Chicago-area public employee pension funding levels dropped significantly in FY2011, with unfunded liabilities for the ten funds analyzed rising to $32.0 billion from $27.4 billion in FY2010, an increase of 16.7% according to the most recent audited data available. For all pension funds supported by the taxes of Chicago residents, including statewide funds, the total unfunded liabilities reached…
On Monday April 29th, Mayor Rahm Emanuel announced that an agreement had been reached in the disputes between the City of Chicago and Chicago Parking Meters LLC (CPM), whose investors include Morgan Stanley, Allianz Capital Partners and Abu Dhabi Investment Authority. The agreement potentially determines how much the City owes to CPM for lost revenue of meters altered for City use. Additionally,…
On February 20, 2012 Mayor Emanuel released the City of Chicago’s first quarterly budget report in order “to ensure more transparency and honesty in the City’s budgeting process.” The reports track the City’s revenues and expenditures as they align with the budget. They also include updates on major initiatives implemented through the budget process. Recently the City released the budget report…
This blog continues the Civic Federation’s examination of indicators that can be used to measure the financial health of local governments. In order to measure financial condition, it is important to assess the direction and magnitude of changing ratios over time. The Federation is analyzing the five most recent Comprehensive Annual Financial Reports (CAFR) of thirteen large U.S. cities, most of…
After the City and leadership of the Chicago Police Sergeants’ union agreed to a tentative contract that included pay raises and significant pension reforms, rank-and-file union members rejected the contract by a vote of 876-134 earlier this week. The contract would have been the first significant implementation of Mayor Emanuel’s outline of pension reforms from last spring and a first step…
This blog examines some of the long-term obligations of the City of Chicago and its overlapping local governments using a per capita indicator based on bonded debt and unfunded pension liabilities. Rating agencies and other financial analysts commonly monitor overlapping direct debt trends as an affordability indicator when governments consider debt issuance. The indicator reflects the premise…
In the past year, Chicago residents have experienced several increases in the taxes imposed on cigarette and tobacco purchases. The new rates are shown in the following chart and are described in more detail below. (Click to enlarge.) Cigarette Tax (per pack) Cigarette packs have 20 cigarettes. State and local laws specify tax per cigarette, but per pack is used here for simplicity. On April…
This report compares effective property tax rates in selected communities around metropolitan Chicago and finds that effective tax rates in 2010 for residential and commercial properties rose for each of the 32 municipalities studied. Additionally, effective tax rates in 2010 were higher than they were 10 years ago for all communities studied, except for industrial properties in Chicago, which…
Since 1988 the City of Chicago and its four pension funds have been party to the settlement of City of Chicago v. Korshak regarding how much the City, the funds and annuitants pay for healthcare. The City pays for a portion of the retiree healthcare premiums and the pension funds subsidize part of the annuitant portion of the premium, with retirees paying the balance of the premium costs. The…
On December 12, 2012, an ordinance to create an independent budget office was introduced to City Council. The ordinance, sponsored by Aldermen Ameya Pawar (47th Ward), Michelle Smith (43rd Ward) and Pat Dowell (3rd Ward), was assigned to the Committee on Committees, Rules and Ethics to be considered. Although more detail about the proposal is needed, the Civic Federation supports the initiative…
