Chicago News
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After hours of last-minute, closed door negotiations between the Mayor’s Office and aldermen, the City Council’s Finance committee approved a watered down version of Ald. Anthony Beale (9) and Ald. John Arena’s (45) ordinance amending the rules and regulations governing drivers employed by ride-hailing companies like Uber. Noticeably taken off the table: a requirement that would have forced those drivers to get a public chauffeur's license in order to gain access to the city’s airports, McCormick Place, and Navy Pier.
The final version of the substitute ordinance was approved by voice vote following an hour-plus recess; a lengthy public testimony, which consisted of taxi drivers and their Uber counterparts throwing insults with lots of cheers and heckling from the gallery; and finally, testimony detailing the changes from Ald. Beale, Budget Director Alex Holt and Business and Consumer Protection Commissioner Maria Lapacek.
Attendance (committee members in bold): Chairman Ed Burke (14), Joe Moreno (1), Pat Dowell (3), Will Burns (4), Leslie Hairston (5), Gregory Mitchell (7), Anthony Beale (9), Susan Sadlowski-Garza (10), Patrick Daley Thompson (11), George Cardenas (12), Marty Quinn (13), Raymond Lopez (15), David Moore (17), Derrick Curtis (18), Matt O’Shea (19), Willie Cochran (20), Howard Brookins, Jr (21), Rick Munoz (22), Michael Scott, Jr (24), Danny Solis (25), Roberto Maldonado (26), Walter Burnett, Jr. (27), Jason Ervin (28), Ariel Reboyras (30),Milly Santiago (31), Scott Waguespack (32), Carrie Austin (34), Carlos Ramirez Rosa (35), Gilbert Villegas (36), Emma Mitts (37), Nick Sposato (38), Marge Laurino (39), Pat O’Connor (40), Brendan Reilly (42), Michele Smith (43), Tom Tunney (44), John Arena (45), James Cappleman (46), Harry Osterman (48), Deb Silverstein (50)
The updated version the Committee approved would add an additional $0.02 to the Mayor’s original $0.50 additional surcharge on all rides hailed through an app. The change is expected to bring in “a couple more million” to the city, according to Ald. Beale, who said the changes were, “not a total compromise but a huge, huge step in the right direction to bring parity to these two industries trying to co-exist.”
The additional revenue will offset the fees taxi drivers pay to acquire a chauffeur's license by implementing a so-called “taxi chauffeur rebate program”. Under the program, which would be implemented by the commissioner of the Department of Business Affairs and Consumer Protection (BACP), an eligible taxi driver could get subsidies that would cover up to $50 towards fingerprinting and background check costs, $25 towards biannual drug tests and physical examinations needed to renew the chauffeur's license, and $50 towards chauffeur training courses.
The amendment also reduces the fees cab drivers have to pay to obtain a chauffeur's license from $15 to $5 for the first license, and from $8 to $5 for the renewal. Ride-share drivers can’t have outstanding debt owed to the City if they want to obtain a Class A license to operate in the city, and they could be required to put additional “distinctive signs or emblems” advertising the company they work for on their car.
The new fees are expected to bring in $60 million dollars in annual revenue to the city, up from the Mayor’s original $48 million projection. Any dollar above that amount would be earmarked for new police hires, which Ald. Beale projects to be about 20-60 new hires on top of the city’s annual recruitment numbers. Directing revenue from ride-share companies for public safety expenses was an idea Ald. Patrick Daley Thompson (11) floated in committee last week.
At the time, Aldermen Beale and Arena had introduced a brief, two-page ordinance requiring Uber drivers get a public chauffeur license if they wanted the ability to pick up passengers at the City’s airports, Navy Pier, and McCormick Place. At the start of yesterday’s meeting, an earlier draft of the substitute ordinance the committee approved was leaked to the press. That version which we have uploaded outlined a fee structure that would have required ride-hailing companies pay an annual licensing fee based on how many divers they employ. Under the city’s existing law, Uber pays a flat, $10,000 annual rate to license all of their drivers.
For example, if a ride-hailing company had less than 2,500 active drivers on Chicago streets, the company would pay the City $40,000 for the Class A Transportation Network Provider licenses (the official name for rideshare companies) required for these drivers. The highest bracket, with 100,000 employed drivers, would have cost $1.25 million. Under that plan, Uber, which has approximately 20,000 active drivers in Chicago, would have had to pay the city $750,000 a year to make sure their drivers are appropriately licenced. The new version the committee passed eliminates the fee structure completely. It was replaced with an additional 2-cent surcharge on all rides within city limits.
When Ald. Roberto Maldonado (26) asked why the public chauffeur requirement was nixed from the deal, BACP Commissioner Maria Lapacek said it was “unnecessary” to require that Uber drivers, a majority of whom work part-time, to apply for a license meant for full-time transportation drivers, like cabbies. Noting that the city already vets rideshare drivers when they apply for a Class A license, compounded by the fact that BACP’s licensing operation is taxed, Commissioner Lapacek said it would have been “too taxing of a process” for drivers of a “transient nature”.
The final vote on the rideshare amendment was taken at the tail end of the meeting, more than 4 hours after the start time.
When Chairman Burke called the meeting to order at 10, he announced he would “temporarily” hold the first two items on the agenda–the ridesharing ordinances–and move on to “items that can be resolved quickly”. He then held three Progressive Caucus-backed items in committee: Ald. Carlos Ramirez-Rosa’s (35) proposed stormwater stress fee that would lower homeowner’s sewer fees by shifting the burden to large commercial properties; and Ald. Arena’s proposals to end the tax exemption on horse-drawn carriage rides and extend that exemption to opera tickets purchased by CPS and the Park District for education programs.
Going in the order of the agenda, he called the five Special Service Area appointments up for a vote. The appointments passed without testimony or discussion. He called a communication from the Law Department detailing all judgements and settlements for August up for a vote. The item passed without testimony or discussion. He called up ordinances to re-establish SSA #44 and property tax levy requests, service provider agreements, and budget proposals for 20 SSAs. Those also passed without testimony or discussion. Burke invoked Rule 14, and abstained from voting from SSA #7 (Kedzie Industrial Park), and SSA #39 (Brighton Park/Archer Heights). Those two applications were filed by Craig Chico, Executive Director for Back of the Yards Neighborhood Council and brother of former mayoral candidate Gery Chico, a close business associate of Burke’s law practice.
The Committee also approved two separate redevelopment loan agreements for Midway Point, LLC and Maple Marketplace, with Chairman Burke abstaining from voting on the latter. It took the Committee less than ten minutes to push through and approve those items, before Burke said, “Ald. O’Connor moves to recess for 10 minutes.”
Over an hour later, the Committee was called back in session. But instead of starting with a summary brief detailing the newly drafted ordinance, Chairman Burke went straight to witness slips calling up over a dozen representatives and drivers from the taxi industry and Uber to testify. The move brought a lot of mudslinging and accusations from both sides.
But the fighting between the two factions started even earlier, with two competing rallies on the second floor of City Hall before yesterday’s hearing. Chanting “airports now”, Uber drivers in teal colored shirts that read “Keep Chicago Uber” spoke out to demand the City lift its current ban on pickups at O’Hare and Midway Airport. They were flanked by the city’s cab drivers, who countered with their own chant, “Same service, same rules.”
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After a 20 minute delay due to technical issues, the Committee quickly approved two real estate tax incentives to support the rehabilitation of two dilapidated industrial properties on the city’s Northwest Side.
Members present: Chairman Howard Brookins (21), Derrick Curtis (18), Michael Scott, Jr. (24), Jason Ervin (28), Chris Taliaferro (29), Carlos Ramirez Rosa (35), Marge Laurino (39), Tom Tunney (44)
A class 6(b) property tax incentive to help support the purchase and rehabilitation of a nearly century-old, vacant, 110,000-square-foot industrial warehouse in Austin (5801 W. Dickens Ave.) passed committee Monday. Miller Bay, LLC, the applicant, plans to spend $1.8 million dollars renovating the facility, but they don’t have a tenant lined up yet, according to Essie Banks, who testified on behalf of the Department of Planning and Development.
Calling the site an “eyesore” and threat to public safety, former police officer and 29th Ward Alderman Chris Taliaferro said he was glad to see the property put to good use after it had been vacant for close to four years. “In fact, as a police officer in that area, where I worked the last three years, we had to constantly send patrol over there because of the illegal breaking in and all the other things I won't mention that happened in that area,” he said.
The second application, introduced by Mayor Emanuel, would help Berman Mid City Nissan rehabilitate two vacant, industrial buildings in Avondale into a new car dealership (3444-56 N. Kedzie Ave.). The company is seeking a Class 7(b) tax incentive to help with the $19 million dollar renovation that will turn one site into a showroom and the other site into a vehicle storage and service center. Denise Roman, with the Department of Planning and Development, said the applicant plans to relocate from their Irving Park location once the project is complete. The new dealership is expected to generate $7 million in sales tax revenue, Roman added. The two warehouses are located in Ald. Carlos Ramirez-Rosa’s 35th Ward. He testified in support, calling their existing facility “beautiful”.
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Issuing a light reproof of Mayor Rahm Emanuel’s proposal to privatize 311 services, The Council Office of Financial Analysis (COFA) released its first major report on city budgets to Aldermen last Thursday. While the private report contains the clearest analysis of city budget plans from any government agency, it mostly supports the Mayor’s budget plan, saying that, “The Mayor’s 2016 budget proposal is a strong step on the path towards fiscal stability.”
Download, “Review of Mayor’s 2016 Proposed Budget”
The most eye-catching part of the 65-page analysis is the Conclusions section near the end, of which COFA Director Ben Winick told Aldertrack, “The opinions are mine. I think the words speak for themselves.”
Winick reviews the mayor’s proposals for a dozen or so major city programs, providing an opinion on their feasibility and appropriateness. While the COFA review finds few faults with the Mayor’s budget proposal, the mere fact that an official city document with an analysis of the Mayor’s plans even exists, is a big change for City Hall.
The report also does not review the city’s revenue estimates for new city revenue items, like the Cloud Tax, which Mayoral budget analysts say will total $40 million, while businesses say could add up to as much as $100 million.
Winick discounts businesses’ complaints, however. “When something new is being taxed that that, there are typically pretty significant compliance issues in the first year,” he said.
The report puts all the city’s 2016 estimated revenue and expenses in a simple balance sheet format, adjacent to comparisons from 2015 projections. This simple comparison, is in stark contrast to Mayoral budget documents, which never put all the numbers in one place, forcing readers to do additional and subtraction on a separate scratch sheet. COFA’s report then presents a breakdown of every city agency and its major program areas, again with 2015 projections, side by side.
The COFA report also provides Aldermen with a property tax payment table, potentially valuable foresight into how much the increased property tax levies and exemption will impact homeowners. “Since we’re going through the triennial [property assessment review], I wanted to people to know what [taxes] will be since the Equalized Assessed Value is going up across the city,” said Winick.
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A resolution supporting new training to help identify victims of domestic violence passed the Committee on Public Safety Monday, but Springfield will need to make the next move. The resolution approved Monday (R2015-480) will kick off hearings in Chicago about the feasibility of a possible statewide program that would train salon workers to identify and aid victims. Cosmetologists would be required to complete an hour of training to identify victims and help them seek out law enforcement when they apply for or new or renewed their license. The bill, HB-4264, was recently amended and referred to the Rules Committee in the Illinois House. It added 20 co-sponsors last week.
In Chicago, the resolution calling for hearings on the potential program in Chicago has 36 co-sponsors, and was introduced by Ald. Matt O’Shea (19) and Ald. Marge Laurino (39).
Cook County State’s Attorney Anita Alvarez testified in favor of hearings. “A quick trip to the salon may be the only time a victim is in the company of others for more than a few minutes without their abuser present, and women tend to bond with their hairdressers, as I certainly know,” she told aldermen. She says her office's "staggeringdomestic violence caseloads include 15,000 misdemeanor domestic violence prosecutions and more than 500 felony cases a year. Those numbers don’t include murder or sexual assault cases likely linked to domestic violence, she says.
Alvarez was one of many political figures that have appeared in the anti-domestic violence “Chicago Says No More” TV PSAs. Cook County Commissioner Bridget Gainer, Cook County Board President Toni Preckwinkle, Chicago Police Superintendent Garry McCarthy and Illinois First Lady Diana Rauner have also appeared in the ads.
Tara Campbell, a survivor of domestic abuse who now works with Chicago Says No More testified that court advocates and friends were crucial members of her tribe, but bringing salon workers into the mix would be “monumental.” Her own hairdresser was a key support during her abuse. “She knew everything… I would often share with her the gory details of my experience.”
Training salon workers could help address abuse of all kinds, Ald. Emma Mitts (37) told Alvarez, voicing her support. “I don’t know no one who talk more than people talk in salons. Anything you want to know, go to salons… Too many people are being abused and they don’t know they’re being abused.”
Cosmetologists renew licenses every two years in Illinois. A similar program that passed last spring in Ohio is slated to train 120,000 salon and spa workers. It’s sponsored by the Professional Beauty Association Foundation.
The committee also approved a substitute ordinance changing the destination of a donated ambulance to Charcas, San Luîs Potosî, Mexico, a municipality with 20,000 people but just 112 ambulances. The donation was supposed to go to Mexico’s Red Cross, in Ciudad Sahagun, Hidalgo, Mexico, but Evelyn Rodriguez, a staffer for Ald. Joe Moreno (1), said there were “financial issues” and the vehicle should be redirected.
The resolution and substitute ordinance both passed by voice vote, and will be reported out at Wednesday’s full City Council meeting.
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NOTE: The Council’s Budget Committee, originally scheduled to meet this afternoon, cancelled their meeting.
Finance Committee to Discuss More Regulations on Ride-Hailing Apps
At 10:00 a.m., the Finance Committee will take another stab at tinkering with the Mayor’s revenue plans for next year.
Since the official revenue ordinance was voted on in committee and deferred and published at last Wednesday’s full City Council Meeting, the five budget-related items listed on the Finance agenda will be taken up individually.
Two of those items further amending the Mayor’s proposed surcharges, fees, and licensing requirements for drivers who use ride-hailing apps like Uber will be introduced, discussed and potentially voted on.
Over the past week, Finance Chairman Ed Burke (14) has expressed interest in adding more licensing requirements for Uber drivers to bring in additional revenue to address the City’s financial woes.
At last Tuesday’s Finance Committee meeting, Burke said it, “simply doesn’t seem fair,” medallion taxi drivers are required to pay $500 a year for a city-issued public chauffeur's license, while Uber drivers are exempt from the requirement. Instead, drivers employed by ride-hailing apps are required to get a special, so-called transportation network provider, or TNP, licenses.
“It might be interesting to see if those companies can be assessed a $500 per driver fee to make it more evenly spaced with the cab company,” Burke told reporters.
The following day, Ald. John Arena (45) and Ald. Anthony Beale (9) introduced an ordinance requiring a public chauffeur's license for any transportation provider interested in picking up passengers at O’Hare and Midway airports, Navy Pier and McCormick Place.
That ordinance is on today’s Finance Committee agenda, in addition to another rideshare-related ordinance, which will be directly introduced.
The ordinance is in response to Ald. Roberto Maldonado’s (26) concern over the number of rideshare drivers with out-of-state license plates and its impact on passenger safety. Ald. Maldonado suggested his peers look into the legality of requiring Uber drivers to have an Illinois driver's license, license plate, and City-owned sticker. Budget Director Alex Holt and Chairman Burke said they would look into it. When Aldertrack reached out to Ald. Maldonado Friday afternoon, he said Chairman Burke was working with the Law Department to draft the ordinance.
The Finance Committee will take up three other Progressive Caucus-backed ordinances that would bring in additional revenue to the City.
A proposed stormwater stress fee, introduced by Ald. Carlos Ramirez-Rosa (35), would increase sewer fees for big box retailers and other commercial properties with large concrete parking lots that prevent rainwater from seeping into the ground.
The Progressive Caucus floated the idea of a stormwater stress fee over the summer when they announced a laundry list of cost-saving and revenue enhancing plans they wanted the Mayor include in his 2016 budget proposal. At the time, they said the tax “could ease the burden on working families while asking large corporations and other major entities to pay their fair share.” Since then, Ald. Ramirez-Rosa worked with the Mayor’s legislative aides and the Legislative Reference Bureau to research the feasibility of the fee. Ald. Ramirez-Rosa told Aldertrack that while he hasn’t had an opportunity to talk to Chairman Burke about his proposal, he has received positive feedback from the Metropolitan Planning Council and other policy groups.
The ordinance would create a two-tier system for sewer fees; one formula for single family homes, the other for all other properties. To determine fees, the Department of Water would first have to find a median residential unit square footage. The city would aggregate the stormwater management cost for all single family homes, and then divide it by the total number of single family homes. Single-family homes would then be assessed by that amount. The same formula would apply for all other properties. Ramirez-Rosa estimates single-family sewer fees would go down as a result, while fees for large parking lot owners surfaces would go up.
Progressive Caucus aldermen are also behind an ordinance that would exemptChicago Symphony Orchestra or Lyric Opera Company tickets purchased by Chicago Public Schools or the Park District from the city’s 9% amusement tax, and another ordinance that would end tax exemption on tickets for horse drawn carriage rides.
Their ordinance to double the minimum fee for sidewalk cafe permits to $1,200 did not make it to today’s Finance agenda.
In addition to those budget related items, the Finance committee will also vote on new appointments to various Special Service Areas (SSAs) across the city, in addition to approving another round of property tax levy requests and service provider agreements for 20 SSAs.
Meanwhile, the Committee on Public Safety will hold a 9:30 a.m. hearing on city-run programs for domestic violence victims. The resolution Ald. Marge Laurino (39) and Ald. Matt O’Shea (19) introduced in June is modeled on a training program in Ohio that teaches salon workers how to identify victims, and aid in reporting abuse to local authorities. The resolution asks Public Safety Chairman Ariel Reboyras (30) to invite advocacy groups, law enforcement experts and trade associations to examine whether Chicago could do something similar. Aldermen on the committee are also set to approve the donation of a city-owned vehicle to Mexico.
The Committee on Economic, Capital and Technology will meet at 11:00 a.m. to consider two real estate tax incentives for companies interested in rehabilitating old industrial buildings. Berman Mid City Nissan applied for a Class 7(b) tax incentive to build a car dealership in two buildings in Avondale (3444-56 N. Kedzie Ave.). The Cook County Class 7(b) tax incentive lowers property taxes on qualified commercial properties for a 12-year period. If approved, Nissan would save an estimated $5.5 million.
Miller Bay, LLC applied for a class 6(b) tax incentive to subsidize the purchase and renovation of a vacant warehouse in Austin (5801 W. Dickens Ave.). The project is expected to cost $1.8 million. The Cook County Class 6(b) tax incentive lowers property taxes on qualified industrial properties for a 12-year period. If approved, the company would save an estimated $148,000. -
Two critical, seemingly unrelated facts are bearing down as the Chicago City budget moves to a vote next Wednesday. First, nobody has offered an alternative to Mayor Rahm Emanuel’s plan to dig out of Chicago’s fiscal hole. And second, Governor Bruce Rauner made $53 million last year. The two items are more connected than you may think, and are the chief factors why Chicago remains in dire financial straits.
To recap, Chicago desperately needs Illinois government to enact three big ticket items. The Chicago Public School Board passed a budget that only adequately funds its system through December. $400 million more is needed from state government to make it to June 2016, officials say. The Chicago City Council is preparing to enact a budget that includes a phased-in $544 million a year property tax increase, but relies on state government to enact a pension reform that reduces payments by $220 million a year, and a doubling of the homeowners exemption that lifts the property tax burden off the majority of residential property owners.
While the state legislature is controlled by Democrats who are likely to support Chicago’s financial needs, Gov. Rauner, who is Republican, made it clear in a speech to City Council last July: “For Chicago to get what it wants, Illinois must get what it needs… We don’t have the money to bail out Chicago.”
What Rauner means is that Illinois needs to follow his plan for eliminating government employee collective bargaining, a veritable death sentence for Democrats in state government and deeply unpopular in union-blue Chicago.
Democrats in the Illinois House and Senate have big enough majorities to override Rauner’s vetoes, but in the House the margin is razor-thin: No extra votes. However, at least four Democrats have suggested they would vote against additional state spending on behalf of Chicago.
And yet, only one plan has been proposed for Chicago: Mayor Emanuel’s. Unlike state, federal or even Cook County government, Chicago’s City Council has not engendered an alternative solution, like cutting city services or jacking up taxes even more. So aldermen are lining up behind the Mayor even as some doubt the long-term revenue will be enough to pay for the city's mountain of debt.
There’s no question the Mayor’s plan will pass City Council next Wednesday. This week, Aldertrack sifted through public statements, talked to aldermen and their staff, and reviewed each ward’s political viability. There are enough aldermen with a firm grip on their wards that the Mayor can depend on. And then there are a few nearing retirement that could take a few bad votes in return for a cushy job and help to pass on their seat to a chosen successor.
By our count there will be at least 16 “no” votes against the property tax and budget, maybe as many as 22, but the mayor certainly won’t lose the vote, or even have to break a tie of 25-25.
All this puts our city on a collision course with a governor who seems to enjoy a good game of chicken and has nothing personal to lose. After all, he’s already made his millions as a tremendously successful businessman. As proof, this month he released his 2014 tax return, showing that he made $53 million last year.
Past Illinois governors needed public support, or at least a modicum of popularity, to build on for a post-government career. Bruce Rauner needs none of that. Politics is a second act for him, and he’s come to office with a specific worldview and a plan to make it happen.
Someone who took a more traditional path, by climbing up the political ladder to the Governor’s mansion, might buckle under the political pressure. Give in today to fight another day. But if Rauner’s plan doesn’t work out, he’ll always live comfortably. If Illinois and Chicago suffers, Bruce Rauner won’t.
Under those circumstances, it would seem Chicago’s odds are not great. But there’s no other plan in the offing. So into the breach our city government goes. -
Finance Committee OK’s Mayor’s Revenue Plan, With One Change
The Finance Committee met before the full City Council meeting yesterday to approve the 2016 Revenue Ordinance Chairman Burke held in committee the day before, citing a need for “further modifications.” Two aldermen, Roberto Maldonado(26) and John Arena (45), asked to be recorded as “no” votes.Only one change was made to the revenue ordinance since Tuesday’s meeting. Chairman Burke asked the Law Department to draft “clarifying language” adding more Council oversight in how CPS spends a $45 million dollar property tax levy. Mayoral officials have said the capital improvement tax levy would address overcrowding and pay for repairs and upgrades at city schools. Aldermen have called it a blank check.
The new provision would require representatives from the Board of Education to provide regular reports detailing how money will be spent. Aldermen could also file a resolution objecting to any of the planned expenditures. The amendment passed by voice vote.
Ald. Arena also introduced an amendment requiring rideshare companies obtain a city-issued chauffeur's license, (a Class B TNP license) if they want to pick up passengers at O’Hare, Midway, Navy Pier or McCormick Place. The amendment applies to all “transportation network providers”, or TNPs, but since medallion taxi cabs are already required to pay for the license, this amendment is specifically targeted towards Uber, Lyft and other rideshare drivers. To qualify for the license, a driver can’t have any outstanding debt owed to the city, or unpaid child support.
Ald. Maldonado says he sees a lot of Uber cars without Illinois plates, and asked how the Council could address that. “[Those drivers] may not have a driver's license from the state of Illinois. To me, that brings up a very serious safety issue,” he said.
Chairman Burke and Budget Director Alex Holt said they would discuss the issue with the Department of Business Affairs and Consumer Protection. Until then, Ald. Beale’s amendment will be held in Finance Committee. “We still have time, we’ll be meeting again next week. I think Alderman Maldonado has pointed out some issues that seem reasonable to me,” Burke said.
Amendments Introduced In Full Council Meeting
Several amendments to the Mayor’s budget plan were introduced at yesterday’s abbreviated City Council meeting, which functioned as a procedural gathering to defer and publish the Mayor’s budget. Minor changes can be made before the official budget vote next Wednesday, October 28.Progressive Caucus aldermen are behind most of the amendments introduced to the full Council yesterday. They want to double the minimum fee for sidewalk cafe permits to $1,200 and link the fee determination to current property tax values, end end the exemption of Chicago Symphony Orchestra and Lyric Opera tickets the city’s 9% amusement tax. Another proposal ends the amusement tax exemption for horse drawn carriage rides.
Ald. Carlos Ramirez-Rosa (35) introduced an ordinance with Progressive Caucus co-sponsors imposing a storm water stress fee, an idea floated by the Progressive Caucus weeks before the Mayor’s budget proposal was released. Other cities have imposed the fee to ensure buildings pay more for their large parking lots, which tend to prevent rainwater from seeping into the ground, taxing the city’s sewer system and sometimes leading to flooded basements.Ramirez-Rosa’s ordinance would create two new payment formulas to be factored into a person’s water bill; one for single-family residential homes, and another for all other properties. To determine fees, the Department of Water would first have to find a median residential unit square footage. The city would aggregate the stormwater management cost for all single family homes, and then divide it by the total number of single family homes. Single-family homes would then be assessed by that amount.
A similar formula would apply for all other properties, but then the amount of impervious surface would be factored in so that non-single-family properties with larger impervious surfaces, such as parking lots or wide roofs, would end up paying more. Ramirez-Rosa estimates single-family sewer fees would go down as a result, while fees for large parking lot owners surfaces would go up.
311 Privatization
It was been widely reported yesterday Mayor Emanuel is backing down from his proposed privatization of the 311 system after more than half the City Council blasted the plan. But throughout the day the Mayor and his staff made no official statements about a plan that was never officially proposed anywhere other than in a few lines of his September budget speech.Before yesterday’s full City Council meeting, Ald. Toni Foulkes (16) told reporters the plan was taken “off the table” after they sent a letter to Emanuel from 36 aldermen and AFSCME, the union that represents 311 operators. “We understand the tremendous fiscal challenges the city faces and appreciate your efforts to address those challenges,” the letter says. “But outsourcing 311 risks damaging an effective city service for very little, if any real savings and pressing this proposal now only serves to distract us from the serious budgetary issues facing our city.”
The Mayor floated the idea of privatizing the city’s main call line for addressing non-emergency related services during his budget address. Since then, he has repeatedly said the City can’t afford to pay the $40 million dollars needed to upgrade the aging system, first put in place in 1999. Yet, no proposed ordinance nor his official budget document makes no mention of the privatization plan.
The official city budget includes no changes for all 311 call center positions for the coming fiscal year. When the Mayor was asked about the 311 plan at his post Council press briefing, his answers were vague. Even the Progressive Caucus, of which Ald. Foulkes is a member, stopped short of saying the fight was over in a press release yesterday afternoon, calling it an "apparent decision to table its proposal" from the Mayor's office.
“Obviously we are in the process where the alderman contribute their ideas and I listen to all ideas, but I believe fundamentally in what I laid out,” he said. “I’m not going to negotiate publicly.”
One aldermanic staffer, who spoke on the condition of anonymity, said the Mayor’s aides had privately assured aldermen the privatization wouldn’t move forward, and aldermen leaked the news to reporters so that the mayor wouldn’t back down.
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A group of Democratic Committeeman met last night and agreed to appoint Englewood activist Sonya Harper to replace the late State Rep. Esther Golar, who passed last month. Harper will serve out Golar’s term as 6th District representative and may run for the spot in next year’s elections. Before Harper's appointment, the committee voted to appoint local Ald. Toni Foulkes Democratic Ward Committeeman of the 16th Ward, giving Foulkes the biggest weighted portion of the vote.
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After three hours of grilling Budget Director Alex Holt on the timeliness and necessity of Mayor Rahm Emanuel’s proposed $544 million property tax increase, the Committee on Finance approved the plan in a divided 17-10 roll call vote.
Citing a need for “further modifications”, Chairman Ed Burke held the 2016 Revenue Ordinance, a laundry lists of new taxes and fees, like the Mayor’s proposed $9.50 a month garbage fee, changes to the cloud tax, building permit fees, and rideshare and taxi fees. Burke scheduled an early morning meeting at 9:15 a.m. today, so the committee can take action on those items in time for the 10am full City Council meeting. [Our review of revenue ordinance here.]
The mayor’s phased-in property tax increase, which the committee approved as a package vote, starts a $318 million supplemental levy increase for 2015, with an additional $109 million in 2016, $53 million in 2017, and $63 million in 2018. The additional revenue will be committed to the city’s police and ire pension payments, with the annual fee structure based on the assumption that Gov. Bruce Rauner will approve SB 777, the Mayor’s legislation to reduce the annual payments by adding another 15 years to the payment schedule.
Yes Votes: Alderman Pat Dowell (3), Gregory Mitchell (7), Michelle Harris (8), Anthony Beale (9), Danny Solis (25), Patrick Daley Thompson (11), George Cardenas (12), Marty Quinn (13), Matt O’Shea (19), Rick Munoz (22), Ariel Reboyras (30), Carrie Austin (34), Marge Laurino (39), Pat O’Connor (40), Joe Moore (49).
[Freshman Ald. Gilbert Villegas (36), David Moore (17), Carlos Ramirez Rosa (35), and Michael Scott, Jr. (24) were present, but since they aren’t members of the committee, they couldn’t vote].
Some of those “nay” votes were foreseeable. Progressive Caucus aldermen, who tend to be openly critical of the mayor, Scott Waguespack (32), Leslie Hairston (5), John Arena (45), and Nick Sposato (38) voted against the property tax increase. They were joined by Brendan Reilly (42), whose downtown ward would bear the brunt of the property tax increase; Tom Tunney (44), who lamented that high property taxes in his lakefront ward are already contributing to vacant storefronts; Jason Ervin (28), who said voting on a property tax hike before Springfield passed an exemption was “akin to jumping in a pool and not knowing if it is a 9 foot pool or 29 foot pool.” Ald. Harry Osterman (48), Ald. Deb Silverstein (50), and Ald. Roberto Maldonado (26), whose wards all contain heavily residential, middle-class families, also voted against the tax hike.
But despite the divided roll call vote on the most controversial piece of the Mayor’s budget plan, Chairman Burke and the Mayor’s unofficial floor leader, Ald. Pat O’Connor (40), said they’re still confident they have the votes to get the property tax hike and the rest of the Mayor’s nearly $8 billion dollar spending plan through the full City Council.
When asked after the meeting if he was surprised by the divided vote, Chairman Burke replied, “No, I think what you’ve seen is an expression of reluctance on the part of the aldermen that represent the Gold Coast, the lakefront areas where this is going to have the biggest impact.”
Ald. O’Connor attributed the number of no votes to the "committee's makeup". “Some people are being responsible in addressing the issues that are out there. And others feel that they want to duck it...These are tough times, and people expect that it’s going to be different than the days when you can pitch shutouts when everything is going swimmingly.”
Dependence On Springfield Action
But over the course of the three hour Finance Committee meeting, it became clear aldermen have little faith in Springfield, and even less faith in how CPS handles its money.
“Springfield hasn’t figured anything out, and so to try and push this [property tax increase], when they can’t even do their jobs, to rely on them, doesn’t make sense,” Ald. Hairston told Holt, after grilling her about the status of the Mayor’s homestead exemption plan.
That property tax relief plan, which passed out of a Illnois House Committee in Springfield around the same time as the Finance Meeting, would double the general homestead property tax exemption, currently $7,000 for Cook County and $6,000 for the downstate counties. If approved, any county would have the option to increase the exemption up to $14,000, the amount Mayor Emanuel needs to fulfill the promise he made during his budget address that homeowners whose' homes are valued at $250,000 and under won’t see any increases to their property tax bills mailed out in August.
Hairston was especially concerned the Mayor would come back to the Council in a couple years to ask for even more tax increases to fix the city’s budget problems. “There is something else that’s going to come up. That does not help us put trust in our government. If you come to us now, please don’t come again,” Ald. Hairston said, suggesting the Mayor do one lump sum property tax increase the first year and get it over with.
Additional CPS Tax Levy
But the property tax increase wasn’t the only item before the Committee that raised a lot of red flags for aldermen. The second most contentious item was a $45 million dollar property tax levy request from the Chicago Board of Education (page 43 of the revenue ordinance).
The “capital improvement tax levy” is part of CPS’ overall $2.4 billion dollar property tax levy request for this current school year, and while it has already been approved by the Board of Education, state law requires Council approval within 60 days of notification from the Board. Aldermen called it a blank check.
“We have a big problem with CPS and how they spend their money,” Ald. John Arena (45) said at the meeting. “My concern is that we are authorizing $45 million a year, potentially, going into a black hole.”
“The only thing [CPS has] improved is their offices. I don’t think we should give them a blank check,” Ald. Hairston told reporters after the meeting. “There should be some type of explanation as to how CPS rolls out the capital improvement plans, so that we know what we’re voting on. I would not want to vote on a capital improvement plan that builds charter schools in other neighborhoods.”
“Is there any restrictions on where this money can’t be spent? ” Ald. Tom Tunney(44) asked. Like Ald. Hairston, he voiced concerns about capital project oversight. The 44th is one of the few wards without a TIF fund. And it is common for TIF money to be redirected to local school improvement projects.
Ald. Reilly and Ald. Gilbert Villegas (36) asked if CPS would use that money to pay down debt or additional bonding for capital projects.
The money from the levy, Holt said, would address overcrowding and capital improvements at public schools across the city. She also said that if the City Council authorizes the levy, it would be an annual “permanent increase.” But she wasn’t sure if the levy could be rescinded at a later date. As the concerns piled up, Chairman Burke suggested some “language” be added to the ordinance to address concerns from aldermen.
Rideshare Rules
Another contentious item on the agenda had to do with new fees and rules for taxis and rideshare apps.
The city plans to get rid of the medallion transfer tax because it isn’t bringing in the revenue it once was. According to Business Affairs and Consumer Protection Commissioner Maria Lapacek, there are currently 6,900 active medallions in the City. Each medallion owner pays $1,000 for a two-year license, with cabs that aren’t wheelchair accessible paying an additional $100. That is compared to about 27,000 ride share drivers. Most of them, around 20,000, work for Uber. Uber’s holding company pays the city $10,000 to license their entire fleet, as well as a 20-cent per-trip Ground Transportation Tax and 10-cents per trip for the wheelchair accessibility fund.Chairman Burke, who had inquired about those numbers, said, “At first blush that simply doesn’t seem fair. Why do we not assess a $500 dollar fee for each of those 20,000 units, like we do for the medallions?”
When Lapacek said that there was a difference between medallion cabs and rideshare drivers who use their own personal cars to pick up passengers. Burke clarified that he'd rather have Uber pay the fee, not the drivers.
The Mayor also included a provision that would let taxicabs implement “surge pricing” for rides acquired through digital apps. But several aldermen raised doubts about the real world application of those changes.
Ald. Beale, one of the biggest critics of rideshare companies, said no one in the cab industry is interested in surge pricing because they don’t have the technology to do that. When Holt corrected him to say that they had sought approval from Springfield to do that a few years back, Ald. Beale said that was beside the point.
“I know you guys like to work on hypotheticals, like in Springfield...So, If it’s raining, if it’s snowing, and I have an app, why am I [as a driver] going to pick somebody on the corner, when I can get surge pricing waiting for an app?”
“Well that’s a hypothetical, you don’t know if your app is ever going to…” Lapacek responded, but was cut off by Beale. “Well, you guys are saying hypothetically Springfield is going to pass a reform for us. So is it not okay for me to ask for a hypothetical, and okay for you all to operate on a hypothetical?"
"If I can get three times my salary [with the surge pricing] I’m gonna wait.” -
Uber has made a $19,500 ad buy from Comcast on BET, CNN, and MSNBCtargeting City Council ahead of its upcoming vote on new rules for rideshare companies and cabs. Ads will run between Oct. 20 and 28th–the day of the full Council vote on the budget. The biggest chunk of money will target downtown and South Side viewers.
Hulsen Media Services, an Austin, Texas based ad agency specializing in media planning and buying for liberal/democratic candidates and issues, is handling the ads. Hulsen also consulted for this ad in Wisconsin, saying worksites could soon be taken over with illegal workers. The company also worked for supporters of Michigan’s Use Tax and Community Stabilization Share ballot proposal, which in part, phased out personal property taxes on small businesses and manufacturing equipment, and the Congressional campaign of Stanley Chang, a Democrat from Hawaii.
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An ordinance allowing repairs and reconstruction to five pedestrian and vehicular bridges over a portion of Lake Shore Drive in the Bronzeville community got the go-ahead from the Committee on Housing and Real Estate. Some bridges, which connect neighborhoods to the lakefront, have been around since the mid-1920s. The ordinance approved yesterday includes real estate transactions and various agreements that allow the Chicago Department of Transportation to finish the bridge improvements. The entire project is scheduled to be complete by 2018, with some updates done by early 2016.
Attendance (6/17 members) - Chairman Joe Moore (50), Raymond Lopez (15), David Moore (17), Michael Scott Jr. (24), Ariel Reboyras (30), James Cappleman (46)
Start Time: 9:36
Luis Benitez and Tanera Adams from CDOT offered brief testimony, saying the arrangements allow CDOT to complete updates to the deteriorating, non-bike or wheelchair accessible bridges that stretch over Lake Shore Drive and railroad tracks. CDOT will take ownership of the bridges from the Park District, and will take over negotiations to existing easement agreements with Metra and Illinois Central Railroad. Any major structural or engineering issues will be addressed by CDOT, but graffiti abatement, snow removal, and landscaping will be handled by the Park District.
Ald. Ariel Reboyras (30) hinted at the difficulty of past projects concerning Metra and Illinois Rail, and asked whether rail companies had been cooperative. Adams didn’t answer, but laughed. Ald. Moore said her response would be on the record. Benitez took a more delicate position, saying, “It's a challenge... We try to make sure everything we design is out of their way.”
The ordinance passed unanimously by voice vote, and will advance to the full Council on the 28th. “We want tomorrow's meeting to be very short,” Chairman Joe Moore (49) joked.
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After making it through last week’s Plan Commission meeting relatively unscathed, a ground lease agreement for the proposed Lucas Museum cleared another hurdle at yesterday’s Zoning Committee. With the exception of Ald. Ameya Pawar (47), the application got full support from aldermen.
Attendance (9/17 members): Chairman Danny Solis (25), Michelle Harris (8), Anthony Beale (9), George Cardenas (12), David Moore (17), Matt O’Shea (19), Walter Burnett (27), Carlos Ramirez-Rosa (35), James Cappleman (46), Ameya Pawar (47), Marge Laurino (39)
The committee voted on changing the zoning classifications within Institutional Planned Development No. 778, owned by the Chicago Parks District. The Metropolitan Pier and Exposition Authority holds part of the ground lease on the property. Most aldermanic questioning focused on parking, which will actually increase from the current site under the new plan.
Museum officials told zoning members about plans to create more green space that can (on Bears game days only) be used for tailgating. Developers will replace a current cement parking lot with a green prairie area planted with fiber reinforced soil that can withstand tailgating traffic. The soil supports heavier usage from cars, reduces runoff, and will not be used for museum visitors. Additional parking will be in a consolidated area west of Lake Shore Drive. There are more than 1,800 spaces planned. Officials say that increase in parking spaces from existing numbers helps on the rare days when there are museum and Bears’ events happening simultaneously. All museum parking will be hidden beneath the building.
Rob Rejman with the Park District told Ald. David Moore (17) the city is not party to the 99-year, $10 ground lease between the District and the Lucas Museum. Construction cost, to be covered entirely by Lucas, is estimated at $400 million.
Museum officials, playing down the word “private” say the museum’s restaurant and observation deck will be accessible to public without a ticket, as will a library and education center and the green space surrounding the museum. Like others on the campus, Lucas plans to offer 52 free days throughout the year, Museum President Don Bacigalupi said.
Ald. Pawar, the lone no vote, questioned whether the Lucas site, nestled south of Soldier Field along the lakefront, goes against the Lakefront Protection Ordinance. William McGuire, of the City’s Law Department, says the Plan Commission concluded the site is allowable under the ordinance, and governed by it.
The non-profit group Friends of the Parks support the museum, but suing over the museum’s location along the lakefront. Melanie Moore, the director of policy with Friends of the Parks, told the committee, “We believe that it should not be used for private collection,” she said, arguing a privately-funded venture goes against the Protection Ordinance. “In no instance will further private development should be permitted east of Lake Shore Drive,” she said, quoting the ordinance. “[It] contradicts our city’s visionary goal of continuous public open space and access along the lakefront.” Moore said FOTP would be in favor of non-park locations west of Lake Shore Drive, including the Thompson Center or the site of the now-shuttered Michael Reese Hospital.
At last week’s Plan Commission meeting, city planner Heather Gleason said the ordinance language clearly allows for museums, and was meant to stop residential and industrial developments. The zoning changes passed committee and will be brought up for a vote at today’s full Council meeting.
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A Top Chef contestant, a corporate reputation manager, an artist, and several others received unanimous appointments to the Cultural Advisory Council Tuesday -- a brief moment of levity for some aldermen who were set to vote on the unpopular property tax hike within the hour.
Attendance (7/20 members): Chair Tom Tunney (44), Brian Hopkins (2), Marty Quinn (13), Michael Scott Jr. (24), Carlos Ramirez-Rosa (35), Michele Smith (43), Deb Silverstein (50)
Start time: 12:01
The property tax vote slated for Finance Committee overshadowed Tuesday’s Special Events Committee meeting. Staffers had to pull aldermen out of the Council Chambers to vote on the appointments in a separate room, but they still failed to reach a quorum. The small number of aldermen who did attend seemed grateful they could take a non-controversial vote. “There are lots of depressing days in city government,” Ald. Brian Hopkins (2) told appointees, saying he chose to serve on Special Events to vote for fun, uplifting projects and appointments.
The group unanimously approved 8 new appointments and 7 reappointments to the city’s Cultural Affairs and Special Events Advisory Council. They will serve for 2 years on the 30-member Council, which advises the City of Chicago’s Department of Cultural Affairs and Special Events (DCASE).
New appointments (more details in yesterday’s report):
Jeff Alexander, President/CEO, Chicago Symphony Orchestra
Marshall Brown, Architect and Principal, Marshall Brown Projects
Graham Elliot, Chef and Owner, Graham Elliot Bistro in the West Loop
Carlos Hernandez, Executive Director, Puerto Rican Arts Alliance
Heather Ireland Robinson, Executive Director, Beverly Arts Center
Amanda Williams, Artist, AW | Gallery
David Woolwine, Director of Reputation, Community Engagement and Public Affairs at Allstate
Reappointments
Nora Daley (Chair), Executive Advisor, Metropolis Strategies. Daughter of Mayor Richard M. Daley and board chair of Steppenwolf Theater. Council member since 2011.
Carol L. Adams, Retired CEO, The DuSable Museum. Adams was also chief of the Illinois Department of Human Services, director of the Center for Inner City Studies at Northeastern Illinois University; director of resident services and programs at the Chicago Housing Authority; and director of African American Studies at Loyola. Council member since 2011.
Antonia J. Contro, Executive Director, Marwen, who also served on Mayor Emanuel's Arts Transition Team, is on the Boards of the Strategic National Art Alumni Project and the Streb Dance Company. Prior to her 20 years at Marwen, Antonia was the Associate Director of Museum Education at the Art Institute of Chicago. Council member since 2011.
Theaster Gates, Jr., Artist and Founder, Rebuild Foundation. Gates and Mayor Emanuel’s hopes for turning around abandoned South Side buildings were chronicled in a Sun-Times profile. Council member since 2011.
Marjorie S. Halperin, President, Marj Halperin Consulting. Former press aide to CPS Superintendent Ted Kimbrough, deputy press secretary for Mayor Richard M. Daley, communications manager for then-Illinois Treasurer Pat Quinn and the Chicago Park District, and City Hall reporter at WXRT. Council member since 2011.
Ra O. Joy, Executive Director, Illinois Arts Alliance. Former Deputy Director/Grants Coordinator for U.S. Representative Jan Schakowsky, and appointed by Governor Pat Quinn to launch the State of Illinois' Creative Economy Initiative. Council member since 2011.
Michael P. Thornton, Actor, Artistic director and Co-Founder, The Gift Theatre who came up in Chicago’s improv scene at iO, Annoyance Theater, and Second City. Council member since 2011.
Angel M. Ysaguirre, Executive Director, The Illinois Humanities Council, former deputy commissioner at DCASE and current Program Officer at McCormick Tribune Foundation. Council member since 2011.
The appointments and reappointments will be brought to a vote in today’s Council meeting.
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Late last night, a homeowners property tax exemption bill was submitted in Springfield yesterday as an amendment to SB1488, a bill on second reading in the Illinois House. Introduced by House Majority Leader Barbara Flynn Currie, the legislation is reportedly Mayor Rahm Emanuel’s. The legislation calls for a $14,000 property tax exemption in only Chicago, with no mention of Emanuel's previously proposed $250,000 property value limit. The amendment also includes a requirement for companion enacting legislation by Chicago and Cook County governments. The House Revenue & Finance Committee has scheduled a vote on the amendment at 11:00 a.m. today.
Meanwhile back in Chicago, with only a handful of the public witnesses signed up yesterday to testify against Mayor Emanuel’s proposed property tax increase at the morning’s “truth in taxation” public hearing, aldermen spent a majority of the hour and a half long Finance Committee meeting asking the mayor’s budget team what would happen to homeowners’ property tax bills if Springfield fails to pass the Mayor’s plan to double the homeowners’ exemption, and what would happen to the City if the Governor vetoed the Mayor’s pension relief plan.
Aldermen Present: Chairman Ed Burke (14) Pat Dowell (3), Gregory Mitchell (7), Patrick Daley Thompson (11), Matt O’Shea (19), Mike Zalewski (23), Jason Ervin (28), Ariel Reboyras (30), Scott Waguespack (32), Gilbert Villegas (36), Marge Laurino (39), Anthony Napolitano (41), Michele Smith (43).
“Do we know the status of the mayor’s s- called exemption plan as of this morning?” Ald. Scott Waguespack (32) asked Budget Director Alex Holt, who was joined by the city’s Chief Financial Officer Carole Brown and the city’s attorney Steve Levin.
Holt said aldermen can expect an official bill detailing the homeowners exemption will be introduced in “the next week or so,” but it’s unlikely state lawmakers will take action on it before the City Council has to officially vote on the Mayor’s spending plan Oct. 28.
“People keep hearing about this exemption, but they don’t see any action on it... If you are relying on the aldermen to go out there to say, ‘Hey, Suck it up and take it.’ I think we need to be more forthright and tell them this is what you are going to get stuck with,” Ald. Waguespack followed up.
“The exemption doesn’t need to be in place before the end of the year,” Holt explained. “It does certainly need to be in place before the second installment [property tax] bills go out in July. Certainly for the purposes of the County, it would be preferable, given the work that they need to do, that is happen as soon as possible. But from a residents perspective, they won’t see an increase until the bill that’s due...next year.”
The budget impasse in Springfield coupled with Gov. Bruce Rauner’s pledge to only consider an exemption plan that includes “structural reforms” detailed in his Turnaround Agenda, has left aldermen with the very real possibility of voting on the Mayor’s budget before an exemption is put in place.
“What is this administration prepared to do if we don’t get that exemption?” Ald. Pat Dowell (3) asked.
Holt said historically, property tax exemptions haven’t had a hard time getting passed because they aren’t controversial. She also said the Mayor’s office is also looking into implementing a rebate plan, too.
“I think that still has to be on the table and part of the discussion,” Holt said, before adding that an exemption is a better way to go because rebates still require payment upfront and the city would need to find another funding source, about $20 to 40 million, to pay out the rebates. There are currently two rebate proposals awaiting Council action, one from Ald. Joe Moreno (1), the other from Ald. Carlos Ramirez-Rosa (35).
“Internally, we are working through what a rebate would have to look like, but as Alex mentioned earlier, our expectation is that they will be introducing the homeowner exemption bill sometime this week, and we’re hopeful it will pass in Springfield,” CFO Brown chimed in.
“I am not as hopeful as you are, Mrs. Brown,” Ald. Dowell replied skeptically.
Holt and Brown are equally as “hopeful” the Governor will pass a bill, SB777, extending the city’s annual required pension payments for another 15 years, but aldermen again pressed for worst-case scenarios.
“Am I correct in stating we’re levying consistent with what the proposed, pending law in Springfield is, not the existing law? Would it not be more intelligent to levy at that [required] amount, and then abate when the governor signs it?” Chairman Ed Burke(14) asked.
Holt said the Mayor has considered that option, but ultimately rejected it because current state law, which requires the public pensions be 90% funded by 2040, would force a $700 million dollar increase to the public pensions over a two year period, versus the $438 million currently budgeted.
“We’re confident and hopeful the governor should accept the Senate Bill 777, because it is about local control...he included our proposal in his own pension proposal, and we think that all things considered, since it only impacts the city of chicago and has been consistent with his approach that is shouldn’t cause any issues,” Holt explained, echoing previous statements made by the Mayor.
“Maybe we ought to ask him, are you going to sign this or not,” Chairman Burke joked.
Brown said if the City Council failed to approve the 2015 property tax levy and Gov. Rauner refused to extend the pension payment timeline for the Police and Fire pensions, state law has a “intercept provision” that lets the pension funds demand payment within 90 days of the bill’s due date. That means the retirement boards for the police and fire pensions may “petition the state to withhold money from us,” Brown says.
“There is some discussion as to whether that just means grant dollars that we receive from the state, which are largely dedicated to things like road construction, as well as, social services...about $150 million dollars. Or whether that means they can take from any of the funds granted to the city: income tax, sales tax, about a billion dollars. So it would have a significant impact on our operations,” Brown explained.
The Finance Committee will vote on the 2015, 2016, 2017 and 2018 property tax levies at tomorrow’s 10:00 a.m. meeting, in addition to voting on other fines and tax increases detailed in the 2016 revenue ordinance.
[A detailed list of proposed new those fines and fees, including property tax proposals are in our Oct 15 report.]
The Finance Committee is also scheduled to discuss resolutions filed by the retirement boards that oversee four of the City’s public pension funds. Pursuant to state law, the retirement boards are required to send yearly estimates of the City’s portion to the fund. This includes the all annuities, benefits, and administrative expenses for each fund for the year 2016, payment due in 2017. Chairman Burke tabled these resolutions at the last Finance meeting because CFO Brown wasn’t on hand to testify.With a roughly $8 billion unfunded liability, the Policemen’s Annuity and Benefit Fund is requesting $675.8 million from the 2016 property tax levy. Mayor Emanuel proposed a $464 million payment for 2016. The Firemen's Annuity and Benefit Fund is requesting $284 million, a slight increase from the Mayor’s proposed $208 million payment for 2016.
The Laborers’ and Retirement Retirement Board Employees’ Annuity and Benefit Fund is requesting $28.5 million, while the Municipal Employees’ Annuity and Benefit Fund is requesting $277.7 million. Both of those funds are about the same Mayor budgeted for 2016 due to a new plan for those funds enacted by the state legislature in 2014.
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The Committee on Housing and Real Estate will kick off the day with a 9:30 a.m meeting to discuss bridge improvements on South Lake Shore Drive. The only item on the agenda, O2015-7316, is a real estate agreement with the Chicago Parks District to revamp 5 bridges in the 4th Ward. The project includes reconstruction of a bridge for cars at East 31st Street and East Oakwood Blvd., the reconstruction and replacement of pedestrian bridges at East 35th Street and East 43rd Street, owned by the Park District, and construction of a new pedestrian bridge at East 41st Street.
Improvements to the three pedestrian bridges include ramps to accommodate bikes, wheel chairs, and emergency vehicles. The ordinance amends land rights with the Illinois Central Railroad and Metra, which own the railroad tracks the bridges cross over, according to a release from the Mayor’s office. The wheels for this project were set in motion more than 10 years ago, when the Chicago Department of Transportation recommended the City improve pedestrian and car crossing over and under Metra and ICR tracks along Lake Shore Drive. Federal funds will pick up 80% of the $42.5 million tab, with state money funding the rest. More from the Chicago Tribune.
The Committee on Special Events, Cultural Affairs and Recreation meets at noon. The only agenda items for the committee are 8 reappointments and 7 new appointments to the Cultural Affairs and Special Events Advisory Council:
Jeff Alexander, President/CEO, Chicago Symphony Orchestra, former Vancouver Symphony Society's President/CEO.
Marshall Brown, Architect and Principal, Marshall Brown Projects, an architecture firm selected for this year’s Biennial. Brown’s name has been floated in Obama Library design talks.
Graham Elliot, Chef and Owner, Graham Elliot Bistro in the West Loop. Elliot was also a Top Chef contestant and judge on Fox’s MasterChef. Mayor Emanuel designated Sep. 19, 2012 as Graham Elliot Day, when he was admitted to the Chef’s Hall of Fame.
Carlos Hernandez, Executive Director, Puerto Rican Arts Alliance, formerly a Director of Economic Development for the City of Chicago Treasurer's Office, Director of the National Museum of Mexican Art's $7.3 million expansion, and program intern officer with the McCormick Tribune Foundation.
Heather Ireland Robinson, Executive Director, Beverly Arts Center. Mayor Emanuel doled out $250,000, part of the surplus from the 2012 NATO Summit, to the arts center in 2013. The center owed Fifth Third Bank $4.7 million at the time, and is still fundraising. Ireland Robinson was formerly E.D. of the South Side Community Art Center in Bronzeville.
Amanda Williams, Artist, AW | Gallery, another participant in this year’s Architecture Biennial, who painted buildings in West Englewood Ventra blue alongside Mayor Emanuel as part of this year’s One Summer Chicago.
David Woolwine, Director of Reputation, Community Engagement and Public Affairs at Allstate, who leads the company’s efforts on employee volunteerism and strategic philanthropy. He and Mayor Emanuel both spoke at a Kaiser Permanente/Metro Chamber event about how to make Chicago a “go-to city.”
Carol L. Adams, Retired CEO, The DuSable Museum (reappointment)
Antonia J. Contro, Executive Director, Marwen (reappointment)
Nora Daley (Chair), Executive Advisor, Metropolis Strategies (reappointment)
Theaster Gates, Jr., Artist and Founder, Rebuild Foundation (reappointment)
Marjorie S. Halperin, President, Marj Halperin Consulting (reappointment)
Ra O. Joy, Executive Director, Illinois Arts Alliance (reappointment)
Michael P. Thornton, Actor, Artistic director and Co-Founder, The Gift Theatre (reappointment)
Angel M. Ysaguirre, Executive Director, The Illinois Humanities Council (reappointment)
The Committee on Zoning will meet at 1:00 p.m. to vote on the proposed Lucas Museum. It’s the only item on the agenda, as the committee is expecting a significant amount of public comment on the controversial proposal, and they only have one hour to meet before the next committee takes over the chambers. The Plan Commission approved a 99-year lease of lakefront property for the construction of George Lucas’ $400 million dollar futuristic-looking museum at their monthly meeting held last week.
Once Zoning is done, the Committee on Workforce Development and Audit, chaired by Ald. Pat O’Connor (40), will meet at 2pm to consider a resolution amending employee healthcare benefits. The resolution strikes the word “healthcare” from the municipal code replacing it with “health and welfare coverage”, in addition to changing how health care plans are approved. Instead of giving the Mayor’s office the authority to decide health plans, the resolution amends authorization, requiring a majority vote by the City’s budget director, comptroller, benefits manager, commissioner of Human Resources, and Ald. O’Connor’s committee.
The resolution also allows for the creation of a “working group” to meet “from time to time to consider and resolve questions pertaining to workers’ compensation and return of work.” The working group would consist of seven people, including the Mayor, Finance Committee Chairman, two designees selected by the Finance Chairman and three designees selected by the Mayor.