Aldermen approve city budget with fee increases, layoffs PDF Print E-mail
Wednesday, 19 November 2008

 

By Dan Mihalopolous and Hal Dardick at 1:25 p.m.

The Chicago City Council today easily approved Mayor Richard Daley's 2009 budget proposal, which is designed to address what he called the worst financial crisis of his 20 years in office.

The vote was 49-1, with Ald. Billy Ocasio (26th) casting the lone vote against.

Ocasio complained that Daley was laying off the wrong people and didn't provide funds for social services in his ward. Ocasio said the city has money for Millennium Park and the 2016 Olympics bids, however.

Ald. Mary Ann Smith voted for Daley's budget, saying he had vastly improved her lakefront ward.

"I will never cease my support for the mayor," Smith said.

Ald. Robert Fioretti (2nd) questioned whether "nickel and dime" tax and fee increases would solve a long-term budget problem.  Still, Fioretti said he would vote for Daley's spending plan.

Daley thanked aldermen and said they’ll have to "work together" during tough financial times.

"It's a very, very difficult process," Daley said. "It's a very, very challenging economy."

"This is not simple. No one likes to lay off anybody. Let's be realistic. . . . Nobody knows what is going to happen next year."

The $6 billion plan calls for cutting no more than 770 jobs from the City Hall payroll. Daley also wants to raise a slew of taxes and fees to plug a $469 million budget shortfall, which he has blamed largely on falling revenues.

Among the revenue-raising proposals in the budget is a plan to use the Denver boot on cars with two parking tickets that are a year or more old. Currently, only cars with three unpaid tickets get booted.

The city also plans to increase downtown daily garage parking taxes to $3 from $2.25, increase taxes on tickets to sporting events and theaters by one percentage point and enact a new annual fee on private garbage Dumpsters for businesses and larger condominium and apartment complexes.

The Dumpster fee has met resistance from several aldermen, but so far they haven't mustered the votes to kill or amend that proposal, which is expected to raise $8 million next year.

Aldermen also agreed to soften an increase in the cost of residential guest parking permits. As a result, 30 permits would increase to $16 from $10, and a $1 charge for buying them on the Internet will be dropped.

Daley had proposed an increase to $20. His budget officials said the lesser increase would still raise the extra $1.2 million envisioned in Daley’s initial budget proposal.

Aldermen also approved raising yearly application and daily permit fees for Maxwell Street Market vendors to raise an extra $700,000 to avoid the elimination of the "jumping jack" program that provides inflatable playgrounds at block parties across the city.

As a result of the effort designed to save "jumping jacks," the annual application fee for a market license will likely triple to $75 and the fee for an alternate license probably will more than triple to $50. Daily fees for the market also would increase substantially, but they would not double as first proposed earlier this week.

The $700,000 in new revenue expected from those increases will be used to fund the "jumping jack" program that provides inflatable, bouncy playgrounds at neighborhood get togethers across the city during the warmer months.

The mayor's 2009 budget proposal does not call for a property tax increase. Many aldermen have said they are more likely to vote for the budget because it does not raise property taxes at a time when home values are falling.

Last year, when Daley proposed raising the property tax levy by a record $86.5 million, 21 of the 50 aldermen voted against that idea. At the same time, the council voted 37-13 to back the 2008 spending plan.

Daley has warned that the cuts could slow the delivery of some city services.

Ald. Ed Smith (28th) urged the people of Chicago to remain patient when city services are delayed.
"It's going to take some togetherness from all of us to save this great city," Smith said.

 

Last Updated ( Monday, 05 January 2009 )