Forty-two aldermen signed on to Ald. Roderick Sawyer’s (6) resolution calling for a moratorium on new charter schools in Chicago. Given CPS’ financial woes, Ald. Sawyer said he doesn’t think it is in the City’s best interest to approve any of the 22 new charter school proposals currently awaiting consideration by the Chicago Board of Education. “Just a few years after CPS closed 50 public, neighborhood schools, and with our school system facing a continued funding crisis, the last thing we need is 22 new, privately managed charter schools added to the pool,” Ald. Sawyer was quoted saying in a press release.

The resolution was referred to the Committee on Education and Child Development, chaired by Ald. Will Burns (4), one of the eight aldermen not signed on as a co-sponsor. The other seven aldermen are: Ed Burke (14), who recently expressed interest in having a Noble Charter School in his ward; Willie Cochran (20); Walter Burnett (27), an outspoken charter school supporter; Carrie Austin (34), who was absent at yesterday’s meeting; Emma Mitts (37), who ran a tough campaign against a Chicago Teacher’s Union backed candidate; Michelle Smith (43); and Joe Moore (49).

Expanded Transit Oriented Development rules, a new Chairman of the Chicago Housing Authority Board, a new mobile food cart license, and $2.6 billion in new bonds all made it through yesterday's full council meeting. Shortly after, aldermen in the Latino and Black caucuses adjourned to discuss plans ahead of Monday’s budget hearing kick-off with Chief Financial Officer Carole Brown, Budget Director Alex Holt, and City Comptroller Dan Widawsky.

Did Bond Issue Pass Finance Committee Without Quorum?

One of the most contentious committee issues, $2.6 billion dollars in new bond issuances, got two no votes at Thursday's meeting. Ald. Scott Waguespack (32) and Ald. John Arena (45) voted against three ordinances authorizing the city to issue $500 in general obligation bonds to help pay down the city’s debt, $2 billion in Chicago O’Hare Revenue Bonds to pay for capital improvements, and $125 million in Wastewater Transmission Revenue Bonds to terminate previous swap agreements. Ald. Burke and Ald. Patrick Daley Thompson (11) invoked Rule 14.

Waguespack said he voted no for procedural reasons. “The vote actually failed [in committee], but it passed anyway,” Waguespack said, noting the ordinances should have never advanced to the full Council yesterday because only 8 of the 35 aldermen on the Finance Committee were present when the bonds were voted out of committee. And of those 8 aldermen, five voted against the bonds (Ald. Waguespack, Ald. Willie Cochran (20), Ald. Pat Dowell (3), Ald. Gregory Mitchell (7), and Ald. Arena).

“We were basically saying, next time if you want us to pass [a $500 million general obligation bond], get everybody in this room,” Waguespack said.

After the full Council passed all three bond issuances, Mayor Emanuel and CFO Brown praised the move. “We continue to manage our debt portfolio in a way that seeks to improve our position in the bond market and find savings for Chicago taxpayers without sacrificing capital investments,” Brown said in a press release. “But the City's difficulties can't be reversed overnight. The upcoming issuance converts expensive variable rate debt, identifies savings, and invests in O’Hare Airport and our water and sewer system.”

The City anticipates issuing the bonds over the coming months.

Former CHA Employee Ald. David Moore votes against CHA/CPD Agreement

Ald. David Moore was the lone vote against a renewal of an intergovernmental agreement between the Chicago Housing Authority and Chicago Police Department. The deal provides supplemental police services for CHA properties and programs in an amount not-to-exceed $6 million but with an option to bump up to $8 million annually, subject to CEO approval and budget authorization.

At Monday’s Budget and Government Operations meeting, Moore, a former CHA employee, said he didn’t think it was appropriate for the committee to approve the agreement without being given a breakdown of cost. Vice-Chair Jason Ervin (28) insisted it was a routine matter at Monday’s meeting, “Ultimately, this is essentially CHA paying the City of Chicago for services it is rendering on the city’s behalf.”

Moore worked at the CHA from 1999 to 2008 as a development manager and senior advisor to operations. He said he wasn’t given sufficient data on how much CPD has charged CHA historically for those services, and why that number hasn’t gone down as CHA has demolished more buildings. “They gave me three invoices from 2015, which did not show what I was asking for,” he told Aldertrack. “In good conscience, I can’t vote for it.”

John Hooker Appointment To CHA Chair

The Council approved the appointment of former ComEd executive John T. Hookeras the new Chairman of the Chicago Housing Authority Board. Ald. Burke testified on his long relationship with Hooker, recalling inviting him to Beverly Country Club for games of golf, “many decades ago,” during an era when members, “were not opening and welcoming to minorities…. In fact, some of those members might even have been hostile. But we were proud to welcome John Hooker to play golf with us despite what anybody might think.”

Both Burke and Ald. Leslie Hairston (5) heaped praise on Hooker, complimenting Mayor Emanuel on an “outstanding” appointment. “With John Hooker’s long history of civic and community building in Chicago, he will play a crucial role in helping to lead CHA as the agency works to meet the ongoing affordable housing needs for families throughout the city,” Mayor Emanuel said in a press release.

CHA is facing pressure from community groups like Chicago Housing Initiative, who want a hearing on the “Keeping the Promise” Ordinance to tighten funding and management of the Authority, which currently has a $423 million surplus. By the end of 2015 the City says CHA plans to provide affordable housing vouchers to more than 43,000 families.

TOD Expansion

After being temporarily held in Zoning Committee this month, Council also approved rules that double the distance Transit Oriented Developments (TODs) can be built away from CTA and Metra stations and allow for up to 100% efficiency units in new developments within a block of stations.

Aldermen wrestled over details like floor area ratios, parking allotments and the community input process. Ald. Carlos Ramirez-Rosa (35) praised the amendments the committee agreed to, including greater aldermanic control. “Transit Oriented Development truly is the future of our city,” Ald. Ramirez Rosa said, “but we also have to ensure that we maintain local control, that we protect local residents’ ability to have a say over the zoning and development changes that occur in their community, via their elected official, the alderman.”   

Food Carts Legalized

Food cart vendors and supporters who filled the upper floor gallery looked on as Ald. Roberto Maldonado (26) asked council to approve his ordinance legalizing mobile food cart sales in Chicago, which he says will have “a powerful long term impact” on the city. The Illinois Policy Institute estimates the ordinance, which council passed Thursday, could generate as many as 6,000 new jobs and $8.5 annually in new local sales tax revenue. 1,500 food cart vendors are already operating in the city, Maldonado says.

Members of the City Council’s Black and Latino Caucuses are more concerned with the Mayor’s plan to slap a $9.50 monthly garbage fee on homeowners’ water bills than the proposed property tax hike plan, according to sources present at closed-door Caucus meetings yesterday.

Our sources say that at the Black Caucus meeting, aldermen were less concerned with the property tax hike, because most of their constituents are renters, or would fall under Mayor Emanuel’s proposed exemption for homes valued $250,000 and less. 

We were also told members of the Latino Caucus aren't thrilled with the garbage fee either, mainly because it would be added to a homeowner’s water bill instead of their property tax bill. By including the garbage fee on the water bill, the city can enforce the fee by shutting off the water if a homeowner refuses to pay.

And several members of the Paul Douglas Alliance, who met before the full Council meeting Thursday, signed on as co-sponsors to Ald. Joe Moreno’s property tax rebate plan, because they see it as a Plan B should the Mayor’s exemption plan fail in Springfield. 

But Mayor Rahm Emanuel doesn't think the two rebate plans introduced in Council yesterday will help much. When reporters asked the Mayor why he would rely on Springfield's help to get a property tax exemption instead of backing one of the aldermanic rebate plans, Mayor Emanuel said rebates add additional bureaucracy and still require a full payment up front, rather than the immediate discount an exemption offers.

Ald. Brian Hopkins (2) wants a new permit for all moving and delivery vehicles in the City. The fee structure would be broken down into two categories. A permit to park and load merchandise anywhere in the city would cost $20 a day, $20 a month, and $1,000 a year. A permit for vehicles that park outside the City’s central business district would cost $4 a day, $20 a month, $200 a year.

An ordinance introduced by City Clerk Susana Mendoza would offer a new all-zone parking pass for Realtors. The special city sticker would give licensed Realtors the ability to park in any residential parking zone during business hours (9 a.m.-9 p.m.). They would still be barred from parking near a sports stadium on game days or other special events. Realtors living in Chicago could get an annual sticker for $500. Those who commute into the city would have to pay an additional $200. In order to qualify for the pass, an applicant can’t have any outstanding debt owed to the city. 

On the cost saving side, Ald. Carlos Ramirez-Rosa (35) introduced an ordinance calling for a pay cut for City employees making $100,000 or more a year, contingent on the approval of Mayor Emanuel’s proposed property tax increase. According to the example provided in the ordinance, if there is a 0.8% property tax increase, an employee making an annual salary of $100,000 would see a $8,000 reduction in pay. When we tweeted out the ordinance, Finance Committee Legislative Analyst Chris Lentino, tweeted back: “Aldermanic salary dictated by State Law. Aldermen can opt to reduce salary by Municipal Law on individual basis, though” and referred Rosa to Municipal Code (65 ILCS 20/21-7) "...and his salary shall not be increased or diminished during his term of office." Aldermanic salaries for FY 2015 range between $105,939 and $117,333.

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]

In response to Mayor Rahm Emanuel’s proposed $600M property tax increase, Ald. Joe Moreno (1) and the Progressive Caucus are each introducing property tax rebate plans at today’s Council meeting. Both plans would create a new city bureaucracy to manage them, and as rebates, they would require sending money back to taxpayers, unlike an exemption, which would not require taxpayers to pay the tax in the first place.

Moreno’s rebate plan is intended for households earning less than $100,000 a year. Homeowners would apply for the program with the Department of Finance, and the City’s Chief Financial Officer, Carole Brown, would establish and administer it. The CFO could call on the Office of Compliance to conduct eligibility audits. Ald. Pat Dowell (3), Ald. Roderick Sawyer (6), Ald. Michael Scott (24), Ald. Danny Solis (25), Ald. Ariel Reboyras (30), and Ald. Joe Moore (49) are co-sponsors.

The dollar amount homeowners would get back is multiplied by the difference in the City’s real estate tax assessment rate from last year to this year, then multiplied by the equalized assessed value of the home. Read the formula with an example here.

According to the formula provided by Ald. Moreno’s Legislative Director Evelyn Rodriguez, a home with $50,000 a year in income worth $250,000 could be eligible for a rebate just over $208, delivered by check. The Chicago Tribune estimates that if Emanuel’s proposed increases were in effect this year, the total bill on a $250,000 home would go up by $342, to $4,504. Rodriguez tells Aldertrack about 270,000 Chicago households would be eligible to apply for the program.

“The ordinance has received a warm reception from the Mayor’s office and it continues to garner support from my colleagues,” Moreno said, also drawing attention to a similar Progressive Caucus proposal released earlier this week, “I am also encouraged that other aldermen have released proposals and ideas with the spirit of the RELIEF ordinance. I will continue to work with my colleagues to ensure a tax rebate program such as the one I'm proposing receives widespread support.”

The Progressive Caucus rebate is also tied to income, but it would only help those living 400% below the federal poverty line. The ordinance’s formula would provide for a $400 rebate for a single median income homeowner of a property valued at $250,000. It makes use of fund set aside from the City's 2010 Property Tax Rebate program, started under Mayor Daley, but under-marketed, according to aldermen. In 2010 the City allocated $35M for a rebate, but just over $2M was distributed.

Ald. Brian Hopkins (2) is also introducing his an ordinance proposing the City switch from private internet services to a faster, more reliable fiber optic network. He estimates the city could “easily” save $100M in the first two or three years after making the switch. His ordinance calls on Innovation and Technology Commissioner Brenna Berman to develop a plan to connect all 50 aldermanic offices and City Department facilities to the existing fiber optic network the City already uses for OEMC within 90 days.

Former 33rd Ward aldermanic candidate Tim Meegan and a dozen members of his new independent political organization, 33rd Ward Working Families, showed up Tuesday night at Ald. Deb Mell’s (33) new ward office open house on Irving Park Road. According to Nick Burt, a member of Meegan’s new organization, the group wanted to talk to Ald. Mell about some local policy issues like affordable housing, a charter school moratorium, and the city budget, but were instead welcomed by four police officers. Mell strongly denied that the police officers were called, and were instead already at the event.

Burt alerted Aldertrack about the meeting after we mentioned in Tuesday’s newsletter that we spotted Meegan in one of the open house pictures Mell posted to her Facebook page.

It was the first time the 33rd Ward Working Families reached out to Ald. Mell, since they created the group after losing the election, says Burt. Asked if Mell’s staff recognized Meegan, Burt said “probably,” but noted none of their members had any identifying markers.

But Ald. Mell says she didn’t call the cops when the group showed up. She says the police, all of whom she knew from the ward’s CAPS meetings, were already at the event, and had walked into the office to say goodbye to the Alderman around the same time as Meegan and his group showed up. “There is no way I would ever call the police on a constituent,” Mell told Aldertrack.

Ald. George Cardenas (12) told Aldertrack yesterday that he won't put his controversial penny-per-ounce tax on sugary drinks up for a vote in the City Council and will instead look to Springfield to pass the tax. 

Cardenas says he and the Mayor have agreed it would be better to get Springfield to pass the tax than push it through the City Council, which could expose the City to a costly lawsuit from the beverage industry. “Can we go forward with [the tax plan]? Yeah. Can it be challenged in Court? Yeah,” he said.

A similar proposal to add a penny-per-ounce tax on sugary drinks has already been introduced in Springfield. But Cardenas said the sweetened beverage plan will be part be a "whole laundry list" of tax proposals that would need state approval, such as a congestion pricing tax and a profession services tax, according to Cardenas.

“Chicago is thriving, but the fiscal challenges before us are significant,” Mayor Rahm Emanuel told a packed City Council Chamber as he began his fifth budget address that includes a $544 million property tax increase to be phased in over four years.

[Full Speech – Full Budget Document]

The proposed $7.84 billion budget will “finally begin to reflect the true annual cost of operating the City,” the Mayor assured aldermen, as most of them focused on printed copies of his speech instead of looking at Emanuel as he made his remarks.

A press release from the Mayor Monday laid out much of what to expect yesterday, but there were still a few surprises, including a plan to privatize the City’s 311 call system, adding $1 million in savings. However, the expected items mentioned in the speech were:

• $170 million in savings and reforms, like putting street sweeping on a grid system saving $3 million, reducing non-personnel costs by $21 million and healthcare savings totaling $40 million.

• $60 million from a $9.50 monthly garbage collection fee.

• $60 million from rideshare and taxi fees.

• $1 million from a tax on e-cigarettes.

Posing the almost unimaginable scenario of police and fire cuts, and reducing garbage collection from once a week to twice a month, Emanuel socked Council with his property tax increase.

The Mayor’s budget calls for a phased-in property tax increase starting with an additional $318 million this year, $109 million in 2016, $53 million in 2017, and $63 million in 2018. All of the additional revenue will fund the City’s police and fire pension obligations.

The Mayor’s budget anticipates the FY2016 property tax levy will bring in a total of $1.26 billion, with the largest share of that money, 36%, earmarked for the Policemen's Annuity and Benefit Fund (PABF). 15% of the levy will go toward the Firemen’s Annuity and Benefit Fund (FABF).  

The 2016 proposed budget recommends a total $978.3 million contribution to the city's four pension funds, more than doubling last year’s contribution of $421.1 million. The pension payment will be funded with $786 million in revenue from property tax bills and $192.3 million from other sources.

The pension payments are based on an amended timeline that has yet to be approved by Springfield. Under current state law (Public Act 96-1495) the City’s Police and Fire pension plans must achieve a 90% funded ratio by the end of 2040. The Police Pension is only 26% funded with a $11.73 billion unfunded pension liability, and the Firemen’s Pension is only 23% funded with a $4.513 billion unfunded liability, according to the City’s 2015 Annual Financial Analysis.

The Mayor’s proposed legislation in Springfield, SB777, would stretch pension payments through 2020, in addition to pushing the 90% funding requirement to 2055. Although it has passed the Illinois House and Senate, it has not been sent to the Governor for consideration, as Rauner has not indicated if he will sign it or not. If enacted, the proposed pension payments in the Mayor’s budget would remain the same. If it fails, the city would be forced to make a bigger payment next year and even bigger ones in the future.  

The Mayor is pushing to expand the property tax exemption for homeowners whose properties are valued at $250,000 or less. The plan needs approval from Springfield, and Mayor Emanuel noted in his budget address that Illinois Speaker Mike Madiganand Senate President John Cullerton both agreed to move the legislation forward with hearings on the plan scheduled for later this week.

Finally, on debt, the city is doing a bit less than previous years. While next year’s proposed budget appropriates $593.5 million to pay down general obligation debt, last year, the city spent $623.9 million to pay down general obligation debt.

The City Council will hold hearings on the Mayor’s budget plan through October before a scheduled vote on October 28th.

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.

Coming out of yesterday’s Council meeting, aldermen and their staff expressed concern about three things: The property tax hike is a fiscal necessity, but how will they justify it to voters? An exemption or rebate is politically necessary, but how will it be enacted? And finally, almost nobody likes the proposed garbage fee.

There’s another issue, surprisingly not on most people’s minds, which is that SB777, Springfield’s bill to extend police and fire pension payments, and the Mayor’s proposed property tax exemptions require either Gov. Bruce Rauner’s signature or a veto override by the state legislature; two things that have not been forthcoming lately.

While SB777 has passed both the State House and Senate, it has not been transmitted to Gov. Rauner, since he has not expressed whether or not he will sign or veto it. While the state legislature has until the end of session in December 2016 to pass the bill, the next police and fire pension payments are likely due long before that, a date the Mayor’s press office was unable to confirm before publication. That drop dead date is likely to be something we’ll be discussing this fall.

Quite a few aldermen we spoke to when pressed on an exemption off the record said they would have a “hard time” voting for a property tax increase without an exemption extension or property tax rebate on the books. However, since the Mayor has committed to pushing an exemption through the legislature and has enlisted Speaker Mike Madigan and Senate President John Cullerton to get it done, many aldermen believe it is within the realm of possibility that the exemption could be passed before the October 28 city budget vote.

Summing up many aldermen’s thoughts, “The worst part of this budget, is that it relies on a lot of Springfield heavy lifting,” said one prominent Council staffer.

The garbage fee, which will be listed as a separate item on homeowners’ city water bills, according to the Mayor’s Budget Office, could still be modified since the Council isn’t scheduled to vote on it for a full month, and between now and then we’ll be treated to a multitude of hearings.

Also according to the Mayor’s Budget Office, non-payment of the garbage fee would not impact pick up. Garbage collectors will pick up garbage in every alley, under any circumstance. Instead, non-payment of a the garbage fee would be treated like a delinquent water bill, leading to city offers of payment plans and ultimately water service turn-off, a concern numerous aldermen from poorer wards talked about yesterday.

Despite all those big, unresolved political issues, for those who watch Council for a living, there was no question that Emanuel will pass the property tax increase.

“Just coming out of that room right now, you know he’s got thirty votes,” said one regular Council watcher. Many aldermen Aldertrack spoke to yesterday off the record said they will vote for the property tax simply because they know it fiscally needs to happen. Council staffers and aldermen we talked to expect a smaller group, of a dozen or so aldermen, who will need “special deals” from the Mayor to help make up with voters over the next three years.

The political divide on property taxes is already splitting on unfamiliar political lines. Generally, a consensus is building that the toughest votes this fall will come for Aldermen in the Northwest and Southwest Side bungalow belts, as well as Lakefront aldermen whose wards have the highest commercial property values.

While the next municipal election isn’t until 2019, nobody's quite sure how long voter memories will last and worse yet, if this will be the last property tax hike they’ll have to approve before then.

Chicago homeowners living below 400% of the federal poverty level would be eligible for a property tax rebate under a proposal unveiled by the Council Progressive Caucus Monday afternoon at City Hall. The third property tax exemption or rebate program proposed this year, it joins plans offered by Mayor Rahm Emanuel and Ald. Joe Moreno (1) earlier this month.

In order to qualify for the rebate, a family of four would have to have a gross annual salary of $97,000, a family of two would have to report an annual salary of $63,000, and a single homeowner would have to have an annual salary of $47,000.

Ald. Carlos Ramirez-Rosa (35), the lead sponsor of the tax relief plan, says the rebate would provide relief for homeowners living in communities whose property values have significantly increased over the past few years.

“You would be protected, regardless of the value of your home,” said Rosa using the example of an elderly homeowner living off a monthly Social Security check. Seniors in a rapidly gentrifying neighborhoods shouldn’t have to pay more in property taxes, he said.

Under the proposal authored by Ramirez-Rosa, Ald. Scott Waguespack (32) and Ald. John Arena (45), the City’s Chief Financial Officer would develop an application and process for homeowners to apply for the rebate. The homeowner would apply for an application to participate in the program with the Tax Assistance Center within the City’s Budget Office. The ordinance includes a two-year sunset clause, so the city can amend the program based on participation.

The Progressive Caucus’s plan is based on an earlier property tax rebate program Mayor Richard M. Daley implemented in 2010. When challenged by reporters at yesterday's presser that the Daley plan had a low participation rate, Waguespack said Daley’s plan was “hardly publicized” and the rebate came in the form of a cash card. It would be up to local aldermen to make sure homeowners are aware of the rebate, he said.

In addition to announcing the rebate program, Ald. Arena said the City should do more to crack down on what he said was “hundreds of thousands of dollars” in lost property tax revenue from the City’s central business districts. Accusing businesses of hiring expensive lawyers to fight property tax bills, and thus forcing homeowners to pick up the tab, Ald. Arena suggested the City’s Law Department increase the number of lawyers it has on hand to address property tax rebates submitted by city businesses.

The Progressive Caucus’ plan, as well as Ald. Joe Moreno’s (1) rebate plan for household incomes below $100,000, will be introduced at Thursday’s full City Council meeting. In a press release yesterday afternoon, the Mayor said he plans to seek an increase of existing property tax exemptions through legislation in Springfield.

It was a quick budget meeting with Vice Chairman Jason Ervin (28) taking over the reins from Budget Chairman Carrie Austin, who has reportedly been sick for some time. The committee approved two intergovernmental agreements with the CHA: one for additional police services, and another for conducting federally mandated environmental reviews.

Aldermen in attendance (committee members in bold): Vice Chairman Jason Ervin (28), Roderick Sawyer (6), Michelle Harris (8), Anthony Beale (9), Raymond Lopez (15), David Moore (17), Willie Cochran (20), Michael Zalewski(23), Michael Scott Jr. (24), Roberto Maldonado (26), Walter Burnett Jr. (27), Ariel Reboyras (30), Milly Santiago (31), Scott Waguespack (32), Emma Mitts (37), Brendan Reilly (42)

Ryan Elligan, attorney for the Chicago Police Department, provided a brief overview of the proposed intergovernmental agreement between the Chicago Housing Authority and the City’s Police Department. This agreement has been going on since 1999, the year CHA disbanded its police department, according to Elligan.

But Ald. David Moore (17), a former CHA employee, said he didn’t think it was appropriate for the committee to approve the agreement without being given a breakdown of cost.

“There are no figures here or anything like that,” Ald. Moore explained. “I am trying to see the cost for the past ten years, and if that amount has gone down. We tore buildings down, so the cost of policing should have gone down.”

“This is an expense neutral type of agreement that has been in place for an extended period of time,” Vice Chairman Jason Ervin responded. “Ultimately, this is essentially CHA paying the City of Chicago for services it is rendering on the city’s behalf.”

Ervin said delaying approval of the agreement wouldn’t be in the “best interest of public safety” and Ald. Moore could get the numbers from the police department through the Committee later that week.

This prompted Ald. Brendan Reilly (42) to defend Ald. Moore’s request, asking that the committee get the information through the chair by the end of the day. Ervin said they wouldn’t be getting those numbers until Thursday, the earliest, when the agreement must be approved by the full City Council.

Elligan was however able to provide some details, noting that CHA’s agreement with the police department is capped at $8 million this year, up from the average annual cost of $6 million, which has been the standard benchmark payment for the past decade. According to Elligan, CPD has diverted policing from the old high rise public housing buildings to the low and midrise buildings still in existence. The $2 million increase is not a result of more police officers at CHA buildings, as that number has actually declined, according to Elligan. It’s the gradual increase of police salaries that are contributing to the added costs.  

Kimberly Worthington, Deputy Commissioner for the Department of Fleet and Facility Management (FFM), testified on behalf of the second intergovernmental agreement the Budget Committee approved. Worthington said City Council approval was needed, so the city could 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 a $75,000 upfront payment to the City. The agreement expires in 5 years, but can be renewed upon mutual agreement.

Late yesterday afternoon, Mayor Rahm Emanuel’s press office released the outlinefor today’s FY2016 budget address, featuring a property tax increase with a four-year phase-in period. The basics of his plan, to be officially announced in a 10:00 a.m. speech today, include annually:

• $544 million of property taxes, phased-in over four years, starting with $318M as a supplemental levy in FY2015, reports Greg Hinz. All added revenue would be committed to police and fire pension payments.

• $170 million in city government management savings, through programs like closing CBD TIFs and healthcare reforms.

• $60 million from a $9.50/month fee per household for garbage pickup.

• $60 million from new rideshare (Uber and Lyft) and taxi fees.

• $13 million from streamlining building permitting.

• $1 million from new e-cigarette taxes.

The city property tax increase is on top of a $45 million additional Chicago Public Schools levy the mayor will ask the Council to approve to pay for school capital improvements.

The Mayor’s Office’s 2015 financial analysis released August 2 pegged the city’s budget deficit at $754M. But that’s assuming Springfield passes SB777, which allows the city to stretch out police and fire pension payments over a longer period. If SB777 is not passed and signed by Gov. Bruce Rauner–and he has not yet indicated that he will sign it–then the city’s FY2016 budget hole grows to $975M, according to the analysis. (See our August 3 report for more detail.)

Thus, the Mayor’s plan, which we add up to $848 million in additional annual revenue by FY2018, will need an additional tax levies or cuts if SB777 is not enacted this year.

Also in the mix is the political necessity of a property tax exemption or rebate increase. The Mayor’s Office estimates the property tax increase would equate to $600 more a year for someone with a $250,000 house, a meaningful number for those on a fixed income. Again, the the Mayor’s Office press release says Emanuel is working in concert with Speaker Mike Madigan and Senate President John Cullerton for an exemption increase, but Gov. Bruce Rauner last week said he would not support any exemption changes without passage of his Turnaround Agenda package.

Council members have privately told Aldertrack they are examining ways the city could create an ordinance through a rebate program (for example, the Progressive Caucus program discussed below) if Springfield does not act, but such programs would require new bureaucracy and would not work as smoothly as extending existing exemption programs.

Aldermen spent well over an hour grilling Managing Deputy Commissioner of the Department of Planning and Development, Aarti Kotak, on Mayor Emanuel’s ordinance regarding TIF surplus funds. Pushback and questioning led Chairman Ed Burke to hold the ordinance in committee.

Aldermen in attendance (committee members in bold): Chairman Ed Burke(14), Joe Moreno (1), Brian Hopkins (2), Pat Dowell (3), Leslie Hairston (5) Roderick Sawyer (6), Gregory Mitchell (7), Michelle Harris (8), Anthony Beale(9), Patrick Daley Thompson (11), George Cardenas (12), Marty Quinn (13), Raymond Lopez (15), Toni Foulkes (16), David Moore (17), Willie Cochran (20), Ricardo Munoz (22), Michael Zalewski (23), Danny Solis (25) Jason Ervin (29), Ariel Reboyras (30), Gilbert Villegas (36), Nick Sposato (38), Tom Tunney (44), John Arena (45), Harry Osterman (48), Joe Moore (49), Deb Silverstein (50)

Start Time: 11:26

Kotak explained the ordinance is a codification of a November 2013 executive orderfrom Mayor Emanuel that formalized the practice of annually identifying a portion of TIF funds designated for anticipated future use, removing that portion from that designation, and declaring that portion a surplus.

“This was done in recognition of the balance needed among all interests within the city. It created an increase in property tax revenue available to fund non-TIF related city needs, as well as our schools, parks, and other public institutions,” Kotak said, reminding aldermen that this is how the city has been operating for nearly two years.

In order to be eligible, a TIF fund must be 3 years or older  and have a balance of at least $1M. The TIF can’t have been created for a single redevelopment project, the equalized assessed value of the property in the TIF area must be greater than it was when the TIF was designated, and it hasn’t transferred and is not scheduled to transfer funds to one or more contiguous TIF areas to pay debt service on the City's Modern Schools Across Chicago bonds.

Under the ordinance, the City’s budget director would conduct an annual review of eligible TIFs,  identify at least 25% of the TIF’s cash balance anticipated for future use, and declare that percentage a surplus. Some aldermen were concerned they wouldn’t have available TIF financing for future projects in their ward, and peeved they were expected to vote on the issue before they could speak to City budget officials.

The Finance meeting began at roughly 11:30 a.m., and aldermen were scheduled for a budget briefing at 1:00 p.m. “You’re coming before us and want to talk about it after we vote on something?” Ald. Anthony Beale (9) asked Kotak. ”I have projects that I could be looking down the road that you might not be familiar with that might need some TIF funding.”

“There is no interest or expectation of cutting projects off at the knees,” Kotak later told Ald. Harry Osterman (48). “There is, though, a recognition that we need to balance anticipated future uses with current uses. That’s the goal.”

When asked the size of the surplus, she said the mayor has allocated more than $400M to local government bodies for this year’s budget, and the expectation for 2016 is $113M surplus, but Ald. Burke pointed out that the City only gets $22M of that $113M. Roughly $60M will go towards Chicago Public Schools, and additional resources will go to other taxing bodies like Chicago Parks.

Other aldermen, particularly whose wards encompass TIFs in struggling community areas, spoke out as well. Ald. Jason Ervin (29) questioned whether this surplus definition battles with the state’s (the Law Department says no). Ald. Walter Burnett Jr. (27), Ald. Leslie Hairston (5), Ald. Willie Cochran (20), and Ald. Maldonado(26) sounded skeptical about the new ordinance or the effectiveness of the TIF program overall. Ald. Osterman asked for a hearing on the effectiveness of TIFs during the coming weeks of budget briefings.

Ald. John Arena (45) was the lone councillor who applauded the move out loud. Given an expected hike in property taxes, he said he supported TIF reform to lessen the blow, “What would be the downside to doing 50%?”

At the end of questioning, Ald. Burke decided to hold the issue in committee, “It seems to me that there’s unease in the committee with regard to taking action on this matter. There seems to be a good number of questions unanswered.”

Aldermen also spoke at length about a series of bond deals worth a total of $2.6B: City of Chicago General Obligation Bonds, Series 2015, totaling $500M; Chicago O’Hare International Airport General Airport Senior Lien Revenue Bonds, Series 2015A and 2015B, totaling $2B; and City of Chicago Wastewater Transmission Revenue Bonds, Project and Refunding Series 2015, totaling $125M to terminate associated swaps. A substitute ordinance to the Wastewater bonds includes $332M of conversion bonds, and requests approval for $100M in Illinois Environmental Protection Agency loans, and $350M of inducement authority.

Deputy Comptroller Jeremy Fine stood in for the City’s CFO, Carole Brown, as she met with other aldermen for a budget briefing.

Ald. John Arena was also vocal about the timing for this vote just before the Mayor’s budget release, and asked to delay the vote until the City saw positive movement from ratings agencies. “This seems like the absolute worst time. Until we have certainty in our budget, to be putting these things out…in October we’re not going to have a budget passed.” Ald. Waguespack also pressed Fine for more information about how ratings agencies weight bond changes.

But Fine said it’s an opportune time for the City to make a switch from a variable rate to a fixed rate, saying it’s proven out well for Chicago. “Once you go into a fixed rate mode, you shift the risks associated with any rating action to the investors, as opposed to the City.”

Ald. David Moore (17) chastised Fine for the late change to the Wastewater bonds, saying he didn’t have proper time to review and ask questions on such a large issuance. Several aldermen, including Ald. Cochran and Ald. Dowell, spoke out against a lack of African American representation in brokerage firms listed in the deals.

Ald. Willie Cochran, Ald. Pat Dowell, Ald. Scott Waguespack, Ald. John Arena, and Ald. Gregory Mitchell all voted no on the O’Hare and Chicago General Obligation bonds.

The committee also passed:

• 9 items from the Department of Planning and Development, including several school redevelopment intergovernmental agreements, and issuances of Multi-Family Housing Revenue Bonds as part of the Lawn Terrace Preservation Project and the Paul G. Stewart Apartments Phase III Tower Project.

• A resolution authorizing a Finance Subcommittee to create memorials to two late Mayors: Martin H. Kennelly and Eugene “Gene” Sawyer.

• 14 appointments and reappointments to Special Service Areas.

Noticeably missing from Monday’s agenda was an ordinance on municipal depositories, backed by Mayor Emanuel, City Treasurer Kurt Summers, and several aldermen who held a press conference last week demanding that the ordinance be brought before committee. Summers testified separately to the committee about the City's Investment Policy. Ald. Waguespack insinuated last week that pressure from banks was keeping Chairman Burke from calling the ordinance up for a vote.