Committee on Finance meeting, December 16, 2025
- When: Tue, Dec 16, 2025, 11:00 AM (Chicago time)
- Where: City Council Chamber, 2nd Floor, City Hall, 121 North LaSalle Street - Chicago, IL 60602
- Status: Scheduled & Published
- Committee: Committee on Finance
- Video: https://vimeo.com/showcase/8928482?video=1144986653
- Transcript: full text (43,529 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 Finance heard 15 public commenters and then took up four items, after the mayor's office asked that the first agenda item not be discussed. The committee accepted a substitute 2026 revenue ordinance alternative, presented by Waguespack, Lee and Beale, that members said removes the garbage fee and head tax while relying on Ernst & Young efficiencies, a video gaming tax, lease, bag and liquor tax changes, debt collection and advertising revenue; after extended questions about its assumptions it was recommended for passage 22 to 13. The committee adopted La Spata's substitute adding about $9.1 million to the library levy in the 2026 property tax levy ordinance and recommended the levy 23 to six. It recommended the 2026-2027 general obligation bond ordinance 24 to eight after Conway argued for a smaller authorization, and approved a revised refunding bond ordinance reduced from $2 billion to $1 billion by voice vote.
Topics: 2026 budget, alternative revenue ordinance, debt collection, video gaming terminals, advertising revenue, Ernst & Young efficiencies, personal property lease tax, library levy, general obligation bonds, refunding bonds
Agenda items discussed
- 42:13 Rule 59 requests for remote participation: passed
- 43:29 Public comment
- 1:18:42 Item 1 (not discussed at the mayor's office's request)
- 1:18:59 2026 Municipal Code Revenue Ordinance alternative (substitute): passed
- 4:24:04 Fiscal year 2026 property tax levy ordinance, with substitute increasing the library fund levy: passed
- 4:41:57 2026-2027 general obligation bond ordinance: passed
- 5:23:09 Refunding general obligation and sales tax securitization bonds (revised to $1 billion): passed
Alderpersons who spoke
- Pat Dowell (chair): Asked Quezada to get to his question after he spoke about the timing of the proposal's release. (1:47:07); Asked Conway whether he had a question and said he had gone past his five minutes. (4:47:48); Told Villegas to work with Chairman Jason C. Ervin on management ordinance language about capital project line items. (5:13:50)
- Scott Waguespack (alderperson): Said the aldermanic coalition's substitute removes the garbage tax, has no grocery, property or head tax, funds library collections and gender-based violence programs, and is balanced. (1:21:32); Explained a $46 million corporate fund savings target based on low-end estimates from the Ernst & Young efficiency report. (1:28:12); Said the proposal restores the originally proposed congestion zone boundaries without the rate changes. (1:31:35)
- Nicole T. Lee (alderperson): Said the coalition spent hundreds of hours with a majority of council members and that no budget on the table is liked in every aspect. (1:23:57); Said the proposal uses the mayor's budget as a base and changes about $258.4 million, or 1.6%, of a $16.6 billion budget, including removing the head tax and making the full advance pension payment. (1:24:55); Explained increasing the personal property lease tax to 15% capped through 2027, a shopping bag tax increase, and a percentage-based off-premise liquor tax. (1:35:32)
- Anthony Beale (alderperson): Presented a business tax on video gaming, citing over 3,000 illegal sweepstakes machines and projecting $6.8 million net after a $4 million contract penalty. (1:32:41); Said members do not work for reporters and that the administration had presented nothing when asked for its information. (1:50:33); Said that when council passes a budget, departments decide how to make cuts and it is not for council to dictate how. (2:11:04)
- Samantha Nugent (alderperson): Said all estimates in the proposal were the lowest available and other revenue could be found if a source fell short. (1:52:33); Clarified that under the newest version the lease tax cannot be increased before January 1, 2028. (1:55:14); Moved an updated substitute correcting the off-premise liquor tax rate from 3% to 1.5%. (3:46:28)
- Anthony J. Quezada (alderperson): Said committee members were being asked to evaluate and vote on supporting materials in the same meeting they first saw them. (1:46:28); Praised removing the garbage fee increase and restoring youth jobs funding, and asked what safeguards protect youth jobs if revenues fall short. (1:47:47); Asked why the proposal's assumptions were not shared publicly when reporters requested them. (1:49:32)
- Raymond A. Lopez (alderperson): Asked whether any budget, including the mayor's, could need midyear adjustments if revenues fall short. (1:49:44); Supported the library levy substitute, saying it is roughly an $11 to $12 annual increase that creates a dedicated revenue stream for libraries. (4:28:54); Said capital project information has been general rather than specific, asked for a project list equal to the bond request and how many lines of credit exist. (4:53:00)
- David H. Moore (alderperson): Commended the removal of the garbage fee, said he still disagrees with the bag tax, and said he could not vote on the proposal that day without due diligence. (1:57:05); Asked how the coalition's $82 million lease tax figure relates to the mayor's $416 million projection. (1:58:23); Asked whether businesses can pass the lease tax on to consumers, affecting the 84% business share. (2:03:06)
- Gregory I. Mitchell (alderperson): Laid out personal property lease tax revenue figures at 11%, 14% and 15% to explain the $82 million difference. (2:01:25)
- Monique L. Scott (alderperson): Asked for confirmation that the alternative includes no property tax increase. (2:05:40); Asked what the proposal does for youth employment. (4:04:06)
- Rossana Rodríguez Sánchez (alderperson): Asked where efficiency cuts would be made and whether department heads were consulted, saying departments are down to the bone. (2:06:30); Asked whether research was done on the public and environmental health effects of advertising in public spaces. (2:11:23); Asked the presenters to pursue evidence-based policy on advertising's health effects. (2:13:49)
- Brian Hopkins (alderperson): Said payroll spending is up $1 billion and operational costs up 40% since 2019, which he said shows more cuts and efficiencies are possible. (2:14:37); Said the city's debt collection firms could do more if directed, including amnesty programs and civil action targeted at those able to pay. (3:15:47)
- Michael D. Rodriguez (alderperson): Noted city headcount is down several thousand over the same period and commended the coalition's work. (2:15:43); Asked the presenters to share the range of revenue assumptions they chose from. (2:16:19); Asked how certain the $4 million gaming contract penalty and the video gaming revenues are. (2:18:33)
- Andre Vasquez Jr. (alderperson): Asked for data showing the estimates are conservative. (1:53:05); Said the administration never provided the underlying data for the Ernst & Young report to either side. (2:28:15); Asked what guardrails would keep people who are already struggling from being pushed further into debt, and how buyers of city debt could be controlled. (3:18:00)
- Daniel La Spata (alderperson): Thanked the coalition for a collaborative process and asked whether the city cannot sell outstanding debt or simply has not done so before. (2:29:07); Asked for examples of other municipalities that have sold debt as proposed and whether vacancy savings would require amending the appropriations ordinance. (2:34:00); Asked that the committee consider recessing to a later day so members could review the substitute before voting. (2:36:34)
- William E. Hall (alderperson): Asked whether there is a way to expedite state gaming board approvals for Chicago video gaming applicants. (2:37:49); Asked how many jobs would be closed or cut under the Ernst & Young efficiency recommendations. (2:39:19); Asked whether the 16% of new revenue borne by individuals had been quantified per resident. (2:40:25)
- Gilbert Villegas (alderperson): Noted the proposal amends 1.6% of the mayor's budget and that council can amend the administration's proposal. (2:42:55); Asked whether the budget accounts for outside counsel, settlements and legal fees from expected lawsuits over the social media tax. (2:43:37); Cautioned that taxing social media companies could lead to settlements and legal fees given First Amendment protections. (2:47:56)
- Byron Sigcho-López (alderperson): Asked when the Ernst & Young report was published and whether the proposed efficiencies were communicated to the budget office. (2:48:45); Asked which budget experts were consulted and whether the proposal reduces 311 hours using chatbots. (2:51:05); Asked for the rationale for removing the corporate head tax while relying on $92 million in fines and fees, above Ernst & Young's estimates. (2:52:59)
- Walter R. Burnett (alderperson): Asked how light pole advertising would work, whether it is citywide, and how quickly revenue would ramp up. (2:56:37); Said a ward pilot saw 35% adoption in year one and asked whether any revenue in the package is pledged to existing debt. (3:00:26); Cautioned that selling revenue streams could affect the city's debt structure and credit ratings. (3:03:08)
- Jason C. Ervin (alderperson): Asked the budget director how much corporate fund vacancy value remains and how much room exists for the proposed vacancy savings. (3:03:45); Asked how the $29 million advertising projection was reached for the first year. (3:06:32); Raised concern about the impact of selling debt on communities and asked how outstanding debt breaks down by category. (3:08:26)
- Matthew J. Martin (alderperson): Thanked the coalition for making the full advance pension payment. (3:10:08); Asked whether a management ordinance could require regular reporting on efficiency savings. (3:10:37); Asked how a management ordinance could keep debt collection away from poor and working-class residents. (3:13:38)
- Leni Manaa-Hoppenworth (alderperson): Asked whether the proposal builds on the mayor's original budget, including items like the legal defense fund. (3:34:07); Asked about reducing 311 hours with a chatbot, possible job losses, and whether labor and OEMC were consulted. (3:35:09); Asked whether staff and resources exist to implement the Ernst & Young recommendations if the budget passes. (3:39:00)
- Jessica L. Fuentes (alderperson): Asked for a breakdown of the outstanding debt by type and geography. (3:47:23); Raised concern about predatory practices by private debt buyers and asked what happens if collections fall short. (3:48:37); Asked how the $20 million TIF surplus reimbursement from CPS was calculated and whether CPS agreed. (3:51:46)
- Nicholas Sposato (alderperson): Said much of the old outstanding debt is owed by people who no longer live where they did. (3:55:28); Said the library levy is about $12 a year on a $400,000 house, that the jobs are low-paid, and that he would vote yes. (4:38:02)
- Matthew J. O'Shea (alderperson): Said the group worked hundreds of hours with budget experts and a majority of council and that no other proposal had been presented. (1:55:46); Said children from many communities use libraries in the 19th Ward as safe places and that he supports the levy. (4:36:50)
- William Conway (alderperson): Said New York City, Baltimore and Philadelphia have sold accounts receivable. (2:32:51); Said he drafted a substitute to cut the bond authorization from $1.8 billion to $500 million for firefighter back pay and settlements. (4:44:20); Said the city has more than $2.4 billion in unused capital authorization and objected to $1.3 billion more without a project list. (4:45:45)
Exchanges between members
- 1:24:00 Lee thanked her colleague Waguespack.
- 1:47:07 The chair asked Quezada to get to his question.
- 1:49:44 Lopez asked his colleague whether any budget may need midyear adjustments.
- 1:50:33 Beale responded that members do not work for reporters.
- 1:52:10 Waguespack answered Quezada about the RFP process.
- 1:52:36 Nugent responded to Quezada about conservative estimates.
- 1:55:20 Nugent corrected Lee's lease tax explanation.
- 1:56:50 O'Shea thanked Waguespack for the presentation.
- 1:56:50 O'Shea thanked Lee for the presentation.
- 2:02:07 Mitchell addressed Moore while laying out lease tax figures.
- 2:03:00 Moore said he would follow up with Mitchell afterwards.
- 2:03:52 Lee answered Moore's pass-through question.
- 2:05:40 Scott thanked Waguespack and Lee for their work.
- 2:05:40 Scott thanked Waguespack and Lee for their work.
- 2:10:16 Beale said department decisions on cuts are not council's to dictate.
- 2:10:34 Rodríguez Sánchez objected that Beale interrupted her.
- 2:15:43 Rodriguez thanked Hopkins for his remarks.
- 2:15:59 Rodriguez commended Lee for the alternative budget.
- 2:15:59 Rodriguez commended Waguespack for the alternative budget.
- 2:18:48 Beale answered Rodriguez's video gaming question.