Mayor's budget seeks $108 million property-tax hike
Daley says city must ask taxpayers for more
http://www.chicagotribune.com/news/local/chi-budget_web10oct11,0,5883396.story
Mayor Richard Daley proposed a whopping $293 million increase in taxes, fees and fines today, including a 15 percent jump in Chicago's property-tax levy, believed to be the biggest in the city's history.
Daley, who delivered his proposed $5.9 billion budget at a special City Council meeting, expressed regret for the need to seek more from residents. But he insisted that the issue boiled down to a choice of higher taxes or stagnation for a city that has made great strides.
"I know that many Chicagoans are struggling to make ends meet and facing economic uncertainty, which made developing this budget all the more difficult," the mayor said. "Do we maintain city services and make the investments needed to keep Chicago moving forward, or do we cut services, make substantial layoffs and risk falling behind? I believe we have only one choice: We must keep Chicago moving forward."
The head of a tax watchdog group had another view.
"The Civic Federation is in shock and awe," said Laurence Msall, president of the organization. "We are shocked because of the enormity of the proposed property-tax increase. . . . We are in awe because of the huge overall increase in the budget he proposed—increasing the city's spending by $700 million, or 12 percent over the last two years.
"We are very disappointed that homeowners and other taxpayers are being asked to shoulder the burden of a $108 million property-tax increase without a more comprehensive plan for why the money is needed and how it will be spent."
The owner of a home with a market value of $225,000 would pay about $100 more a year, according to city budget officials.
The city is now joining the state, Cook County and other units of government in a multifaceted push for more money, said Jerry Roper, president of the Chicagoland Chamber of Commerce.
"It's positioning us for a tax revolt," he said.
In addition to the property-tax hike, the long list of increases proposed by Daley would be imposed on phone users; people who buy beer, wine and liquor; and those who lease cars and office equipment. Fines for certain parking offenses would rise, and owners of big sport-utility vehicles would pay $120 a year for their city stickers, up from $90.
A new 10-cent tax would be imposed on every bottle of water sold in the city.
Meanwhile, property owners would be paying more on another front. The water fee would rise by nearly $44 million in 2008, and the sewer fee by almost $21 million under a plan that would build in further rate increases for the following three years.
Little in the way of new programming is planned for the coming year. Among initiatives will be the hiring of 50 new police officers and deployment of 100 more police surveillance cameras citywide.
In an attempt to make the property-tax increase more palatable, Daley said money from the increase would be spent to operate city libraries and build new ones.
The City Council will conduct weeks of budget hearings on the mayor's plan before a vote later this year.
Ald. Bob Fioretti (2nd) said he won't support a budget that increases property taxes.
"I'm going to stick with my pledge to my constituents," Fioretti said. "I'm still looking for ways that we can streamline government."
But Ald. Manny Flores (1st) said he is open to the property-tax increase because he has been trying to get a new library on Chicago Avenue in his ward.
"Unlike a typical property-tax increase, what we're looking at here is a budget line item for libraries," Flores said.