions about Board procedure, received a sharp look from Chair Austin and, “You want a round two?”

Moore in particular drilled in on the results of investigations from the now-expired Office of the Legislative Inspector General. According to city ordinance, OLIG investigations needed to be forwarded to the Board of Ethics for review. Responding to questions from Moore, Berlin revealed that:

• 47 petitions were made by OLIG to the Board of Ethics

• 26 investigations are still underway

• 21 resulted in completed investigations

  • 8 were dismissed by the OLIG

  • 4 were dismissed by Board of Ethics for lack of probable cause

  • 2 cases were referred and are still pending

  • 7 have been completed

Berlin referred aldermen to the tally of OLIG reports on the Board’s website for more information.
 

PUBLIC HEALTH

Hammering away at the 2012 shutdown of six city-operated mental health clinics, aldermen questioned Department of Public Health Commissioner Julie Morita for more than three hours Thursday about a possible privatization of the City’s HIV care clinics and the state of CDPH’s role in city mental health.

Afternoon Attendance: Joe Moreno (1), Pat Dowell (3), Leslie Hairston (5), Roderick Sawyer (6), Gregory Mitchell (7), Sue Sadlowski Garza (10), Patrick Daley Thompson (11), Raymond Lopez (15), Toni Foulkes (16), David Moore (17), Willie Cochran (20), Michael Scott Jr. (24), Walter Burnett Jr. (27), Jason Ervin (28), Chris Taliaferro (29), Ariel Reboyras (30), Milly Santiago (31), Deb Mell (33), Gilbert Villegas (36), Emma Mitts (37), Nicholas Sposato (38), Anthony Napolitano (41), Brendan Reilly (42), Tom Tunney (44), John Arena (45) James Cappleman (46), Ameya Pawar (47), Harry Osterman (48), Joe Moore (49)

Morita, hoarse after her testimony, told Aldertrack the changes are less about privatization and more of a partnership. “I think we’re exploring an opportunity to actually partner with community service providers who provide care already,” she said after the hearing. “There’s $21.5 million that already goes to community providers to provide primary care for HIV. What we’re considering whether or not we’d take the $1.5 million that we’re using for our own primary care clinics and making it available to providers to provide care in our locations.”

Morita's full testimony.

Morita says services will continue at the city’s Englewood Clinic location, and would stay in the Uptown community, but not necessarily at the same clinic location because there are a variety of providers in the area already.

AFSCME Council 31, who WBEZ reported represents at least 17 employees at those clinics, did not respond to requests for comment after the hearing.

Through the transition, Morita says, the City can achieve a broader spectrum of care, including help with housing, case management, and substance abuse for more people than they would running clinics by themselves, and ultimately prevent the spread of HIV. She says this would increase care for 2,000 patients, 1,500 more than they’re currently serving. HIV care stakeholders have been advocating for this partnership, Morita says.

Several aldermen, including some who voted for the 2012 closures, asked what measures CDPH would take to prevent people “slipping through the cracks.” CDPH is committed to making the transition seamless, she says. Morita says during the mental health clinic transition there were no funded agencies like the AIDS Foundation of Chicago and Chicago House to specifically help with the transition.

Ald. Joe Moore (49) asked, “What are we going to do to try to address this continuing issue that besets us with respect to the mentally ill? I know we’re not being helped by state cuts,” he asked.

Morita says the city is focusing its mental health efforts on at-risk communities, including work with the Cook County Jail, homeless and undocumented populations, and school children. “We know we have limited resources, we’re looking to foundations and philanthropy…we don’t want to be duplicative, we don’t want to be redundant.”

Ald. John Arena (45) asked for more information on case managers through the chair, and Ald. Moore asked for data on the transition from CDPH clinics to private providers in 2012. Aldermen were also referred to a June 2014 Mental Services Report from CDPH.

Out of 6 clinical sites left after the closings in 2012, CDPH only has one full time psychiatrist, an issue aldermen revisited several times. The Department has been using temporary psychiatrists to fill the gaps.

“We have a job posting out,” Morita says, “It’s not just a problem specific to Chicago, it’s a national shortage.” 

Ald. Leslie Hairston (5) pushed back. “You’re nowhere near competitive,” saying state psychiatrists make $50 more per hour than in Chicago. “You all are so far below the bar that you’re not going to get anybody.”

Morita says the department is already starting to interview candidates, after several changes to make positions more appealing, including a salary increase and a new designation for Chicago health centers as Health Shortage Service Areas. This allows applicants with outstanding medical school loans to be repaid by the federal government in exchange for working in underserved areas. Morita says CDPH is also considering loosening residency requirements to get more candidates.

Aldermen also asked about whether additional tobacco taxes were on the way.

“As far as I know, there have been no fatalities linked to the use of e-cigarettes, yet, it’s real easy to get cancer from chewing tobacco. Why have we not touched that?” Ald. Brendan Reilly asked, saying the UK has recognized e-cigarettes as a way to quit smoking.

Ald. Joe Moreno (1), currently championing an ordinance taxing e-cigarette containers and liquid that’s currently included in the FY2016 budget said laws in Springfield prohibited the city from taxing smokeless tobacco. But he says now the Law Department seems to have found a way to make it happen. “I have an ordinance ready to go,” he said.  

Morita defended the e-cigarette tax, saying CDPH is focused on cutting down tobacco use by youth overall. Reilly asked whether the tax, currently set at $1.25 per cartridge and $0.25 per milliliter of liquid, is enough. Morita says yes, because “youth are more price sensitive,” but says she is open to other measures to reduce all tobacco use.

On day two of budget hearings, alderman heard details on how the 311 system would be privatized, one commissioner said city departments were ordered to make 10% across-the-board cuts, Clerk Susana Mendoza wants to create a special parking pass for Realtors, and Treasurer Kurt Summers is hoping to make money from idle cash.

Morning Attendance: Joe Moreno (1), Brian Hopkins (2), Leslie Hairston (5), Gregory Mitchell (7), Michelle Harris (8), Sue Sadlowski Garza (10), Patrick Daley Thompson (11), Marty Quinn (13), Raymond Lopez (15), David Moore (17), Derrick Curtis (18), Willie Cochran (20), Howard Brookins (21), Ricardo Munoz (22), Jason Ervin (28), Ariel Reboyras (30), Milly Santiago (31), Deb Mell (33), Carrie Austin (34), Emma Mitts (37), Nicholas Sposato (38), Anthony Napolitano (41), Brendan Reilly (42), Michele Smith (43), Tom Tunney (44), John Arena (45), James Cappleman (46), Harry Osterman (48), Joe Moore (49) 

CITY CLERK – With a statewide campaign for Comptroller around the corner, City Clerk Susana Mendoza touted her efforts to cut waste in her office by reducing overtime spending and streamlining vehicle sticker sales. The Clerk’s Office has a $10M budget and generates about $122M in revenue to the city through vehicle sticker sales. Since the City implemented year-round vehicle sticker sales this year, City Clerk locations saw an 85% reduction in wait times, according to Mendoza’s testimony.

Overtime in the City Clerk’s Council Division, the office that handles legislation and the City Council’s Journals of the Proceedings, is down 75% since Mendoza took office in 2010.



Clerk Mendoza said the department is bringing in an independent contractor to help find more efficiencies to work toward a paperless system. “Anything we can do to make our office more digital, I think is going to save a significant amount of money, and make our entire process much more streamlined.” 

Budget Chairman Carrie Austin (34), Vice Chairman Jason Ervin (28), and Vice Mayor Brendan Reilly (42) took turns leading the morning hearing, which mostly consisted of aldermen showering Mendoza with praise. Somewhat peeved, Reilly reminded his peers to stay on topic, “Let’s try and keep our comments and questions focused now on the budget request itself. I think we have done a good job praising staff. Sorry, we have other departments to be with today.”

One innovation: An ordinance Mendoza introduced to create a special vehicle sticker for Realtors that would let them park in any residential zoned parking spot during business hours (9:00 a.m.-9:00 p.m.). Mendoza estimates the new sticker would bring in an additional $900,000 annually.

Ald. Roderick Sawyer (6) suggested aldermen get a similar sticker, because they too have the same dilemma: going to community meetings in an area with permit parking. Ald. Anthony Napolitano (41) suggested the program be expanded to include construction contractors too, because they are “getting ticketed like crazy” when they park outside work sites.

Mendoza said that while she is open to expanding the program down the line to include other occupations, her office needs to see how much demand the Realtor program will net, should the City Council approve it. “We don’t want to take up too much, without having any indication of what the popularity of the program is going to be.”

Mendoza also endorsed lifting the parking ban on noncommercial pickup trucks, after aldermen told her about complaints from residents who aren’t allowed to park their pickup trucks in front of their homes. “no one tells you when you buy a pickup truck that you can’t park it on any Chicago street,” Mendoza said, expressing a willingness to work with any aldermen that wants to make that happen.

And there was no shortage of new licensing proposals at the City Clerk budget hearing. Ald. Harry Osterman (48) went so far to suggest implementing a registration and licensing program for bicycles, and Ald. Raymond Lopez (15) floated the idea of creating a license for pets. Ald. Tom Tunney (44) asked about the feasibility of having a Ventra-style machine to sell city stickers, because his office has a full-time employee at the ward office in charge of selling City stickers. Mendoza reminded him residents can buy the stickers online, but Ald. Tunney said he gets a lot of complaints from residents who didn’t realize buying guest parking passes online meant waiting 9 business days for delivery.

 

CITY TREASURER – The City’s operating portfolio, also known as working capital, contains $3B dollars, enough to keep the City running for approximately three months, according to City Treasurer Kurt Summers. Until recently, the money had been sitting in a fund untouched, losing out on the opportunity to generate increased returns, he said. “It’s like cash sitting under a mattress,” Summers explained, before outlining his plan to invest two thirds of that money, which he estimates would net the City $14-$30M in annual returns.

Summers says national standards and rating agency requirements calls for Chicago to only have enough cash on hand to keep the City running for 45 days, or approximately $1B. “We are going to manage our cash better, more efficiently, more responsibly,”

The 2016 appropriation for the City Treasurer’s office increased significantly, from $2.58M to $4.9M, and calls for 8 new positions. All of those new hires will be auditors, which are sorely needed, according Summers. “Today, we don’t have a single regulatory compliance function in this office.” Summers told the Council that all of the trades to date haven’t gone through a regulatory compliance check. “That’s a risk on a $6B dollar investment portfolio.” It was also revealed that the Deputy City Treasurer makes more money than Summers.

By altering the funding structure for his office, Summers cut the general fund allocation by 30% (from $2.36M to $1.66M), supplementing most of that revenue with funds from the O’Hare Airport Fund (from approximately $76,000 to $1.128M). Summers said this change will "put an end to taxpayers subsidizing enterprise funds", as the corporate fund generates revenue through tax dollars while the O'Hare fund gets its revenue from airport fees. 

The City Treasurer’s office is in charge of paying all credit card transactions at City-owned locations. For example, if a person parks at O’Hare Airport and pays the parking fee with a credit card, the Treasurer’s office eats the credit card fee. By the end of 2015, Summers projects his office will pay out $16.9M dollars in fees for $920M in credit card transactions, or a rate of about 2%.

But the real eye-opener was the confusion aldermen had about the different responsibilities between the Treasurer’s Office and the Department of Finance. When a few aldermen asked Summers about the City’s bonds and debt, Summers said those topics are better suited for City’s Chief Financial Officer, Carole Brown. After having to explain that a few times, Budget Chairman Austin snapped at aldermen, telling them that they should have directed those questions to Brown when she testified before the Council Monday.

And while Treasurer Summers may have ambitious plans for his office, like significantly increasing investments in local neighborhoods through small business loans and financial education programs, he didn’t have much time to convey those initiatives during the hour and a half hearing. Not only did Budget Chairman Austin tell him to skip his open testimony because it was “45 pages and too long", she rushed him several times throughout the hearing, and even complained that listening to his testimony was "like watching paint dry". (For the record, Summers’ testimony was 5 pages, but it was part of a packet with a lot of supplemental information detailing his initiatives).

Other Highlights from Summers’ testimony:

• As of September 21, the City has $629M in its reserves


• The Treasurer monitors 1,521 different fund accounts; Summers found that 408 are dormant as of last quarter (which means little to no activity since January 2014)


• The City has $389.6M in unused bond proceeds sitting in accounts dated 2010 or older. Summers says this money should be used to supplement the capital program.


• 293 fund accounts have have a balance of $0.


• The City will have $77.6M dollars in total investment income across the funds by 2016 ($30-40M more than the previous years).


• The Treasurer’s Office earned $32.2M as of August, and is on target to earn $50.8M by the end of the year.


• The 33 year-old Treasury System Summers' office currently uses is so old that that it was implemented "three mayors ago."

Afternoon Attendance - Joe Moreno (1), Brian Hopkins (2), Leslie Hairston (5), Gregory Mitchell (7), Michelle Harris (8), Sue Sadlowski Garza (10), Patrick Daley Thompson (11), Raymond Lopez (15), David Moore (17), Derrick Curtis (18), Willie Cochran (20), Howard Brookins (21), Ricardo Munoz (22), Jason Ervin (28), Milly Santiago (31), Deb Mell (33), Carrie Austin (34), Carlos Ramirez-Rosa (35), Emma Mitts (37), Nicholas Sposato (38), Anthony Napolitano (41), Brendan Reilly (42), Michele Smith (43), John Arena (45), James Cappleman (46), Ameya Pawar (47), Harry Osterman (48), Joe Moore (49)

INNOVATION AND TECHNOLOGY – On day two of budget briefings, aldermen seemed to be agreeing that the 311 system needs to change. Brenna Berman, Chief Information Officer and Commissioner of the Department of Innovation and Technology (DoIT), backed up Monday’s testimony from Budget Director Alex Holt,who said the City’s 311 system was outdated and would take $25 to $30 million to replace.

DoIT made major cuts in this year’s budget as part of the Mayor’s request for efficiencies in his administration. Berman says the Department saved $3.9 million in part by shutting down an old contract related to the city’s nearly phased-out mainframe, streamlining telecom management, consolidating licensing costs, and applying efficient systems across departments. Read her full hearing statement.

Ald. Sue Sadlowski-Garza (10) and Ald. Milly Santiago (31) asked why inputting 311 requests online sometimes took as long as 7 minutes to complete. The system’s just old, Berman said. “Chicago was the first city to launch a robust 311 system in 1999,” she explained. “It’s kind of like dog years, that’s an ancient system. It’s old. And it is just time to replace it.”

When asked what a 311 alternative would look like, Berman pointed to Philadelphia, Houston, and New York, who have taken a page out of the corporate book–they’re using customer relationship management (CRM) systems like Salesforce and Oracle to manage city services. Slow 311 logging online might also be because of ward office locations, she said. Some lack access to internet speeds sufficient for City work. Berman said several offices are currently in the process of getting network upgrades.

Ald. Brendan Reilly (42) also asked when the City will be in the position to switch to zero-based budgeting software, where every function is analyzed for needs and costs from a “zero base”, rather than comparing costs to the previous year. Berman said Budget Director Alex Holt is pushing to switch over, but it would have to be weighed against other technology investments the City needs over the next 1 to 2 years.

HUMAN RELATIONS– Providing a window into city budgeting, Commissioner Mona Noriega testified that the Commission on Human Resources was "one of many" City departments asked to make 10% cuts ahead of FY2016, but Noriega claimed the reduction will not impacted turnaround time on investigations. Questioning for Noriega lasted just over half an hour, with most spent on Noriega updating aldermen on the enforcement of the recent Ban the Box Ordinance. Starting January 1, 2015, Chicago expanded Illinois law restricting employers from using an applicant’s criminal background information to discriminate early in the job application process. The ordinance is aimed at giving former prisoners a fair chance at employment.

“We have no statistics because we have no complaints,” Noriega said, explaining the Department focuses more on spreading the word about Illinois state law and the Chicago ordinance through Chambers of Commerce, mailings, and newsletters. “Every place that we go we talk about it, and we try to get visuals out there as well. The outcomes are that we have more people who know about it, but I would always suspect that we could do more.”

Ald. Jason Ervin’s (29) questioning of Noriega bumped up against his 10 minute time limit, asking about housing and other discrimination that might not be quantified. “I think there are many employers that are discriminating and I don’t think it’s limited to Ban the Box,” she said, talking about the work to be done. There have been 206 complaints of discrimination so far this year, Noriega says. The largest category is employment discrimination, the next is public accommodations, and the third is housing. There have been 51 hate crimes reported this year, which like Ban the Box violations, Noriega says are likely underreported.

Mayor Rahm Emanuel’s property tax hike will likely continue to go up after 2018 and may not be enough to cover pension costs, the garbage fee could be amended over time, and the Chicago Police Department will again spend $100M on police overtime, according to testimony from Budget Director Alex Holt Monday. She fielded a marathon of questions from aldermen on the first day of budget hearings in Council Chambers, sitting in the hot seat for most of the six hour hearing alongside Chief Financial Officer Carole Brown and Comptroller Dan Widawsky.

Budget Chairman Carrie Austin (34) and Vice Chairman Jason Ervin (28) took turns leading the hearing, which started a little after 10:00 a.m. and concluded around 5:30 p.m.

Each alderman was allocated 10 minutes for questions, and spoke in order of seniority. It will likely be one of the best-attended budget hearings of the coming weeks. Only Ald. Will Burns (4), Ald. Ed Burke (14), Ald. Derrick Curtis (18), Ald. Emma Mitts (37), and Ald. Deb Silverstein (50) did not make an appearance. Ald. Curtis’ former campaign manager, Scott Biszewski, said Curtis got married over the weekend.

Holt, who fielded the most questions, had to sometimes answer the same ones multiple times, as aldermen came and left the chambers throughout the day. She rarely paused to refer to documentation and recited most figures and estimates from memory.

The most frequently discussed topics:

PROPERTY TAX HIKE – The proposed property tax hike will not be sunsetted or rolled back, and will need to go up after 2018, according to CFO Brown. Answering questions about a potential, sunset or rollback, Brown said proposed property tax hike will remain in place until the City’s pensions receive the "actuarially required contributions". In other words, because the new tax would be devoted to payment of police and fire pensions, pension payments would need to match the schedule set in SB777, the pension payment extension bill awaiting Gov. Bruce Rauner's signature. If the costs of payments were to go up at some point in the future, for instance because of a growing number of retirees or increased benefits, the payments would have to go up as well.



Holt also acknowledged that if SB777 is not enacted, and SB1922, which stretches out laborer and municipal worker pensions, is not approved by the Illinois supreme court, the proposed increase will not be enough. "We're going to need Plan B," she said. "We're going to have to come up with some sort of alternative."

“We’re moving forward with a budget that largely does not need support from Springfield,” Holt said, with the exception of the passage of SB777. Without it, the City’s pension obligation will jump from $328M to $550M. Holt, like Mayor Emanuel, believes the Governor will sign the bill, which has passed in both chambers of the state legislature.

Each alderman was provided a property tax breakdown for their individual ward, detailing how many homes would see a bigger property tax bill next year, and which homes would qualify for the exemption. Several aldermen asked why they didn’t get a citywide breakdown instead. A representative from the Mayor’s office circulated this citywide property tax worksheet to reporters later that afternoon.

Ald. Anthony Napolitano (41) asked what he could tell his constituents, many of whom are police and firefighters relying on a pension, about what will happen to their tax rate after 2018. 

Brown says the rate will keep climbing, but not as rapidly. “In 2020, we start paying at the actuarially required contribution, and so it’s a smaller increase, but they still increase. The City would not be in the position to roll back the property tax increase, but what we’re hoping is by doing these gradual ramps that the impact of an increase in the out years would not be as severe as it could be.” After 2018, the rise is “just based on investment returns and wage growth” Holt said, and becomes more “manageable.”   

Some aldermen worried whether 2015 property assessments might lead to a “double hit” for homeowners. Ald. Harry Osterman (48) said he wouldn’t want to approve a budget without a clearer picture from the Cook County Assessor, and Ald. Michele Smith (43) read from a prepared statement about a resident whose assessment jumped 77%. A rise in property value doesn’t necessarily mean an equal hike in taxes, Holt said, and property values are rising across the board.

When asked about the feasibility of a property tax rebate, should Springfield shoot down the Mayor’s exemption, Holt said any rebate program would force the city to find additional revenue to pay for checks to homeowners. The City would need to find an extra $15M to fund a rebate program for Chicagoans that make $35,000, and $40M to fund a rebate program for homeowners whose property is valued at $250,000 or less.

GARBAGE FEE - Mayor Emanuel’s proposed $9.50 a month garbage fee for homeowners is just a starting point, according to Budget Director Alex Holt, in response to persistent questioning over the fairness and enforcement from many Black and Latino Caucus aldermen.

The Department of Streets and Sanitation based the fee structure on the number of homes that rely on city run garbage collection, not the number of bins at each household. Streets and San doesn’t have an official bin count. “There is potential inequity there,” Holt said, adding that the city will keep the door open for a volume- or cart-based fee structure down the line. “That is going to take us some time to look at that and think about the structure to think about the implementation, and also to make sure that we are doing that in a way where we don’t have people incentivized to throw their garbage in the alleys or to put their garbage in their neighbor’s carts,” Holt said. 

South Side Ald. Anthony Beale (9) was one of the most vocal opponents of the proposed garbage fee, criticizing the city for moving forward on the plan without knowing the number of bins across the city. He asked why the City couldn’t fold the garbage fee into the property tax bill. Holt noted half of the City’s residents pay for private collection, which costs significantly more than that mayor’s proposed fee. “I hope we go through the amendment process, and you look to amend this, and put this garbage proposal right in the garbage,” Beale said.

The garbage pickup fee is one of few actionable items the city can take to raise revenue, Holt reminded aldermen throughout the day. The City chose to add the fee to the water bill, because roughly 96% of Chicagoans pay their water bill, Widawsky says. Ald. Leslie Hairston (5), the only person to vote against an end to free garbage pickup for residential buildings with four or more units, suggested those buildings be included in the $9.50 a month fee instead of hiring a private company to haul their garbage. In July, the City Council ended free pickup for multi-unit buildings in response to a 2014 Inspector General report that found the Department of Streets and Sanitation was wasting $3.3 million collecting trash from buildings that were no longer exempt under the city’s grandfather clause.

Aldermen continued to question Holt on garbage pickup as the meeting extended into the evening. Ald. Joe Moreno (1) suggested the city look to a pay-as-you-throw system, which Inspector General Joe Ferguson estimated could generate $125M in a 2011 report.

TIF REVENUE - TIF surpluses aren’t the answer to fund pension obligations, Holt told several aldermen who wondered if those funds could pay for pensions in lieu of the garbage and property tax fee.

“There’s a lot of conversation about TIF being the savior of our financial future, but for most neighborhoods, TIF is a source of community investment,” Holt said. Of $1.38B in TIF revenue collected in 2014, $1.24B was committed to capital projects, she said. 

The city projects a $113M TIF surplus for next year. $97M will come from freezing and sweeping the surplus revenue from four of the seven of the largest TIFs, all of which are located in the central business district. This means revenue collected but not committed to existing, planned or emergency infrastructure projects will be split between the City and the school district. Those four TIFs are Canal Congress, Chicago Kingsberry, Jefferson Roosevelt, and River West. The other three central TIFs–LaSalle Central, River South and Roosevelt Canal–didn’t report a surplus for next year, but will be included in the TIF sweep the following year.

Ald. Danny Solis (25) asked how much the city expects to recoup from expiring TIFs over the next four years. Holt said from now until 2019, the City expects to collect $2M in revenue from expired TIFs, with projections growing significantly after 2019 ($8M in 2020, $9M in 2021, and $17M in 2022). Those numbers are based on property values, and are subject to change.

PUBLIC SAFETY -  Police overtime will cost the City an additional $100M this year, Holt told Ald. Anthony Beale, who asked if CPD was stretching its overtime payment for the second year in a row. 

“Are we still paying $100M in [police] overtime?” Ald. Beale asked Holt. “Yes, [CPD’s] overtime projection for the end of the year is approximately $100M, $60M of which, roughly, is the regular overtime, extension of tour of duty, and court overtime.” The remaining $40M is associated with the City’s Expanded Anti-Violence Initiative, which concentrates police in high crime neighborhoods.

“Do you think that is an efficient way of running the police department knowing that murders and up and crime is up, but we’re still paying $40M in overtime?” Beale asked. While she said she couldn’t comment on police strategies, she could say from a budget perspective, the city can buy more policing hours with overtime than straight time. $10M in police overtime provides about 150,000 hours of police time, while straight time nets 90,000 hours. 

Ald. Nicholas Sposato (36), a former firefighter, and Ald. Chris Taliaferro (29), a former police officer, expressed skepticism about Mayor Emanuel’s proposal to move more than 300 cops off desk duty and on to the streets. Sposato equated the move to putting a housecat on the street, calling it, “the biggest bunch of crap I’ve ever seen.” Taliaferro called the proposed move, “smoke and mirrors.”

“I’ve seen that over the years, and many end up back inside. It’s not an actual number getting on the street,” Taliaferro said. “Unfortunately, it can be to the detriment of our community,” but said he would save his reservations for the budget hearing on police scheduled for October 6.

311 PRIVATIZATION - While many aldermen have fixated on $1M in savings estimated from outsourcing the City’s 311 system, replacing it would cost between $25 and $30 million dollars, Holt told aldermen Monday. That estimate prompted the City to look at whether outsourcing would be more cost-effective. The proposal came as a surprise to many aldermen, some of whom found out about it the night before the Mayor’s budget announcement. Comparisons to the maligned parking meter deal came soon after.

Ald. Scott Waguespack (32) made a point Monday to ask whether 311 outsourcing would fall under scrutiny of  a privatization ordinance championed by Ald. Roderick Sawyer (6) and Mayor Emanuel, which has not yet been called up in committee. The ordinance would require the city to make a clear case for why a proposed privatization would benefit the city, provide sufficient time for public debate before moving forward and establish an accountability and transparency framework. Holt told him she expected 311 privatization would be subject to the ordinance, but framed the proposal as a jumping off point for reform, and not a done deal. There are 72 call center and management employees at 311 still in the budget as of January 1. “We might not be looking at full outsourcing,” Holt said. Limited outsourcing or no outsourcing at all are both possibilities. “We’re interested in finding out what the options might be.”

Aldermen from different caucuses voiced opposition to the possible outsourcing, including Brian Hopkins (2), Chris Taliaferro (29), Pat Dowell (3), Leslie Hairston(5), and Scott Waguespack (32).

RIDESHARING FEES - Rideshare companies like Uber and Lyft can start picking up passengers from O’Hare and Midway airports starting January 1 if Council passes the Mayor’s proposed changes, Holt says. But aldermen like Ald. Pat Dowell (3), said Council should work to “level the playing field” between cab and rideshare drivers before then, by subjecting rideshare drivers to some of the same fees, standards, and licensing requirements cab drivers currently have to follow. Ald. Susan Sadlowski Garza (10) told Holt, “When you open up the airport to them in January, this is going to be a disaster for taxi drivers.”

The mayor’s proposal gets rid of ground transportation tax that taxis currently pay, subjecting cab and rideshare drivers a .50 per ride charge instead. Of that proposed $0.50 surcharge, $0.10 would go towards the wheelchair accessible fund, and $0.40 would go towards the city’s corporate fund. The proposal would also charge rideshare a bigger pickup and drop-off fee at airports than cabs currently pay, and would reduce the medallion transfer tax, Holt says.

Ald. Anthony Beale (9), chair of the Transportation Committee, said medallions “are pretty much useless” at this point, and suggested Holt work with the Law Department on a new proposal to get more revenue and “truly level the playing field.” He has favored a $1 surcharge on all rides with Lyft and Uber.

Ward offices across the city have received hundreds of calls from constituents opposed to Ald. George Cardenas' (12) proposed penny-an-ounce tax on sugary drinks. The calls to aldermanic offices were prompted by an autocall to city households, which then give call recipients an opportunity to be transferred to their local alderman's office.

The Illinois Beverage Association’s Executive Director, Jim Soreng, confirmed that it engineered the astroturf lobbying. “It’s a city-wide effort in response to Ald. Cardenas’ proposal,” Soreng told Aldertrack. While he wouldn’t say which wards the group targeted, he did say robocalls were made to registered voters.

But unlike most robocalls, which consist of a recorded message, these calls immediately direct the recipient to the ward office after the call’s message completed. IBA would not provide the audio or script of the call, but ward offices Aldertrack contacted said most calls routed to them opposed the tax.

At least eleven wards reported receiving the calls, and we found that Latino, low-income and border wards were hit especially hard.

Kevin Lamm, chief of staff for Ald. Milly Santiago (31) says the their office received more than 150 calls on the issue in the past few weeks. Staff from the 11th, 15th, 17th, 18th, 20th, 22nd and 41st Wards all confirmed receiving waves of calls in the last month. And yesterday, a representative of the Chicago Coalition Against Beverage Taxes, visited Ald. Rick Munoz’s (22) ward office to drop off literature.

Earlier this week, Cardenas told Aldertrack he won’t pursue his plan in the City Council, because he's worried it could open the City up to a costly lawsuit. He said he and the Mayor agree it would be better for Springfield to pass the tax instead.

We compiled a list of some non-routine ordinances that will likely be voted on by the full Council today. The Mayor’s Tax Increment Financing surplus ordinance was discussed in Finance Committee this week, but Chairman Ed Burke held it in Committee after hearing a flurry of concerns from fellow aldermen.

Mayoral Ordinances

• Expanded Transit Oriented Development Guidelines: One of the biggest changes to the original proposal has to do with on-site parking requirements. Any developer building within a fourth of a mile (1,320 ft) of a CTA station and a half of a mile (2,640 ft) of a Metra station would need need to apply for a special use permit from the Zoning Board of Appeals if they want to completely eliminate on-site parking from their development plans. A 50% parking reduction is already allowed under the proposed ordinance. [Meeting Recap]

• Modifying City Treasury Investment Policies: According Treasurer Kurt Summers, this ordinance provides more transparency and accountability to the city’s investment policy by setting a minimum credit quality standard of Aa1 or better for the City’s investment portfolio. It also requires quarterly reports on the city’s investment portfolio to the City Council. (more details)

Aldermanic Ordinances

• New Mobile Food Vendor's License:  This is Ald. Roberto Maldonado’s (26) ordinance to bring mobile food vendors “out of the shadows” by establishing a $350 license to sell prepared food like tamales, elotes, and hot dogs on City streets. At the License & Consumer Protection Committee meeting, Ted Dabrowski of the Illinois Policy Institute estimated there are already 1500 food carts operating in the city selling 50,000 meals a year.  Between revenue from the $350 license fee vendors would pay, sales and income tax, and the penetration of food carts within the city going forward, Dabrowski says this change “could generate $2 to $8 million for the city.” [Meeting Recap]

• Wine Sales on the Chicago Riverwalk: Ald. Brendan Reilly (42) wants to make it legal for vendors to sell sealed, 750mL bottles of wine along the downtown Riverwalk during normal business hours (11am to 9pm), but since it is still illegal to consume alcohol along the Riverwalk, retailers can’t provide a corkscrew or drinking container with the purchase. [Meeting Recap]

Bond Issuances

• General Obligation Bonds (Max $500 million): The bonds will help restructure and pay down the city’s debt and reimburse the corporate fund for money taken out to pay previous debt. The bonds will have terms ending January 1, 2057.  Approximately $225 million will go toward restructuring purposes and the balance would be issued for savings.*

• Chicago O’Hare Airport Revenue Bonds (Max $2 billion): The bonds will help finance the O’Hare Modernization Program and other general airport repairs. The bonds are expected to be issued in October will be paid back from the O’Hare Fund.*

• Second Lien Wastewater Transmission Revenue Bonds: The original ordinance authorized $125 million to terminate the associated swaps. The substitute introduced in Committee adds a request for approval of $100 million in Illinois Environmental Protection Agency (IEPA) loans and $350 million dollars in inducement authority. IEPA loans are federal grants provided to states for sewer improvement projects.

*There was a divided vote on the bond ordinances at the 9/21 Finance Committee meeting. Aldermen Willie Cochran (20), Pat Dowell (3), Scott Waguespack (32), John Arena (45), and Gregory Mitchell (7) voted against the O’Hare and Chicago General Obligation bonds, but the ordinance passed.

Zoning

• New Viceroy Hotel, Gold Coast (2nd Ward): The Viceroy Hotel Groupwants to demolish the vacant Cedar Hotel in the Gold Coast so it can build an 18-story building with 180 hotel rooms, a restaurant on the ground floor, and an open green space on a 12,000 sq. ft. site. [Meeting Preview]

• 53-Story Office Tower, Loop (42nd Ward): Tishman Speyer is looking to turn the surface parking lot and surrounding vacant land along 130 N. Franklin St. into an angular, glass office high rise. Plans include ground floor commercial retail, a restaurant, a minimum of 140 on-site parking spaces and a large outdoor plaza.  [Meeting Preview]

• Half Acre Brewery Beer Garden, Ravenswood (40th Ward): The beer distributer plans to build a 35,000 sq. ft. brewery with an adjoining tasting room and full service kitchen on the first floor, and office space on the second floor of the existing property adjacent to the Rosehill Cemetery. [Meeting Preview]  

• Parkway East Project, Lakeview (44th Ward):  Boston-based Broder Diversey, LLC wants to build an 11-story residential tower near Diversey Harbor, with 56 dwelling units and commercial retail at the base. This is the big housing development next to Yakzies Bar. [Meeting Preview]

• New Whole Foods, Lakeview (44th Ward) The new location on 3201 N. Ashland Ave. is part of a large expansion plan the company unveiled last year to open 11 new stores across the US and Canada. Ashland Belmont, LLCwill construct a 79,500 sq. ft. store with 305 parking spots. [Meeting Preview]

• Residential town on former Ed Debevic’s Diner site (42nd Ward):  Robert Stone and Jeffrey Himmel are part of a joint venture to build a residential complex at the site of the Ed Debevic’s 50’s themed restaurant in River North. Plans include a 22-story residential tower with 253 units and neighboring two-story commercial building to the west.  [Meeting Preview]

• Proposed 6-story Mixed-Use Building Next to New 606 Trail (32nd Ward) Centrum Partners’ plans include commercial retail and a refurbished Aldi’s Supermarket at the base, with 95 residential units spread among the top four floors. The approximately 59,000 sq ft site will also include a 60 car surface parking lot for shoppers and a 62 car basement garage for residents. [Meeting Recap]

• Proposed Apartment-Office Space Complex in Ravenswood (47th Ward) Hayes Properties will rehabilitate a nearly one hundred year-old, four-story brick building on 4801 N. Ravenswood Ave. into a mixed-use apartment and office building. Plans include 36 residential units, a little over 90,000 sq. ft. of office space, and enough parking for 69 cars. [Meeting Recap]

• Proposed Fulton Market Office Building (27th Ward ) The applicant, SRI-ASW Green Owner, LLC and 219 Partners, LLC, an entity controlled by Shapack Partners’ founding principal Jeff Shapack, want to designate three properties as Business Planned Development. Developers plan to build a one story (5,100 sq ft) commercial building, restore existing buildings, and add a new 11 story office building with a rooftop penthouse and deck. The new office building will have ground floor retail, parking for 59 cars on the 2-5 floors, and loft-style offices on the remaining top floors. [Meeting Recap]

Intergovernmental Agreements

• Read Dunning Park Expansion (38th Ward): The agreement between the City and the Chicago Park District transfers 7.5 acres of adjacent city owned land for $1 to the Park District to help with the $3 million expansion plan. The Park will have a turf field for sports, 93 parking spots and a walking path that encircles the park. Construction is scheduled to be completed by next summer. [Meeting Recap]

• Hadiya Pendelton Park Expansion (3rd Ward): The agreement transfers the adjacent City-owned vacant land at 4323-4329 S. Calumet Ave to the Park District, so they can turn the former Buckthorn playlot to a two acre park. [Meeting Recap]

• Policing at CHA Buildings: “This is an expense neutral type of agreement that has been in place for an extended period of time,” Vice Chairman Jason Ervin explained at the Budget Committee meeting. “Ultimately, this is essentially CHA paying the City of Chicago for services it is rendering on the city’s behalf.” This agreement dates back to 1999, when CHA disbanded its police department. [Meeting Recap]

• Environmental Studies on CHA-owned Land: Deputy Commissioner for the Department of Fleet and Facility Management Kimberly Worthington said this agreement lets the city conduct federally-required environmental reviews of CHA projects funded by federal grants to ensure they are compliant with soil, contamination, noise and historic preservation guidelines. Under the agreement, CHA will provide $75,000 upfront to the City. The agreement expires in 5 years, but can be renewed upon mutual agreement. [Meeting Recap]

• Authorizing TIF funds for improvements at CPS schools: Agreements include Marine Leadership Academy at Ames School, Walter Payton College Preparatory High School, Franklin Fine Arts Elementary School, Cather Elementary School, Franklin Fine Arts Elementary School, and Budlong Elementary School.

Sale of City Owned Land/Lease Agreements

• Sale of Former Marconi Elementary School (28th Ward): United for Better Living Inc. submitted the highest bid ($100,000) for the site of now-closed 6,200 square foot, 55 year-old Marconi Elementary School in West Garfield Park. United for Better Living is affiliated with Allison United Foundation for Better Living, a non-profit founded by the late Corinthians Temple Church of God in Christ (COGIC) Bishop Bennie Allison. [Meeting Recap]

• Lease Agreement for J. Michael Fitzgerald Apartments (39th Ward): The ordinance approves a 75 year ground lease agreement between the City and Fort Lauderdale-based Elderly Housing Development & Operations Corporation (EHDOC) to help with the development of the J. Michael Fitzgerald Apartments, an affordable housing development for seniors located within the North Park Village Nature Center.  [Meeting Recap]

Miscellaneous

• Collective Bargaining Agreement: The Committee on Workforce Development approved a contract for 17 police communications operators in the City’s Office of Emergency Management and Communication. The term of the agreement is from July 1, 2012 to June 30, 2017, with a 1.25% raise for each of the first three years and a 1.5% raise for that last two years [Meeting Recap]

• Four class 6(b) Tax incentives: The Committee on Economic, Capital and Technology Development approved roughly $3.3M in property tax breaks over a twelve year period for Chicago-based companies looking to expand on dilapidated industrial sites. The class 6(b) real estate tax incentive is intended to reduce vacant industrial real estate in Cook County by providing businesses with a lower tax rate if they commit to rehabbing existing buildings or constructing new industrial property. These are the companies: Economy Packing Company (23rd Ward), REWL Venture, LLC (27th Ward), Wichita Packing Company (27th Ward), Primrose Candy Company (36th Ward). [Press Release] [Meeting Recap]

Appointments & Reappointments

• John T Hooker as the new Chairman of the Chicago Housing Authority Board of Commissioners. The retired ComEd executive received a lot of support from the members of the Committee on Housing and Real Estate when he testified at his confirmation hearing earlier this month. [Meeting Recap]

• Community Development Commission: Cornelius D. Griggs, Gwendolyn L. Butler, Celena Roldan Moreno, Philip A. Alphonse. Moreno is the wife of Ald. Joe Moreno (1) and he will likely invoke Rule 14 when it comes up for a vote.  [Meeting Recap]

• Chicago Police Board: John Simpson, Claudia Venezuela; Reappointment of William F. Conlon [Meeting Recap]

• Commission on Chicago Landmarks: Gabriel Ignacio Dziekiewicz, Carmen A. Rossi, Juan G. Moreno; Reappointment of James M. Houlihan, Rafael M. Leon, Mary Ann Smith, Richard L. Tolliver and Ernest C. Wong [Meeting Recap]

• Chicago Plan Commission: Laura L. Flores, Sarah E. Lyons, Juan Linares; Reappointment of  Doris Holleb, who was appointed to the Commission in 1986 by Mayor Harold Washington. She is the longest serving member on the Plan Commission. [Meeting Recap]

• Zoning Board of Appeals: Blake P. Sercye; Reappointment of Sol A. Flores and Jonathan T. Swain [Meeting Recap]

• Board of Examiners of Mason Contractors: Reappointment of Henry M. Leahy and Luciano Padilla, Jr.

• Human Resources Board: Karen M. Coppa [Meeting Recap]

• The Chicago Low-income Housing Trust Fund: LaToya M. Dixon, Elise Doody Jones, Bishop Horace Smith, M.D., Jennifer Welch; Reappointment of Sol A. Flores, Levoi K. Brown, Malcolm Bush, Wayne L. Gordon, Thomas J. McNulty, and Kristin K. Nance. [Meeting Recap]

• Chicago Community Land Trust Board: Eva M. Brown, Michelle Morales; Reappointment of Patricia Abrams, Joel Bookman, Timothy Hughes, Edward H. Jacob, Guacolda E. Reyes, William W. Towns, Jeffrey Wright, and Marva E. Williams. [Meeting Recap]

We asked several Chicago influencers their reaction to the Mayor’s budget. Here are their comments:

Jesus “Chuy” Garcia
Cook County Commissioner, former mayoral candidate

“Though the mayor tried to downplay a property tax increase during the campaign; striving to make it more progressive is the way to go. The real measure of whether the budget turns the corner in addressing the long-term budget issues is the level of structural change in how we deliver essential services. We need to see changes that result in savings between the various "governments" within the city and between the city and the county. We won't know what changes have been proposed until we see more details. Then we will see if this is just a major stopgap or a real solution.”

Ralph Martire
Center for Tax and Budget Accountability

"It’s probably the most responsible budget we have in the entire state of Illinois between city of Chicago, Chicago Public Schools and the state... At least Rahm Emanuel stepped up to the plate and said if you have recurring services, you need recurring revenue." The bigger picture, Martire says, "For decades, taxpayers in Illinois have consumed public services and have not had to pay the full cost of those services in taxes. The reason for that is the significant borrowing against public employee pensions. We still have to pay it back. The only way to pay it back is to raise revenue to pay service delivery and debt. The longer we wait to do that, the higher the cost for taxpayers becomes. Maybe people thought it was a great deal to live in low-tax Illinois, but the free lunch always had to end. You have to repay your debts."   

Julie Dworkin
Chicago Coalition for the Homeless

“I think our overall reaction is that unlike the governor, [Mayor Emanuel] has made the unpopular decision to do a significant tax increase in order to generate revenue that’s needed so that we don’t have to cut important human services in the city, or cut back on pension benefits. I think it’s a positive step in the right direction. We feel like the governor and the legislature should be doing the same thing in taking the courageous move to [do the same]...The $250,000 homeowner exemption is an attempt to make it progressive, but in reality that’s going to need approval from Springfield and it might not help people who are in a fixed income but in a rapidly gentrifying neighborhood.”

Anders Lindall
AFSCME Council 31

On the outsourcing of 311: “We heard the one sentence in the mayor’s speech just like everyone else today. 311 is in effect the front doorstep for millions of Chicagoans. It’s where people call for basic city services, for information to resolve problems, or even to report crimes, and the men and women who answer those calls need to be trained, skilled, and experienced. It’s especially disturbing that the mayor would push privatization with no oversight at the same time that the privatization ordinance we worked with the administration to develop has not yet been heard, passed, or implemented. So we have all those concerns about the potential to privatize 311, we’re going to be working with aldermen and reaching out to the public to make sure this doesn’t happen.”

David Hatch
The Reclaim Campaign, formerly Reclaim Chicago

“The city needs to raise revenue by taxing those who can afford to pay–the wealthy and corporations–rather than by nickle and diming average Chicagoans with red light cameras, garbage fees and the like. The Reclaim Campaign supports tax increases to the wealthy and corporations to fund pensions, schools and other investments in the common good. It appears that the property tax increase the mayor is proposing could be progressive, only so long as there are protections for working people via an exemption approved by state legislature and signed by the governor or via the rebate program proposed by the Progressive Caucus. We also urge Mayor Emanuel, all City Council members and every state legislator with constituents in Chicago to work with all urgency to pass the LaSalle Street financial transaction tax in Springfield."

Ald. Carlos Ramirez-Rosa (35)
From Press Release

“Instead of delivering the ‘progressive’ budget we were promised, Mayor Emanuel unveiled more of the same with a budget proposal that continues to nickel and dime regular Chicagoans via a garbage fee, a massive property tax hike, and rideshare surcharges that amount to a giveaway to his brother–Uber investor Ari Emanuel. Mayor Emanuel’s 2016 budget proposal shows that he will continue to govern in the interest of the rich and big corporations, and not in the interest of Chicago’s working families and our neighborhoods. Emanuel's budget shows us he lacks the political courage to ask his rich campaign contributors to pay their fair share."

Dave Kreisman
Cab Drivers United/AFSCME Local 2500

On allowing Uber and Lyft to make pickups at O’Hare and Midway airports: “The Mayor’s proposal is a sweetheart deal for Uber, a $50 billion enterprise that doesn’t need another giveaway, but a job-killer for hard-working Chicago cab drivers. When corporations like Uber provide the same service as licensed cabs but don’t play by the same rules, they undercut public safety and jobs. Last week, our union released a plan to raise $65 million a year by requiring Uber to follow all the same rules as hard-working cab drivers.”

City Council Progressive Caucus
From Press release

“The nearly $600 million property tax increase will have a disproportionate impact on low-income homeowners and seniors. That is why we support the administration’s efforts to expand the Homestead Exemption in Springfield. But with no end in sight to the gridlock in Springfield, passage of the expanded exemption is not assured. That is why we are offering a meaningful rebate program for working families who own their homes. Our ordinance will be introduced at Thursday’s City Council meeting.”

Ald. Harry Osterman (48)
From Newsletter

“I'm very concerned about the magnitude of the proposed property tax and the effect it would have on renters, homeowners and small businesses in our community. My City Council colleagues and I will be spending the next month going through the budget process, and we will be working together to look for alternative ways to increase revenue to fund city government and provide important city services. I welcome your ideas and feedback.”

Ald. Scott Waguespack (32)
Sun Times Op-Ed

"Yes, the city’s fiscal crisis is real. Unfortunately, the solutions the mayor proposes–including a new garbage collection fee and a huge projected property tax increase–rely on taxes that will most heavily burden the working poor and middle class as well as small businesses. The mayor has taken some steps for which the City Council Progressive Caucus has long advocated, such as ending the risky and costly practice of “scoop and toss” bonding. But the mayor’s plan offers little to correct the imbalance which allows the ultra-wealthy and the giant corporate interests to reap huge rewards from doing business in our city, without paying their fair share. The onus for generating new revenue remains on the backs of the people who can least afford it."

Rep. Will Guzzardi
Twitter: @willguzzardi

“Here's my worry with the prop tax increase, even with exemptions: renters. Landlords could just pass increase on to tenants #chibudget2016”

We’ve confirmed that the Latino Caucus, Black Caucus, and Paul Douglas Alliance are each huddling Thursday to discuss their respective budget responses. We’ll report back with their comments in Friday’s newsletter.

Mayor Rahm Emanuel will unveil his proposed FY 2016 budget to the City Council on Thursday, September 22, according to a timeline his office released yesterday. But before he brings his spending guidelines to the Council Chambers, he’ll follow a tradition established by Mayor Richard M. Daley by holding three town hall meetings with members of his finance team that will be open to the public. Residents will have the opportunity to provide their ideas in person and on social media during the public meetings with the hashtag #ChiBudget2016. Representatives from various City Departments will be on hand to answer questions related to specific city services. Each meeting starts at 6:30 pm, with doors opening an hour earlier:

• Monday, August 31: Malcolm X College, 1900 West Van Buren Street


• Wednesday, September 2: South Shore Cultural Center, 7059 South South Shore Drive


• Thursday, September 3: Wright College, 4300 North Narragansett Avenue

CPS Unveils Budget Under Cloud of Uncertainty, Pensions & CTU Contract Remain Wild Cards; CTU & Rauner Respond
by Claudia Morell – [email protected] and A.D. Quig – [email protected]

Chicago Public Schools leadership says they need another $480 million to stay open after this school year’s first quarter. But statehouse politics makes it unclear if Springfield will simply cut a check to help, raise Chicago property taxes, or a combination of both.

During a Monday conference call that coincided with the release of its proposed $5.687 billion operating budget, CPS officials suggested the situation is out of their hands. “If Springfield fails to do its part, we’ll make more unsustainable borrowing and deeper cuts,” CPS Chief Executive Officer Forrest Claypool said in Monday’s call, but said he was encouraged by the direction of talks in Springfield. (Press release – fact sheet 1 – fact sheet 2)

Some budget numbers of note:

Cuts:

• $65.5M to operating budget


• $288.3M to capital budget - what CPS is calling an “austerity budget”


• $65.2M to debt budget

Layoffs:

• 204 high school teachers and 275 elementary school teachers - CPS says there are approximately 1,450 teaching vacancies expected


• 1012 additional non-teaching position layoffs

Borrowing:

• $255M in “scoop and toss”


• $1M line of credit

Revenue:

• $87M TIF surplus


• $80M in property taxes


• $480M from pension reform in Springfield

Nearly every other sentence from CPS officials on their August 10th press call included mention of Springfield or state government, but Claypool says he has no intention of lobbying in Springfield directly. He says even with an additional property tax levy and TIF surplus money, CPS will be in big trouble without reform at the end of this school quarter.

The proposed FY16 budget will be made available for public comment and review on Aug. 18 at three meetings around the city (6:00-8:00 p.m. at Shurz High School, Olive-Harvey College, and Malcolm X College). The final budget is expected to be presented to the Board of Education for a vote at its next meeting, scheduled for Aug. 26.

(Also, immediately before the CPS press conference, schools leadership announced new changes to school bell times, where 34 schools will have their bell times reverted back to their original settings. The final 48 schools with start time changes will save $5 million a year, CPS leadership claims.)

CTU Springfield Allies Introduce ESRB Legislation

At the same time as the CPS budget release call, supporters of an Elected Representative School Board (ESRB)–including state legislators, Chicago Teachers Union organizers and aldermen–gathered to call for passage of House Bill 4268. Filed August 6, the legislation would establish a 13 member school board with members from four regions of Chicago, to be elected in March 2016.

A press release from CTU distributed at yesterday's ESRB event called the appointed Board of Education a financial failure. “This long record of ineffective governance is not because ‘Springfield’ has made mistakes but is rather because the Board has made decisions in the interests of private contractors, charter schools, big banks, and bondholders rather than the interests of students and families.” (CTU fact sheet)

The bill’s chief co-sponsors include Rep. Rob Martwick (D-Chicago), Rep. Elgie Sims (D-Chicago), Rep. Mary Flowers (D-Chicago), Rep. Jaime Andrade (D-Chicago), and Rep. La Shawn Ford (D-Chicago), and 28 other co-sponsors.

Rayner Holds Response Presser; Talks CPS, Elected School Board and CTU Power

In a last-minute press conference called in Chicago yesterday afternoon, Governor Bruce Rauner said he doesn’t support an elected school board for Chicago and described the power of the Chicago Teacher’s Union (CTU) as “overwhelming.”

After spending six minutes reiterating his position that Chicago has benefited from special treatment and suggesting he is “cautiously optimistic” the General Assembly and CPS officials are warming up to his statewide reforms, the Governor refused to comment on specific CPS budget projections because his office is still “crunching the numbers”.

He did comment on two CPS related issues: the teachers’ union contract and the movement for an elected school board.

“The power of the teachers union is overwhelming. Chicago has given and given and it has created the financial crisis that Chicago schools face now,” Gov. Rauner said about the stalled contract negotiations between CPS and the Chicago Teacher’s Union.

Gov. Rauner also said Chicago doesn’t need an elected school board because Mayor Rahm Emanuel was elected into office and was given a mandate to appoint members to the board, “And the Mayor has shown a willingness to stand up and advocate for taxpayers and has taken on some of the entrenched interests, so I’m not a supporter of the Mayor losing his ability to drive reforms.”

A wave of press conferences before the full Council meeting kept the 2nd floor lobby humming. A half dozen competing press conferences and demonstrations overlapped, and at one point a group opposing the Herbalife multi-level marketing company got into a chanting match with protesters urging improvements to shuttered Dyett High School.

CHA Residents Back “Keeping the Promise” Ordinance
Members of the Chicago Housing Initiative, a Chicago Housing Authority (CHA) accountability group, gathered to back Ald. Joe Moreno’s (1) “Keeping the Promise” ordinance, which co-sponsor Ald. Roberto Maldonado (26) says “urges CHA to properly utilize its federal funding for those in need of housing and phase-in 3,000 additional vouchers/year over 3 years.” The ordinance would strengthen City Council oversight of the CHA by requiring that the department issue quarterly reports to the City Council Committee on Housing and Real Estate. Attending aldermen also included Susan Sadlowski-Garza (10), Toni Foulkes (17) Ricardo Munoz (22), Walter Burnett (27), James Cappleman (46) and Ameya Pawar (47). Press materials. Draft ordinance.

Stop and Frisk, Police Brutality Targeted by #ChiStops
Youth organizers with #ChiStops gathered with Ald. Roberto Maldonado (26), Ald. Roderick Sawyer (6), and a tardy Ald. Joe Moreno (1) to call for passage of the STOP Act ordinance. The ordinance aims to end stop and frisk in the city by requiring CPD to collect and share data for all stops it performs, including demographics, badge numbers, location, reason, and result of stop. Cops would also have to give a receipt for every stop, and make data collected publicly available on a quarterly basis. The ordinance has support from more than 30 community groups, including the ACLU of Illinois, Chicago Votes, and Black Youth Project 100. Press materials.

Dyett Defenders Block Elevators, Disrupt Other Press Events
Protesters gathered to support saving Bronzeville’s Walter H. Dyett school and turning it into Dyett Global Leadership and Green Technology High School. Their action caused the biggest stir Wednesday morning as protesters sat down with a sign reading “Save Dyett” and blocked the bay of elevators that open into the 2nd floor lobby, forcing some to climb over, and others to take the elevator up a floor and walk down the stairs just a few minutes before the Council meeting was scheduled to begin. The volume of their chanting overtook several press conferences scheduled in the lobby, some who refused to remove were arrested, and others were still in their spots more than an hour after conferences had wrapped. Press materials.

Asian Americans Advancing Justice Speak Out Against Deportation Threats
Perhaps the most sidelined presser of the day, Asian Americans Advancing Justice held a conference supporting an amendment to Chicago's Welcoming City ordinance preventing city employees, including police officers, from using coercion and threat of deportation against community members. Andy Kang, Legal Director of Advancing Justice, Chicago, tried his best to speak over Dyett protesters, and tell the story of Jessica Klyzek, an American citizen who was threatened with deportation in a police run-in last year. Ald. Scott Waguespack (32) introduced the amendment at Wednesday’s meeting. Press materials.

Protesters Demand A.G. Madigan Take On Pyramid Scheme
Latino protesters held the last presser of the day, competing with Dyett chants with their own against Herbalife, a global nutrition and weight loss company that relies on multi-level marketing. The group called for Attorney General Lisa Madigan to wrap up an investigation into the company, which they say is a get-rich-quick pyramid scheme that targets Latino consumers. Ald. George Cardenas (12), supports a resolution calling for an end to an investigation. Press materials.

Several proposed large-scale development projects like the Nobu Hotel for West Randolph Street, a residential complex off the Brown Line’s Southport stop, and the new development next to the Apollo Theater in Lincoln Park await approval from the City Council today. Three Mayoral appointments and one City Council appointment, Ben Winick as the Financial Analyst for the City’s new independent budget office, will also get called for a vote. Here are some highlights:

The following mayoral appointments passed in committee and will be reported out for a full vote:

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  Lisa Morrison Butler as the Commissioner of the Department of Family and Supportive Services [A2015-47] Butler currently serves as Executive Director for City Year Chicago, an organization that works with CPS to help at-risk students graduate from high school. Mayor Emanuel announced Butler’s appointment at the beginning of the month, saying she will “help quarterback some of the most critical items on my second term agenda,” from progress on the Mayor’s universal pre-K program to an expansion of youth violence prevention programs.

  
  


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  Lori Lightfoot as President of the Chicago Police Board [A2015-48]. Lightfoot is a former federal prosecutor She also worked for the City as head of the Chicago Police Department’s Office of Professional Standards (OPS), where she investigated cases of police misconduct. After two years as Chief Administrator for OPS, Lightfoot worked in the City’s Office of Emergency Management and Communication (OEMC), and eventually migrated over to the Office of Procurement Services. Following her tenure with the City, Lightfoot went back to private practice and has since worked with the law firm Mayer Brown. The Police Board is an independent body that decides disciplinary action against police accused of misconduct. Lightfoot told the committee she’ll do what she can to improve fairness, transparency and efficiency.

  
  


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  Judy Frydland as Commissioner of the Department of Buildings [A2015-46]  Frydland currently serves as the Deputy Corporation Counsel for the Chicago Department of Law’s Building & License Enforcement Division. During her tenure with the law department, Frydland was involved in high profile cases like the E2 nightclub disaster in 2003 and the 2003 Lincoln Park porch collapse. Frydland will be responsible for enforcing the building code and modernizing the department, but didn’t provide any details on her priorities during the committee hearing.

  
  

The following ordinances passed in committee (keep scrolling for items approved in committee Tuesday):

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  The Pullman National Monument Advisory Commission [O2015-4653]: the seven member body would include a chairman and six members appointed by the mayor “with input from Pullman community leaders, business owners, and residents,” according to the ordinance. The board would be responsible for coordinating projects to promote tourism and raise community awareness, maintaining the area, and reporting new developments with the City Council and Mayor’s Office. The board could also solicit and accept public and private contributions, but would have to coordinate spending with the National Park Service.

  
  


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  Amendments to the Ethics Code for “Financial Statements of Interest”[O2015-4685] It moves the maximum requirement for ownership in stock of a publicly traded company from $15,000 to one half of 1% of that company’s outstanding shares, and refines the reverse revolving door provision that applies to incoming city officials or employees by permanently prohibiting them from participating in a city matter if they worked personally and substantially on that matter for their immediate pre-city employer or client. They would be prohibited for 2 years from working on any other matter that involves their pre-city employer or client unless they’ve severed monetary ties.

  
  


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  An ordinance adding federal & state Perchloroethylene regulations to the Municipal Code [O2015-4652] The ordinance aligns Chicago code with state and federal standards, so Chicago public health inspectors would have the authority to ticket dry cleaning facilities and auto repair shops that improperly dispose of perchloroethylene (“PERC”), a hazardous chemical found in polishes and cleaner. The state currently regulates the use and disposal of the chemical. Violators would be fined between $1,000 to $5,000.