Committee on Budget and Government Operations meeting, November 6, 2024
- When: Wed, Nov 6, 2024, 12:00 PM (Chicago time)
- Where: City Council Chamber, 2nd Floor, City Hall, 121 North LaSalle Street - Chicago, IL 60602
- Status: Scheduled & Published
- Committee: Committee on Budget and Government Operations
- Video: https://vimeo.com/showcase/8925576/video/1024881425
- Transcript: full text (71,011 words, automatic captions)
Meeting notes
AI-written from the transcript. Speakers are inferred from cues in the recording, so treat names as estimates and check the video at the linked time.
The Committee on Budget and Government Operations opened its 2025 budget hearings on November 6, 2024, beginning with a moment of silence and about 30 minutes of public comment on topics including the proposed alcohol tax increase, the Water for All ordinance, rapid rehousing funding, and migrant-related spending. The Council Office of Financial Analysis (COFA) presented departmental highlights, and the Budget Director, Chief Financial Officer and City Comptroller presented the proposed $17.3 billion budget, which includes a $300 million increase to the base property tax levy, a continued advance pension payment, and several tax and fee changes. Members questioned the panel at length about the property tax increase, the advance pension payment, unspent ARPA funds, the TIF surplus, staffing and vacancies, the hiring freeze, alternative revenue options and the budget process, and many members said they do not support the $300 million property tax increase. Numerous information requests were made through the chair. No votes were taken, and the committee recessed until the following morning to continue hearings with other departments.
Topics: 2025 budget, property tax levy increase, pension advance payment, ARPA funds, TIF surplus, taxes and fees, staffing and vacancies, hiring freeze, alternative revenue options, public comment
Agenda items discussed
- 15:24 Public comment: discussed
- 48:33 COFA presentation of fiscal year 2025 budget highlights (Finance General, Office of the Mayor, Office of Budget and Management, Department of Finance): discussed
- 1:02:00 Budget hearing: Office of Budget and Management, Chief Financial Officer and Department of Finance on the 2025 budget recommendation: discussed
Alderpersons who spoke
- Jason C. Ervin (chair): Explained that budget hearings no longer use a court reporter because they are video recorded, there is no legal requirement, and the cost was not justified. (53:13); Said the council can pass or amend the mayor's plan, that amendments are typical, and that a budget and tax levy must be passed by December 31. (2:05:41); Said staffing analysis is within the committee's jurisdiction and asked the administration to provide any analyses it has performed through the chair. (2:25:05)
- Nicole T. Lee (alderperson): Asked for a breakdown of the total property tax levy increase and whether it is a single-year increase. (1:37:14); Asked whether relief measures such as means testing or caps for vulnerable groups were included. (1:38:42); Said no one is happy about a $300 million levy increase and stressed the need to plan for out years. (1:40:56)
- Gregory I. Mitchell (alderperson): Sought clarification on whether the CPI-based levy calculation was measured from 2022 or 2019, noting different years cited by the Budget Director and CFO. (1:47:30)
- Walter R. Burnett (alderperson): Asked why more vacancies or staff were not reduced and whether union concessions were sought. (1:48:56); Asked why forgoing the property tax increase would require a 17% workforce reduction. (1:51:04); Asked how much the corporate fund subsidizes pension and debt payments and whether that share has grown. (1:52:52)
- Emma Mitts (alderperson): Asked whether only $5 million is budgeted for flood victims and said her entire ward was flooded and residents remain displaced. (2:01:32); Asked how CPS spends the TIF surplus funds it receives. (2:03:44); Asked what the administration's alternative plan is if the property tax increase does not pass. (2:04:56)
- Michelle A. Harris (alderperson): Asked how many fees are being increased and requested a list of the top fee increases and the revenue each would generate. (2:07:47); Asked whether TIF surplus amounts are estimated or actual and what happens to funds left when TIFs close. (2:11:28); Asked how much the city collects annually from parking and red light tickets. (2:13:17)
- Pat Dowell (alderperson): Asked what assurances, such as an intergovernmental agreement, ensure CPS repays the city's pension payment. (2:19:07); Said she is reluctant to support a $300 million property tax increase and is looking for ways to reduce it. (2:19:45); Cited the ratio of managers to analysts in the budget office and asked for a citywide staffing analysis to identify departments to right-size. (2:20:17)
- Brendan Reilly (alderperson): Compared the 2019 budget of about $10.7 billion with the proposed $17.3 billion and noted growth in Office of the Mayor staffing since 2012. (2:31:38); Raised concerns about manager-to-employee ratios, saying personnel cuts he supports would target managerial positions rather than frontline union workers. (2:33:44); Said he did not hear the same urgency about cuts as about revenue and that the proposal does not appear to have the votes to pass. (2:35:10)
- Marty Quinn (alderperson): Asked whether the 2024 budget gap has been resolved. (2:42:37); Asked whether the property tax increase would fix the structural deficit for 2026 and 2027. (2:43:29); Said the number of raises and employees earning around $190,000 to $200,000 makes it difficult to ask for a property tax increase. (2:45:32)
- Matthew J. O'Shea (alderperson): Asked about merging the city and county boards of elections and the potential savings. (2:51:43); Suggested exploring consolidation of city and county animal control. (2:53:27); Said the city should look more at efficiencies and cuts, citing the number of employees earning over $100,000 and $185,000. (2:54:01)
- Nicholas Sposato (alderperson): Said he would like small group meetings with the finance team and called the $300 million increase a tough pill for communities. (2:56:58)
- Raymond A. Lopez (alderperson): Said he will not support the $300 million property tax increase and that government has not been squeezed enough. (2:58:07); Asked what gives confidence that projected tax revenue increases of 4% to 10% will be met. (2:59:55); Asked why fines, forfeitures and penalties are projected to decrease by about $22 million. (3:04:27)
- Chris Taliaferro (alderperson): Asked how the mental health clinics and behavioral health dispatch teams are funded. (3:10:11); Asked how hiring since the hiring freeze affects the budget and how long the freeze will last. (3:12:11); Asked whether spending such as the reparations committee, shelter expansion and youth employment increases is necessary during a fiscal crisis. (3:15:09)
- Daniel La Spata (alderperson): Asked whether automated enforcement revenue is kept in a separate account as the municipal code requires, rather than in the corporate fund. (3:25:23); Requested in writing the rating agencies' feedback on not making the supplemental pension payment, citing concerns about affordability. (3:27:33); Asked what drove a $215 million improvement in revenue projections over about 60 days. (3:29:49)
- Michael D. Rodriguez (alderperson): Requested the number of city employees earning about $70,000 or less. (3:36:57); Asked what is driving large changes in projected interest income and lease revenue. (3:37:40); Said the supplemental pension payment is important for fiscal responsibility but the administration must explain it better to colleagues. (3:44:05)
- Byron Sigcho-López (alderperson): Asked why progressive revenue options such as a head tax, congestion tax, video gaming and a financial transaction tax are not in the 2025 budget. (4:13:52); Asked whether the administration supports payments in lieu of taxes from large tax-exempt institutions and said budgets should not be balanced on working people. (4:21:32); Asked whether the projected $400 million cost of a rating downgrade is over 30 years. (7:18:44)
- Felix Cardona Jr. (alderperson): Requested a breakdown of grants the city gives out and asked whether grants were eliminated or reduced. (4:24:59); Asked whether the liquor tax increase is sufficient or could be raised further. (4:26:46); Said he opposes the property tax increase, describing a combined effect of reassessment, the city levy and a CPS levy that residents cannot afford. (4:27:58)
- Samantha Nugent (alderperson): Said the $300 million increase is not palatable to her or her constituents and the city must find efficiencies. (4:35:07); Asked why unobligated or unspent ARPA funds are not being used for revenue replacement, citing specific unspent program balances. (4:35:30); Pushed back on the one-time argument, saying taxpayers are bearing the brunt and not using ARPA for revenue replacement is irresponsible. (4:41:55)
- Matthew J. Martin (alderperson): Asked for the correct TIF surplus figure for the city and a list of the $247.6 million in operational efficiencies. (4:48:22); Asked what CPI-based levy increases would have been in prior years and the total proposed debt service. (4:50:20); Raised concerns about reductions in CPD reform, training, counseling and community policing units and the effect on consent decree compliance. (4:54:07)
- Maria E. Hadden (alderperson): Requested a list of all city taxes and surcharges, their current revenue, and revenue from any changes considered. (5:02:51); Asked for 2025 casino revenue projections. (5:05:34); Asked whether raising the home share surcharge to fund gender-based violence work was considered. (5:07:06)
- William Conway (alderperson): Said his earlier ordinance for more ARPA oversight could have helped fund the supplemental pension payment. (5:13:20); Asked about use of $140 million in unassigned fund balance and what drove the $215 million revenue reforecast. (5:14:45); Asked about raising the $9.50 monthly garbage collection fee, which he said is lower than surrounding communities. (5:17:56)
- Monique L. Scott (alderperson): Said colleagues do not support the $300 million increase and that suggested alternatives had been turned down, and asked what other ideas the administration considered. (5:21:32); Asked why the budget book shows only budgeted revenue rather than actual revenue received. (5:25:06)
- Anthony Beale (alderperson): Raised that there is no court reporter for budget hearings, noting it is typical to have one. (52:54); Asked what the administration's plan B is if the property tax increase does not pass. (5:28:44); Asked whether forgoing the CPI levy increase last year was a good decision. (5:29:53)
- Andre Vasquez Jr. (alderperson): Said members were frustrated by the lack of a real budget process and receiving information only on October 31, and called for a year-round working group of alderpersons. (5:39:13); Requested notes on ideas considered in the budgeteer process and the revenue subcommittee, and lists of long-term vacancies. (5:42:32); Asked what the new 909A reserve balance account and negative appropriations represent. (5:43:45)
- David H. Moore (alderperson): Thanked the administration for removing the senior property tax freeze requirement for reduced refuse collection fees. (5:48:50); Asked whether a COFA figure on Department of Finance overtime was a typo. (5:50:22); Asked about the bag tax concession change and the doubling of the wholesale food license fee, seeking to avoid harm to businesses. (5:51:53)
- Julia M. Ramirez (alderperson): Asked about the source and growth potential of the cannabis regulation tax, which funds several mayoral priorities. (5:58:47); Asked whether the administration plans to seek state revenue during the veto session. (6:00:33); Asked about outreach for the Clear Path Relief program and parking violation revenue. (6:02:28)
- Scott Waguespack (alderperson): Said he finds it hard to trust the mayor's budget and that constituents cannot support a property tax hike without fiscally responsible cuts. (6:07:27); Said the mayor should tell Springfield and sports teams the city does not have money for stadium requests. (6:08:28); Asked where the $95 million in 2023 interest income appears in the budget books. (6:09:42)
- Ronnie L. Mosley (alderperson): Said the property tax increase would hit his ward hard, including city workers and seniors, and expressed willingness to find better solutions. (6:19:41); Asked whether the cost of not making investments such as shelter and rapid rehousing has been quantified. (6:20:21); Asked whether residents' properties have been taken over unpaid water bills. (6:21:59)
- Ruth Cruz (alderperson): Said the solution should not be a $300 million property tax increase on homeowners and requested a breakdown of the 17% workforce reduction scenario. (6:24:39); Asked for current overtime totals by department. (6:26:38); Asked for furlough savings scenarios and whether long-unchanged fees were evaluated. (6:27:39)
- Jessica L. Fuentes (alderperson): Asked how much revenue raising the garbage fee to full cost would generate and whether a vacant lot tax has been considered. (6:46:39); Asked about raising tobacco and cigarette taxes. (6:48:36); Asked whether the home share surcharge could be raised to 4% to support domestic violence programs given possible federal grant losses. (6:49:47)
- Leni Manaa-Hoppenworth (alderperson): Supported consideration of election board consolidation and raising the home share tax to fund domestic violence services. (7:42:15); Said her ward was hit hard by reassessment and raised concerns about the property tax increase and about cuts to police civilians and vacancies. (7:42:56); Asked about adjusting the city's jet fuel tax for inflation. (7:44:18)
Exchanges between members
- 52:54 Alderperson Anthony Beale asked the chair why there is no court reporter for budget hearings, and the chair explained.
- 1:47:52 The chair ruled that Alderperson Gregory I. Mitchell point was a question rather than a clarification.
- 2:05:41 The chair responded to Alderperson Emma Mitts question about a backup plan by explaining that the council amends the mayor's plan and must pass a budget by December 31.
- 2:25:34 The chair supported Alderperson Pat Dowell request and asked the administration to provide its staffing analyses through the chair.
- 2:31:29 Alderperson Brendan Reilly said he was picking up where Alderperson Pat Dowell left off and called her line of questioning very helpful.
- 2:36:59 The chair asked Alderperson Brendan Reilly whether there was a question in his remarks.
- 2:56:29 The chair told Alderperson Matthew J. O'Shea he still had time remaining.
- 2:56:40 Alderperson Nicholas Sposato said colleagues appreciated Alderperson Matthew J. O'Shea passion.
- 3:22:13 The chair followed up on Alderperson Chris Taliaferro question, asking how much of the new investments are corporate-funded.
- 3:45:42 The chair said he agreed with Alderperson Michael D. Rodriguez that the cost of not making the supplemental pension payment had not been fully explained.
- 4:30:43 The chair responded to Alderperson Felix Cardona Jr. by explaining that reassessment impacts depend on relative changes in assessments.
- 4:32:54 Alderperson Felix Cardona Jr. responded to the chair that he has seen assessments in his area rise 20% to 50%.
- 4:43:46 The chair told Alderperson Samantha Nugent that one-time ARPA funds are not a structural solution to ongoing costs.
- 4:46:00 Alderperson Samantha Nugent replied to the chair that all options, including one-time measures, should be considered.
- 4:46:38 The chair told Alderperson Samantha Nugent that reallocating ARPA program funds involves a broader debate among colleagues about consequences.
- 4:58:22 Alderperson Matthew J. Martin asked the chair how many staff are currently in COFA.
- 5:28:26 Alderperson Anthony Beale thanked Alderperson Monique L. Scott for yielding her remaining time.
- 5:41:14 The chair asked Alderperson Andre Vasquez Jr. whether he had a question.
- 5:57:10 The chair informed Alderperson David H. Moore that the COFA overtime figure he asked about was a typographical error.
- 6:53:10 The chair told Vice Mayor Walter R. Burnett that two of his questions had already been asked and answered.