To get forum for the second portion.
Nothing good. You weren't here, but
Good morning, uh, Camino on budget
and government operations to come to order.
We'll begin with a roll call.
Um, vice Chair Lee present.
Alderman Lata present.
We'll get you on the rule 59 alman. Do
Alman Robinson.
Alman. Yancy Alman Mitchell Alman Harris Al.
Bill Alderman Ramirez.
McQuinn Lopez. On Moore Online.
Mosley On Rodriguez.
On Scott. Che Lopez.
Altman Burnett. Alia. Faroh. Alman.
Cardona Altman Rodriguez Sanchez On
Conway Conway.
59. Oh, you're online. 59.
Alman Cazada Artman Viegas Artman Mi
Artemis BDO On the Nugent
I see Sam Nugent on
Vasquez Artman.
Napolitano. Onare on Udin,
on Martin, on Manhattan.
And Alderman Silverstein.
We have 21 members, non-members.
I see we have Alders.
Um, what is that man? Howorth.
Any the other non-members. I see. Alderman Mosley.
We have you.
Okay. Uh, we now's the time for public comment.
We have uh, one speaker for public comment.
Uh, pat Doer. Pat Cameron.
Chairman, are you gonna do the rule 59?
Oh, I'm sorry. Okay.
I'm, uh, we do have our Rule 50 nines.
Uh, we have eight members requesting virtual participation.
Those are Alder, Los Ada, Moore, Conway, Hatton,
Ramirez, and Robinson.
Uh, is there a motion to accept those members
for virtual participation?
All in favor. Six four by saying aye. Any opposed? Okay.
Okay. Um, alderman La Spotter, are you there?
Alderman Moore?
Alderman Moore. President, Chairman. Got it. Derman.
Iman Conway. Sir, this is Alderman Lata. Alderman lopa.
I have you. Alderman Conway.
Alderman Hadden. Present. Alderman Ramirez.
Present.
Alderman Robinson. Robinson. Okay. All right.
Alderman, uh,
Rodriguez may have you, did you call Conway Mr.
Chairman? Uh, yes. I got you. Uh, Conway. Thank you.
Thank you sir. Alright. Okay.
Public comment. We have, uh, one person for public comment.
A pat, do you may proceed.
Uh, good morning Chairman, members
of the City Council Budget Committee.
Uh, I'm here speaking today on behalf of a coalition
of beverage alcohol stakeholders
on the newly passed alcohol attacks set
to go into effect on January 1st.
As you all are well aware,
that switches us from the city tax from a volume based tax
on beer, wine, and spirits to a new sales tax.
Um, during the long budget hearing,
the last time I attended this, I believe the CFO
and the budget director said that would take up
to six months to implement on behalf of the impacted bars,
restaurants, and 1100 packaged good licensees in the city.
We need a longer extension than January 1st
to switch over systems.
Just a brief one to February 1st, could be accommodated
by the private sector,
but as it is right now in two days, all of these
packaged good stores, grocery stores, corner stores, liquor,
liquor stores, Benny stores
and their distributors who currently collect
and remit the tax are expected to
switch all of their systems.
Over January is actually a great time to do such a thing
because it is traditionally the slowest month of the year
for the beverage, alcohol, beer, wine, and spirits industry.
Um, but of January 1st, effective date will be a debacle.
Unfortunately, as of 8 30, 8 45
and 9:00 AM this morning, the direct introduction ordinances
are not available on the clerk's website.
But I do hope this is addressed in those
because this will be a complicated piece of chaos
on January 1st.
If we are trying to switch over
to a sales tax without clear authorization
to stop collecting the current tax.
I appreciate your consideration on that.
And also, again,
because as of 9:00 AM I don't know whether this is in the
direct introduction, video gaming being licensed
for the city of Chicago would be welcomed
by the 780 tavern license establishments in this city down
over 400 from just six years ago.
Um, but I also know it's a controversial,
there's a lot of objections.
Whatever the merits of the proposal are, if it is going
to be changed, please do it quickly.
Like this week today, because many of these mom
and pop places who've been struggling to hang on, waiting
to see if they get the same tool available
to every other liquor license business in almost every
suburb, um, are going to be given false hope
and enter the new year, not knowing if they can pursue
that new revenue option or if it's worth extending their
lease or keeping their business going.
Um, it's a tough one. It's been before you multiple times.
Thank you for your consideration in both cases.
Alcohol, taxes and VJT,
your locals locally owned small businesses need clarity
and I appreciate anything this body can do
to deliver it this week.
Thank you.
Thank you for your comments.
Um, we just have three items today.
We wanna do items, uh, two and three.
Our transfers, um, of
transfer fund ordinance substitutes are proposed
for both Ward 15 and 28, uh, which have been distributed.
We do have a motion to accept the two substitutes.
So move alderman. Y'all in favor?
Second of all by saying aye.
Any opposed any opinion
that chair the aye is having in the substitutes and now
before us, which are transfers again?
Wards 15. Ward 28. Um, is there a motion, oh, I'm sorry.
Go ahead. Uh, alderman, uh, Lopez.
Thank you chairman and good morning.
Members of the committee. Uh,
this was included in the last budget.
So is there a reason why? Yes,
It was included at the last meeting,
however, um, the, it was
because of the timing of everything.
Okay. We added it as a substitute to the one that I had.
However, uh, alderman Moore wanted to pull his back
and in order, in order for us to do that, we had
to create two new ordinances.
One being yours and the other one being mine.
'cause I added both of you, both of yours to my ordinance.
So that's why we're just cleaning up to take him out of
that, uh, particular, uh, particular setup. So then
Move, do, pass. Chairman.
All right, alderman, uh, we have a motion on the floor.
All in favor signified by saying aye. Any opposed?
Any appear that chairs ayes have it
and needs to be reported out today?
Recognize Alderman Mitchell for the purposes of quorum.
Anybody else we missed? Uh, let's come in.
Robinson Lopez. Okay, I think we have, have everybody.
Alright, the second item, well,
the item number one on the agenda is a series
of technical corrections
to the 2020 sixth annual appropriation ordinance passed
by the council on, uh, December 20th.
This is a direct, uh, direct intro, which is a little bit
of a, a cleanup to all of the amendments going back
and forth, um, with everything.
Alderman Moore, we, we have you, uh, added,
you already added You just here now.
Okay. All right.
Um, for technical amendments going back
and forth on this, uh,
we'll stand at ease for a minute.
Waiting the, uh, director to, uh, to, to come.
She said got Altman Viegas or had you as well?
Uh,
See the, um,
nah, nah, s**t, nah.
Uhuh nah, uhuh, nah. That's the little virtual joint. Yeah.
So you can see what's going on.
No, I had said it before.
'cause you, you can't see what's happening.
Give it a gimme that the amendment.
Mm-hmm.
I guess while we wait, uh,
does anybody have any questions related to the,
uh, to the amendment?
Altman Lopez.
Thank you, chairman. But I, my questions are
for the budget director, so I just have to wait.
Okay.
Alright, we'll, we'll, we'll, we'll we'll be in a, um,
Autum Martin, we'll add you for purposes of quorum.
All right. We will, we were going to, uh, go ahead.
Go ahead. Altman Lopez question,
Join up there.
Thank you, chair. I'll give the, uh, director a minute to
careful on those chairs.
One of 'em gets a little crazy as Constantine can attest to.
So again, thank you chairman and members of the committee.
I just had a quick question with regards to the
library's amendments related to the reduction
of prior year available resources.
Um, can you explain that a little bit?
And Good morning, Dr. Good
Morning. Thank you. And, uh, Mery
Christmas, by the way,
after Christmas, uh, Annette Guzman, budget director, um,
when we implemented the, um, uh, uh,
amendments into the budget system, there was a, uh, surplus,
um, within the library fund based on, um,
the property tax levy that was passed, um, as well
as the correcting amendments that we are proposing today
to align the, um, the additional positions
that were added to the salary schedules.
Um, therefore there was an, uh, overallocation
of revenue within the library fund.
Given that the property tax levy has been passed
by City council, uh, we lowered the prior year resources,
uh, that would be supporting the ongoing costs of the, um,
library fund in order to bring it back into balance.
Thank you, chairman. Any other questions?
Honor Lee.
Good morning, director Guzman.
Um, I wanted
to follow up on just one final item, um,
regarding the coding of the, uh, in CVPH, um,
violence Reduction program.
Uh, can we get that change
to Community Violence intervention instead
of violence reduction program under CDPH?
Um, for that $32 million, um, ad amount,
We can, we can add that account.
Um, the only thing that we'll just be mindful of is
that we'll be unable to track across years, um, how that,
those dollars are spent, because currently they spend their
CVI programming under the Violence reduction program.
Okay. Account number. Understood.
Thank you. If we can get that changed, that's,
that would be my last question
On Bill.
Mr. Chairman, good morning, director. Morning.
Um, it just struck me, you just said
that once you put everything into the
system, there's a surplus
For the library fund? Yes.
Is that for the overall budget or just the library fund?
The question was about the library fund. No,
I'm, I'm, I'm just saying the overall,
so the budget is now balanced.
Is that what you're, you're telling me
With the proposed amendments
before you All funds are now balanced.
Okay. And was it balanced based on all the information
that was pro, uh,
provided to you from the, uh, budget that was passed?
Um, no. It wasn't.
When we put everything into the system,
the budget was not balanced. It
Wasn't balanced, you say passed?
No, and I think what we had talked about was there were
probably need to be correcting amendments to make sure
that the intentions of, of city council were implemented,
um, in order to ensure that the budget was balanced.
That's why the proposed amendments are before you.
Okay. And the amendments are, how much is that total?
The amendments that are before us,
How much do they the amendments total?
So the, uh, corporate fund is balancing through,
um, removing a, uh, $33 million deficit.
And the library fund is being balanced by removing
a $1.3 million surplus.
Hmm, okay. It's just amazing to me how all of a sudden,
you know, everything is balancing out, um,
like we projected, um, and we're not going to have cuts
and layoffs and furloughs and all those things.
So I just think it's really amazing
that we are to where we are today.
So, um, thank you. Appreciate it
Vie.
Thank you Mr. Chairman. Uh,
director Guzman just had a quick question on
the second item, the advanced pension payment, um,
reduction of 22 million from the expense.
So, so this is the other,
other PRI enterprise funds picking up the pension payment.
Uh, please. Uh, quiet down in the gallery.
Sergeant at arms. Go ahead. Altman Viegas. Thank
You, Mr. Chairman.
Miss. Thank you, Mr. Chairman.
Yeah, hold on, hold on, hold on. Ma'am.
Uh, if you, if you can't maintain the quorum,
we're gonna ask you to leave.
Okay? All right.
Again, uh, Sergeant at Oz,
could you please maintain the order in the chamber?
Okay, ma'am,
we at public speaking at nine 30 when this meeting started.
So
again, okay.
Did you maintain order Committee was stand at, uh,
stand at recess while he, um, in the order.
Oh yeah,
Sergeant Arms, if, if you,
you all can't maintain order, we'll clear the chamber.
Is that what you all need? Okay.
Again, um, Sergeant at Arms, could you please remove the,
the individuals from the chamber
who are disrupting the meeting?
Okay, we're back on Altman. Viegas.
Thank you, Mr. Thank you, Mr. Chairman.
Alright, hold up.
Altman vie. Alright.
Could you please remove Ms. Jackson from the chamber?
Are we alright? Okay.
Committee, do a stand stand at recess while she's removed.
Mm-hmm. Mm-hmm.
I'll be both of
court Council.
We're clear.
Yes. We need to allow some members, otherwise,
Okay. No, I'm just asking. We
clear because the door is open.
Door is open.
Hey, chair. Everything all right there?
Yeah, we're still here. So
If you have, uh, uh,
city council meeting and no one shows up.
Have the city council. Yeah,
They just,
all right, we will back on Ottman.
Viegas.
Thank you. Uh, Mr.
Chairman, um, uh, budget director, uh, you had,
had just had an opportunity to speak.
The question was around the advanced pension payment.
Uh, if you could explain to the body kind of how, um, the,
those funds were appro, appropriated
and, uh, potentially additional revenue that's unassigned.
Sure. Thank you for the question.
So, um, this, uh, proposed amendment
before the body, um, corrects, um, an over allocation
of the additional advance pension contribution
on the corporate fund.
The all of our, uh, contributions to our pension funds,
whether it's the statutory amount
or the advance amount,
is allocated proportionally across the corporate fund,
as well as enterprise funds and some special revenue funds.
And then we have a specific calculation for that.
And so we're correcting to remove, uh,
around just over $22 million
that were over allocated onto the corporate fund
of the additional pension advance in the, uh,
original technical amendment
that was passed by City council. Gotcha.
I appreciate that. And then just, uh,
for the body's attention, you know, there's a, a senate bill
that's circulating down at Springfield
around the online sports betting
where potentially every dollar
that's collected will result in a dollar being lost
to the LGDF.
So I wanna make everybody's attention on that.
So that means that the money that we're projecting
of 26, 20 9 million potentially would be zero given the fact
that this, the, the Senate is, uh,
the General Assembly rather, is making a move
to capture every dollar that we capture
and take it from the LGDF.
Thank you. Uh, I would recognize Alderman Lopez
for the purposes of quorum as well as Alderman, uh,
Rodriguez Sanchez, alderman Lopez.
Thank you again, chairman and good morning.
Members of the committee, uh, director Guzman, I just wanted
to touch base on, on just a quick, uh, question.
Um, and appreciate all your efforts to, uh,
amend the library section.
Does the library fund previously run at a deficit?
It, it has been, yes.
And moving forward, based on what we've done, do we pro,
do we anticipate the deficit con
or will that have been ale alleviated by
what city council has passed? It
Will, uh, support the library fund
through the end of 2026.
I think there's some more work that we'll have to do to, um,
stabilize the libraries.
As you know, the library until this year
with the 5 million on the corporate fund for the, um,
to bring the, uh, collections budget back to $10 million,
the library is fully funded by a property tax levy.
Um, and so without, um, additional revenues
or maintaining an increase in the property tax levy every
year, we'll be, um, at, uh,
there'll be pressure on the library fund.
Um, we have been spending down their, their, um,
prior year reserves each year to support
the natural growth in their expenditures because salaries
and wages go up every year.
Um, and so without additional revenues
or discussion around the property tax levy
that supports the library fund, there will continue to be,
uh, pressure and potential future year
budgetary gaps for the library.
Do you anticipate that
that pressure will present itself in fiscal year 2027,
or do we have some time before?
I think that it will present itself again in 2027.
Um, I know that the library fund is working on efficiency,
um, initiatives as well, uh, within their own, um, uh,
operations to find, um, you know, better ways
to operate at a lower cost.
Um, so I think that we'll continue
to work with them to do that.
Um, but I do think that there will continue to be pressure
unless we, um, you know, take a hard look at
how we are funding the libraries.
Can you provide through the chair
what projections you have based on what the new revenue
that we've provided through the increased levy?
Yes. So that we could see what planning we have
to start making Yes.
For the library fund. Awesome. Thank you Chairman.
Thank Honor Lopez, you no questions. Au Martin.
Thank you, chair. Good morning, director.
Um, has anyone asked yet about, um, the,
uh, prior year available resources,
uh, for the library fund?
I, I was a little bit late to budget.
If someone's asked, I'll just review the video,
but if no one has asked all ask a little more,
It's not a problem. Yes.
Your colleague, um,
alderman Lopez asked it. He was the first question
Actually. Okay. I will just
review that. That's it for now. Thank you.
Any other questions? Okay. Altman Robinson.
He had text me. I thought he had a question. Okay. Alright.
Very well. No other questions or motion?
Move, do pass or Altman Harris?
All in favor signal all by saying aye. Any opposed?
Any penny chairs? Ayes have it.
And this matter will be reported out our city council
meeting shortly, uh, with there be any no further business,
uh, before the committee is your motion to adjourn.
So move all in favor signal by saying aye.
Any opposed Opinion chair's, ayes have it.
This meeting is adjourned.