Excerpts from CBSChicago.com: Mayor Rahm Emanuel addressed city aldermen on Tuesday, outlining a plan that would require a $543 million increase in property taxes to stabilize the city's police and firefighter pension funds. Without this measure, the city would be forced to lay off thousands of first responders, according to the mayor. The proposed budget includes gradually raising the property tax over four years, with the largest portion coming in the current year. In addition to the property tax hike, the mayor also introduced a new garbage collection fee and several other new taxes and fees as part of his effort to close the city’s long-standing budget deficit and address the growing pension crisis. He also called for an additional $45 million in property taxes specifically to fund school construction projects. If approved by at least 26 aldermen, the plan would mark the biggest property tax increase in modern Chicago history, according to analysts. Emanuel described the tax increase as a “last resort†to prevent severe cuts to essential city services. He warned that relying solely on spending reductions to meet pension obligations would result in the loss of 2,500 police officers—20% of the force—and 2,000 firefighters—nearly 40% of the department. The city would also have to shut down 48 fire stations, reduce trash collection to once a month, eliminate recycling, stop fixing potholes, and halt rodent control and graffiti removal efforts. “If we were to fund our pensions through cuts alone, our city services would become unreliable. Our city would become unlivable. And that would be totally unacceptable,†he said. “We must solve our pension challenge, and there are only two options: make these damaging cuts and undermine all the progress we’ve made, or raise property taxes to meet our obligation to those who answer our calls every day. The bill is due today. And that is the choice before us.†The plan calls for a $318 million increase in the 2015 property tax levy, payable in 2016, followed by $109 million in 2016, $53 million in 2017, and $63 million in 2018. An additional $45 million would go toward school construction in 2015. Overall, the total property tax increase would amount to about $588 million over four years. For a homeowner with a $250,000 property, this would mean an extra $588 per year in taxes. In addition to the property tax hike, the mayor proposed a $9.50 monthly garbage fee, a 50-cent surcharge on taxi and ride-share rides, a 15% increase in cab fares, and a $5 fee for ride-share pickups and drop-offs at O’Hare and Midway airports. He also suggested new taxes on e-cigarettes and increased building permit fees to generate more revenue. Emanuel emphasized that he had already included $170 million in cost-saving measures and reforms to reduce expenses before considering higher taxes. Ralph Martire, director of the Center for Tax and Budget Accountability, acknowledged that residents may not be pleased with the new taxes and fees. “People are going to react negatively to what seems like a series of small, incremental increases—the garbage fee, the taxi fee,†he said. Martire also pointed out that previous administrations, including Mayor Richard M. Daley’s, relied on one-time revenues and borrowing to cover operating costs, allowing pension obligations to grow unchecked. “These choices should have been made years ago,†he said. He added that both the city and state need to take drastic action to fix the budget and pension systems. However, top Democratic lawmakers and Republican Governor Bruce Rauner have struggled to find common ground on key issues. Conveyor Belt Splicing Tools,Conveyor Belt Cover,Flat Roller,Porcupine Roller SUZHOU ARPHU INDUSTRIAL CO., LTD , https://www.arphuind.com
Chicago property tax increase for pension payments (more)