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2011 City of Chicago Overview and Revenue Estimates

2011 City of Chicago Overview and Revenue Estimates

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C i t y o f C h i c a g o

BUDGET 2011
Richard M. Daley
Mayor
OVERVIEW AND REVENUE ESTIMATES
The Government Finance Officers Association of the United States and Canada (GFOA) presented
a Distinguished Budget Presentation Award to City of Chicago, Illinois for their Annual Budget
beginning January 01, 2010. In order to receive this award, a governmental unit must publish a
budget document that meets program criteria as a policy document, as an operations guide, as a
financial plan, and as a communications device.
This award is valid for a period of one year only. We believe our current budget continues to
conform to program requirements, and we are submitting it to GFOA to determine its eligibility
for another award.
January 1, 2010
OVERVIEW AND REVENUE ESTIMATES
BUDGET 2011
C i t y o f C h i c a g o
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Dear Chicago Residents:
We are in a time of austerity, as the worst national
recession in over seventy years continues to impact
people, business and every level of government,
in Chicago and across the nation.
With those challenges in mind, I propose a
2011 balanced budget that better manages our
resources while meeting the needs of Chicagoans
and protecting taxpayers.
While our revenues have finally started to increase,
they are rising very slowly. It will take several
more years for them to return to pre-recession
levels.
The fact is that Chicago has experienced a $1
billion decrease in revenues since the recession
began, nearly all of which in revenue streams
that are most economically sensitive – real estate
transfer, sales and income taxes.
But had we not worked for years to better
manage government, control costs and transform
our economy, the recession would have been far
worse in Chicago.
When I took office in 1989, Chicago was a rust
belt city that many people had written off. But
together we transformed our economy, so that
today, Chicago is among the top tier of cities
competing for the jobs of the 21st century.
At the same time, we have also worked to manage
government more efficiently and control spending
to protect taxpayers. We have done this with one
goal in mind – to create a government that is
smaller in size, but greater in performance.
Since I’ve been Mayor, we’ve cut spending by
nearly $3 billion, including almost a half billion
dollars since 2009 alone, while still providing
important city services. We will end next year
with 6,600 fewer non-public safety employees
than when I took office.
We have reshaped government and reduced
overlap by consolidating departments. Under the
2011 budget there will be 10 fewer departments
than when I took office.
To fund government we’ve raised property taxes
as the last resort – by an average of less than 1.3
percent a year since I’ve been Mayor, far lower
than the rate of inflation.
Because people and businesses are hurting, I will
not propose any increase in taxes, fines or fees
in 2011, including property taxes. This will be
the third year in a row that we haven’t raised
property taxes.
We have implemented management improvements
including renegotiating contracts, implementing
hiring freezes, reducing overtime, leveraging
VE''/CE fRCV !FE V/YCR
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II
technology, requiring furlough days for employees
and cutting spending across the board.
We will continue our freeze on non-safety hiring,
which has been in effect since 2008, as well as cut
more positions. We will also continue to require
all non-union employees, starting with me, to
take furlough days and unpaid holidays, and are
counting on the unions serving the City to again
agree to take part.
Even as we hold the line on spending in most
areas, we continue to address the most immediate
and pressi ng probl em faci ng many of our
neighborhoods – violence on our streets and in
our homes.
In 2011, we will put more police officers on street
duty, hire new police recruits, and reinvent the
CAPS program to more fully engage Chicagoans
to make our communities safer.
We will create a new small business fund to
provide loans for start ups, expansions and day-
to-day operations.
We will continue to invest to improve Chicago’s
infrastructure to improve quality of life and make
our neighborhoods ready to create jobs and
opportunity and welcome new businesses.
I believe Chicago is better off today that it was
on that spring morning 21 years ago when I first
took the oath of office. Together, we’ve brought
Chicago into the 21st century, beyond our greatest
expectations.
But, we can’t coast on our accomplishments.
There is still more to be done, and together, we
can keep Chicago moving forward.
Sincerely,
Mayor Richard M. Daley
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III
!/8LE Cf CCN!EN!'
Message from Mayor Richard M. Daley I

List of Tables and Charts IV
2011 Proposed Budget
º DirecIor's Discussioh 1
º Summary o! Proposed 8udgeI 6
º HighlighIs o! Proposed 8udgeI 9
Chicago Facts and Financial Profile
º Chicago Demographics 22
º CiIywide Map 24
º Lcohomy's L!!ecI oh Chicago's 8udgeI 25
º Chicago CrediI RaIihgs ahd DebI Overview 38
2011 Proposed Budget Analyses
º Revehue 39
º LxpehdiIure ahd Persohhel 71
º CrahIs 87
º CapiIal ImprovemehI Plah 93
How Chicago Budgets
º 8udgeI Process 97
º 8udgeI DocumehIs ahd Calehdar 98
º Fihahcial Policies 100
º 8asis o! 8udgeIihg 105
º CiIy OrgahizaIioh CharI 106
Budget Detail
º How Io Read 8udgeI DeIail 107
º Revehue 108
º LxpehdiIure 116
º Persohhel 118
º CrahIs 120
Budget Glossary 125
1he 8udgeI Overview ahd Revehue LsIimaIes is a compleIe compahioh Io Ihe oIher documehIs IhaI
IogeIher comprise Ihe CiIy's ahhual proposed budgeI - Ihe 8udgeI RecommehdaIiohs (lihe-iIem budgeI),
Ihe Program ahd 8udgeI Summary, ahd Ihe Dra!I AcIioh Plah.
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IV
'uVV/RY Cf lRClC'E0 8u0CE! CONTINUED
Ll'! Cf !/8LE'
1able 1 2011 Proposed 8udgeI Summary 6
1able 2 Ahhual Average UhemploymehI RaIes, 2002 Io 2009 27
1able 3 LmploymehI by IhdusIry, 2009 28
1able 4 PoverIy RaIes, 2009 30
1able 5 AppropriaIioh Summary 39
1able 6 CorporaIe Fuhd Summary 42
1able 7 2011 RecommehdaIiohs: Lohg ahd Mid-1erm Reserves 62
1able 8 Special Revehue Fuhds 64
1able 9 CiIy Pehsioh CohIribuIiohs 68
1able 10 LhIerprise Fuhds AppropriaIioh Summary 70
1able 11 Proposed 8udgeI by FuhcIioh 72
1able 12 PosiIioh CouhIs by FuhcIioh 74
1able 13 2011 LsIimaIe o! CrahI Revehue-Summary 87
1able 14 CrahI PosiIiohs Summary 88
1able 15 CiIy o! Chicago CapiIal ImprovemehI Plah 95
1able 16 1he CorporaIe Fuhd 108 & 109
1able 17 Special Revehue Fuhds 110 & 111
1able 18 Pehsioh Fuhds 112
1able 19 DebI Services Fuhds 113 & 114
1able 20 LhIerprise Fuhds 115
1able 21 AppropriaIioh by FuhcIioh ahd OrgahizaIiohal UhiI
-All Local Fuhds 116 & 117
1able 22 PosiIiohs by FuhcIioh ahd OrgahizaIiohal UhiI
-All Local Fuhds 118 & 119
1able 23 CrahI Fuhds by FuhcIioh ahd OrgahizaIiohal UhiI 120 & 121
CF/R!'
CharI 1 2011 Proposed Revehue - All Local Fuhds 7
CharI 2 2011 Proposed Revehue - CorporaIe Fuhd 7
CharI 3 2011 Proposed LxpehdiIures - All Local Fuhds 8
CharI 4 2011 Proposed LxpehdiIures - CorporaIe Fuhd 8
CharI 5 Age DisIribuIioh, 2009 25
CharI 6 Age DisIribuIioh, Large ahd SelecIed CiIies, 2009 26
CharI 7 UhemploymehI RaIes !or Large CiIies, 2001 - Mid-2010 27
CharI 8 Ahhual Household Ihcome, 2009 29
CharI 9 Household Ihcome DisIribuIioh, 2009 30
CharI 10A Lcohomically SehsiIive Revehues, 1989 - 2011 ForecasIed
CharI 108 Lcohomically SehsiIive Revehues 2000 - 2011 31
- CorporaIe Fuhd Share 32
CharI 11 2008 ProperIy 1ax LxIehsioh 41
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'uVV/RY Cf lRClC'E0 8u0CE! CONTINUED
Ll'! Cf CF/R!'
CharI 12 2011 Proposed ProperIy 1ax Levy 41
CharI 13 LlecIriciIy/Ih!rasIrucIure MaihIehahce Fee 44
CharI 14 NaIural Cas & Cas Use 1ax 44
CharI 15 1elecommuhicaIiohs 1ax 46
CharI 16 Cable Frahchise Fee 46
CharI 17 Real LsIaIe 1rahs!er 1ax 47
CharI 18 Persohal ProperIy Lease 1ax 47
CharI 19 Parkihg 1ax 48
CharI 20 Vehicle Fuel 1ax 49
CharI 21 Crouhd 1rahsporIaIioh 1ax 49
CharI 22 AmusemehI 1ax 51
CharI 23 Liquor 1ax 51
CharI 24 CigareIIe 1ax 52
CharI 25 Noh-Alcoholic 8everage 1axes 52
CharI 26 HoIel AccommodaIiohs 1ax 53
CharI 27 Lmployers' Lxpehse 1ax 54
CharI 28 Sales 1axes 56
CharI 29 Sales 1ax 8reakdowh 56
CharI 30 Ihcome 1axes 58
CharI 31 Licehses ahd PermiIs 60
CharI 32 Fihes, For!eiIures ahd PehalIies 60
CharI 33 Lcohomically SehsiIive Revehues Sihce Peak Year 63
CharI 34 Vehicle 1ax Fuhd 65
CharI 35 MoIor Fuel 1ax Fuhd 65
CharI 36 Lmergehcy CommuhicaIiohs Fuhd 67
CharI 37 Special LvehIs ahd HoIel 1ax Fuhd 67
CharI 38 Public Sa!eIy Share o! Ihe 2011 Proposed CorporaIe
Fuhd 8udgeI 71
CharI 39 Local Fuhds PosiIioh CouhI 10 Year HisIory 73
CharI 40 Uhioh vs. Noh-Uhioh PosiIiohs 74
CharI 41 Lmployee HealIh Care 8udgeIs - All Local Fuhds 75
CharI 42 Sworh Public Sa!eIy PosiIiohs vs. Civiliah: 2002-2011 83
BUDGET 2011
2011 PROPOSED BUDGET
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As Ihe haIioh's ecohomic recessioh cohIihues Io
have a hegaIive impacI oh Chicago ahd every oIher
maior ciIy ahd sIaIe ih Ihe couhIry, we recoghize
Ihe heed Io cohIihue Io provide viIal ciIy services
ahd programs Io Chicagoahs ahd Ihe heed Io be
!iscally respohsible.
1he haIiohal recessioh has devasIaIed Ihe CiIy's
revehues ahd has challehged our abiliIy Io !ihd
ways Io reduce expehses, improve e!!iciehcies, ahd
reshape goverhmehI.
While ecohomisIs say Ihe recessioh !ormally ehded
ih 1uhe o! 2009, !ar Ioo mahy people are sIill
dealihg wiIh Ihe cohsequehces. UhemploymehI
raIes remaih high, while reIail, real esIaIe ahd
oIher cohsumer sales remaih sluggish. As a resulI,
Ihe CiIy has yeI Io see ahy maior improvemehI ih
ecohomically sehsiIive revehue sources.
Chicago has losI Ihousahds o! iobs over Ihe pasI
Iwo years because o! Ihe recessioh. 1hahk!ully,
Ihe raIe o! iob loss has beguh Io slow ahd some
busihesses are !ihally begihhihg Io creaIe iobs
agaih. 1here may be a glimmer o! a susIaihed
recovery, buI we khow IhaI like every oIher ciIy
ahd sIaIe, Chicago's ecohomic rebouhd will be a
lohg, slow process.
Lveh wheh revehues are depressed, Ihe CiIy musI
cohIihue Io provide Ihe criIical services o! police
ahd !ire proIecIioh, sIreeI maihIehahce, waIer
ahd sewer !aciliIies ahd garbage collecIioh. AI
Ihe same Iime, Ihe CiIy musI !ocus oh supporIihg
people ih heed, especially durihg a Iime wheh
Iheir heeds are greaIesI.
1haI is why we work each day Io reduce Ihe cosI o!
goverhmehI, demahd more !rom every employee,
ahd limiI Ihe impacI o! Ihis recessioh oh Iaxpayers.
We have had greaI success ih cuIIihg cosIs ahd
reducihg Ihe CiIy labor !orce wiIhouI drasIically
impacIihg Ihe delivery o! ciIy services, ahd Ihe
2011 proposed budgeI re!lecIs IhaI obiecIive.
8y reducihg cosIs, beIIer mahagihg our resources
ahd uIilizihg sIraIegic !ihahcial approaches, Ihe
CiIy o! Chicago is able Io presehI a balahced 2011
local !uhd budgeI o! $6.15 billioh, wiIh a $3.26
billioh corporaIe !uhd.
RLVLNUL DLCLINLS
While Ihe ecohomic cohdiIioh o! our haIioh ahd
Ihe CiIy o! Chicago may be showihg a !ew sighs o!
sIabilizaIioh !rom Ihe recessioh, Ihe 2011 budgeI
recommehdaIiohs have beeh cra!Ied wiIh Ihe idea
0lREC!CR'' 0l'Cu''lCN
EuCENE L. VuNlN, 8u0CE! 0lREC!CR
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0lREC!CR'' 0l'Cu''lCN CONTINUED
IhaI Ihe ecohomy will remaih relaIively weak
be!ore makihg a prolohged recovery.
Ih 2011, ecohomically sehsiIive revehues are
proiecIed Io geheraIe slighIly more Ihah $1
billioh, or abouI 30 percehI o! Ihe corporaIe
!uhd. 8y cohIrasI, be!ore Ihe recessioh, Ihose
!uhds geheraIed more Ihah 40 percehI o! Ihe
corporaIe !uhd revehues. Ih 2011, Ihese revehues
are expecIed Io geheraIe $297 millioh less (based
oh acIiviIy periods) Ihah Ihey geheraIed ih 2007.
From 2008 Ihrough 2011, ecohomically sehsiIive
revehues are expecIed Io experiehce a cumulaIive
loss IhaI exceeds $1 billioh due Io Ihe recessioh.
Overall, 2011 revehue esIimaIes available Io Ihe
corporaIe !uhd - be!ore applyihg ahy soluIiohs
- are expecIed Io ihcrease by 2.1 percehI, or $52
millioh !rom 2010 year-ehd esIimaIes.
Chicago's 2010 budgeI had ahIicipaIed a cohIihued
dowhIurh ih ecohomically-sehsiIive revehues.
Some ecohomically sehsiIive revehues, however,
such as sales ahd ihcome Iaxes, begah Io recover
slighIly !rom Iheir record low levels. 1hroughouI
Ihe remaihder o! 2010, revehues are expecIed Io
come ih slighIly higher Ihah predicIed aI Ihe ehd
o! 2009.
LXPLNSL RLDUC1IONS
Ih order Io meeI Ihe challehge o! a sIrugglihg
ecohomy, Ihe CiIy Iook sIeps Io cuI spehdihg,
ihcludihg sighi!icahI persohhel cosI reducIiohs
Ihrough Ihe 2009 agreemehIs wiIh 25 civiliah labor
uhiohs, as well as reducIiohs ih hoh-persohhel
expehses.
1he persohhel cosI reducIiohs will cohIihue ih 2011
as we proiecI ahoIher a !ull year's worIh o! uhpaid
holidays, reduced work weeks, ahd compehsaIory
Iime !or overIime ihsIead o! paymehI !or members
o! ciIy labor uhiohs, mahagers ahd oIher hoh-uhioh
employees. Ih IoIal, Ihe measures are expecIed Io
save $52 millioh ih Ihe corporaIe !uhd.
Ih addiIioh Io Ihese savihgs, Ihe 2011 proposed
budgeI ihcludes $96.9 millioh ih expehse reducIiohs.
1he persohhel-relaIed savihgs ihclude:
$44.7 millioh ih year-ehd savihgs !rom º
hirihg !reeze ahd oIher persohhel cosI-
savihg measures,
$ 2 2 mi l l i oh i h he a l I hc a r e c os I º
reducIiohs,
$13 millioh !rom cuIIihg 277 vacahI º
posiIiohs, ihcludihg 42 layo!!s,
Sihce 2001, Ihe CiIy has cuI more Ihah 6,500
posiIiohs !rom Ihe budgeI - eveh as we have
added sworh police o!!icers. Ih !acI, ih 2001 sworh
police ahd !ire posiIiohs made up 47 o! Ihe CiIy's
locally !uhded work!orce. 1oday, Ihey are more
Ihah 57 percehI o! our employees.
Ih 2011, Ihe IoIal humber o! budgeIed !ull-Iime
posiIiohs will be 32,922 across all local !uhds.
1he 2011 budgeI also ihcludes $12.2 millioh ih hoh-
persohhel expehse reducIiohs, ihcludihg reducihg
cohIracIual expehses, maIerials, supplies, properIy
rehI, !uel, ahd haIural gas.
DespiIe Ihese sighi!icahI cosI-cuIIihg measures,
persohhel cosIs grow each year. II is Ihe same !or
mosI ciIies ahd sIaIes, regardless o! Ihe cohdiIioh
o! Ihe ecohomy. 1he cosI o! healIhcare cohIihues
Io rise, ahd cohIracIual obligaIiohs which ihcrease
employee wages require Ihe CiIy Io spehd more
!or salaries ahd behe!iIs. LxpehdiIures relaIed
Io employee wages, behe!iIs ahd pehsioh cosIs
comprise more Ihah 80 percehI o! Ihe CiIy's
corporaIe !uhd budgeI.
O1HLR MANACLMLN1 INI1IA1IVLS
1o improve mahagemehI o! ciIy goverhmehI
ahd beIIer provide services Io residehIs ahd
busihesses, Ihe 2011 budgeI proposes several hew
mahagemehI ihiIiaIives.
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0lREC!CR'' 0l'Cu''lCN CONTINUED
1hese sIeps ihclude:
CohsolidaIihg Ihe DeparImehI o! CulIural º
A!!airs ahd Ihe Mayor's O!!ice o! Special
LvehIs, whi ch have some commoh
!uhcIiohs, ihIo Ihe DeparImehI o! CulIural
A!!airs ahd Special LvehIs.
Formihg Ihe hew DeparImehI o! Housihg º
ahd Lcohomic DevelopmehI by combihihg
I he Depar I mehI s o! Commuhi I y
Devel opmehI ahd Zohi hg ahd Lahd
Use Plahhihg Io place all ecohomic ahd
heighborhood developmehI !uhcIiohs ih
ohe deparImehI.
Movi hg zohi hg i hs pecI or s I o I he º
DeparImehI o! 8uildihgs.
I hc or por aI i hg I he Cr aphi c s ahd º
ReproducIiohs CehIer ihIo Ihe DeparImehI
o! Ceheral Services, ahd
Maximizihg reimbursemehIs !or services º
!rom sisIer agehcies, as well as sIaIe, !ederal
ahd ehIerprise !uhd reimbursemehIs.
USL OF RLSLRVLS AND O1HLR FINANCIAL
S1RA1LCILS
1he !ihahcial damage caused by Ihe lehgIhy
recessioh cahhoI be addressed by Ihe CiIy's
aggressive e!!orIs Io reduce expehses ahd beIIer
mahage goverhmehI alohe. Ih 2011, we will
heed Io Iake addiIiohal sIeps Io !ill whaI was ah
expecIed $654.8 millioh de!iciI ih Ihe corporaIe
!uhd.
8y Iakihg advahIage o! hisIorically low ihIeresI
raIes, Ihe budgeI re!lecIs sIraIegic debI !ihahcihg
ahd resIrucIurihg Io reduce Ihe budgeI shorI!all
by ahoIher $142 millioh.
1he CiIy will declare a surplus o! approximaIely
$180 millioh ih 25 o! Ihe 160 1ax IhcremehI
!ihahcihg (1IF) disIricIs across Chicago. 8y law,
surplus 1IF !uhds are reIurhed Io ahd divided
up by Ihe local Iaxihg bodies. 1he CiIy's share is
expecIed Io be $38.5 millioh, which we will apply
Io balahcihg Ihe 2011 budgeI.
We will maihIaih Ihe remaihder o! 1IF !uhds
ih separaIe disIricIs across Ihe ciIy Io cohIihue
ihvesIihg ih ecohomic growIh ahd proiecIs IhaI
supporI heighborhood iob creaIioh. Ih !acI, Ihe
1IF program has beeh ah imporIahI parI or our
sIraIegy Io spur ecohomic growIh ahd Ihe lohg-
Ierm recovery !rom Ihe recessioh.
Chicago is beIIer o!! Ihah mahy oIher ciIies because
iI has seI aside subsIahIial reserves !rom Ihe
proceeds o! ih!rasIrucIure asseI leases, ihcludihg
Ihe Chicago Skyway ahd ciIywide parkihg meIer
sysIem. Ih Ihese di!!iculI Iimes, Ihe CiIy proposes
Io Iemporarily leverage some o! Ihese exisIihg
reserves ih a prudehI mahher.
1he CiIy esIablished a $500 millioh lohg-Ierm
reserve wiIh Ihe lease o! Ihe Chicago Skyway ih
2005, ahd seI up a $400 millioh lohg-Ierm reserve
wiIh Ihe cohcessioh relaIihg Io Ihe parkihg meIer
operaIiohs ih 2009. As esIablished, Ihese reserves
are ihvesIed Io garher ahhual ihIeresI earhihgs Io
Irahs!er ihIo Ihe corporaIe !uhd.
Due Io Ihe dramaIic shorI!alls ih revehues caused
by Ihe recessioh, Ihe 2010 budgeI re!lecIed
borrowihg o! a porIioh o! Ihe parkihg meIer lohg-
Ierm reserve. However, due Io Ihe CiIy's cohIihued
disciplihe ahd cosI-cuIIihg measures IhroughouI
Ihe year, Ihe CiIy will borrow $60 millioh less !rom
Ihe parkihg meIer lease !uhds Io balahce Ihe 2010
budgeI Ihah had origihally beeh plahhed, which
will be applied Io help balahce Ihe 2011 budgeI.
1he 2011 budgeI proposal re!lecIs borrowihg o!
$120 millioh o! parkihg meIer lohg-Ierm reserve
!uhds, leavihg a IoIal o! $76 millioh ih Ihe parkihg
meIer IrahsacIioh proceeds accouhIs.
As Ihe ecohomy recovers over Ihe hexI several
years, Ihe plah remaihs !or Ihe parkihg meIer
lohg-Ierm reserve Io be repaid.
Realizihg Ihe imporIahce o! maihIaihihg reserves,
Ihe 2011 budgeI preserves Ihe $500 millioh
2 0 1 1 O v e r v i e w a n d R e v e n u e E s t i m a t e s
Visit www.cityofchicago.org • Call 311 City Services
4
Skywaylong-termreserve.This$500million
reserverepresentsmorethan15percentofthe
City’s general fund in the budget, above the
recommendedamountbytheGovernmentFinance
OfficersAssociation.
MAINTAININGFUNDINGTOIMPROVE
QUALITYOFLIFEFORHOMEOWNERS,
BUSINESSES,ANDTHOSEMOSTINNEED
Overafour-yearperiodwhichstartedin2010,
theCityofChicagoplanstoinvest$100million
fromtheparkingmetertransactionthroughthe
ParkingMeterHumanInfrastructureFund.
This$100millionfundishelpingimprovethe
qualityoflifeforChicagohomeowners,businesses,
andthoseresidentsmostinneed,particularly
thoseseverelyimpactedbythenationaleconomic
recession.
2011marksthesecondyearfortheParkingMeter
HumanInfrastructureFund.Thefundwasmeantto
continuesupporttocriticalhumaninfrastructure
programsthathadpreviouslybeenfundedbythe
ChicagoSkywayHumanInfrastructureFundfrom
2005through2009.
Atotalof$21.65millionfromtheParkingMeter
HumanInfrastructureFundwillbeallocatedin
the2011budget,including:
$8.4millionfortheChicagoTechprogram •
toprovidetechnologytrainingforrecently
laid-offworkers;
$2millionforhome-deliveredmealsto •
seniors;
$1.6millioninmulti-familyaffordable •
housingloans;
$1.5millionforout-of-schoolandafter- •
schoolprogramsforyouth;
$1.3millionfortheLow-IncomeHousing •
TrustFund;
$1millionforanewprogramtohelpsmall •
businessesobtainloans;
$1millioninfundingforayouthjobs •
program;
$1milliontoprovidejob-trainingprograms •
forex-offenders;
$750,000 for our Share the Warmth •
programwhichhelpsneedyfamiliespay
theirheatingbills;
$700,000innewfundingforhomeless •
shelterbeds;
$700,000forourPlantoEndHomelessness, •
whichprovidestransitionassistancefor
thoseinneed;
$600, 000 to mai ntai n fundi ng for •
emergencyhomerepairs;
$400,000tomaintainfundingtoprovide •
homemodificationsforindividualswith
disabilities;
$250,000tosupplementtheCity’sjob •
trainingprogramforadultanddislocated
workers;
$250,000toprovideemergencyfoodboxes •
forneedyfamilies;and
$200,000 in new funding to provide •
casemanagementfordomesticviolence
victims.
CONCLUSION
Chicagowillcontinuetofacetheseeconomic
challengesfornextseveralyears,andwewillbe
testedtocontinuetoprovidethequalityservices
ourresidentsneedanddeserve.
UndertheleadershipofMayorDaley,the2011
budget proposal is a responsible plan that
protectstaxpayersandimprovesthemanagement
ofgovernment,andtakestheneededstepsto
continuemovingthisgreatCityforward,evenin
themostdifficultoftimes.
direCtor’S diSCuSSion CONTiNued
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5
EXPENDITURE REDUCTIONS $96.9 MILLION
LlimihaIihg 277 posiIiohs º
MaihIaihihg hirihg !reeze ahd oIher persohhel cosI savihgs º
Realizihg healIhcare expehse savihgs º
MAXIMIZING REIMBURSEMENTS $98.0 MILLION
Maximizihg ihIergoverhmehIal reimbursemehIs !or services º
ahd pehsioh obligaIiohs
Applyihg balahce !rom ProperIy 1ax Relie! Program º
MODEST GROWTH IN REVENUES $91.3 MILLION
Realizihg modesI gaihs ih sales, ihcome ahd oIher Iaxes º
STRATEGIC FINANCIAL OPTIONS $68.2 MILLION
CapIurihg 8uild America 8ohds ihIeresI raIe subsidy º
Modi!yihg exisIihg ihIeresI-raIe cohIracIs º
CapIurihg Ihe release o! !uhds !rom escrow agreemehIs º
DEBT RESTRUCTURING $142.0 MILLION
1akihg advahIage o! lower ihIeresI raIes º
TIF SURPLUS $38.5 MILLION
UIilizihg surplus !rom 25 o! 160 1ax IhcremehI Fihahcihg disIricIs º
USE OF ASSET LEASE FUNDS $119.9 MILLION
8orrowihg $120 millioh !rom lohg-Ierm reserve º
Leavihg $76 millioh ih parkihg meIer !uhds ihIacI ahd ehIire º
$500 millioh Skyway reserve uhIouched
CLC'lNC !FE 2011 8u0CE! C/l
2011 8UDCL1 - CLOSINC 1HL $654.8 MILLION CORPORA1L FUND CAP
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6
1he 2011 proposed budgeI proiecIs IoIal resources
aI $6.15 billioh across all local !uhds, ah ihcrease o!
less Ihah 1 percehI !rom Ihe 2010 budgeI. AI Ihe
same Iime, local !uhded posiIiohs decrease by 234
!rom 2010 levels. WiIh ah addiIiohal $2.12 billioh
ih ahIicipaIed grahI resources, Ihe IoIal proposed
budgeI is $8.27 billioh.
1he CiIy's corporaIe !uhd ihcreases by 2.5 percehI,
or $80.5 millioh, Io $3,260.2 millioh. 1he CiIy's
corporaIe !uhd posiIiohs also decrease by 277
posiIiohs Io 26,820.
As charIs 1 ahd 2 ihdicaIe, Ihe CiIy's corporaIe !uhd
revehue porI!olio is well-diversi!ied wiIh ho sihgle
caIegory o! revehue makihg up more Ihah ohe
quarIer o! Ihe IoIal.
Oh Ihe expehdiIure side, public sa!eIy expehdiIures
cohIihue Io comprise Ihe largesI share o! Ihe CiIy's
budgeI. Ih 2011, $1,877.9 millioh, or 57.6 percehI
o! Ihe IoIal corporaIe !uhd's budgeI is !or public
sa!eIy, hoI ihcludihg employee behe!iIs. Ihcludihg
ah esIimaIed share o! employee behe!iIs, 67.5
percehI o! Ihe corporaIe !uhd budgeI, or $2,201.4
millioh, is allocaIed Io public sa!eIy.
'uVV/RY Cf lRClC'E0 8u0CE!
2011 PROPOSLD 8UDCL1 SUMMARY
2009
AppropriaIioh
2010
AppropriaIioh
2011
Proposed
2011/2010
Chahge
TABLE 1
Corporate Fund
8udgeI $3,186,472,000 $3,179,745,000 $3,260,220,000 $80,475,000
PosiIiohs 27,471 27,097 26,820 (277)
All Local Funds
8udgeI $5,965,701,000 $6,106,094,000 $6,154,793,000 $48,699,000
PosiIiohs 33,621 33,156 32,922 (234)
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7
Ut i l i t yTaxes
14.7%
Sal esTax
15.2%
IncomeTax
9.5%
Proceeds&Transf ers
10.5%
Bor rowf romPar ki ng
M et er LongͲt er mreser ve
3.7%
AdvancePar ki ngM et er
M i dͲt er m
1.0%
Rei mbursement s
10.7%
Ot her Local Taxes
17.2%
Unreser vedFundBal ance
0.3%
NonͲTaxRevenue
17.2%
Proper t yTax
13.5%
IncomeTaxes
6.8%
Sal esTaxes
8.5%
Ut i l i t yTaxes
7.8%
13.5%
Avi at i on
18.2%
Sewer &Wat er
11.4%
Fi nes,For f ei t uresand
Penal t i es
4.2%
Ot her Resources
29.6%
'uVV/RY Cf lRClC'E0 8u0CE! CONTINUED
2011 PROPOSLD RLVLNUL-ALL LOCAL FUNDS
CHART 1
2011 PROPOSLD RLVLNUL - CORPORA1L FUND
CHART 2
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8
General Ser vi ces
2.8%
St reet sandSani t at i on
5.7%
Fi re
14.8%
Emergency
M anagement and
Communi cat i on
2.7%
Pol i ce
39.8%
Fl eet M anagement
2.5%
Fi nanceGeneral
19.7%
Transpor t at i on
2.3%
Al l ot her Depar t ment s
9.7%
2011 PROPOSLD LXPLNDI1URLS-CORPORA1L FUND
CHART 4
Fi nance&
Ad i i i
Legi sl at i ve&
El ect i ons
0.7%
Ci t yDevel opment
1.0%
Communi t ySer vi ces
1.8%
Publ i cSaf et y
31.4%
Admi ni st rat i on
7.8%
Regul at or y
0.9%
Inf rast r uct ure
Ser vi ces
6.0%
Publ i cSer vi ce
Ent er pr i ses
10.0%
Pensi onFunds
7.4%
Debt Ser vi ce
21.0%
Benef i t s&Ot her
11.9%
'uVV/RY Cf lRClC'E0 8u0CE! CONTINUED
2011 PROPOSLD LXPLNDI1URLS-ALL LOCAL FUNDS
CHART 3
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9
PU11INC MORL POLICL ON 1HL S1RLL1
A greaIer, ohgoihg police presehce is imporIahI
Io Ihe sa!eIy o! our heighborhoods. 1he Police
DeparImehI has recehIly Irahs!erred more Ihah
320 o!!icers !rom desk iobs Io sIreeI duIy, hired
314 o!!icers, ahd will add 150-200 hew o!!icers ih
2011. 1ogeIher, 780-830 police o!!icers will have
beeh added Io sIreeI crime !ighIihg duIy ih a Iwo-
year period.
CON1INULD RLDUC1ION IN CRIML RA1LS
1he CiIy cohIihues Io see a posiIive Irehd ih Ihe
overall reducIioh o! ihdex crimes. Ih 2010, Ihe
humber o! violehI crimes has dropped 10.8%
versus Ihe same period lasI year, oh pace !or Ihe
lowesI murder IoIal sihce 1965. Similar gaihs were
made ih Ihe !ighI agaihsI properIy crime, which
has !alleh by over 6.8% over Ihe lasI Ihree years.
1he cohIihued dowhward Irehd ih crime has beeh
accomplished Ihrough Ihe success!ul parIherihg
wiIh Ihe commuhiIy Io make our CiIy sa!er.
1ARCL1INC CANCS, CUNS AND DRUCS
1he Pol i ce DeparImehI' s commi ImehI Io
ihIelligehce-driveh sIraIegies has led Io Ihe
creaIioh o! a humber o! uhiIs IhaI make Ihe besI
ahd mosI e!!iciehI use o! all available ih!ormaIioh
ih order Io ihIerrupI emergihg crime problems.
1hese uhiIs cohIihue Io IargeI gahgs, guhs, ahd
drugs ih heighborhoods IhroughouI Ihe ciIy.
8y usihg real-Iime ihIelligehce ahd predicIive
modelihg sysIems Io beIIer pihpoihI where Io
redeploy o!!icers, Ihe police deparImehI works
Io prevehI !urIher crimihal acIiviIy. 1his allows Ihe
deparImehI Io be proacIive raIher Ihah reacIive
ahd isolaIe small ihcidehIs be!ore Ihey escalaIe.
USINC VIDLO 1LCHNOLOCY 1O FICH1
CRIML
1he O!!ice o! Lmergehcy MahagemehI ahd
CommuhicaIiohs (OLMC) will cohIihue Io build
Ihe Mobile Mesh NeIwork ih 2011, a wireless
video heIwork IhaI is able Io ihIegraIe Ihe Police
OperaIioh DisIribuIioh camera heIwork ihIo
OperaIioh VirIual Shield. 1he CiIy cohIihues Io
add coverage aI high-prioriIy siIes. 1hese cameras
have proved Io be a valuable deIerrehI Io crime
ahd a greaI ihvesIigaIive Iool !or police o!!icers.
FlCFLlCF!' Cf lRClC'E0 8u0CE!
KEEPING OUR NEIGHBORHOODS SAFE AND OUR CITY SECURE
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FlCFLlCF!' Cf lRClC'E0 8u0CE! CONTINUED
KEEPING OUR NEIGHBORHOODS SAFE AND OUR CITY SECURE
S1RA1LCICALLY DLPLOYINC MLDICAL
LOUIPMLN1 AND PLRSONNLL
Chicago cohIihues Io record Ihe shorIesI average
respohse Iime o! ahy maior ciIy !or medical
emergehcies Ihrough Ihe Fire DeparImehI's
sIraIegic placemehI o! equipmehI ahd assighmehI
o! persohhel. Ih 2011, Ihe DeparImehI will
cohIihue Io upgrade iIs !leeI o! ehgihes ahd Irucks
Io become 8asic Li!e SupporI vehicles by addihg
medical equipmehI ahd Lmergehcy Medical
1echhiciahs. 1he deparImehI has also compleIed
ouI!iIIihg Ihe ambulahce !leeI wiIh CohsIahI
PosiIive Airway Pressure devices Io assisI ih Ihe
IreaImehI ahd sIabilizaIioh e!!orIs o! paIiehIs
who are beihg IrahsporIed.
DANCLROUS DOC DA1A8ASL
Ih 2011, Ahimal Care ahd CohIrol will cohIihue
Io work wiIh OLMC Io creaIe ahd maihIaih a
daIabase ih order Io proIecI !irsI respohders ih
Ihe Police ahd Fire DeparImehIs by hoIi!yihg
Ihem o! a dahgerous dog locaIioh Ihrough Iheir
dispaIch sysIem. 1he agehcy will also work wiIh
Ihe deparImehIs Io provide Iraihihg oh how Io
deal wiIh dahgerous dogs oh emergehcy calls.
COM8A1INC UNDLRACL DRINKINC
311 CiIy Services will be workihg oh a YouIh
PrevehIioh Public HealIh IhiIiaIive !ocusihg oh
"ParIherships Io PromoIe a Sa!e CommuhiIy ahd
Reduce Uhderage Drihkihg." Alohg wiIh Ihe
DeparImehIs o! 8usihess A!!airs ahd Cohsumer
ProIecIioh, Public HealIh, Police ahd Ihe Illihois
Liquor CohIrol Commissioh, 311 will gaIher daIa
oh all currehI liquor licehse esIablishmehIs ih
a respecIive commuhiIy area, Irackihg calls !or
service Io 311, speci!ically reporIihg cohcerhs
o! illegal liquor sales Io mihors. 1he group will
esIablish parIherships, work Io ihcrease parehIal
ihvolvemehI aI schools ahd cohducI commuhiIy
!orums.
LMLRCLNCY PRLPARLDNLSS FOR
SLNIORS AND PLOPLL WI1H DISA8ILI1ILS
1he Mayor's O!!ice !or People wiIh DisabiliIies
will cohIihue Io work Io ehsure Ihe ihclusioh o!
people wiIh disabiliIies ih Ihe CiIy's emergehcy
preparedhess plahhihg e!!orIs. 1his will ihclude
Ihe day-Io-day mahagemehI o! ahd ouIreach
e!!orIs !or Ihe CiIy's hew VoluhIary AssisIahce
Lmergehcy RegisIry !or People wiIh DisabiliIies
ahd Sehiors.
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FlCFLlCF!' Cf lRClC'E0 8u0CE! CONTINUED
IMPROVING EDUCATION, PROTECTING OUR CHILDREN
CIVINC CHILDRLN A HLAD S1AR1
1he Child Care AssisIahce Program, admihisIered
by Ihe DeparImehI o! Family ahd SupporI Services
(DFSS), provides low-ihcome !amilies wiIh access
Io qualiIy, a!!ordable child care IhaI allows Ihem
Io cohIihue Io work or parIicipaIe ih approved
Iraihihg programs ahd cohIribuIes Io Ihe healIhy,
emoIiohal ahd social developmehI o! Ihe child. 1he
Head SIarI ahd Larly Head SIarI programs provide
educaIiohal ahd early childhood developmehI
acIiviIies IhaI promoIe school readihess !or more
Ihah 17,000 childreh !rom low-ihcome !amilies.
1he programs o!!er childreh !ree medical, dehIal
ahd mehIal healIh services, ahd huIriIious meals,
as well as parehI educaIioh ahd Iraihihg.
PROVIDINC AF1LR-SCHOOL PROCRAMS
FOR YOU1H
DFSS will cohIihue Io supporI more Ihah 19,000
ouI-o!-school Iime educaIiohal ahd recreaIiohal
opporIuhiIies !or youhg people ages 6-18.
1he programs provide:
Childreh wiIh sIrucIured age-appropriaIe º
acIiviIies IhaI address social, emoIiohal
ahd academic heeds.
A wide array o! opporIuhiIies !or childreh º
who are aI-risk !or subsIahce abuse,
violehce ahd homelesshess, as well as
Ihose mosI vulherable Io droppihg ouI
o! school.
MehIorihg programs IhaI give youhg º
people Ihe opporIuhiIy Io build meahihg!ul
relaIiohships wiIh adulIs.
Couhselihg services !or aI-risk youIh ages º
6-18.
Appr ehI i c es hi ps ahd i hI er hs hi p º
oppor I uhi I i es I hr ough I he Car eer
LxploraIioh ih Creeh IhdusIries program.
Case mahagemehI services Io youIh who º
may be ihvolved wiIh gahgs ahd are seekihg
resources ih educaIioh, employmehI,
mehIal healIh services, housihg, ahd/or
subsIahce abuse couhselihg Ihrough Ihe
Cahg IhIervehIioh/PrevehIioh program.
CARLLR DLVLLOPMLN1 FOR YOU1H
Ih cohiuhcIioh wiIh Mayor Daley's YouIh Ready
Chicago employmehI program, DFSS will cohIihue
Io supporI six regiohal YouIh Career DevelopmehI
CehIers IhaI o!!er iob-readihess Iraihihg ahd
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FlCFLlCF!' Cf lRClC'E0 8u0CE! CONTINUED
IMPROVING EDUCATION, PROTECTING OUR CHILDREN
iob/Iraihihg placemehI Io 2,000 youIh ages 14
- 21. AI Ihe cehIers, youIh ehgage ih public
speakihg workshops, mock ihIerviews, !ihahcial
liIeracy Iraihihg ahd iob-readihess workshops.
AddiIiohally, DFSS, A!Ier School MaIIers, CPS,
Chicago Public Schools ahd CHA plah Io provide
over 15,000 iob opporIuhiIies as parI o! Mayor
Daley's YouIh Ready Chicago Summer 1obs Program
IhaI will !ocus oh career exposure, developmehI
ahd keepihg youIh sa!e.
LNHANCINC NU1RI1ION FOR CHILDRLN
Ih 2011, Ihe CiIy will cohIihue Chicago's Summer
NuIriIioh Program !or childreh ahd youIh aI 400
locaIiohs across Ihe ciIy. 1he program provides
residehIs 18 years ahd youhger wiIh approximaIely
ohe millioh !ree, huIriIiohal break!asIs, luhches
ahd shacks aI commuhiIy-based siIes across Ihe
ciIy, ihcludihg CHA siIes, !aiIh-based !aciliIies,
CPS schools ahd Chicago Park DisIricI siIes. Ih
addiIioh, DFSS plahs Io agaih hire approximaIely
200 Chicago youIh, ages 14 Io 18, Io serve as
!iIhess ambassadors ahd huIriIiohal aides !or Ihe
Summer NuIriIioh Program.
FINANCIAL LDUCA1ION FOR S1UDLN1S
AND ADUL1S
1he CiIy 1reasurer's YouIh Fihahcial LducaIioh
Program educaIes hearly 100,000 sIudehIs oh
!ihahcial liIeracy. Ih 2011, Ihe program will
ihcrease Ihe humber o! schools parIicipaIihg !rom
195 Io all 482 primary schools. 1he 1reasurer's
AdulI Fihahcial LducaIioh Program will also
expahd ih 2011. 1he CiIy Colleges will cohIihue
Io o!!er !i hahci al educaIi oh cl asses aI al l
seveh ciIy colleges ahd will how o!!er oh-lihe
ahd commuhiIy cehIer classes. 1he 1reasurer
is workihg wiIh Ihe Chicago Public Libraries
ahd Ihe Illihois CoaliIioh !or ImmigraIioh ahd
Re!ugee righIs Io o!!er classes ih more locaIiohs
ahd lahguages.
PROVIDINC MORL ACCLSS 1O
LDUCA1ION
1he Mayor's O!!ice !or People wiIh DisabiliIies
(MOPD) will parIher wiIh Ihe Chicago Public
Schools' O!!ice o! SupporI Services Io improve
educaIiohal accouhIabiliIy ahd Io develop
hew ouIcomes !or sIudehIs wiIh disabiliIies.
AddiIiohally, MOPD will cohIihue work oh Ihe
!ive-year plah Io commiI $140 millioh Io make a
IoIal o! 77 heighborhood schools accessible.
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FlCFLlCF!' Cf lRClC'E0 8u0CE! CONTINUED
STRENGTHENING CHICAGO’S ECONOMY, CREATING JOBS AND NEIGHBORHOOD OPPORTUNITIES
CRLA1INC AND RL1AININC 1O8S
1he hewly creaIed DeparImehI o! Housihg ahd
Lcohomic DevelopmehI (HLD) will work Io reIaih
ahd develop qualiIy employers ahd iobs Ihrough
programs such as Made ih Chicago ahd ihcumbehI-
worker iob-Iraihihg Ihrough 1IFWorks. Ih 2011,
HLD's Work!orce SoluIiohs divisioh will also
idehIi!y hew opporIuhiIies !or iob placemehI
o! CiIy residehIs oh CiIy-!uhded proiecIs. 1he
1IFWorks program will be expahded so iI is
available ih more o! Ihe CiIy's 1IF disIricIs ih order
Io exIehd Ihe behe!iIs o! Iraihihg Io a wider rahge
o! busihesses.
A11RAC1INC AND RL1AININC CLO8AL
CORPORA1IONS
Chicago cohIihues Io be recoghized as a leader ih
aIIracIihg ahd reIaihihg corporaIe headquarIers.
Ih 2011, a humber o! compahies are expecIed Io be
relocaIihg Io Chicago brihgihg hew ahd exisIihg
iobs Ihrough hew headquarIers ahd cohsolidaIioh
o! corporaIe o!!ices.
8UILDINC NLICH8ORHOOD ANCHORS
Chicago's ecohomic developmehI e!!orIs are
helpihg creaIe a varieIy o! hew heighborhood
ahchors IhroughouI Ihe ciIy. Ih 2011, Ihese e!!orIs
will creaIe hew iobs ahd brihg reIail, residehIial
ahd recreaIiohal opporIuhiIies IhaI will improve
ahd sIrehgIheh our heighborhoods.
Ih Hyde Park, Ihe CiIy is workihg ih parIhership º
wiIh Ihe UhiversiIy o! Chicago Io build a
mixed-use developmehI IhaI will ihclude ah
o!!ice buildihg, hoIel, reIail ahd residehIial
uhiIs.
Oh Ihe WesI Side, plahs call !or cohsIrucIioh º
o! a PeIe's Fresh MarkeI - a 55,000-square-
!ooI grocery aI Madisoh SIreeI ahd WesIerh
Avehue.
Ih WesI Pullmah, Ihe SalvaIioh Army's Ray º
ahd 1oah Kroc Corps CommuhiIy CehIer will
cohverI vacahI ihdusIrial lahd ihIo a $52.5
millioh regiohal commuhiIy cehIer.
Oh Ihe NorIh Side, Ihe old 17Ih DisIricI Police º
SIaIioh hear MohIrose ahd Pulaski Avehues
will be redeveloped ihIo Ihe headquarIers
!or Ihe 1hai-Americah AssociaIioh o! Illihois,
compleIe wiIh a resIaurahI, commuhiIy cehIer
ahd spa ahd wellhess !aciliIy.
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14
FlCFLlCF!' Cf lRClC'E0 8u0CE! CONTINUED
STRENGTHENING CHICAGO’S ECONOMY, CREATING JOBS AND NEIGHBORHOOD OPPORTUNITIES
S1A8ILIZINC NLICH8ORHOODS HI1 8Y
HOUSINC FORLCLOSURLS
Our supporI !or heighborhoods hiI hard by
housihg !oreclosures will remaih a prioriIy ih 2011
as Ihe CiIy cohIihues our ouIreach ahd assisIahce
Io residehIs Io prevehI !oreclosure. We will
cohIihue Io work Io sIabilize commuhiIies where
vacahI ahd abahdohed !oreclosed properIies
pose a risk Io heighborhood sIabiliIy Ihrough Ihe
Neighborhood SIabilizaIioh Program by puIIihg
hearly 500 uhiIs o! vacahI !oreclosed !or-sale ahd
rehIal housihg back ihIo producIive use.
SUPPOR1INC AFFORDA8LL HOUSINC
2011 marks Ihe Ihird year o! Ihe Five-Year
A!!ordable Housihg Plah IhaI commiIs $2.1 billioh
Io supporI 50,000 uhiIs o! a!!ordable housihg
!rom 2009 Io 2013. Chicago's record oh a!!ordable
housihg remaihs sIrohg as Ihe CiIy cohIihues Io
help sIrehgIheh heighborhoods by creaIihg ahd
preservihg housihg, eveh as Ihe markeI poses hew
challehges. 1he CiIy will cohIihue Io ihvesI ih
a!!ordable rehIal housihg across Chicago, uIilizihg
Iax dollars, !ederal HOML dollars, ahd 1IF !uhds,
i! available.
1O8 SLARCH ASSIS1ANCL
1he Chicago Public Library will creaIe ahd Iraih
a iob seekers librariah re!erehce Ieam Io assisI
Ihe growihg humber o! paIrohs askihg !or help ih
havigaIihg ohlihe iob searches ahd will o!!er classes
oh how Io use Ihe IhIerheI Io look !or ahd apply
!or iobs. AddiIiohally, Ihe library will expahd Ihe
success!ul CyberNavigaIor Iechhology ihsIrucIioh
program !or paIrohs Io 47 brahch libraries.
CyberNavigaIors reporI spehdihg approximaIely
60% o! Iheir Iime supporIihg paIrohs ih iob search
acIiviIies.
IMPROVINC 8USINLSS LICLNSL SLRVICLS
1o provide busihesses seekihg licehsihg assisIahce
wiIh Ihe mosI e!!iciehI ahd expediIed services,
Ihe DeparImehI o! 8usihess A!!airs ahd Cohsumer
ProIecIioh (8ACP) implemehIed a cross-Iraihihg
program wiIh Ihe DeparImehI o! Housihg ahd
Lcohomic DevelopmehI IhaI allows 8ACP sIa!!
Io review ahd approve busihess licehsihg zohihg
requiremehIs aIIached Io a busihess licehse. Ih
2011, 8ACP will expahd Ihis program Io ihclude
zohihg review o! liquor licehse applicaIiohs.
IMPROVLD FOOD SAFL1Y
Ih 2011, 8ACP will coordihaIe wiIh Ihe Chicago
DeparImehI o! Public HealIh Io provide busihesses
wiIh ih-persoh access Io a healIh sahiIariah ih
Ihe 8usihess AssisIahce CehIer. 1his ihiIiaIive
will beIIer assisI ahd prepare !ood-relaIed
esIablishmehIs wiIh ihspecIiohs ahd meeIihg
ciIy healIh requiremehIs early oh. 8ACP is also
workihg wiIh Ihe DeparImehI o! 8uildihgs Io assisI
busihesses wiIh permiIs.
ASSIS1INC SMALL 8USINLSSLS
1he CiIy will creaIe a hew $2 millioh small busihess
!uhd Io provide loahs !or sIarI ups, expahsiohs
ahd day-Io-day operaIiohs. FurIher, Io help
local busihesses hire more people, Ihe CiIy will
subsIahIially cuI Ihe humber o! employees covered
by Ihe Lmployer's Lxpehse 1ax. 1he Iax will also
cohIihue Io be suspehded ih 2011 !or ahy hew
employees compahies hire durihg Ihe ecohomic
recessioh. 1he ahhual Small 8usihess Lxpo !eaIures
a !ull day o! 30 workshops ahd heIworkihg !or small
busihess owhers. 1he 2011 Lxpo, spohsored by Ihe
CiIy 1reasurer, aims Io aIIracI 3,000 aIIehdees.
2 0 1 1 O v e r v i e w a n d R e v e n u e E s t i m a t e s
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FlCFLlCF!' Cf lRClC'E0 8u0CE! CONTINUED
IMPROVING OUR CITY’S INFRASTRUCTURE AND ENHANCING NEIGHBORHOOD QUALITY OF LIFE
CAPI1AL IMPROVLMLN1 PROCRAM
Chi cago's es I i maI ed $1. 8 bi l l i oh Capi I al
ImprovemehI Program (CIP) !or 2011 will ihclude
a broad rahge o! proiecIs such as waIer ahd sewer
improvemehIs, sIreeI resur!acihg, sIreeIscapes,
sIreeI l i ghIi hg, si dewal k, curb ahd guIIer
repairs, airporI improvemehIs ahd Ihe ohgoihg
cohsIrucIioh o! hew muhicipal !aciliIies.
1he CiIy's !ive-year CIP plah !or 2010-2014 IoIals
more Ihah $8.5 billioh.
1hese i mprovemehIs wi l l sIrehgIheh our
ih!rasIrucIure ahd provide iobs ahd ecohomic
opporIuhiIy !or Ihe busihesses ahd workers who
will carry ouI Ihe proiecIs.
1hey ihclude:
RecohsIrucIihg 12 miles o! sewers ahd º
lihihg ahd rehabiliIaIihg ah addiIiohal
40 miles,
Resur!acihg more Ihah 500 blocks o! local º
sIreeIs,
SIreeIscapi hg I rvi hg Park Road ahd º
Cohgress Parkway, amohg oIhers,
CohsIrucIihg 30 blocks o! alleys ahd º
resur!acihg 70 more,
Replacihg 120 blocks o! sidewalks, º
IhsIallihg 100 blocks o! hew residehIial º
sIreeI lighIihg,
8egihhihg or cohIihuihg cohsIrucIioh o! º
several maior bridges: Wacker Drive aI Ihe
Cohgress IhIerchahge, Laramie Avehue
ViaducI aI Polk SIreeI, HalsIed SIreeI over
NorIh 8rahch Cahal,
CohsIrucIihg a hew C1A Creeh Lihe sIaIioh º
aI Morgah SIreeI ,
1he recohsIrucIioh o! Upper ahd Lower º
Wacker Drive !rom Mohroe Io Rahdolph
SIreeIs,
8egihhihg cohsIrucIioh o! Ihe 12Ih DisIricI º
Police SIaIioh ahd Fire Lhgihe Compahy
16.
1he CIP also cohIihues Ihe CiIy's commiImehI Io
Ihe Chicago Housihg AuIhoriIy's (CHA) Plah !or
1rahs!ormaIioh by !uhdihg desigh ahd cohsIrucIioh
!or redevelopmehI areas o! Ihe CHA. II will also
cohIihue Ihe shorelihe proIecIioh proiecI, as well
as Ihe Campus Parks program, which creaIes opeh
spaces hexI Io Chicago Public Schools.
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1o
FlCFLlCF!' Cf lRClC'E0 8u0CE! CCN!lNuE0
IMPROVING OUR CITY’S INFRASTRUCTURE AND ENHANCING NEIGHBORHOOD QUALITY OF LIFE
1he !ive-year 2010-2014 CIP !eaIures approximaIely
$4.2 billioh !or improvemehIs aI boIh O'Hare ahd
Midway IhIerhaIiohal airporIs, mosI o! which will
go Iowards Ihe O'Hare ModerhizaIioh Program,
which will be compleIed by 2014.
NLW LI8RARILS
1he CiIy will opeh Ihe hew WesI HumboldI Park,
CreaIer Crahd Crossihg, LiIIle Village ahd Duhhihg
8rahch Libraries. 1hese brahches are expecIed
Io achieve gold LLLD cerIi!icaIioh ahd will ioih
Ihe library's hihe oIher LLLD-cerIi!ied "greeh"
buildihgs.
LNSURINC ACCLSSI8ILI1Y COMPLIANCL
1he Mayor's O!!ice !or People wiIh DisabiliIies
will parIher wiIh Ihe DeparImehI o! 8uildihgs Io
sIrehgIheh accessibiliIy compliahce o! commercial
ahd residehIial buildihgs ih Ihe ciIy. Chicago is Ihe
!irsI ciIy ih Ihe couhIry Io uhderIake Ihis Iype o!
accessibiliIy ihiIiaIive, which will be accomplished
Ihrough Iraihihg ahd uIilizaIioh o! ah accessibiliIy
checklisI by buildihg ihspecIors.
RL1URNINC 8ROWNFILLDS 1O
PRODUC1IVL USL
I h 2011, Ihe Ci Iy wi l l expahd browh!i el ds
redevelopmehI !or urbah agriculIure uses, ihcludihg
commuhiIy ahd commercial gardehs, wiIh proIocols
Io proIecI humah healIh ahd Ihe ehvirohmehI.
1he DeparImehI o! LhvirohmehI will ehcourage
browh!ield remediaIioh Ihrough alIerhaIive
meIhods, ihcludihg phyIoremediaIioh.
UPDA1INC 1HL LAKLFRON1 PLAN
1he Depar I mehI Hous i hg ahd Lcohomi c
DevelopmehI will ihiIiaIe ah updaIe Io Ihe 1973
Lake!rohI Plah o! Chicago. Ih addressihg 21sI
CehIury challehges ahd opporIuhiIies ihvolvihg
shorelihe developmehI ahd iIs poIehIial e!!ecI oh
recreaIioh, erosioh, pedesIriah cohhecIiviIy, ahd
greeh ehergy, Ihe updaIed plah will moderhize
review ahd approval procedures !or cohsIrucIioh
proiecIs wiIhih Ihe lake!rohI's public, privaIe ahd
o!!-shore zohes.
2 0 1 1 O v e r v i e w a n d R e v e n u e E s t i m a t e s
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FlCFLlCF!' Cf lRClC'E0 8u0CE! CONTINUED
KEEPING OUR NEIGHBORHOODS AFFORDABLE AND PROTECTING THOSE MOST IN NEED
KLLPINC OUR NLICH8ORHOODS
AFFORDA8LL
Ih 2011, Ihe DeparImehI Housihg ahd Lcohomic
DevelopmehI (HLD) will cohIihue iIs e!!orIs Io
preserve exisIihg uhiIs o! a!!ordable housihg
by IargeIihg Iroubled mulIi-uhiI ahd sihgle-
!amily properIies !or sIabilizaIioh. 1hrough Ihe
1roubled 8uildihg IhiIiaIive, HLD is workihg wiIh
iIs hoh-pro!iI parIhers Io gaih cohIrol o! Iroubled
mulIi-uhiI properIies ahd reIurh Ihem Io viable use
ahd commuhiIy asseIs. 1he CiIy is also IargeIihg
Iroubled cohdomihium buildihgs ahd will !aciliIaIe
Iheir decohversioh back Io a!!ordable rehIal
properIies. Combihed, Ihese e!!orIs will preserve
more Ihah 2,000 housihg uhiIs.
HOML8UYLR ASSIS1ANCL
Homebuyers ih 2011 will geI assisIahce !rom Ihe
CiIy's 1axSmarI ahd Home Purchase AssisIahce
(HPA) programs, boIh o! which are desighed Io
help homebuyers make Iheir home purchase more
a!!ordable. 1axSmarI picks up where Ihe !ederal
homebuyer Iax crediI le!I o!! by o!!erihg buyers
a morIgage IhaI provides !or a !ederal Iax crediI
every year !or Ihe li!e o! Ihe morIgage. 1he HPA
program helps bridge Ihe gap !or buyers who
may lack Ihe !uhds !or a dowh paymehI ahd cover
purchase cosIs. 1he amouhI o! assisIahce rahges
!rom $10,000 Io $40,000 depehdihg oh household
ihcome.
PROVIDINC SLRVICLS FOR 1HL HOMLLLSS
Ih 2011, Ihe DeparImehI o! Family ahd SupporI
Services will cohIihue work wiIh iIs commuhiIy
parIhers Io implemehI a coordihaIed paIh Io
permahehI supporIive housihg !or chrohically
homeless ihdividuals, disabled !amilies, ahd
veIerahs. DFSS will also leverage iIs corporaIe
!uhdihg !or Ihe Plah Io Lhd Homelesshess Io access
hew permahehI housihg resources ih parIhership
wiIh Ihe Chicago Housihg AuIhoriIy, DeparImehI
o! Housihg ahd Lcohomic DevelopmehI, ahd Ihe
Chicago Plahhihg Couhcil oh Homelesshess. DFSS
will also cohIihue Io admihisIer !ederal programs Io
supporI ah ihdividual's or !amily's rapid IrahsiIioh
ouI o! homeless shelIers Ihrough a combihaIioh
o! rehIal assisIahce ahd supporIive services.
2 0 1 1 O v e r v i e w a n d R e v e n u e E s t i m a t e s
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FlCFLlCF!' Cf lRClC'E0 8u0CE! CONTINUED
KEEPING OUR NEIGHBORHOODS AFFORDABLE AND PROTECTING THOSE MOST IN NEED
VACAN1 PROPLR1Y RLCIS1RA1ION
1he DeparImehI o! 8uildihgs cohIihues iIs
emphasis oh regisIerihg ahd mohiIorihg vacahI
properIi es, whi l e worki hg Io reIurh Ihese
properIies Io Ihe housihg rolls. As a resulI,
Ihe deparImehI is aggressively prosecuIihg
irrespohsible properIy owhers. 1his improves
Ihe qualiIy o! li!e ih heighborhoods by helpihg
Io keep vacahI properIies !rom becomihg public
sa!eIy problems.
MAKINC 1HL AIRPOR1S MORL
ACCLSSI8LL
1he Chicago DeparImehI o! AviaIioh has lauhched
a hew disabiliIy awarehess ahd assisIahce program
Io improve cusIomer service ahd make Chicago's
airporIs easily accessible !or all Iravelers. Workihg
wiIh Ihe Mayor's O!!ice o! People wiIh DisabiliIies,
Ihe deparImehI is providihg Iraihihg !or all !rohI-
lihe CiIy ahd airporI employees. All employees
who success!ully compleIe Ihe program receive a
purple airplahe pih, sighi!yihg Ihey are quali!ied
Io provide assisIahce. Passehgers cah sel!-idehIi!y
Iheir heed !or Ihis assisIahce by wearihg a purple
airplahe sIicker.
ASSIS1INC 1AXPAYLRS
Homeowhers cah !ihd help Io appeal Iheir properIy
Iax bill Ihrough Ihe Chicago 1ax AssisIahce CehIer.
C1AC cohIihues Io provide Chicago residehIs wiIh
assisIahce ahd advice oh a humber o! Iax relaIed
issues, ihcludihg: help wiIh !ilihg !ederal ahd sIaIe
ihcome Iaxes, advice oh appealihg properIy Iax
assessmehIs, ahd applyihg !or Ihe Larhed Ihcome
1ax CrediI.
2 0 1 1 O v e r v i e w a n d R e v e n u e E s t i m a t e s
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FlCFLlCF!' Cf lRClC'E0 8u0CE! CONTINUED
BETTER MANAGING GOVERNMENT, PROTECTING TAXPAYERS
CONSOLIDA1INC DLPAR1MLN1S
Ih order Io cohIihue Io sIreamlihe goverhmehI,
avoid duplicaIioh o! !uhcIiohs, reduce cosIs
ahd beIIer supporIihg residehIs wiIh high-
qualiIy services, Ihe CiIy is cohsolidaIihg several
deparImehIs ih 2011:
1he DeparImehI o! CulIural A!!airs ahd º
Ihe Mayor's O!!ice o! Special LvehIs,
which have some commoh !uhcIiohs, will
be combihed Io creaIe Ihe DeparImehI o!
CulIural A!!airs ahd Special LvehIs.
1he hew DeparImehI o! Housihg ahd º
Lcohomic DevelopmehI will be !ormed by
combihihg Ihe DeparImehIs o! CommuhiIy
DevelopmehI ahd Zohihg ahd Lahd Use
Pl ahhi hg Io pl ace al l hei ghborhood
developmehI !uhcIiohs ih ohe deparImehI.
1his builds oh Ihe e!!iciehcies already
capIured by Ihe Housihg/Plahhihg merger
o! 2008. Zohihg ihspecIors will be moved
Io Ihe DeparImehI o! 8uildihgs Io parIially
cohsolidaIe ihspecIioh services.
1he DeparImehI o! Ceheral Services º
wi l l i hcorporaIe Ihe Craphi cs ahd
ReproducIiohs CehIer.
RLDUCINC PLRSONNLL COS1S 1HROUCH
UNPAID FURLOUCHS AND HOLIDAYS
1he CiIy will cohIihue Io reduce persohhel cosIs
Ihrough Ihe payroll-savihgs agreemehIs made
ih 2009 wiIh 25 civiliah labor uhiohs Io Iake
uhpaid holidays ahd !urlough days, reduced work
weeks ahd Io !orgo overIime pay. All hoh-uhioh
employees will also be required Io Iake uhpaid
!urlough days ahd holidays. 1hese measures will
cuI expehses by a IoIal o! $52 millioh ih 2011.
LLLC1RONIC VO1LR AND LLLC1ION
1UDCL RLCIS1RA1ION
1he 8oard o! LlecIiohs is developihg web-based
sysIems so IhaI voIers wiIh access Io compuIers
or hahd-held web-ehabled devices will be able
Io lauhch Ihe process o! applyihg Io serve as ah
elecIioh iudge or Io regisIer Io voIe. 1he 8oard o!
LlecIiohs will Iheh geheraIe Ihe documehI !or Ihe
voIer Io sigh ahd reIurh, reducihg mahual ehIry
o! daIa, ihcreasihg accuracy ahd reducihg hal! Ihe
paper heeded Io compleIe Ihese processes.
2 0 1 1 O v e r v i e w a n d R e v e n u e E s t i m a t e s
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FlCFLlCF!' Cf lRClC'E0 8u0CE! CONTINUED
BETTER MANAGING GOVERNMENT, PROTECTING TAXPAYERS
SU8S1AN1IALLY IMPROVINC
COVLRNMLN1 1RANSPARLNCY
1he CiIy o! Chicago will cohIihue Iakihg maior
sIeps Ioward improvihg Irahsparehcy by becomihg
Ihe !irsI maior iurisdicIioh ih Ihe couhIry Io
ehable iIs employees ahd o!!icials Io !ile Iheir
ahhual eIhics disclosure sIaIemehIs (SIaIemehIs
o! Fihahcial IhIeresIs) oh Ihe ihIerheI, ahd Io make
Ihem available !or viewihg by Ihe public oh Ihe
ihIerheI. 1his builds oh Ihe recehI Irahsparehcy
sIeps, ihcludihg posIihg ohlihe all 1IF proiecIioh
reporIs, FOIA logs, lisIs o! boards ahd commissiohs
members ahd direcI voucher paymehIs.
IN1LCRA1ION OF 1LCHNOLOCY IN 1HL
INSPLC1ION PROCLSS
1he DeparImehI o! 8uildihgs' 1roubled 8uildihgs
Program is workihg ih cohiuhcIioh wiIh Ihe
DeparImehI o! Ih!ormaIioh ahd 1echhology
(DoI1) Io adopI hahd-held devices IhaI will ehable
ihspecIors Io provide real-Iime ihspecIioh resulIs,
ihcludihg viIal phoIo evidehce, porIed direcIly
ihIo Ihe vacahI buildihg daIabase, savihg Iime
ahd expehses !or daIa ehIry.
ONLINL PLAN RLVILWS FOR S1ANDARD
PLAN RLVILW
1he DeparImehI o! 8uildihgs is expahdihg ohlihe
plah review Io ihclude SIahdard Plah PermiIs,
Sel! CerIi!ied PermiIs, ahd LlecIrical Sigh PermiIs.
1his will allow desigh pro!essiohals Io submiI
archiIecIural drawihgs elecIrohically !or proiecI
ihIake, plah review ahd correcIiohs. Plah reviews
will be per!ormed simulIaheously ahd Ihe desigh
pro!essiohal cah mohiIor Ihe reviews ahd make
Ihe hecessary correcIiohs quickly, which will resulI
ih a reduced Iime Io permiI.
NLW PAYROLL CARD SYS1LM
1he DeparImehI o! Fihahce will implemehI ah
employee payroll card IhaI will provide paymehI
alIerhaIives Io employees IhaI wahI direcI deposiI
ahd immediaIe access Io Iheir !uhds, buI do hoI
quali!y !or a bahk accouhI. 1he hew debiI cards
will be reloaded wiIh !uhds aI every pay period.
1he program will also reduce check sIock, prihIihg
ahd check delivery cosIs.
2 0 1 1 O v e r v i e w a n d R e v e n u e E s t i m a t e s
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FlCFLlCF!' Cf lRClC'E0 8u0CE! CONTINUED
BETTER MANAGING GOVERNMENT, PROTECTING TAXPAYERS
INCRLASINC LFFICILNCY IN 1RASH
COLLLC1ION
1he DeparImehI o! SIreeIs ahd SahiIaIioh is usihg
Clobal PosiIiohihg SysIem (CPS) Iechhology ih
hew ways Io Irack Ihe Iime each Iruck spehds
ih each alley. II allows !or quicker idehIi!icaIioh
ahd respohse Io heavy re!use areas ahd beIIer
mohiIorihg o! crew producIiviIy.
CLN1RALIZLD INVOICINC
Ihvoice receipI, ehIry ahd processihg will be
cehIralized ih Ihe DeparImehI o! Fihahce ih 2011.
CurrehIly, Ihese !uhcIiohs are disIribuIed across all
CiIy deparImehIs. 1he goals o! Ihis ihiIiaIive are:
Io pay Ihe CiIy's vehdors !asIer, Iake advahIage o!
prompI paymehI discouhIs, provide beIIer ihsighI
ihIo Ihe CiIy's !ihahcial liabiliIies, ahd help ehsure
Ihe CiIy achieves Ihe besI pricihg durihg cohIracI
hegoIiaIiohs.
LMPLOYINC MORL VL1LRANS
1he DeparImehI o! Humah Resources will begih ah
ouIreach program Io ihcrease awarehess amohg
miliIary veIerahs o! employmehI opporIuhiIies
wiIhih Ihe CiIy o! Chicago. ParI o! Ihe ouIreach
e!!orI wi l l i hcl ude worki hg wi Ih veIerahs'
orgahizaIiohs Io ehcourage veIerahs Io apply !or
CiIy iobs ahd assisI Ihem ih developihg ohlihe iob
pro!iles ahd posIihg Iheir resumes.
S1RLNC1HLNINC PROCURLMLN1
POLICILS
1he DeparImehI o! ProcuremehI Services (DPS)
cohIihues Io hegoIiaIe price reducIiohs oh
ciIywide cohIracIs ahd make improvemehIs Io
sIahdardize cohIracI mahagemehI, review ahd
speci!icaIioh besI pracIices. AI Ihe same Iime, Ihe
CiIy has sIrehgIhehed iIs policies cohcerhihg bill
paymehIs !or goods ahd services procured ouIside
o! DPS, as well as made more ih!ormaIioh abouI
Ihose expehdiIures available ohlihe.
BUDGET 2011
CHICAGO FACTS AND
FINANCIAL PROFILE
O v e r v i e w a n d R e v e n u e E s t i m a t e s
2 0 1 1 O v e r v i e w a n d R e v e n u e E s t i m a t e s
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22
Chicago is a world-class city with unsurpassed
beauty, drawing visitors from around the nation
and the globe. Located on the shores of Lake
Michigan in the heart of the Midwest, Chicago
is home to world-championship sports teams, an
internationally acclaimed symphony orchestra,
renowned architecture and much more.
The third largest city in the United States, Chicago
is located in Cook County, Illinois and is comprised
of 228 square miles, is 26 miles long and is 579 feet
above sea level.
With world-famous museums, lakefront parks
and vibrant ethnic neighborhoods, Chicago
offers something for everyone and a quality of
life unparalleled by any other major metropolitan
area.
CFlC/CC 0EVCCR/lFlC'
Population by Race 2,850,502
White 1,327,777
Black or African American 946,127
American Indian and Alaskan Native 8,886
Asian 150,116
Native Hawaiian and Other Pacific Islander 297
Some Other Race 371,557
Two or More Races 45,742
Population by Hispanic or Latino Origin
Not Hispanic or Latino 72.7%
Hispanic or Latino 27.3%
Households 1,072,886
Median Household Income (Estimate) $45,734
Families Below Poverty Level 18.0%
Unemployment Rate (June) 11.4%
Gender
Male 1,390,027
Female 1,460,475
Age
Children under age five 211,264
Older Adults (age 65 and older) 290,886
Median Age 32.9
Demographics
Chicago’s 2.7 million people live in 77 ethnically
diverse neighborhoods in more than one million
households. The City is comprised of 50 wards and
has 1.5 million registered voters.
Government
A mayor and 50-person City Council govern the
City and work to provide residents, businesses and
visitors quality municipal services. Elected officials
serve four-year terms.
Infrastructure
The City maintains approximately 200,000 street
lights, 81,000 alley lights and 2,880 signaled
intersections. There are 45 moveable bridges, 139
viaducts and 19 pedestrian underpasses.
More than 43.4 million people per month ride
the Chicago Transit Authority, the second largest
public transportation system in the United States.
More than 81 million people travel to and from
Chicago’s airports in 2009. Visitors and residents
alike enjoy 570 parks and more than 315 miles of
bike paths.
Economy
Chicago is a national manufacturing and transpor-
tation hub and is home to some of the world’s
largest corporations. The area’s top employers
include city, state and county governments, univer-
sities, airports and banks.
Chicago hosted 45.6 million domestic and overseas
visitors in 2008, including 32.4 million domestic
leisure travelers, 11.7 million domestic business
travelers and 1.3 million overseas visitors. These
visitors contributed more than $11.8 billion to
Chicago’s economy.
Sources: US Census Bureau, World Business Chicago, Chicago Convention and Tourism Bureau and Regional Transit Authority Northeastern Illinois.
Unemployment figure is not seasonally adjusted. Claritas Inc. 2009 Estimates
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23
CFlC/CC 0EVCCR/lFlC' CONTINUED
QUALITY OF LIFE
º A skylihe o! archiIecIural Ireasures
º 70 museums ih Chicago ahd over
500 in the metropolitan area
º Nearly 200 arI galleries
º More Ihah 200 IheaIers
º More Ihah 7,300 resIaurahIs
º A cehIral dowhIowh library, Iwo regiohal
libraries and more than 70 neighborhood
libraries
º Five maior league sporIs Ieams
º 26 miles o! lake!rohI
º 31 beaches ahd 86 pools
º 570 parks
º 518 playgrouhds
º 534 baseball !ields
º 50 commuhiIy gardehs
º 36 ahhual parades
TOP THREE ANNUAL EVENTS
Event 2009 Attendance Date
Taste of Chicago 3,350,000 late June/early July
Air and Water Show 2,200,000 mid August
Blues Festival 640,000 early June
COST OF LIVING INDEX
New York (Manhattan) 217.2
San Francisco 162.9
Los Angeles 141.6
Washington, D.C 138.6
Boston 130.9
Philadelphia 123.9
Chicago 113.2
Miami 109.8
U.S. Average 100.0
Source: ACCRA Cost of Living Index, 2009 Annual Average; World Business
Chicago
CLIMATE
2009 Average Daily Temperature—Fahrenheit
High Low
January 23.9 7.8
July 78.4 60.4
2009 Annual Precipitation in Inches 42.6
2009 Annual Snowfall in Inches 51.0
Source: National Oceanic and Atmospheric Administration Source: World Business Chicago, Chicago Convention and Tourism
Bureau, Chicago Park District
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24
Cl!Ywl0E V/l
OHARE
AUSTIN
SOUTH DEERING
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CITY OF CHICAGO
COMMUNITY AREAS
CITY OF CHICAGO
RICHARD M. DALEY
MAYOR
SEPTEMBER 2006
N
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25
0%
5%
10%
15%
20%
25%
30%
35%
40%
<18 18-24 25-44 45-64 65+
%

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Chicago
Illinois
U.S.
Age Category
ECCNCVY'' EffEC! CN CFlC/CC'' 8u0CE!
CHICAGO’S ECONOMY
The overall economic environment affects City
government in both revenues and expenses. The
health of the economy determines how much
revenue the City collects from economically
sensitive sources such as sales, income, real estate
transfer, hotel and amusement taxes. The economy
also affects the services the City provides in several
ways. Inflation increases the amount the City has
to pay for its purchases. Further, city residents
tend to rely on certain City services more during
challenging economic times. Chicago’s economy
is, therefore, dependent on the national and state
economies within which it functions.
DEMOGRAPHICS
Chicago’s population and labor force are relatively
stable. The U.S. Census Bureau reports that the
City’s population was 3,005,000 in 1980. It fell to
2,783,000 in 1990 and rebounded to 2,896,000 in
2000. In 2009, the estimate was slightly lower at
2,850,502.
The Census Bureau estimated 1.5 million Chicago
residents in the labor force in 2009, slightly higher
than the estimate of 1.35 million in 2000. In 2009,
the percentage of Chicago’s population over age
16 that was in the labor force was 66.4 percent.
This is slightly lower than State of Illinois’ rate of
67.0 percent and above the national rate of 65.3
percent.
AGE DISTRIBUTION
The U.S. Census Bureau reports that the age
distribution of Chicagoans is much like that of
Illinois and the nation as a whole. For example,
approximately 23.4 percent of Chicago residents
are under the age of 18 and 10.5 percent are
between the ages of 18 and 24, very close to
the national figures. However, at 33.6 percent,
Chicago’s share of residents between the ages of
25 to 44 is higher than that of both Illinois (27.4
percent) and the United States (27.1 percent).
Conversely, Chicago’s share of residents ages 45
and older is lower than Illinois and the United
States.
AGE DISTRIBUTION, 2009
CHART 5
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26
ECCNCVY'' EffEC! CN CFlC/CC 8u0CE! CONTINUED
Chicago’s age distribution in 2009 also closely
matched its peer cities: New York, Los Angeles,
Houston and Philadelphia. By contrast, San
Francisco and Boston are both smaller cities
where the cost of living and housing is high,
relative to the rest of the country. San Francisco’s
percentage of residents over age 25 is much higher
than Chicago – 78.2 percent versus 66.0 percent.
Only 14.4 percent of San Francisco’s population is
under 18, compared with 23.4 percent in Chicago.
A higher concentration of 18 to 24 year-olds
in Boston reflects the number of colleges and
universities in the area.
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
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Chicago
New York City
Los Angeles
Houston
Philadelphia
San Francisco
Boston
0%
<18 18-24 25-44 45-64 65+
Age Category
AGE DISTRIBUTION, LARGE AND SELECTED CITIES, 2009
UNEMPLOYMENT RATE
The Ci t y of Chi c ago’ s annual av er age
unemployment rate, tracked by the U.S. Bureau of
Labor Statistics, decreased from 8.3 percent in 2002
to 5.3 percent in 2006, then rose to 10.9 percent in
2009. During the same period, the State of Illinois’
unemployment rate fell from 6.5 percent in 2002
to 4.6 percent in 2006, and rose to 10.1 percent
in 2009. Chicago’s June 2010 unemployment rate
was 11.4 percent, compared to 10.6 percent for
the State of Illinois and 9.6 percent nationally. (All
rates are not seasonally adjusted.)
CHART 6
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27
ECCNCVY'' EffEC! CN CFlC/CC 8u0CE! CONTINUED
Chi cago,11.4%
NewYor kCi t y,9.5%
LosAngel es,13.5%
H t 8 5%
Phi l adel phi a,11.9%
10%
12%
14%
16%
00 0 0
Houst on,8.5%
0%
2%
4%
6%
8%
2001 2002 2003 2004 2005 2006 2007 2008 2009 JunͲ10
Chi cago NewYor kCi t y LosAngel es Houst on Phi l adel phi a
UNEMPLOYMENT RATES FOR LARGE CITIES, 2001–MID 2010
Si mi l ar t o ot her maj or ci t i es , Chi cago’ s
unemployment rate is higher than the nation’s
rate. I n 2006, the gap between Chi cago’ s
unemployment rate and the nation’s was only 0.8
percent. This gap increased to 2.1 percent at the
end of June, 2009 and decreased to 0.9 percent at
the end of June, 2010. Generally, the gap between
local and national rates is wider during recessions
and smaller during periods of economic growth.
Chicago’s June 2010 unemployment rate at
11.4 percent was slightly lower than that of Los
Angeles at 13.5 percent and Philadelphia’s at
11.9 percent. New York City and Houston were
lower than Chicago at 9.5 percent and 8.5 percent,
respectively. Among nearby cities, St. Louis and
Milwaukee had unemployment rates similar
to Chicago at 11.6 percent and 11.0 percent,
respectively, while Detroit was much higher at
23.7 percent.
CHART 7
ANNUAL AVERAGE UNEMPLOYMENT RATES, 2002 TO 2009
TABLE 2
Year Chicago Illinois U.S. Difference (Chicago – U.S.)
2002 8.3% 6.5% 5.9% 2.4%
2003 8.1% 6.7% 6.1% 2.0%
2004 7.5% 6.2% 5.6% 1.9%
2005 7.1% 5.8% 5.0% 2.1%
2006 5.3% 4.6% 4.5% 0.8%
2007 5.7% 5.1% 4.6% 1.2%
2008 7.0% 6.4% 5.9% 1.1%
2009 10.9% 10.1% 10.1% 0.8%
Rates not seasonally adjusted
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28
ECCNCVY'' EffEC! CN CFlC/CC 8u0CE! CONTINUED
ECONOMIC DIVERSITY
Chicago’s economy is well-diversified, based on
data from the U.S. Census Bureau. In fact, of the
major industry categories, Chicago is within 2.0
percent of the national share of every one except
construction and retail trade, where Chicago is
3.0 percent below, and professional and business
services, where Chicago is 4.0 percent above.
This also means that, with suitable caution, it is
reasonable to look at the directions of national
economic forecasts and project them onto the
local situation.
EMPLOYMENT BY INDUSTRY, 2009
TABLE 3
In
Industry Type Chicago Illinois U.S.
Agriculture 0% 1% 2%
Construction 4% 5% 7%
Manufacturing 9% 13% 10%
Wholesale Trade 2% 3% 3%
Retail Trade 9% 11% 12%
Transportation,
Warehousing, Utilities
6% 6% 5%
Information 3% 2% 2%
Finance, Insurance,
Real Estate,
Rental and Leasing
9% 8% 7%
Professional
and Business Services
15% 11% 11%
Education, Health
Care, Social Services
23% 22% 23%
Leisure and
Hospitality
11% 9% 9%
Other Services 5% 5% 5%
Public Administration 4% 4% 5%
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29
ECCNCVY'' EffEC! CN CFlC/CC 8u0CE! CONTINUED
INCOME
Chi cago’s medi an househol d i ncome was
$45,734 in 2009, about 8.9 percent less than the
United States and 15.3 percent less than Illinois
as a whole. The average (or mean) household
income for Chicago was $68,826, similar to that
of the nation at $68,914 and 6.2 percent less
than Illinois as a whole. It is to be expected that
Chicago’s income figures would be lower than
the national or statewide levels, reflecting the
higher concentration of poverty typical of most
large cities.
Comparing the income distribution of Chicago
to the nation and to Illinois demonstrates that
Chicago has proportionately more households
with income under $10,000 and fewer with
incomes between $50,000 and $150,000. At
other income levels, such as low to lower-middle
income and upper income, Chicago’s population
is close to the national and Illinois percentages.
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
U.S. Illinois Chicago
Median Mean
ANNUAL HOUSEHOLD INCOME, 2009
CHART 8
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30
POVERTY
As a large city, one area where Chicago differs
markedly from the state and the nation as a
whole, but not from its peers, is in the share of
its population living in poverty. Serving the needs
of this population is a significant part of Chicago’s
budget. In poor economic times, the number of
people in poverty grows, increasing the number of
people who depend on the City for basic services,
even as City revenues may not keep pace.
ECCNCVY'' EffEC! CN CFlC/CC 8u0CE! CONTINUED
POVERTY RATES, 2009
Area Families Individuals
United States 14.3% 10.5%
Illinois 13.3% 9.9%
Chicago 21.6% 18.0%
New York City 18.7% 15.8%
Los Angeles 19.8% 16.1%
Houston 20.6% 17.5%
Philadelphia 25.0% 19.9%
TABLE 4
0%
2%
4%
6%
8%
10%
12%
14%
U.S.
Illinois
Chicago
0%
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HOUSEHOLD INCOME DISTRIBUTION, 2009
CHART 9
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31
ECCNCVY'' EffEC! CN CFlC/CC 8u0CE! CONTINUED
ECONOMICALLY SENSITIVE REVENUES, 1989–2011 FORECASTED
CHART 10A
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
1
9
8
9
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s
CURRENT DOLLARS 1989 DOLLARS
Current $Trend line 1989 $ Trend Line
REVENUES SENSITIVE TO
THE ECONOMY
It is useful to consider the types of revenue
sources that support the City’s corporate fund:
stable sources that grow with the underlying
transactions and economically sensitive sources
that track the economy.
Stable sources are generally of a fixed-rate nature
and do not experience large fluctuations in
response to the economy or price changes. Per-
unit taxes, licenses/permits and fines are examples
of such sources. Due to the widespread nature of
the recent recession and its ripple effect through
multiple sectors of the economy, even these stable
sources have experienced declines.
Economically sensitive sources include sales,
income, real estate transfer, hotel and amusement
taxes. As the chart below reflects, these revenue
sources historically have grown over time with the
economy. However, these sources are not immune
to economic down cycles such as that experienced
in the 1991-1992 recession, the 2000-2002 period
following the bursting of the dot-com bubble
and the attacks of September 11, 2001, and most
recently, the 2007-2009 recession.
Although the recent recession officially ended
in June 2009, it dealt a devastating blow to
economically sensitive revenues that may take
years to rebuild.
In fiscal year 2011, economically sensitive revenues
are projected to generate $1,006.5 million, or 30.9
percent out of total corporate fund revenues of
$3.26 billion. This is a sharp decline from pre-
recession years when economically sensitive
revenues made up approximately 40 percent of
corporate fund revenue. These revenues are
expected to generate $250 million less than the
amount generated in 2007.
Through 2011, economically sensitive revenues are
expected to experience a total loss that exceeds $1
billion due to the recession and its aftermath.
Approximately half of this will be the result of
losses in the real estate transfer tax, a casualty of
the battered real estate market that witnessed
approximately 25 percent declines in the number
of home sales and the median sales price.
Income taxes will make up almost a third of
the losses, reflecting a weakened labor market
struggling with the doubling of the unemployment
rate and an economy that is not fostering hiring
at a level to produce significant growth.
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32
ECCNCVY'' EffEC! CN CFlC/CC 8u0CE! CONTINUED
Sales taxes account for nearly $200 million of the
losses as household wealth has deteriorated and
consumer sentiment is apprehensive, at best, and
remains at depressed levels compared with prior
recoveries.
The hotel tax will make up $28 million of the
losses reflecting double digit declines in the hotel
occupancy rate and average room rate. Recent
indicators suggest that there is some basis for
optimism for the hotel industry, but it is against
economic headwinds that may dampen potential
growth.
The amusement tax has been able to sustain some
growth, but not at the same rate experienced prior
to the recession. The success of Chicago’s sport
teams may be credited with this lone highlight.
In fact, the annual Sporting News list of Best
Sports Cities ranked Chicago the best sports
town in the U.S. for 2010 predominantly due to
the Blackhawks championship. Other businesses
within the hospitality industry have not been as
“recession-proof.”
Overall, even with the economy on the road to
recovery, the City will continue to address increased
expenses at 2011 levels with economically sensitive
revenues performing at 2004 levels.
Real Est at e
Hot el &Amusement
$135
$
$1,000
$1,200
$1,400
$

m
i
l
l
i
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n
s
Sal es
$497
Income*
$264
Transact i on
$65
$0
$200
$400
$600
$800
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Revised 2011Recs
*Reflectsincometaxactivitymonths(notadjustedfortheState’sdelayindistribution)
ECONOMICALLY SENSITIVE REVENUES,
2000–2011, CORPORATE FUND SHARE
CHART 10B
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33
ECCNCVY'' EffEC! CN CFlC/CC 8u0CE! CONTINUED
NATIONAL AND STATE
FORECASTS
During the past three years, the United States has
undergone the worst financial crisis in modern
history. Of the 13 recessions that have occurred
since the Great Depression, none has been as
damaging in terms of the length, breadth and
depth as this one. Furthermore, this has been a
world-wide recession, similar to the 1930s and
unlike anything since.
The crisis began in the financial sector, most
notably in the market for securities backed by
residential mortgages, and became the result of
the rapid deflation of a very large asset bubble.
It has since spread through most sectors of the
economy triggering a decline in the nation’s gross
domestic product, a loss of more than eight million
jobs, a doubling of the unemployment rate and
an erosion of household wealth and consumer
confidence. The ranks of the working-age poor
climbed to the highest level since the 1960s,
leaving one in seven Americans in poverty.
This is in contrast to most postwar recessions
which were considered normal business cycle
corrections. The 2000-2002 dot-com bust might
have precipitated a recession similar to this, but
the world’s governments had enough financial
flexibility to respond and head that off, or at least
to delay it. But, with national deficits and debts
much higher and short-term interest rates near
zero, that flexibility no longer exists. From that
perspective, the very slow and uncertain recovery
is less surprising.
The current economic downturn will take a long
time to fully understand. Nonetheless, forecasts
for the current national and state picture agree
on a number of points.
The U.S. recession started in December 2007 and
ended in June 2009. In affirming the official end
of the recession, the National Bureau of Economic
Research did not conclude that the economy had
returned to operating at normal capacity, only
that the recession ended and a recovery began
in June 2009.
However, this recovery has been anemic, far slower
than many expected and slower than the pattern
of virtually all post-war recessions. The phrase
“growth recession” has been used to describe it,
meaning the aggregate ecomony is growing but
per capita economic activity is stable or shrinking.
In other words, growth in GDP that is less than
necessary to keep up with population growth.
The phrase also suggests little or no change in
employment, certainly not enough growth in
employment to keep up with population. In fact,
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34
economists estimate that at least 100,000 net new
jobs must be created each month just to keep pace
with growth in the labor market.
The Federal government has attempted several
economic stimulus programs, the biggest of which
was the American Recovery and Reinvestment
Act of 2009. While the long-term effects of this
program are not yet known, it is clear that there
were some short-term positive outcomes. The Cash
for Clunkers and Homebuyer’s Assistance Programs
appear to have created some momentum, but it
is not clear whether this generated net positive
gains or merely shifted demand and economic
activity forward in time. The hoped-for multiplier
of more than a dollar of economic activity for each
dollar spent, has been elusive, as businesses and
individuals have tried to use any extra money to
work down their debts.
Looking ahead, as the nation attempts to climb
out of the economic trough, it is evident that
troubles linger. Confusing and often contradictory
economic data have left the public uneasy over
the potential for a double-dip recession, serving
only to perpetuate the problem.
The collapse of the real estate market is expected
to continue to weigh on the economy as declines
in home values, foreclosures and lack of credit
availability keep the market out of equilibrium.
Based on a recent survey, it was estimated that
more than two-in-ten, or 21 percent, of all
homeowners are “underwater,” meaning they
currently owe more on their home loans than they
could sell their house for in today’s market. Almost
one-fourth of all homes sold in Illinois during the
second quarter of 2010 were foreclosures. As long
as this continues, median prices will remain below
average, sales inventory, currently at a 12.5 month
supply, will remain above average and the real
estate market will remain soft.
Corporate profits recovered somewhat in late
2009 and early 2010, relatively speaking, fueling
a stronger stock market from March 2009 until
June 2010. However, it appears that much of
this profitability has been due to aggressively
reducing costs, including reducing workforces
and inventories. It has generally not been due
to strong demand, and the cost savings having
largely been achieved, there is skepticism whether
profits can continue to grow strongly.
Employment is expected to recover very slowly.
This is a consensus of all the economic forecasts
reviewed. Unemployment is a lagging indicator,
which means that it moves several months after
changes in the underlying economy. Employers
tend to be reluctant to reduce their workforces
at the outset of a slumping economy and also
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35
reluctant to increase their workforces when the
economy starts to get better. For instance, the
recovery from the comparatively mild 2000-2003
recession was characterized as a “jobless recovery.”
Forecasters predict the unemployment rate to
remain above 9 percent through 2011.
Personal consumption spending is recovering
slowly, and it may be several years before it reaches
pre-recession levels. Frugality in spending and
borrowing habits are the new norm as concern
persists that it could take several years for home
values and family finances to recover.
Addi ti onal concerns expressed by vari ous
forecasters include uncertainty about the federal
tax code after 2010; impending federal deficits,
which are projected to result in the doubling of
federal debt in the next few years; the potential for
increased inflation; the weakening of the dollar;
and uncertainty regarding large government
initiatives which may have significant fiscal and
economic consequences, such as those concerning
health care.
The Illinois economy moves in lockstep with the
national economy. Illinois is fortunate in that its
economy is quite diverse, and it has not suffered
the extreme problems of states such as Nevada,
Arizona and Florida. Nonetheless, given the
continued weak employment forecast, as well
as continued likelihood of consumer hesitancy
to spend, the State of Illinois is anticipating only
very modest growth in its revenues.
In addition, the state is currently contending with
a $13 billion budget deficit that has triggered a
downgrade in its debt rating and will require
severe reductions in service and/or increases in
revenues to fully address. This is certain to have a
spill-over effect on local governments.
In summary, the national and state outlook
remains uncertain and there is little reason for
strong optimism in 2011, or for the next few years.
For the foreseeable future, it is anticipated that
economic activity will remain below pre-recession
levels.
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LOCAL OUTLOOK
The local economy mirrors the national economy
but with a general lag in the trend. It is anticipated
that City revenues will experience only marginal
growth against recession years’ revenues and
the need to fund basic services will outpace the
resources available to do so.
The City of Chicago is not alone in contending with
the economic fallout. According to the National
League of Cities’ annual report on cities’ fiscal
conditions, financial officers report the largest
spending cuts and loss of revenue in the 25-year
history of the survey and 87 percent of city finance
officers report their cities are worse off financially
than in 2009.
Financial pressures continue to force cities to
make tough decisions, including scaling back
workforces, reducing services, and canceling
capital infrastructure projects. According to the
U.S. Department of Labor, local governments cut
76,000 jobs in September 2010, the largest cut by
local governments in 28 years.
The current outlook for the City reflects the
expectation that due to the depth of the decline
experienced by the local economy during the
recession, it is not expected to regain solid
ground in the near future and it may be years
before economic recovery is fully realized. The
projected performance in specific revenue sources
is discussed in greater detail in the Revenue
Analysis section, but there are general areas of
concern presumed in the projections that are likely
to affect City resources during the remainder of
2010 and into 2011.
Chief among these concerns is the employment
picture. The City’s unemployment rate for June
2010 was 11.4 percent (not seasonally adjusted)
and is not anticipated to return to the pre-
recession level of 5.8 percent for some time.
Employment levels not only have a direct impact
on income taxes, but also play a significant role in
the performance of other revenues that rely on a
public perception of strength in the economy to
flourish, such as revenues related to real estate,
business, recreation, tourism and consumption.
With the exception of some potential commercial
transactions, the real estate market will remain
soft. The number and median prices of home
sales in the City will continue to recover very
slowly. Boom cycle activity experienced from 2003-
2007 that elevated real estate transfer taxes and
construction-related revenue to unprecedented
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growth will not return as the real estate market
trudges through the current bust cycle.
Consumer confidence will remain apprehensive
and result in limited consumer spending that
focuses on necessities.
The actions of the federal and state government
will also play a role on the local economy. It is not
yet clear how the expiration of federal stimulus
funding will impact the local economy. In addition,
the state’s financial situation, which has already
manifested in the delay in distributions to local
governments, will continue to be problematic. Any
action to alleviate the state’s situation is certain
to impact the local economy.
This chapter relies on information from the following sources:
State of Illinois Fiscal Year 2011 Budget, Economic Outlook º
and Revenue Forecast
Illinois Commission on Government Forecasting and º
Accountability, 2010 Monthly Briefings
Federal Reserve Board Beige Books for the Seventh º
District-Chicago, 2010
Federal Reserve Board of Governors, Current Economic º
Conditions by Federal Reserve District, August 2010
New York Federal Reserve Bank, U.S. Economy and º
Financial Markets, September 2010
Philadelphia Federal Reserve Bank: Business Outlook º
Survey, September 2010; Survey of Professional
Forecasters, 3rd Quarter 2010; The Livingston Survey, June
2010; Aruoba-Diebold-Scotti Business Conditions Index, 3rd
Quarter 2010; and State Leading Indexes, July 2010
Chicago Federal Reserve Bank: Chicago Fed Midwest º
Manufacturing Index (CFMMI), Aug. 26, 2010 and Chicago
Fed National Activity Index (CFNAI), Aug. 23, 2010
Regional Economics Applications Laboratory, Institute º
of Government and Public Affairs, University of Illinois:
Housing Price Forecast: Illinois and Chicago MSA, 2010
Monthly Reports
Pew Research Center report “How the Great Recession Has º
Changed Life in America,” June 2010
National League of Cities: “City Fiscal Conditions in 2010,” º
October 2010
The Kiplinger Letter º
Sporting News Magazine º
UCLA, Press Release for report “The Uncertain Economy,” º
September 2010
U.S. Department of Commerce, Bureau of the Census web º
site: www.census.gov, American Community Survey tables
U.S. Department of Labor, Bureau of Labor Statistics web º
site: www.bls.gov
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DEBT AND CREDIT OUTLOOK
The City’s overall financial position has benefitted
from its diligent management of resources and
strategic long-term decisions. The City continues
to make significant expenditure and personnel
reductions and implement additional creative
management practices to operate more efficiently
and effectively in difficult financial times.
As of August 2010, the City’s bond ratings remain
high. Fitch has assigned a rating of “AA” and
Moody’s Investors Service has assigned a rating
of “Aa3”. The Standard & Poor’s rating of “AA-”
remains the highest rating the City has received
from S&P since 1978.
These high ratings affect the City and its taxpayers
in a few important ways. The City can sell its
bonds at lower interest rates, so taxpayers save
and provide additional funds for neighborhood
improvements. The ratings also allow the City
to be more flexible to respond to other funding
needs.
GENERAL OBLIGATION DEBT
As of August 2010, the City’s net direct long-
term general obligation debt, which includes
all general obligation debt except tender notes
and commercial paper, totaled $6.952 billion or
$2,400.67 on a per capita basis. This equates to
2.17 percent of the total estimated fair cash value
of property located within the City.
The City will use $374.8 million of the property tax
levy for the purpose of paying general obligation
debt service (excluding tender notes, commercial
paper and bonds paid from other sources in 2010).
An additional $36.6 million will is required for
the City College Bond Redemption and Interest
Fund.
General obligation debt can be used for any
lawful uses permitted by ordinance. Long-term
debt will be used to finance municipal facilities,
improvement projects and certain equipment
where it is appropriate to spread the cost over
more than one budget year. In so doing, the City
recognizes that future taxpayers, who will benefit
from the investment, will pay a share of its cost.
Short-term debt is appropriate for some capital
equipment purchases and to satisfy the City’s cash
flow needs.
General obligation debt service is payable from
any moneys, revenues, receipts, income, assets or
funds of the City legally available for such purpose.
Revenues for enterprise and other revenue bonds
must exceed debt service by the legally required
coverage ratios based on the applicable trust
indentures.
CFlC/CC CRE0l! R/!lNC' /N0 0E8! CvERvlEw
Fitch Ratings AA AA AA
Moody’s Investors Service Aa3 Aa3 Aa3
Standard & Poor's AA- AA- AA-
2008
Rating
2009
Rating
2010
Rating
BUDGET 2011
2011 PROPOSED
BUDGET ANALYSES
2
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39
2010
Year-End Estimate
2011
Proposed Budget
%
Change
Corporate Fund $3,098.3 $3,260.2 5.2%
Special Revenue Funds 419.6 445.7 6.2%
Pension Funds 458.9 456.1 (0.6%)
Debt Service Funds 595.6 585.0 (1.8%)
Enterprise Funds 1,812.4 1,822.6 0.6%
Total Resources $6,384.8 $6,569.6 2.9%
Less Proceeds of Debt (70.4) (70.4)
Less Internal Transfer (346.9) (344.4)
Net Appropriation $5,967.4 $6,154.8 3.1%
REVENUE OVERVIEW
The 2011 proposed appropriation for all local City
funds is $6.15 billion, an increase of 0.8 percent
from the 2010 appropriation and 3.1 percent from
the 2010 year-end estimate.
The 2010 year-end revenue estimate and 2011
proposed budget for each governmental fund
type are summarized in the above table. Proceeds
of debt issues transferred between funds and
reimbursements or internal transfers between
funds are deducted from the total resources to
more accurately reflect the City appropriation.
Each fund and its respective revenue sources are
discussed in detail in the pages that follow.
REvENuE /N/LY'l'
APPROPRIATION SUMMARY
$ Millions
TABLE 5
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REvENuE /N/LY'l' - lRClER!Y !/\E'
PROPERTY TAX LEVY
The City of Chicago is one of seven taxing districts
reflected on City residents’ bills. According to the
most recent report released by the Cook County
Clerk’s Office, the 2008 total property tax extension
is $3.90 billion across all taxing districts within the
City of Chicago, of which 21.4 percent is allocated
to the City of Chicago.
The City operates under a self-imposed property
tax cap which allows the levy to increase only by
the rate of inflation or five percent, whichever is
less. The 2011 proposed budget does not increase
the City’s property tax levy.
PENSIONS AND DEBT SERVICE
In 2011, 43.0 percent of the City’s general levy,
or $343.0 million, will be used to fund pension
contributions for City employees. State law
mandates that the City contribute an amount to
each pension fund based upon payroll contributions
made by employees.
In 2011, the City’s long-term debt obligations
will require $370.5 million or 46.5 percent from
the property tax levy to retire existing debt
service related to the City’s Capital Improvement
program.
LIBRARIES
The 2008 budget separated the library levy from
the aggregate City of Chicago levy and provided
for $83.4 million in funding for the Chicago Public
Library system. In 2011, the proposed budget
holds constant the library levy at $83.4 million,
or 10.5 percent of the total levy. This funding
supports the operations of the libraries as well as
debt service on library general obligation debt.
CORPORATE
After all pension, debt service and library funding
obligations have been met, the corporate fund
receives the remainder of the property tax levy.
The 2011 budget reflects that no property taxes
will be available for the corporate fund for the
seventh consecutive year.
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Board of Education
and School Finance
Authority
53.8%
City Colleges
3.2%
Cook County
8.6%
Forest Preserve
1.1%
Metropolitan Water
Reclamation District
5.2%
City of Chicago
21.4%
Park District
6.7%
Municipal Employees'
Annuity and Benefit
Fund
15.2%
Laborers' and
Retirement Board
Employees' Annuity
and Benefit Fund
1.5%
Policemen's Annuity
and Benefit Fund
18.0%
Firemen's Annuity
and Benefit Fund
8.3%
Long Term Debt
46.5%
Chicago Public
Library*
10.5%
REvENuE /N/LY'l' - lRClER!Y !/\E' CONTINUED
* This includes $5.7 million designated for the Municipal Employees Annuity and Benefit Fund.
2008 PROPERTY TAX EXTENSION
2011 PROPOSED PROPERTY TAX LEVY
$3.90 BILLION (WITHIN CITY OF CHICAGO ONLY)
CHART 11
$796.9 MILLION
CHART 12
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REvENuE /N/LY'l' - CCRlCR/!E fuN0
CORPORATE FUND
The corporate fund i s the Ci ty’s general
operating fund. It supports public safety, health,
transportation, streets and sanitation and other
City operations and services.
Total available resources to the corporate fund
include revenues generated during the year and
any unreserved fund balance from the prior
year. Due to the dramatic impact of the recent
national recession, the City’s revenues are not
expected to meet the costs of providing City
services. Therefore, in addition to various cost
saving measures, the 2011 budget proposes the
strategic use of reserves, debt restructuring and
declaration of a tax increment financing surplus
to continue to maintain essential City services.
CORPORATE FUND SUMMARY
$ MILLIONS
TABLE 6
Tax Revenue
Utility Taxes and Fees $481.3 $479.8 $475.9 $479.5
Transaction Taxes 179.6 172.7 180.5 175.9
Transportation Taxes 155.9 155.7 148.4 149.6
Recreation Taxes 154.0 154.8 156.0 155.1
Business Taxes 79.6 78.1 78.9 77.0
Sales and Use Taxes 476.6 460.4 487.7 496.6
Income Tax & PPRT 251.8 210.3 232.5 309.9
Other Intergovernmental 5.1 5.7 4.9 4.9
Total Tax Revenue $1,783.8 $1,717.4 $1,764.8 $1,848.7
Non-Tax Revenue
Licenses and Permits $100.5 $105.7 $95.2 $95.4
Fines, Forfeitures and Penalties 252.5 262.9 258.4 254.4
Charges for Services 87.5 77.8 84.9 97.2
Municipal Parking 9.1 6.0 6.8 6.8
Leases, Rentals and Sales 10.7 19.4 15.6 16.5
Reimbursement, Interest & Other 317.5 303.3 296.8 437.4
Total Non-Tax Revenue $777.8 $775.2 $757.6 $907.6
Proceeds and Transfers In $474.6 $687.2 $573.3 $494.6
Total Revenue to the Corporate Fund $3,036.3 $3,179.7 $3,095.7 $3,250.9
Prior Year Unreserved Fund Balance $1.5 $0.0 $2.7 $9.4
Total Corporate Fund Resources $3,037.7 $3,179.7 $3,098.3 $3,260.2
2009
Actual
2010
Budget
2010
Year End
Estimates
2011
Proposed
Budget
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REvENuE /N/LY'l' - CCRlCR/!E fuN0 CONTINUED
CORPORATE FUND SUMMARY
As discussed in the section on the Economy’s Effect
on Chicago’s Budget, the recession that began in
December 2007 officially ended in June 2009,
but it dealt a devastating blow to economically
sensitive revenues that may take years to rebuild.
After 18 months of declines, some revenue streams
are slowly starting to turn to the positive. This
moderate growth is expected to continue, but it
is against a deep falloff, during which revenues
plummeted to 2004 levels. It is anticipated that
City revenues will experience only marginal
growth against recession years’ revenues and the
need to fund basic services will easily outpace the
resources available to do so.
The 2011 proposed budget projects corporate
fund resources will total $3.3 billion, an increase of
2.5 percent from the 2010 budget and 5.2 percent
from the 2010 year-end estimate. The budget
anticipates the strategic use of reserves, debt
restructuring and declaration of a tax increment
financing surplus to mitigate the falloff from the
economic decline. (Detailed discussions on these
options are included in sections that follow.)
REVENUE SOURCES FOR THE CORPORATE FUND
As shown in the corporate fund summary table, the
corporate fund is comprised of both tax revenue
and non-tax revenue. Following is a discussion on
the noteworthy elements that affect the corporate
fund 2011 projections.
TAX REVENUE
Corporate fund tax revenue consists of local tax
revenue and intergovernmental tax revenue.
Local tax revenue includes utility, transaction,
transportation, recreation and business taxes.
Intergovernmental tax revenue includes the City’s
share of the Illinois sales and use tax, income tax,
personal property replacement tax and municipal
auto rental tax. The 2011 proposed budget projects
tax revenue to grow by $83.9 million from the
2010 year-end estimate and comprise 56.7 percent
of the corporate fund revenue.
UTILITY TAXES AND FEES
Utility taxes and fees include taxes on electricity,
natural gas and telecommunications, as well as
fees received from companies for the right to
operate within the City of Chicago. Utility taxes
and fees are expected to generate $479.5 million
in 2011, accounting for 25.9 percent of total tax
revenue and 14.7 percent of total corporate fund
revenue.
The electricity use tax and the electricity infras-
tructure maintenance fee (IMF) are imposed
on the number of kilowatt hours of electricity
used. Electricity-related collections are highly
dependent on weather conditions and electricity
rates. During 2010, summer temperatures were
higher than average, with ComEd estimating
that residential customers used 55 to 65 percent
more energy to cool their homes compared to
last year, one of the coolest summers on record.
The 2011 projection assumes historical electricity
consumption.
The natural gas utility tax and the natural gas
use tax are imposed on natural gas consumption.
The natural gas utility tax is an 8.0 percent tax
imposed on the sale of natural gas and the natural
gas use tax is a 6.3 cents per-therm tax imposed on
entities that do not pay the utility tax. Natural gas
tax collections are highly dependent on weather
conditions and natural gas prices. Gas prices
during 2008 were historically high, with rates
as high as 149.9 cents per therm. During 2009,
gas charges declined by 48 percent to 55.1 cents
to per therm and have remained in this range
throughout 2010 with a year-to-date average of
53.9 cents per therm. The 2011 projection assumes
only minimal growth in gas charges at historical
consumption levels.
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REvENuE /N/LY'l' - CCRlCR/!E fuN0 CONTINUED
ELECTRICITY/INFRASTRUCTURE MAINTENANCE FEE
NATURAL GAS AND GAS USE TAX
2005 TO 2011 PROJECTED
CHART 13
2005 TO 2011 PROJECTED
CHART 14
$0
$50
$100
$150
$200
$250
2005 2006 2007 2008 2009 2010
Estimated
2011
Projected
M
i
l
l
i
o
n
s
Electricity IMF
Electricity Use
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
2005 2006 2007 2008 2009 2010
Estimated
2011
Projected
M
i
l
l
i
o
n
s
Natural Gas Use
Natural Gas Utility
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REvENuE /N/LY'l' - CCRlCR/!E fuN0 CONTINUED
Telecommunications tax collections, which have
demonstrated strong growth in recent years in the
wireless sector that have offset the falloff in the
landline sector, are now manifesting an industry-
wide decline. The 2010 year-end estimate and
2011 projection assumes this will persist and
accounts for the resolution of various outstanding
overpayment credits.
The cable television franchise fee is imposed on
businesses that operate cable television systems in
Chicago. The 2011 projection assumes no growth
will occur in this revenue source.
TRANSACTION TAXES
Transaction taxes include taxes on the transfer of
real estate, the lease or rental of personal property
and the short-term lease of motor vehicles within
the City of Chicago. Transaction taxes are expected
to generate $175.9 million in 2011, accounting for
9.5 percent of total tax revenue and 5.4 percent
of corporate fund revenue.
In the years leading up to the recession, real estate
transfer tax collections reached record levels.
During the boom period from 2004 through 2007,
collections totaled $190.8 million, $236.3 million,
$242.3 million and $205.8 million respectively. The
collapse of the real estate market swept the nation
into a bust cycle that drove down these collections
to only a quarter of the amount collected at
its height. Based on year-to-date trends, 2010
year-end collections are expected to decline by
nearly $171 million from 2006 peak collections,
generating the lowest annual collections since
1997. This is despite low interest rates and the
Federal Home Buyer Tax Credit stimulus program
in effect for most of the year. Through 2011, real
estate transaction tax revenues are expected to
experience a total loss of more than $500 million
due to the recession and its aftermath.
The real estate market is expected to remain soft
for the foreseeable future. Opportunistic buyers
may generate some momentum, particularly in the
commercial market, as was the case this year with
the sale of the office building at 300 N. LaSalle,
a record sale on a per-square foot basis and the
city’s biggest real estate transaction since 2004.
In the residential market, foreclosures, tight
lending and an overabundance of property on the
market will keep growth constrained. The 2011
projection assumes a 8 percent decline from 2009
year-end estimates.
Personal property lease transaction tax applies
to the lease or rental of personal property.
Collections during 2010 have suffered due to
the recessionary economy’s impact on personal
consumption and tourism. The 2011 projection
assumes only minimal growth from the 2010 year-
end estimate.
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REvENuE /N/LY'l' - CCRlCR/!E fuN0 CONTINUED
TELECOMMUNICATIONS TAX
CABLE FRANCHISE FEE
2005 TO 2011 PROJECTED
CHART 15
2005 TO 2011 PROJECTED
CHART 16
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
2005 2006 2007 2008 2009 2010
Estimated
2011
Projected
M
i
l
l
i
o
n
s
$0
$5
$10
$15
$20
$25
2005 2006 2007 2008 2009 2010
Estimated
2011
Projected
M
i
l
l
i
o
n
s
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REvENuE /N/LY'l' - CCRlCR/!E fuN0 CONTINUED
REAL ESTATE TRANSFER TAX
PERSONAL PROPERTY LEASE TAX
2005 TO 2011 PROJECTED
CHART 17
2005 TO 2011 PROJECTED
CHART 18
$0
$50
$100
$150
$200
$250
2005 2006 2007 2008 2009 2010
Estimated
2011
Projected
M
i
l
l
i
o
n
s
$0
$20
$40
$60
$80
$100
$120
$140
2005 2006 2007 2008 2009 2010
Estimated
2011
Projected
M
i
l
l
i
o
n
s
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REvENuE /N/LY'l' - CCRlCR/!E fuN0 CONTINUED
TRANSPORTATION TAXES
Transportation taxes include those on parking
transactions, vehicle fuel purchases and the
provision of ground transportation for hire
within the City of Chicago. Transportation taxes
are expected to generate $149.6 million in 2011,
accounting for 8.1 percent of total tax revenue and
4.6 percent of total corporate fund revenue.
Parking tax collections have continued to suffer
through 2010 as a result of the recession’s impact
on various industries that are tied to parking
activity, including retail and tourism. In addition,
the overall decline in business and employment is
manifesting in a reduced need for office space as
evidenced by current downtown office vacancy
rates. The 2011 projection assumes only minimal
year-over-year growth.
Vehicle fuel tax collections have remained
depressed. During 2008, historically high gas
prices at an annual average of $3.78 per gallon
reduced collections considerably as consumers
and airlines implemented fuel conservation
strategies. Although gas prices since that time
have moderated and are currently averaging
$3.02 per gallon, collections have not rebounded.
This is due in part to the economic downturn, but
it is also believed that the downward trend may
be the new norm as consumers have placed more
emphasis on fuel efficiency. The 2011 projection
assumes only slight growth in this revenue
source.
Ground transportati on tax col l ecti ons are
expected to remain level in 2011. The majority of
these collections are from taxicab drivers who pay
a flat rate of $78 per month. It is assumed that
this taxpayer base will remain constant.
PARKING TAX
2005 TO 2011 PROJECTED
CHART 19
$0
$20
$40
$60
$80
$100
2005 2006 2007 2008 2009 2010
Estimated
2011
Projected
M
i
l
l
i
o
n
s
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49
REvENuE /N/LY'l' - CCRlCR/!E fuN0 CONTINUED
VEHICLE FUEL TAX
GROUND TRANSPORTATION TAX
2005 TO 2011 PROJECTED
CHART 20
2005 TO 2011 PROJECTED
CHART 21
$0
$10
$20
$30
$40
$50
$60
$70
2005 2006 2007 2008 2009 2010
Estimated
2011
Projected
M
i
l
l
i
o
n
s
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
2005 2006 2007 2008 2009 2010
Estimated
2011
Projected
M
i
l
l
i
o
n
s
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50
REvENuE /N/LY'l' - CCRlCR/!E fuN0 CONTINUED
RECREATION TAXES
Recreation taxes include taxes on amusements,
auto amusement devices, mooring (docking) of
boats, liquor purchases, cigarette purchases,
non-alcoholic beverage purchases and off-track
betting within the City of Chicago. Recreation
taxes are expected to generate $155.1 million
in 2011, accounting for 8.4 percent of total tax
revenue and 4.8 percent of total corporate fund
revenue.
Amusement tax collections have been able to
sustain growth through the recession. From die-
hard fans to newfound fans, Chicago has lived up
to the distinction bestowed upon it in Sporting
News Magazine’s annual list of Best Sports Cities
as the best sports city in the U.S. for 2010.
A highlight that will remain with the City for
years to come was the Stanley Cup Championship
win by the Chicago Blackhawks and the related
celebrations that lifted a recession-weary city out
of the doldrums.
Unfortunately, other businesses within the
hospitality industry have not been as “recession-
proof” as evidenced by the decline in live theater
attendance. The 2011 projection assumes 3 percent
growth from the 2010 year-end estimate excluding
post season activity.
The liquor tax is based on the number of gallons
of alcoholic beverages purchased with the rate
varying depending on the alcohol-by-volume
content of the beverage. The 2011 revenue
projection assumes level consumption from the
2010 estimate.
Cigarette tax collections have fallen year-over-
year as purchase activity has declined in response
to the smoking bans and tax rate increases passed
by the various taxing jurisdictions in recent years.
With no changes anticipated in the coming year,
the 2011 projection assumes flat consumption
from 2010.
Non-alcoholic beverage tax collections are
expected to grow slightly in 2010 due an expansion
in the state’s definition of soft drinks to include
some previously exempt purchases effective
September 2009 and to remain flat in 2011.
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AMUSEMENT TAX
2005 TO 2011 PROJECTED
CHART 22
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
2005 2006 2007 2008 2009 2010
Estimated
2011
Projected
M
i
l
l
i
o
n
s
LIQUOR TAX
2005 TO 2011 PROJECTED
CHART 23
$0
$5
$10
$15
$20
$25
$30
$35
2005 2006 2007 2008 2009 2010
Estimated
2011
Projected
M
i
l
l
i
o
n
s
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REvENuE /N/LY'l' - CCRlCR/!E fuN0 CONTINUED
CIGARETTE TAX
2005 TO 2011 PROJECTED
CHART 24
$0
$5
$10
$15
$20
$25
$30
$35
2005 2006 2007 2008 2009 2010
Estimated
2011
Projected
M
i
l
l
i
o
n
s
NON-ALCOHOLIC BEVERAGE TAXES
2005 TO 2011 PROJECTED
CHART 25
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
2005 2006 2007 2008 2009 2010
Estimated
2011
Projected
M
i
l
l
i
o
n
s
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REvENuE /N/LY'l' - CCRlCR/!E fuN0 CONTINUED
BUSINESS TAXES
Business taxes include taxes on the lease of hotel
accommodations, the employment of more than
fifty employees and the sale of fire insurance within
the City of Chicago. Business taxes are expected
to generate $77.0 million in 2011, accounting for
4.2 percent of total tax revenue and 2.4 percent
of total corporate fund revenue.
Hotel accommodati ons tax col l ecti ons are
beginning to experience some year-over-year
growth after 18 months of declines brought on
by the recession’s impact on tourism, business
travel and convention attendance. According to
hotel statistics maintained by the Convention and
Tourism Bureau, year-over-year average occupancy
rates are up 2.7 percentage points and average
room rates are down 2.4 percent, but have been
in the positive for the most recent months. Hotel
industry analysts are forecasting that momentum
will continue to build during the remainder of 2010
which will lead to the beginning of a turnaround
in 2011. Hotel tax collections for the 2010 year-end
and 2011 projection account for these forecasts
but assume only 1.5 percent growth and still below
historical collections.
Employers’ expense tax collections are expected
to decline predominantly due to legislative actions
fostered by the City in 2010 and proposed for 2011
to encourage job creation by local employers.
In 2010, an amendment was passed to 1) relieve
businesses with no obligation for the tax in the
tax year ending June 30, 2009 of an obligation for
the tax in the tax years ending June 30, 2010 or
June 30, 2011; and 2) cap the amount of liability
for the tax to insure that no employer’s obligation
$0
$10
$20
$30
$40
$50
$60
$70
2005 2006 2007 2008 2009 2010
Estimated
2011
Projected
M
i
l
l
i
o
n
s
HOTEL ACCOMMODATIONS TAX
2005 TO 2011 PROJECTED
CHART 26
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REvENuE /N/LY'l' - CCRlCR/!E fuN0 CONTINUED
EMPLOYERS’ EXPENSE TAX
2005 TO 2011 PROJECTED
CHART 27
$0
$5
$10
$15
$20
$25
2005 2006 2007 2008 2009 2010
Estimated
2011
Projected
M
i
l
l
i
o
n
s
for the tax would increase in the tax years ending
June 30, 2010 or June 30, 2011.
In 2011, the City proposes an amendment to
reduce the number of taxable employees for
which businesses are currently liable through a
change in the definition of a taxable employee.
Currently, one element for which an employee is
considered taxable is that the employee must earn
$900 per quarter. Under this change, an employee
must earn $4,300 per quarter. The salary of $4,300
equates to current Illinois minimum wage ($8.25
per hour) at 40 hours per week so that only full-
time employees are considered taxable.
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REvENuE /N/LY'l' - CCRlCR/!E fuN0 CONTINUED
SALES AND USE TAXES
Sales and use tax revenue is generated from
the Chicago Home Rule Occupation and Use
taxes (HROT) and the Illinois Municipal Retailer
Occupation and Use taxes (MROT). Occupation
taxes are assessed on the retailer and collected
from the purchaser at the point of sale, while use
taxes are imposed on the privilege of using certain
types of personal property within the City.
Effective July 1, 2010, general merchandise
purchases in Chicago are subject to a combined
sales tax rate of 9.75 percent, of which the City
receives the 1.25 percent HROT and 1.0 percent
MROT. The remainder is attributed to the State
of Illinois, the Regional Transportation Authority
and Cook County as detailed in the chart on the
next page.
The City of Chicago imposes the HROT on the
retail sale of tangible personal property excluding
most sal es of food, medi ci ne and medi cal
appliances. The tax is collected and enforced by
the Illinois Department of Revenue. Additional
components of the HROT include the nontitled
use tax, titled use tax and restaurant tax, all of
which are collected and enforced by the Chicago
Department of Revenue. As listed, the HROT
amount is net of $26.7 million of debt service
obligations in 2011.
The State of Illinois also collects and enforces
the MROT on behalf of municipalities. Its tax
base differs from the HROT in that it includes
qualifying food and drugs.
Sales and use taxes are expected to generate
$496.6 million in 2011, accounting for 26.9
percent of total tax revenue and 15.2 percent of
total corporate fund revenue.
From 2004 to 2007, sales and use tax base receipts
grew approximately 7.8 percent on average per
year. In the Fall of 2008, the point at which most
economists agree the economy fell off a cliff, sales
tax receipts began a year-over-year decline of 8.9
percent per month on average that would carry
on for the next 17 months.
During 2010, a slow growth trend has emerged
that has mirrored national indices on consumer
confidence and consumer sentiment of fluctuating
consumer attitudes. While this growth has been
welcome news, it is against a very depressed
base and still well below pre-recession levels.
Through 2011, sales tax revenues are expected
to experience a total loss of nearly $200 million
due to the recession and its aftermath.
It is unlikely that a resurgence in consumer
spending is on the horizon. Household wealth has
deteriorated and expectations about labor market
conditions leave consumers feeling apprehensive,
at best. Overall, sales and use taxes are expected
to grow by less than 2 percent in 2011.
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56
City of Chicago HROT
1.25%
Municipal ROT
1.00%
State of Illinois ROT
5.00%
RTA
1.00%
RTA/County ROT
0.25%
Cook County HROT
1.25%
REvENuE /N/LY'l' - CCRlCR/!E fuN0 CONTINUED
SALES TAXES
SALES TAXES
2005 TO 2011 PROJECTED
CHART 28
9.75% SALES TAX BREAKDOWN
CHART 29
$0
$100
$200
$300
$400
$500
$600
2005 2006 2007 2008 2009 2010
Estimated
2011
Projected
M
i
l
l
i
o
n
s
State Sales Tax/ROT
City Sales Tax/HROT
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INCOME TAX
Income taxes include the State of Illinois Income
Tax and the Personal Property Replacement Tax
(PPRT), both of which are distributed to the City
of Chicago based on defined formulas. Income
taxes are expected to generate $418.1 million in
gross collections in 2011, of which $309.9 million is
designated for the corporate fund, accounting for
16.8 percent of total tax revenue and 9.5 percent
of total corporate fund revenue.
Income taxes have been hard hit by a weakened
labor market struggling with the doubling of
the unemployment rate and the shrinking of
corporate profits.
Compounding the problem, the State of Illinois’
fiscal crisis has lead to a delay in distributions to
local governments. In 2009, the City was unable
to recognize two distributions totaling $32.3
million because funds were not released by the
state in a timely manner. During 2010, as many
as 148 days have elapsed from the date the state
authorizes the distribution to the date the funds
are ultimately released to the City; prior to 2009,
this took 23 days on average.
The City is working with the State to ensure all
outstanding distributions are received by the end
of fiscal year 2011.
On an activity basis (without regard to distribution
delays), in the Fall of 2008, income tax and PPRT
receipts began a year-over-year decline of 14.1
percent per month on average that would carry
on for the next 20 months.
During 2010, these receipts began to turn to the
positive as news came out that unemployment in
Illinois dropped for the first time in more than
three years and corporate profits began to show
some life. Still, employment remains weak. The
City’s unemployment rate for June 2010 was
11.4 percent (not seasonally adjusted) and is not
anticipated to return to the pre-recession level of
5.8 percent for some time. Through 2011, income
tax revenues are expected to experience a total
loss of nearly $340 million due to the recession
and its aftermath.
Overall, gross tax collections for the income tax
and PPRT on an activity basis (without regard to
distribution delays) are expected to grow by 6.2
percent in 2011, with most of the growth on the
corporate income tax side.
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INCOME TAXES
2005 TO 2011 PROJECTED
CHART 30
$0
$50
$100
$150
$200
$250
$300
$350
$400
2005 2006 2007 2008 2009 2010
Estimated
2011
Projected
M
i
l
l
i
o
n
s
Personal Prop Replacement Tax
(Corporate Share)
State Income Tax
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NON-TAX REVENUE
Non-tax revenue consists of revenue from licenses
and permits; fines, forfeitures and penalties;
various charges for services; municipal parking;
leases, rentals and sales; internal service earnings;
interest and other revenue. The 2011 proposed
budget projects non-tax revenue to grow by
$150 million from the 2010 year-end estimate
and comprise 27.8 percent of the corporate fund
revenue.
LICENSES AND PERMITS
Licenses and permits include alcohol dealer
licenses, business licenses, building permits
and various other permits. Licenses and permits
are expected to generate $95.4 million in 2011,
accounting for 10.5 percent of total non-tax
revenue and 2.9 percent of total corporate fund
revenue.
Business license revenue has declined due to the
recession as well as legislative changes by the City
intended to assist businesses and spur economic
activity during the downturn.
Construction activity in Chicago experienced a
severe decline as a result of the recession. Activity
is expected to remain well below peak levels for
the immediate future as the real estate market
stabilizes and therefore, revenue from building
permits and construction related permits will not
experience growth.
FINES, FORFEITURES &
PENALTIES
Fines, forfeitures and penalties include parking
tickets, red-light camera tickets and other
administrative hearings and court related fines.
Fines, forfeitures and penalties are expected to
generate $254.4 million in 2011, accounting for 28
percent of total non-tax revenue and 7.8 percent
of total corporate fund revenue.
The 2011 projection for fines, forfeitures and
penalties represents a 1.5 percent decline from
the 2010 year-end estimate which accounts for
no additional red light installations and a decline
in ticket issuance at existing cameras with safer
motorist behavior.
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REvENuE /N/LY'l' - CCRlCR/!E fuN0 CONTINUED
LICENSES AND PERMITS
FINES, FORFEITURES AND PENALTIES
2005 TO 2011 PROJECTED
CHART 31
2005 TO 2011 PROJECTED
CHART 32
$0
$20
$40
$60
$80
$100
$120
$140
$160
2005 2006 2007 2008 2009 2010
Estimated
2011
Projected
M
i
l
l
i
o
n
s
$0
$50
$100
$150
$200
$250
$300
2005 2006 2007 2008 2009 2010
Estimated
2011
Projected
M
i
l
l
i
o
n
s
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o1
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OTHER NON-TAX REVENUES
CHARGES FOR SERVICES
Charges for services include revenues generated
from such acti vi ti es as i nspecti ons, publ i c
information requests, safety charges, other
miscellaneous charges and current expenses
reimbursements. Charges for services are projected
to generate $97.2 million in 2011, accounting for
10.7 percent of total non-tax revenue and 3.0
percent of total corporate fund revenue.
The 2010 year-end estimate and 2011 projection
for charges for services account for agreements
currently in effect for safety reimbursements and
assume inspection related activity in line with
historical levels. In 2011, the recommended budget
anticipates an increased reimbursement from the
Chicago Public Schools for safety-related services
provided by the Chicago Police Department.
MUNICIPAL PARKING
Municipal parking includes revenues generated
from parking meters (prior to the concession of the
City’s parking meter and parking lot operations)
and various parking permits.
Municipal parking revenue is expected to generate
$6.8 million in 2011, accounting for 0.7 percent
of total non-tax revenue and 0.2 percent of total
corporate fund revenue.
In 2011, no parking meter revenue will be realized
in this category. The remainder of the revenue
is made up of various parking permits which are
expected to remain level with 2010.
LEASES, RENTALS AND SALES
Leases, rentals and sales include revenues
generated from the sale of City-owned land,
impounded vehicles and other personal property.
Leases, rentals and sales are expected to generate
$16.5 million in 2011, accounting for 1.8 percent
of total non-tax revenue and 0.5 percent of 2011
corporate fund revenue.
Land sales, which continue to fall below peak levels
due to the downturn in the real estate market,
account for $8.8 million of this category. This
includes revenue anticipated from the reduction
in City office space needs in the DePaul Center.
The sale of materials, which has been impacted by
sharp declines in the global demand for recyclable
materials, will decline in 2011 due to the City’s
efforts to privatize recycling.
INTERNAL SERVICE EARNINGS
This category represents transfers to the corporate
fund for central services (police, fire, streets and
sanitation, and others) provided to other City
funds.
The corporate fund receives reimbursements for
specific and identifiable projects as delineated in
Appendix A of the 2011 Budget Recommendations.
The 2011 projection for Internal Service Earnings
is $349.6 million, accounting for 38.5 percent of
total non-tax revenue and 10.7 percent of total
corporate fund revenue.
OTHER REVENUE
This category represents revenue that does not fall
within other defined categories and is generally
made up of non-recurring revenue sources.
Other revenues is projected to generate $84.7
million in 2011, accounting for 9.3 percent of total
non-tax revenue and 2.6 percent of total corporate
fund revenue. The 2011 budget anticipates $38.5
million in proceeds due to the declaration of
surplus across multiple Tax Increment Financing
districts.
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PROCEEDS AND TRANSFERS-IN
Proceeds and Transfers-in includes transfers
into the corporate fund from other City funds
and proceeds from short-term borrowi ng.
Transfers-in represent movement of resources into
the corporate fund from reserves and other non-
recurring revenue sources. Proceeds represent
short-term borrowing in anticipation of debt
restructuring and other debt refunding.
LONG-TERM RESERVES
The City established a $500 million long-term
reserve with the lease of the City’s Skyway in
2005 and a $400 million long-term reserve with
the concession of the parking meter operations
in 2009.
Realizing the importance of maintaining reserves,
the 2011 budget preserves the $500 million Skyway
long-term reserve. This $500 million reserve
represents over 15 percent of the City’s general
fund in the 2011 budget, above the recommended
amount by the Government Finance Officers
Association.
The dramatic impact of the recent national
recession on the City’s revenues requires a reliance
on the City’s long-term reserves. The 2010 budget
included a temporary partial use of $250 million
of the parking meter long-term reserve (Parking
Meter Revenue Replacement Fund). However,
due to significant expense savings and revenues
exceeding the original budget projections, the
amount of long-term reserves needed for 2010
operations will decreased by $60 million to $190
million.
While the national recession commencing in 2007
officially ended in June of 2009, the impact of this
18 month recession – the longest since the end of
World War II – continues to dramatically reduce
City revenues. Since the peak year of 2007, the
City has lost $1.03 billion in economically sensitive
revenues, including the $297.1 million reduction
from the peak projected for 2011.
2011 RECOMMENDATIONS: LONG AND MID-TERM RESERVES
$ MILLIONS
TABLE 7
2009 2010 2011
Estimated Balance
on 12/31/2011
Budget Actual Budget Revised Budget
Skyway
Long-term reserve $ - $ - $ - $ - $ - $ 500
Long-term annual annuity 25 25 25 25 15
Mid-term annuity 50 50 50 50 50
Total $ 75 $ 75 $ 75 $ 75 $ 65
Parking Meter
Long-term reserve $ - $ - $ 250 $ 190 $ 120 $ 54
Long-term annual annuity 20 20 20 20 20
Mid-term annuity 50 50 150 100 83
Budget Stabilization “Rainy Day” 218 218 102 102 -
Total $ 288 $ 288 $ 522 $ 412 $ 223
Parking Meter Human Infrastructure Fund
$ 22

Grand Total $ 576
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Because these important revenue sources to the
City remain sluggish and well below 2007 levels,
the corporate fund will continue to rely on the use
of long-term reserves in 2011 to fund essential City
services. The 2011 budget recommends drawing
$119.9 million from the parking meter long-term
reserve fund, leaving an estimated balance of
$54.0 million on December 31, 2011.
In total, $75.9 million of parking meter reserves is
estimated for December 31, 2011. This represents
the $54.0 million in from the long-term reserve
and the $21.9 million estimated balance in the
parking meter human infrastructure fund.
MID-TERM RESERVES
Both the Skyway and parking meter transactions
established mid-term reserves and as scheduled,
$50 million will transfer into the corporate fund
from the Skyway mid-term reserve and $50 million
from the parking meter mid-term reserve in 2011.
The 2010 budget called for the advancement from
the originally scheduled parking meter mid-term
reserve of $100 million from 2012 into 2010.
However, due to significant expense savings
and revenues exceeding the original budget
projections, the 2011 budget recommendations
reflect moving one-half of the $100 million from
2010 to 2011.
OTHER PROCEEDS AND TRANSFERS-IN
General obligation debt restructuring will provide
for $91.9 million in resources available in 2011. An
additional $55 million of proceeds is anticipated as
the result of other financial initiatives, including
the monetizing and/or restructuring of other
financial transactions.
2008
$(108.10)
2009
$(308.60)
20 0
$(400.00)
$(200.00)

2010
$(317.55)
2011
$(297.15)
$(1,200.00)
$(1,000.00)
$(800.00)
$(600.00)
$1.03 billion
ECONOMICALLY SENSITIVE
REVENUES
$1.03 BILLION LOST SINCE 2007 PEAK YEAR
$ MILLIONS (BASED ON ACTIVITY MONTHS)
CHART 33
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SPECIAL REVENUE FUNDS
Special revenue funds are used to account for
revenue from specific taxes and other sources
that by law are designated to finance particular
functions. The 2011 proposed budget projects
special revenue fund resources of $445.7 million,
an increase of 6.2 percent over the 2010 year-end
estimate.
VEHICLE TAX FUND
The vehicle tax fund is used for City street repair
and maintenance. Vehicle tax fund revenue is
primarily generated through the sale of vehicle
stickers. This revenue source is expected to
generate $104.4 million in 2011.
The vehicle tax fund will also receive revenue from
impoundment fees, abandoned auto towing fees,
pavement cut fees, commercial refuse container
fees and reimbursements from other local, state
and federal funds for maintenance of the public
way (detailed in Appendix B of the 2010 Budget
Recommendations).
Total resources available to the vehicle tax fund
are projected to be $143.7 million in 2011.
MOTOR FUEL TAX FUND
The motor fuel tax fund is another source of
revenue for City street repair and maintenance.
The state imposes a 19 cent tax per gallon of
gas of which the City receives a distributive
share based on its population. In addition to this
regular distribution, the City anticipates additional
funding from the state as part of the Illinois Jobs
Now! program. Announced in September 2010,
the state intends to make a $100 million capital
investment in local transportation needs, of which
the City is estimated to receive approximately
$12.5 million in 2010 and additional funding in five
subsequent installments. Total resources available
to the motor fuel tax fund are projected to be
$66.2 million in 2011.
LIBRARY FUNDS
The City maintains Chicago Public Library funds for
maintenance and operations and for buildings and
sites. Including proceeds of debt supported by the
separate Chicago Public Library Property Tax Levy,
interest income, facility rental revenue, fines, and
prior-year unreserved balance, the total resources
available to the library funds are projected to be
$95.3 million in 2011 which includes a corporate
fund subsidy of $15.7 million.
2009
Actual
2010
Budget
2010
Year End
Estimate
2011
Proposed
Budget
Vehicle Tax Fund $133.4 $147.6 $139.5 $143.7
Motor Fuel Tax Fund 40.0 74.1 49.1 66.2
Library Funds 91.8 93.9 94.8 95.3
Emergency Communication Fund 75.9 76.5 72.6 71.8
Hotel Tax Fund* 23.5 23.1 23.0 36.6
Special Events Fund* 16.5 19.8 12.4 0.0
CTA Real Estate Transfer Tax Fund 25.4 22.8 28.2 26.1
TIF Administration Fund - - 0.0 5.9
Total $406.4 $457.8 $419.6 $445.7
SPECIAL REVENUE FUNDS
$ MILLIONS
TABLE 8
*The 2011 budget proposes to merge the Hotel Tax and Special Events Funds
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REvENuE /N/LY'l' - 'lECl/L REvENuE fuN0' CONTINUED
VEHICLE TAX FUND
MOTOR FUEL TAX FUND
2005 TO 2011 PROJECTED
CHART 34
2005 TO 2011 PROJECTED
CHART 35
$0
$20
$40
$60
$80
$100
$120
$140
$160
2005 2006 2007 2008 2009 2010
Estimated
2011
Projected
M
i
l
l
i
o
n
s
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
2005 2006 2007 2008 2009 2010
Estimated
2011
Projected
M
i
l
l
i
o
n
s
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EMERGENCY COMMUNICATIONS FUND
The emergency communications fund finances
expenditures related to the maintenance and
operation of the City’s emergency communications
and 911 Center. It is funded through the collection
of the emergency telephone system (911) surcharge
on all billed subscribers of telecommunications
services within the City. The surcharge is levied
at a rate of $2.50 per month per landline and
wireless connection. In 2011, the 911 surcharge is
projected to generate $94.2 million. This revenue
supports both the emergency communication
bond redemption fund and the emergency
communications fund. After funding debt service
of $22.3 million, the emergency communications
fund will reimburse the corporate fund for
the Office of Emergency Management and
Communications’ operating costs.
SPECIAL EVENTS AND HOTEL TAX FUND
The special events and hotel tax fund supports
the promotion of tourism in Chicago. It is funded
primarily by the municipal hotel occupation tax.
Historically two separate funds, the 2011 budget
proposes to merge the Special Events and Municipal
Hotel Tax funds.
Similar to the corporate fund hotel accommodations
tax, municipal hotel occupation tax collections
are beginning to experience some year-over-year
growth after several months of declines brought
on by the recession’s impact on tourism, business
travel and convention attendance. According to
hotel statistics maintained by the Convention and
Tourism Bureau, year-over-year average occupancy
rates are up 2.7 percentage points and average
room rates are down 2.4 percent, but have been
in the positive for the most recent months.
Hotel industry analysts are forecasting that
momentum wi l l conti nue to bui l d duri ng
the remainder of 2010 which will lead to the
beginning of a turnaround in 2011. Municipal
hotel tax collections for the 2010 year-end and
2011 projection account for these forecasts but
assume only 1.5 percent growth and still below
historical collections.
Proceeds from food and beverage ticket sales,
vendor fees and external corporate sponsorship at
City-sponsored events are projected to generate
$16.5 million in 2011.
Other revenues that support this fund include
revenues from the street furniture program and
ice rink rentals which are expected to remain level.
Total resources available to the special events and
hotel tax fund are projected to be $36.6 million
in 2011.
CTA REAL ESTATE TRANSFER TAX FUND
The CTA Real Estate Transfer Tax Fund supports
public transportation in the City. On April 1, 2008,
a supplemental real estate transfer tax became
effective for the purpose of providing financial
assistance to the Chicago Transit Authority
(CTA).
As discussed in the corporate fund City real estate
transfer tax section, real estate activity is expected
to remain constrained in 2011.
Total available resources to the CTA real estate
transfer tax fund are projected to be $26.1 million
in 2011.
TAX INCREMENT FINANCING ADMINSTRATION
FUND
In order to be in compliance with state law, the
2011 budget includes a new Tax Increment Finance
Administration Fund. In 2011, $5.9 million of
administrative expenses incurred by the City will
be reimbursed through Tax Increment Financing
administrative reimbursement.
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EMERGENCY COMMUNICATIONS FUND
SPECIAL EVENTS AND MUNICIPAL HOTEL TAX FUND
2005 TO 2011 PROJECTED
CHART 36
2005 TO 2011 PROJECTED
CHART 37
$0
$100
$200
$300
$400
$500
$600
2005 2006 2007 2008 2009 2010
Estimated
2011
Projected
M
i
l
l
i
o
n
s
State Sales Tax/ROT
City Sales Tax/HROT
$0
$10
$20
$30
$40
$50
$60
2005 2006 2007 2008 2009 2010
Estimated
2011
Projected
M
i
l
l
i
o
n
s
Special Events Fund - 356
Special Events and Municipal Hotel Operators'
Occupation Tax Fund - 355
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CITY PENSION CONTRIBUTIONS
TABLE 9
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PENSION FUNDS
The City currently contributes to four pension
funds as required by the Illinois Compiled Statutes.
The funds provide retirement, death and disability
benefits to covered employees. The four funds are:
The Municipal Employees’ Annuity and Benefit
Fund, Laborers’ and Retirement Board Employees’
Annuity and Benefit Fund, the Policemen’s
Annuity and Benefit Fund, and the Firemen’s
Annuity and Benefit Fund. In addition, certain
employees of the Chicago Board of Education also
participate in the municipal fund, for which the
City is required to satisfy employer contributions
through separate property tax levy and personal
property tax replacement revenues.

Prior to issuing the annual preliminary budget,
the City requests from pension fund actuaries
a determination on the contribution that the
City is required to incorporate within budget
recommendations. The following table illustrates
the City’s contribution.
Actuary analysis concluded that a total of $456.1
million will be required to meet the City’s legally
required employer contributions in 2011. This
obligation will be financed with $348.7 million
in property tax collections and $107.4 million in
personal property replacement tax collections.
Municipal Employees’ Annuity
and Benefit Fund
$129,038,000 X 1.25 = $161,297,000
Laborers’ and Retirement Board
Employees’ Annuity and Benefit Fund
$15,640,000 X 1.00 $15,640,000
Firemen’s Annuity and Benefit Fund
2
$38,913,000 X 2.26 $87,944,000
Policemen’s Annuity and Benefit Fund $95,615,000 X 2.00 $191,229,000
Total Resources
1
Multipliers are set in State statute.
2
An additional $1.3 million is set aside for the fund apart from the contribution calculation
due to State statute.
2009
Member
Contributions
Multiplier
Proposed Budget
1
2011
City Contribution
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DEBT SERVICE FUNDS
Debt service funds rely on property tax levies
and certain other revenues that are used for
the payment of principal and interest and the
redemption of general obligation bond issues.
Not including debt supported by other sources
than the City’s property tax, the 2011 budget
recommendations reflect a total appropriation of
$411.4 million to service general obligation debt.
This includes a property tax levy of $370.5 million.
Capital debt service funding for the Library capital
program will remain at $4.3 million.
General obligation debt can be used for any lawful
uses permitted by ordinance. Long-term debt will
be used to finance municipal facilities, projects
and certain equipment where it is appropriate to
spread the cost over more than one budget year. In
so doing, the City recognizes that future taxpayers
who will benefit from the investment will pay a
share of its cost. Short-term debt is appropriate for
some capital equipment purchases and to satisfy
the cash flow needs of the City on an extremely
limited basis.
Debt service accounts for 46.5 percent of the City’s
property tax levy not including the library debt.
As of August 2010, the City’s net direct long-
term general obligation debt, which includes
all general obligation debt except tender notes
and commercial paper, totaled $6.952 billion or
$2,400.67 on a per capita basis. This equates to
2.17 percent of the total estimated fair cash value
of property located within the City.
As of August 2010, the City’s bond ratings remain
high. Fitch has assigned a rating of “AA” and
Moody’s Investors Service has assigned a rating
of “Aa3”. The Standard & Poor’s rating of “AA-”
is the highest rating the City has received from
S&P since 1978.
DAILY TENDER NOTES
The City issues short-term debt through daily
tender notes to provide working capital for
several operating funds. The 2011 tender notes are
funded by the 2011 property tax levy. Proceeds
from tender notes are distributed to the library
operations funds.
OTHER DEBT SERVICE
Other debt service funds that do not rely on
property taxes are the emergency communication
bond fund and the sales tax bond redemption and
interest fund.
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REvENuE /N/LY'l' - EN!ERlRl'E fuN0'
ENTERPRISE FUNDS
Enterprise funds support the operation, main-
tenance, and capital costs of the City’s water
and sewer systems, and O’Hare and Midway
International Airports. The 2011 proposed budget
projects enterprise fund resources of $1.8 billion,
an increase of 0.6 percent over the 2010 year-end
estimate.
WATER FUND
The water fund is projected to have $493.1 million
in total available resources in 2011, of which water
fees are projected to generate $443 million, or
89.8 percent of total resources. An additional $28
million will be generated by transfers from other
funds for work performed by the Department
of Water Management. Miscellaneous resources
account for $21 million and interest income is
projected at $1.1 million.
SEWER FUND
The sewer fund is projected to have $209.3 million
in total available resources in 2011, of which sewer
fees are projected to generate $196.6 million, or
93.9 percent of total resources. In 2011, the sewer
rate is set at 86 percent of water fees collected
within the City. The remaining $12.7 million in
resources is the result of transfers and other
income.
O’HARE AND MIDWAY INTERNATIONAL
AIRPORT FUNDS
In accordance with airport use agreements, the
airport enterprise funds are supported by rental
and landing fees charged to the airlines and by
concessions and other revenues generated from
airport activities. After taking into account all non-
airline revenue sources, airline rates and charges
are adjusted to generate sufficient revenue to
operate the airports and to fund debt service
requirements.
In 2011, total projected revenues from O’Hare
and Midway operations, including concession and
rental fees, airport rates and charges and other
revenue sources, are projected to be $899.3 million
for O’Hare and $220.9 million for Midway.
Water Fund $457.7 $499.9 $493.1 $493.1
Sewer Fund 189.3 211.5 209.3 209.3
Midway Airport Fund 176.0 210.0 217.5 220.9
O’Hare Airport Fund 715.7 879.0 892.5 899.3
Total Resources $1,538.8 $1,800.5 $1,812.4 $1,822.6
2009
Actual
2010
Budget
2010
Year-End
Estimate
2011
Proposed
Budget
ENTERPRISE FUND APPROPRIATION SUMMARY
$ MILLIONS
TABLE 10
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E\lEN0l!uRE' /N0 lER'CNNEL
OVERVIEW
The proposed budget reflects expenditures for
2011 totaling $6.15 billion for all local funds. This
is a less than a 1.0 percent increase over the 2010
appropriation.
The City’s budgeted expenditures presented in
this Expenditures and Personnel section reflect
the City’s corporate and other local funds. As part
of an ongoing effort to increase transparency in
government, the Tax Increment Financing fund
is included as a local fund in the 2011 proposed
budget. In addition to local funds, many of the
City’s programs and services are also funded in
part by grant funds which are discussed in the
next section titled “Grants.”
City Departments are organized into functional
groups defined and discussed later in this section.
These groups are Finance and Administration,
Legislative and Elections, City Development,
Community Services, Public Safety, Regulatory,
I nfrastructure Servi ces and Publ i c Servi ce
Enterprises. The City budget also contains a Finance
General budget for citywide expenditures such as
pension obligations, debt service and employee
health care that is managed by the Office of
Budget and Management and the Department
of Finance.
Of the proposed 2011 budget, Finance General
and Public Safety represent 44.3 percent and
29.4 percent of the overall budget respectively.
Public Safety costs represent 57.6 percent of the
corporate fund budget, and together with an
estimated $323.6 million share of health care costs
in Finance General, these departments represent
67.5 percent of the proposed corporate fund
budget.
PUBLIC SAFETY SHARE OF THE 2011
PROPOSED CORPORATE FUND BUDGET
Al l Ot her
Depar t ment s
32.5%
Publ i cSaf et y*
67.5%
*Includes estimated share of employee benefits
CHART 38
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The next largest categories are Public Service
Enterprises, Finance and Administration and
Infrastructure Services with 9.4 percent, 7.3
percent and 5.6 percent of projected 2011 costs
respectively. City Development and Community
Services together represent 2.6 percent of the
2011 proposed budget for local funds. However,
these departments are funded primarily by grants
and receive only a small portion of funding from
corporate and other local funds.
The City’s personnel costs represent the most
significant portion of its budget needs. For
Chicago, more than 83 percent of corporate funds
are budgeted for personnel costs, which include
salaries, health care, overtime pay, Medicare
payments, workers’ compensation, vacation
and unemployment compensation. Collective
bargaining agreements with unions determine the
majority of these costs. The 2011 proposed budget
reduces the number of full-time positions across
all local funds by 0.7 percent, or 234 budgeted
positions eliminated across funds.
While the proposed 2011 budget decreases the
position count, the cost of the workforce increases
each year in wages, benefits and pension costs.
The majority of the City’s workforce is covered
by collective bargaining agreements which will
represent 29,859 of the local funds full time
positions, or 90.7 percent of the City’s total
positions. The City has agreements with collective
bargaining units for the proposed budget year
and rates for union covered employees are based
on those contractual agreements.
Finance and Administration $500.8 $481.7 -3.8%
Legislative and Elections 38.8 45.0 16.2%
City Development 68.5 58.3 -14.8%
Community Services 116.8 109.3 -6.4%
Public Safety 1,837.4 1,929.5 5.0%
Regulatory 63.6 55.1 -13.3%
Infrastructure Services 377.1 367.4 -2.6%
Public Service Enterprises 609.0 616.0 1.2%
General Financing Requirements 2,881.7 2,907.3 0.9%
Total - All Functions Before Reimbursements $6,493.6 $6,569.6 1.2%
Deduct Reimbursements Between Funds (317.0) (344.4) -
Deduct Proceeds of Debt (70.4) (70.4) -
Net Total Appropriations $6,106.1 $6,154.8 0.8%
2010
Budget
2011
Proposed Budget
%
Change
PROPOSED BUDGET BY FUNCTION
$ MILLIONS
TABLE 11
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The 2011 proposed budget anticipates funding
contractual increases for outstanding union
contracts within the Finance General budget. In
addition, the City’s agreements with bargaining
units represented by Coalition of Union Public
Employees (COUPE) and Unit II (civilian public
safety) to reduce personnel cost through reduced
work weeks, unpaid holidays and replacing some
overtime with compensatory time will continue
into 2011.
Health care costs represent $408.7 million or
12.5 percent of the proposed 2011 corporate
expenditures. Each year, the City must absorb
the added costs of employee health care. To
control this expenditure growth while supporting
healthy lifestyles among its employees, the
City aggressively negotiates with health care
plan providers and offers wellness and disease
management programs. In 2011, budgeted health
care costs for City employees and its annuitants
are $502.4 million net of contributions across all
local funds.
LOCAL FUNDS POSITION COUNT 10-YEAR HISTORY
CHART 39
38,802
37,918
37,127
35,881 35,870 35,867
35,730
35,000
36,000
37,000
38,000
39,000
40,000
33,621
33,156
32,922
29,000
30,000
31,000
32,000
33,000
34,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
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Finance and Administration 2,509 2,502 (7)
Legislative and Elections 358 358 -
City Development 140 231 91
Community Services 1,163 1,169 6
Public Safety 22,044 21,850 (194)
Regulatory 716 627 (89)
Infrastructure Services 2,806 2,768 (38)
Public Service Enterprises 3,420 3,417 (3)
Total - All Functions 33,156 32,922 (234)
2010
Budget
2011
Proposed Budget
2010-2011
Change
POSITION COUNTS BY FUNCTION
TABLE 12
UNION VS. NON-UNION POSITIONS
CHART 40
NonͲUnion
9.3%
Union
90.7%
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EMPLOYEE HEALTH CARE BUDGETS – ALL LOCAL FUNDS
$ MILLIONS
CHART 41
$411.7
$465.3
$502.4
$400 0
$450.0
$500.0
$550.0
M
i
l
l
i
o
n
s
/ /
$367.4
$374.9
$361.8
$374.4
$378.1
$150.0
$200.0
$250.0
$300.0
$350.0
$400.0
2004 2005 2006 2007 2008 2009 2010 2011Recs
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2011 PROPOSED EXPENDITURES
City departments are strategically organized into
eight functional categories. The functional units
include: Finance and Administration, Legislative
and Elections, City Development, Community
Services, Public Safety, Regulatory, Infrastructure
Services and Public Service Enterprises.
The Program and Budget Summary book
contains program descriptions, performance
data and budget allocation by program for each
City department contained in these budget
recommendations. Please refer to the Program and
Budget Summary for more detailed information
on each City department.
The fol l owi ng i s a bri ef overvi ew of the
proposed expenditures organized by functional
categories.
FINANCE AND ADMINISTRATION
The departments wi thi n the Fi nance and
Administration category manage the City’s
finances, human resources, legal functions
and day-to-day government operations. These
departments manage the City’s $6.15 billion
budget and ensure that funds are allocated
appropriately to achieve the City’s objectives and
maximize value for taxpayers. The Finance and
Administration departments are critical to ensure
that the City can provide direct services to citizens
in a timely and cost-effective manner.
The departments wi thi n thi s category are
responsible for the managing the City’s hiring
needs, technology resources, facilities and
vehicles. Trades people complete approximately
140,000 work orders annually to maintain and
enhance public buildings and more than 120,000
work orders to maintain the City’s vehicle fleet,
including police cars.
The 2011 budget for Finance and Administration
reflects the City’s commitment to efficiently
manage resources while continuing to provide
necessary services to both the City and Chicago
residents.
The departments that comprise the Finance and
Administration category include:
º Office of the Mayor
º Office of 8udget and Management
º De pa r t me nt of l nnov a t i on a nd
Technology
º Office of the City Clerk
º D e p a r t me n t o f I i n a n c e -C i t y
Comptroller
º Office of the City Treasurer
º Department of Revenue
º Department of Administrative Hearings
º Department of Law
º Office of Compliance
º Department of Human Resources
º Department of Procurement Services
º Department of General Services
º Department of Ileet Management
In total, the proposed budget recommends funding
the Finance and Administrative departments at
$481.7 million, a decrease of $19.1 million or 3.8
percent, from the 2010 budget. The number of
positions recommended for these departments
will decrease by seven from 2,509 to 2,502 in the
2011 proposed budget.
Significant changes in the recommended budgets
of Finance and Administrative departments
include:
The Department of Innovation and Technology’s
proposed budget reflects an increase of 4.6 percent,
or $1.1 million above the 2010 appropriation
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which is related to annual maintenance costs
for technology projects that have completed
development in 2010. These projects were focused
on changing processes in areas that will improve
the City’s service to residents and businesses while
also increasing revenue collection.
The Office of the City Clerk’s proposed budget
reflects a slight decrease of 1.1 percent, or
approxi matel y $100, 000 bel ow the 2010
appropriation as a result of non-personnel
decreases. In addition to non-personnel reductions,
the Office of the City Clerk will eliminate two
vacant positions in the proposed 2011 budget.
The Department of Revenue’s proposed budget
reflects an increase of 4.3 percent, or $2.2 million
above the 2010 appropriation due to higher non-
personnel costs related to contractual increases.
Although the overall budget will increase,
the department reduced its position count by
eliminating seven non-revenue generating
vacancies.
The Office of Compliance’s proposed budget
reflects an increase across local funds of 4.5
percent, or approximately $150,000 above the 2010
appropriation. This increase is primarily due to an
increase in non-personnel costs across local funds
to support the Supplier Diversity program, which
was previously referred to as Certification and
Compliance. The proposed budget also includes
a net reduction of four positions as a result of two
reorganizations. The first proposed reorganization
transfers the responsibility for Diversity and
Equal Employment Opportunity, along with six
positions, from the Office of Compliance to the
Department of Human Resources. The second
proposed reorganization completes the transfer of
employee training programs from the Department
of Human Resources to the Office of Compliance.
The transition of training responsibilities began
in 2010 and will be completed this year with the
transfer of two additional positions. The two
positions will work in the workforce compliance
division, which provides educational guidance and
training to City managers, employees, vendors and
delegate agencies.
The proposed budget for the Department of Human
Resources reflects a decrease of $1.4 million, or
18.9 percent from the 2010 appropriation. The
decrease is primarily attributable to the personnel
reductions through the elimination of 10 vacant
positions. The department’s budget also reflects
personnel changes as a result of proposing to
realign department responsibilities. As discussed
above, the proposed budget includes transferring
responsibility for employee training programs to
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the Office of Compliance and moving responsibility
for Diversity and Equal Employment Opportunity
from the Office of Compliance to the Department of
Human Resources. In addition, the Labor Relations
division will move from the Department of Human
Resources to the Department of Law in proposed
budget.
The Department of General Services’ proposed 2011
budget reflects a decrease of $22.5 million or 10.3
percent primarily attributable to reductions in non-
personnel expenses. The department’s proposed
non-personnel reductions include a savings of $16.1
million as a result of locking-in lower natural gas
prices, $5.2 million from lower contracted electricity
costs, $1.9 million due to lease reductions and
$700,000 in contractual office and building services.
The budget also includes the proposed consolidation
of the Graphics and Reproduction Center (GRC)
into the Department of General Services which
will transfer 32 positions valued at $1.8 million and
non-personnel items totaling $1.2 million into the
department. The personnel increase from the GRC
positions is offset by a reduction of 25 vacancies,
resulting in a net increase of seven positions over
the 2010 appropriation.
The Department of Fleet Management’s proposed
2011 budget reflects an increase of approximately
$360,000, or 0.3 percent from the 2010 appropriation.
The department’s budget increase is primarily due
to non-personnel costs related to the aviation fund.
The department’s personnel budget, however, will
decrease as a result of eliminating eight vacant
positions.
The proposed budget for the Department of
Procurement Services reflects a decrease of
$470,000, or 7.6 percent, attributable to both
personnel and non-personnel reductions. The
department’s proposed personnel budget reflects
a reduction of four positions, due to the elimination
of vacancies.
LEGISLATIVE AND ELECTIONS
The departments that comprise the Legislative and
Elections category include:
º City Council, City Council Committees and
the Legislative Reference Bureau
º 8oard of £lection Commissioners
In total, the proposed budget recommends funding
the Legislative and Elections departments at $45.0
million, an increase of $6.3 million, or 16.2 percent
from the 2010 budget. The number of positions
recommended for the Legislative and Elections
depar tments will remai n unchanged at 358
positions.
The Board of Election Commissioners’ proposed
budget requires a 47.3 percent increase, or $6.2
million above the 2010 appropriation to support
the Municipal General Election scheduled in 2011.
During the 2011 calendar year, the Board of Election
Commissioners will conduct a Municipal General
Election in the City of Chicago for the offices of
Mayor, City Clerk, City Treasurer and Aldermen and
Municipal Runoff and supplementary Aldermanic
el ecti ons i f necessar y. The maj ori t y of the
proposed increase is attributable to additional
seasonal staffing resources needed to conduct the
Election.
CITY DEVELOPMENT
The Ci t y Devel opment c at egor y i ncl udes
departments overseeing community, economic and
cultural development in Chicago. City Development
depar tments work wi th Chi cago resi dents ,
community groups, business and civic leaders,
as well as state and federal agencies to promote
economic development.
The City has a variety of strategies to encourage
and guide future economic development. One
important mechanism is Tax Increment Financing
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( TI F), whi ch uti l i zes publ i c i nves tment to
encourage private investment. For each dollar of
public investment, the City anticipates five dollars
of private investment in TIF areas. Through the
City’s incentive to invest in otherwise blighted
neighborhoods, TIF projects have proven successful
in improving neighborhoods.
The City also leverages public and private dollars
to achieve its Five-Year Affordable Housing Plan.
Both the Downtown Density Bonus and the Chicago
Partnership for Affordable Neighborhoods
are examples of how the City uses the private
development market to achieve the goal of having
enough affordable housing for all Chicagoans.
Cultural development, tourism and local special
events have a significant effect on the City’s
economy and enhance Chicago’s quality of life.
The City’s lakefront festivals draw more than
10 million people annually and attendance at
the SummerDance festival has nearly doubled
in the past three years. The City also provides
grants to more than 300 local artists and non-
profit organizations annually and develops and
implements public art programs.
The Depar tment s that compri s e the Ci t y
Development category include:
º Department of Housing and £conomic
Development
º Department of Cultural Affairs and Special
Events
In total, the proposed budget recommends
funding the City Development departments at
$58.3 million, a reduction of $10.1 million, or
14.8 percent, from the 2010 budget. The budget
decrease is primarily due to the elimination
or reduction of programs within the newly
merged Deparment of Housing and Economic
Development, as well as the shift of Parking Meter
Human Infrastructure funds from the corporate
fund to its own appropriated fund.
The t ot al budget ed pos i t i ons f or t hes e
departments will increase by 92, which is largely
due to the inclusion of many of the responsibilities
of the former Department of Zoning and Land Use
Planning into the new department. The position
count increase is also attributable to including 30
Tax Increment Finance funded positions in the
local funds budget.
The newly formed Department of Housing and
Economic Development was created by merging
most of the former Department of Zoning and
Land Use Planning with the Department of
Community Development to streamline and
bring efficiencies to the development process in
order to attract and facilitate these projects that
benefit the City’s economy. Zoning ordinance
administration, planning and land use policy,
l andmarks , sus tai nabl e devel opment and
mapping functions from the former Department
of Zoning and Land Use Policy will move to the
newly created department. The newly created
department will be responsible for the City’s
economic development activities.
The Department of Cultural Affairs and Special
Events is a newly merged department comprised of
the merger of the former Department of Cultural
Affairs with the Mayor’s Office of Special Events.
The new department will realize efficiencies and
synergies in planning, producing, and assisting
arts and entertainment programs in the City.
The 2011 budget for this department includes a
reduction in positions and a reduction in the non-
personnel budgets compared to the 2010 budget
of the combined departments. The reductions
represent cost-saving measures identified between
the programs and functions of the two legacy
departments. Despite the proposed position and
budget reductions, the department will maintain
free and beneficial, family-friendly and cultural
arts programs in 2011.
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COMMUNITY SERVICES
The City of Chicago is committed to serving its
families and communities and providing for
those most in need. To achieve these goals, the
departments within this category often partner
with delegate agencies that provide community-
based programming and assistive services. The
success of these departments is often measured
in long-term outcomes such as the health of
newborns, a child’s readiness to begin school or
a family’s ability to be self sufficient.
The City expects to serve approximately 110,000
patients at its health clinics in 2010. These are
primarily people who do not have private insurance
or the means to procure health care. Through its
Fast Tracks Clinics, the department will provide
an estimated 7,500 immunizations. This year, the
food safety inspectors (Sanitarians) will conduct
15,000 inspections of food establishments for
health code compliance.
The City delivers meals to nearly 10,000 needy
seniors. A current total of 16 senior satellite and
regional centers provide a place for seniors to
congregate, learn and recreate. Two new centers
will open in 2011.
The City annually handles approximately 25,000
calls for information and referral services for
people with disabilities. Additionally, 400 people
with disabilities were served by the Independent
Living Program.
In Chicago, more than 17,500 children are served
by Head Start and an additional 600 are enrolled
in Early Head Start. The City provides after school
programming for nearly 19,000 students, helps
approximately 4,000 students with a broad range
of job-readiness programs and places nearly
18,000 youth in summer jobs.
Six community service centers will serve more than
70,000 families in 2011. In 2010, the City expects to
provide more than 40,000 people with emergency
shelter throughout the year and to handle more
than 5,000 requests for crisis intervention. The
City responds to these needs immediately and,
based on the need for ongoing assistance, works
with families to help them attain long-term self
sufficiency. The proposed budget continues
funding for domestic violence programs, veterans
resources, the Plan to End Homelessness and
ex-offender re-entry initiatives.
The Chicago Public Library continues to host
inspiring programs to support all Chicago residents
in their enjoyment of reading and pursuit of
lifelong learning. The 51,000 children who
participated in the 2010 summer reading program,
“Art is Artageous”, read an average of 25 books.
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In 2011, annual circulation is expected to exceed
9.0 million materials. In addition to free reading
programs, Chicago Public Library continues to
offer free one-hour Internet sessions to the public.
In 2011, it expects to offer 2.9 million sessions,
equal to their 2010 projected total. In addition
to the various on-line subscription databases,
Sony Reader compatible eBooks and an audio
book catalog accessible to iPod users continues
to be offered. In order to better serve the one
million persons who visit a library building each
month, the Chicago Public Library will monitor the
progress of the self check-out stations initiated in
2010 for books at select branches.
The departments that comprise the Community
Services category include:
º Department of Public Health
º Department of Iamily and Support
Services
º Chicago Public Library
º Commission on Human Relations
º Mayor's Office for People with
Disabilities
In total, the 2011 proposed budget recommends
funding the Community Services departments
at $109.3 million, a decrease of $7.4 million or
6.4 percent, from the 2010 budget. Despite this
decrease, the number of budgeted positions in the
departments will increase by six. A major change
from the 2010 budget is that the Parking Meter
Human Infrastructure funds will be budgeted
outside of the corporate fund and in a separate
Parking Meter Fund. Many of the departments in
the Community Services category will experience
decreases based on the shift of these funds.
The Department of Public Health’s proposed
budget reflects a continued effort to generate
efficiencies and control costs. The department
eliminated five vacant positions, which will have
a minimal impact on the department’s current
service levels. The position reductions were off-
set by small increases to necessary non-personnel
items such as increased technology costs. The
changes in the 2011 budget will not affect the
ability of the department to service its clients,
but rather will provide the City’s overall budget
with slight relief while continuing to provide its
community health programs.
The Department of Family and Support Services
suppor ts coordinated ser vices designed to
assist Chicago’s most vulnerable residents, and
provides assistance to families on their pathway
to self-sufficiency, especially through this current
economic crisis. The department is comprised
of human services, senior services, children and
youth services, workforce development services,
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domestic violence programs and the City’s Plan
to End Homelessness. Because these services are
all under one unified department, numerous
ef fi ci enci es and i mprovement s to ser vi ce
delivery through program integration and the
maximization of funding sources have occurred.
There is virtually no change to the proposed 2011
budget as the $7.8 million reduction is primarily
attributable to the shift of the Parking Meter
funds from the corporate fund to a separately
appropriated fund.
The Chi cago Publ i c Li brar y proposed 2011
budget reflects an increase of $1.1 million or 2.1
percent. This proposed increase is attributable
to both personnel and non-personnel costs.
The department’s proposed budget reflects an
increase of 13 positions due to the anticipated
opening of four libraries branches in 2011.
Capital funds will allow the opening of Dunning,
Greater Grand Crossing, Little Village, and West
Humboldt Park library branches. The overall non-
personnel increase is attributed to data hardware,
telephone maintenance and rental equipment
and services.
The Commission on Human Relations proposed
2011 budget reflects a slight decrease, which
reflects the department’s contribution to the
City’s overall cost-cutting measures. While the
position count stayed level, there were non-
personnel expense reductions that will not impact
programs or services.
The proposed budget for the Mayor’s Office for
People with Disabilities will decrease by $650,000
or 38.4 percent. The reduction is primarily due to
transfer of the HomeMod program to the Parking
Meter Fund and the elimination of two vacancies
from the corporate fund budget. Other smaller
reductions include the transfer of the Youth
Employment program costs to a grant fund,
and the elimination of AccessChicago from the
2011 budget. The free, one-day AccessChicago
Expo will not take place in 2011, but will return
in 2012.
PUBLIC SAFETY
The City’s Public Safety departments further Mayor
Daley’s mission to make our neighborhoods safe
and our City secure. The City handles approximately
5.0 million calls annually for emergency service, 90
percent of which are answered within two rings.
The average dispatch time for police calls in which
a resident or police officer is in imminent danger
is only 4.4 minutes, while the average response
time for Emergency Medical Services is just 3.8
minutes.
The City receives more than 4.5 million calls
annually for non-emergency (311) services. Chicago
is recognized as a national leader in analyzing
requests from the public and using the information
to improve City services and programs.
The departments that comprise the Public Safety
category include:
º Chicago Police 8oard
º lndependent Police Review Authority
º Chicago Police Department
º Office of £mergency Management and
Communications
º Chicago Iire Department
In total, the proposed budget reflects funding
the Public Safety departments at $1.9 billion,
reflecting an increase of $92.1 million or 5.0
percent, from the 2010 budget. The proposed
budget reflects a decrease 194 civilian public
safety positions.
The 2011 proposed budget for the Chicago Police
Department reflects an increase of $73.2 million,
which is a 5.9 percent increase from the 2010
appropriation. This increase is tied directly to the
interest arbitration award for the police unions
which dictated a cumulative 10 percent wage
increase for the five-year period of July 1, 2007
through June 30, 2012.
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The Police Department’s budget reflects 189
fewer positions, 42 from layoffs, 17 reassigned
to OEMC and 130 vacancies eliminated. These
reductions will not impact the number of sworn
officers budgeted, which remains unchanged. In
addition, more than 300 able bodied officers have
been moved from administrative duties back to
neighborhood patrols.
The 2011 budget proposal for the Office of
Emergency Management and Communications
(OEMC) reflects an increase of $9.1 million or
10.5 percent, primarily attributable to moving
the Chicago Police Department information
service section to OEMC as part of information
technology consolidation. This move seeks to
leverage technology decisions across all public
safety agencies and reduce overall costs. Despite
the addition of the 17 positions from the Police
Information Service Division, OEMC’s budget
reflects a net loss of four positions through vacancy
reductions.
The proposed budget for the Chi cago Fi re
Department will increase by $9.6 million or 1.9
percent from the 2010 appropriation. The increase
is due to personnel cost, contractual obligations,
and aligning the Injury on Duty budget with
actual costs. The proposed budget reflects seven
fewer uniform exempt positions as a result of
management efficiencies which are balanced by
an increase in seven uniform strength positions.
As a result, the Fire Department’s sworn count will
remain unchanged for 2011.
SWORN PUBLIC SAFETY POSITIONS VS. CIVILIAN: 2002-2011
CHART 42
17,000
18,000
19,000
20,000
21,000
#ofCivilianPositionsͲ CitywideͲ LocalFunds
#ofBudgetedPositionsͲ Sworn(PublicSafety)
12,000
13,000
14,000
15,000
16,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
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REGULATORY
The departments wi thi n thi s category are
responsible for the day-to-day enforcement of
City ordinances, as well as compliance with local,
state and federal laws. Much of the enforcement
activity takes place through routine inspections or
inspections conducted as a result of a complaint.
The City inspects approximately 300,000 buildings
annually. The largest portion, approximately
105,000, represents annual compliance inspections.
Another 77,000 inspections are conducted as part of
the permitting process. The City reviews more than
39,000 construction permit applications annually.
Approximately 8,000 of these applications require
a standard plan review.
The City’s regulatory enforcement activities serve
to protect public health and safety and protect
consumers. The City conducts approximately
20,000 taxicab safety inspections annually and over
124,000 annual retail inspections, investigations
and tests. The City responds to approximately
64,000 service requests about animal-related
safety matters and receives and cares for more
than 21,000 animals each year at the City’s animal
care facility. The Commission on Animal Care and
Control protects residents and animals, including
strays and victims of inhumane treatment.
The City has achieved an 86 percent compliance
rate through its tobacco sales compliance program
and a 96 percent compliance rate on sales of
alcohol to minors. The City successfully enforces
the ordinance forbidding illegal dumping of
materials which has resulted in responsible parties
cleaning up waste in the amount of $4.0 million
in 2009 and an expected $6.0 million by the end
of 2010.
The departments that comprise the Regulatory
category include:
º Office of the lnspector General
º Department of 8uildings
º Department of 8usiness Affairs and
Consumer Protection
º Department of £nvironment
º Commission on Animal Care and Control
º License Appeal Commission
º 8oard of £thics
In total, the proposed budget recommends
funding the Regulatory departments at $55.1
million, a 13.3 percent decrease from the 2010
appropriation. The 2011 proposed budget for
this group of departments reflects a reduction
of 89 positions. The majority of the decrease is
due to the proposed merging of the Department
of Zoning and Land Use Planning with the
Department of Community Development to
create the Department of Housing and Economic
Development.
The Department of Business Affairs and Consumer
Protection’s (BACP) proposed budget will decrease
by $1 million or 6.8 percent, due to both personnel
and non-personnel expense reductions. In addition
to eliminating three non-revenue generating
vacancies, BACP’s budget reflects a reduction
of $525,000 that had been funded in 2010 for
Small Business Development. This program was
designed to provide access to capital and technical
support to small businesses with start up funds
from the 2010 budget. The program included
a small business loan loss pool that allowed
microlenders and community banks to expand
underwriting criteria for small business loans.
It also included a technical assistance training
component that provided training to City and
delegate agency staff to provide more in-depth
technical assistance for small businesses poised
to expand and grow. Given this approach, the
business community will benefit from the original
funding for several years.
The Department of Buildings’ proposed budget
reflects an increase of $700,000 or 2.7 percent.
The increase is due to moving the Developer
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Services permit review costs to the department’s
2011 anticipated expenditures. In prior years,
this expense was budgeted as a reduction in the
department’s permit revenues. Another change
in the proposed 2011 budget is moving the seven
zoning investigators from the former department
of Zoning and Land Use Planning to the Department
of Buildings. Despite the additional personnel, the
Department of Building’s position count reflects a
net reduction of 13 positions in local funds which
is the result of eliminating three vacancies and
transferring additional positions to grant funds.
The proposed budget for the Office of the
I nspector General remai ns l evel wi th the
revised 2010 appropriation. The revised 2010
appropriation transferred responsibility for
monitoring of the City’s hiring and employment
pursuant to Shakman Accord from the Office of
Compliance to the Office of the Inspector General.
As a result, the Office of the Inspector General is
now responsible for ensuring compliance with the
law and court-imposed protocols for the removal
of all vestiges of patronage and favoritism in hiring
and employment actions in City government.
INFRASTRUCTURE SERVICES
The departments that comprise the Infrastructure
Services category include:
º The Department of Streets and
Sanitation
º The Department of Transportation
In total, the proposed budget recommends
funding the Infrastructure Services departments
at $367.4 million, a decrease of $9.6 million, or 2.6
percent from the 2010 appropriation. The number
of positions recommended for the Infrastructure
Services departments will decrease by 38 positions,
from 2,806 positions to 2,768.
The proposed 2011 budget for the Department
of Streets and Sani tati on’s refl ects a 1. 1
percent decrease, or $2.6 million from the 2010
appropriation. The proposed budget reflects a net
decrease of 13 positions resulting from vacancy
reductions. In addition to the personnel changes,
the department’s proposed budget includes non-
personnel reductions in several areas.
The Chicago Department of Transportation’s
proposed 2011 budget recommendation reflects a
decrease of $7.0 million or 5.2 percent across local
funds when compared to 2010. The department’s
2011 budget includes a decrease of 25 positions
which is the result of vacancy reductions within the
department. In addition to personnel reductions,
the budget includes non-personnel reductions
due to reduced revenue from the Motor Fuel Tax
fund.
PUBLIC SERVICE ENTERPRISE
The Public Service Enterprise departments are
funded by user fees and include departments
that operate the City’s airports, water supply and
infrastructure.
The departments that comprise the Public Service
Enterprise category include:
º Department of Water Management
º Department of Aviation
The City of Chicago operates O’Hare and Midway
International Airports and includes the O’Hare
Modernization Program which is a comprehensive
initiative aimed at reconfiguring O’Hare’s runways.
The program is critical to reducing airport delays
and congesti on and to the si gni fi cant and
widespread impact of O’Hare and on the regional
economy.
The City supplies high-quality drinking water to
all of Chicago and 125 suburban communities. In
order to maintain its ability to deliver fresh water
and remove wastewater, the City will construct or
replace approximately 40 miles of water mains and
eleven miles of sewer mains in 2011.
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In total, the proposed budget recommends
funding the Public Service Enterprise departments
at $616.0 million, a increase of $7.0 million or 1.2
percent, from the 2010 budget. The number of
positions recommended for the Public Service
Enterprise departments will decrease by three
positions, from 3,420 positions to 3,417.
The Department of Aviation’s proposed 2011
budget will increase by 0.8 percent, or $3.0
million, due to contractual increases for a variety
of services including security, waste disposal and
the Airport Transit System.
The 2011 proposed budget for the Department of
Water Management reflects an increase of $4.0
million or 1.6 percent, primarily due to personnel
cost increases. The department’s 2011 proposed
position count remains level with 2010.
GENERAL FINANCING
REQUIREMENTS
General Financing Requirements, or Finance
General, represent cross-departmental expenses
that include employee benefits, contributions
to employee pension funds and long-term debt
payments. The Finance General proposed budget
for 2011 increases by 0.9 percent or $25.6 million
from the 2010 appropriation.
The proposed 2011 Finance General budget
includes a $37.1 million, or 8.0 percent, increase
in health care benefits for active employees and
annuitants. The majority of this increase is in active
employee health care costs which are projected
to increase $19.9 million or 5.6 percent over the
2010, net of contributions. Annuitant health care
costs are projected to increase by $17.3 million, or
15.8 percent over the 2010 appropriation, net of
contribution. In addition to regular inflationary
increases, each year the City bears a greater
portion of health care costs that it shares with
employees. Employee contributions are based
on salaries and when health care costs rise faster
than salaries the City must make up the difference.
The increase in employee health care costs also
reflects certain changes to employee health care
coverage mandated by the Patient Protection and
Affordable Healthcare Act.
The City’s required contribution to employee
pension funds are contained within Finance
General. In 2011, $456.1 million is required
to meet the City’s legally required employer
contributions.
The City’ funding for civilian employees who
are injured on duty is budgeted in Finance
General across funds. These expenses include
compensation for lost time as provided by State
statute, associated medical costs, investigation and
litigation costs, and settlements. This program,
administered by the Committee on Finance,
affects every department. The significant increase
in funding, $24.5 million, is provided to ensure
adequate resources are available to manage and
resolve claims in a timely and economical manner.
While this is an increase in funding for Fund 100
of $11.7 million, it is $2.0 million less compared
to the 2009 actual expenditures
General obligation bonds that support the City’s
Capital Improvement Program require a budget
to retire the debt service obligations. The Finance
General budget reflects a total of $585.0 million
within the debt service funds to support general
obligation debt and short term tender notes. Debt
service payments on special revenue or enterprise
fund supported capital projects are budgeted for
within the enterprise funds Finance General.
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Federal Programs not
Including ARRA
$1,276.4 $1,616.3 $1,526.0 $(90.3) (5.6)%
Federal AARA Stimulus
Program
462.9 555.0 365.2 (189.8) (34.2)%
State Government
Agencies
189.6 318.6 173.8 (144.8) (45.4)%
Public and Private
Agencies
26.6 24.3 30.2 6.0 24.7%
Federal Community
Development Block
Grant Program Income
4.5 3.3 5.2 1.9 57.6%
Other Grant Program
Income
11.4 18.6 20.5 2.0 10.8%
Total $1,971.3 $2,536.0 $2,121.0 $(415.0) (16.4)%
Grantor/Type
2010
YE Estimate
2010
Appropriation
2011 Estimate
2011
Appropriation
-2010
Estimate $
Change
2011
Appropriation
-2010
Estimate %
Change
The City receives grant funds from federal and
state agencies, foundations and other private
entities for specific purposes that support ongoing
services, programs and capital improvements.
The annual amount of appropriated grant funds
varies with the availability of grants to meet City
needs.
In 2010, the City estimated receiving grant revenue
of $2.5 billion. This amount includes an estimated
$555.0 million in American Reinvestment and
Recovery Act (ARRA) stimulus funding that was
approved in February of 2009 by President Obama.
ARRA funds are one time grants from 2009 to
2012 to be used as supplemental appropriations
for job preservation and creation, infrastructure
investment, energy efficiency and science,
assistance to the unemployed and state and local
fiscal stabilization. Since the announcement of
ARRA, grant opportunities have increased in
2010 and the City has made it a priority to seek
this grant support where available. The actual
2010 grant revenue received from the estimated
appropriation was $2.0 billion, of which $462.9
million was from ARRA funds.
In 2011, the City estimates receiving $2.1 billion
in grant revenue, which is a 5.6 percent decrease
in Federal funds; a 45.4 percent decrease in State
funds; an increase of 24.7 percent in private funds;
and an increase of 17.8 percent in program income.
It also reflects a 34.0 percent decrease in stimulus
funds. The overall grant revenue is expected to
decrease by 16.4 percent.
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$ MILLIONS
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Grant funds are received on various fiscal year
time periods, and many grants awarded to the
City are for multiple years. One example is the
ARRA funding which spans from 2009 to 2012. The
majority of carryover funds listed in the budget
is from multi-year grants, the estimated grant
carryover for 2011 is $673.3 million representing
31.7 percent of the total grant revenue.
This section summarizes grant fund changes from
the 2010 appropriation to the 2011 recommendation
with department groupings from the previous
Expenditure and Personnel section. The details
about the Community Development Block Grant
(CDBG) program which represents $93.1 million
of the 2011 recommendation for grant funded
programs, can be found in the 2011 Final Action
Plan.
Grantor/Type
2010
Appropriation
2011
Estimate
Change
Finance and Administration 51 54 3
City Development 104 103 (1)
Community Services 1,432 1,404 (28)
Public Safety 122 125 3
Regulatory 112 125 13
Total 1,821 1,811 (10)
GRANT POSITIONS SUMMARY
TABLE 14
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FINANCE AND ADMINISTRATION
The primary recipients of grant funding in the
Finance and Administration category are the
Office of Budget and Management, Department
of Innovation and Technology, Department of
Finance, Department of Law and Department
of General Services. The departments within
this section are not departments that typically
received grant funding; however in 2011 these
departments are expected to receive $120.1
million in grant funds. Of this, $11.1 million are
non-ARRA funds, which are projected to have level
funding in 2011.
The 2011 estimates also include $7.5 million in
ARRA carryover funding for energy efficient
upgrades and lighting retrofits that will be
managed by the Department of General Services.
In addition, the Department of Innovation and
Technology will receive $16.0 million from the
Federal Government’s $7.2 billion in broadband-
related grant opportunities. The two funded
Smart Chicago projects - Sustainable Broadband
Adoption and Public Computer Centers - will
expand computer access, technology training and
broadband adoption across Chicago.
CITY DEVELOPMENT
The City Development category includes the
Department of Housing and Economic Development
and the Department of Cultural Affairs and Special
Events. The departments within this category
anticipate an estimated $303.5 million in grant
funding for 2011, of which $218.1 million are
funds from the previous fiscal year.
The Department of Housing and Economic
Devel opment expects the Nei ghborhood
Stabilization Programs (NSP) I and II to carryover
$98.2 million along with the recently received
$16.0 million in NSP III funds for a total of
$114.2 million in 2011. The goal of the NSP I, II,
III are to stabilize neighborhoods by bringing
vacant foreclosed homes into compliance with
the municipal code and occupied as quickly as
possible in target areas. The funds will be used
for acquisition, rehabilitation and disposition of
vacant, foreclosed residential properties. The City
expects to assist up to 2,500 units over the next
3 to 5 years.
In addition, the Department of Housing and
Economic Development anticipates receiving
$1.5 million in estimated carryover funding in the
Community Development Block Grant - Recovery
(CDBG-R) for the Troubled Buildings Initiative
Distressed Condominium Program. The funds will
be used to facilitate the acquisition, rehabilitation
and recovery of distressed condominium buildings
identified via the Trouble Buildings Initiative
multi-family program.
The 2011 recommendation also includes $89.1
million for the Department of Housing and Economic
Development HOME Investment Partnerships
Program, which provides financial assistance to
affordable housing developers, homebuyers and
community-based organizations.
COMMUNITY SERVICES
The Community Services category consists of
the Department of Family and Support Services,
Chicago Department of Public Health, Department
of Human Relations, Chicago Public Library and the
Mayor’s Office for People with Disabilities (MOPD).
This 2011 budget recommendation estimates that
this category will receive $595.9 million dollars
in 2011 which includes $111.8 million in 2010
carryover funding. The grant funding estimates
for Community Services in 2011 include:
$21.5 million for the Area Plan on Aging, º
which provides advocacy and support for
seniors through several initiatives including:
Intake and Assessment Prevention in Long-
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Term Care Facilities , Elder Abuse and Neglect
Program and Elder Abuse Criminal Justice
Training Program.
$30.0 million in ARRA carryover for the º
Homel es s nes s Pr event i on and Rapi d
Re-housing Program which will continue to
help support:
º Homelesshess prevehIioh resources Io 8,500
households who are currently housed but
at immediate risk of homelessness;
º Rapid IrahsiIioh used Io relocaIe 900
households who are currently living in
a homeless shelter or interim housing
programs into permanent housing; and
º Housihg RelocaIioh ahd SIabilizaIioh
Services to provide services specific to
housing retention to households receiving
short-term or medium-term financial
assistance.
$22.5 million in Community Service Block Grant º
funding to target poverty and homelessness.
$143.3 million in Head Start, Early Head Start º
and ARRA Head Start program funding to
reach Infant-Toddler, Pre-School Aged Children
and School-Aged Children and their families
with quality child care, pre-school and other
supportive services. The 2011 Head Start grant
award provides continuing full and part day
Early Head Start and Head Start services to
eligible Chicago children ages 0 - 5.
$24.9 million in Workforce Investment Act º
funding for adult, dislocated workers and
summer youth employment training and
placement services.
$46.1 million for Employment Related Child º
Care program, which provides childcare to
eligible families for children ages six weeks
to twelve years.
$28.7 million for the Ryan White HIV CARE º
Act (Title I) to provide a comprehensive array
of services to persons living with AIDS in the
Chicago Eligible Metropolitan Area. Special
emphasis is given to minority populations
through the Minority AIDS Initiative.
$8.6 million for Public Health Emergency º
Preparedness, to develop staff and systems that
are ready to detect, investigate and respond to
bioterrorist incidents. Includes development
of a network of health professionals available
to respond when needed and creation of
communication channels to provide accurate
information to the public.
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PUBLIC SAFETY
The Office of Emergency Management and
Communications, Chicago Police Department,
and the Chicago Fire Department comprise the
Public Safety category. The total estimated grant
funding for Public Safety in 2011 is $294.7 million
which reflects $210.9 million in carryover funding.
Some of the primary grants include:
$27.6 million for the Chicago Police Department º
Byrne Justice Assistance Programs to improve
safety and investigative capacity through the
replacement of equipment and purchase of
vehicles.
$12.0 million for the Chicago Police Department º
COPS Hiring program to hire of 50 additional
sworn officers.
$30.3 million from the Transit Security Grant º
to support projects through the Chicago
Transit Authority including the Explosives
Detection Canine program, Visible Intermodal
Prevention, the Response Team and training
program.
$6.3 million in federal funding from the º
Assistance to Firefighters Grant, which
provides 1 year of financial assistance to local
fire departments with the objective to protect
citizens and firefighters against the effects of
fire and fire-related incidents. $131.0 million in
support for the Urban Areas Security Initiative
(USAI), of which $91.0 million is carryover.
The funds will be put towards Urban Area’s
Strategy and Preparedness Plan to prevent,
protect, respond and recover from any disaster
or emergency situation.
REGULATORY
The Regulatory departments are the Department
of Environment, Department of Buildings, Business
Affairs and Consumer Protection and Animal Care
and Control. The Department of Environment is the
primary recipient of grant funding in this group.
The departments in this group are expected to
receive level or reduced grant funding in 2011. The
expected grant funding for this category in 2011
is $59.7 million. Department of Environment will
carryover approximately $19.9 million dollars of
ARRA funding into 2011. Grant funding activities
for the this section include:
$1.0 million for the Weatherization Innovation º
Pilot Program to encourage innovation in the
delivery of weatherization services to low
income households.
$1.0 million for the Chicago Area Plug-in º
Electric Vehicle Support Project that will be
responsible for developing and implementing
an initial charging infrastructure for the
Chicagoland region.
$13.0 million for the Chicago Area Alternative º
Fuels Deployment grant — this is ARRA
carryover fundi ng that wi l l al l ow the
Department of Environment to implement the
Chicago Area Alternative Fuel Deployment
Project. This project proposes to deploy 554
alternative fuel hybrid vehicles and install
153 alternative fuel fueling electric vehicle
charging stations throughout the Chicago
region.
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INFRASTRUCTURE SERVICES
Streets and Sanitation and Chicago Department
of Transportation are the departments that
comprise this category with 2011 projected grant
funding at $511.3 million. The Infrastructure
Services estimated budget reflects a $313.0 million
decrease from 2010 appropriation. The biggest
portion of the decrease is $55.2 million from the
2010 ARRA funding with the remainder of the
decrease resulting from reduced State and other
Federal grant funds. The 2011 activity in this
category includes:
$20.8 million for High Priority/SAFETEA-LU º
(Legacy for Users) program whi ch i s a
reauthorization of the Federal Transportation
Bill for transit-related and street construction
improvements.
$101.6 million for Congestion Mitigation Air º
Quality program, a federal program financing
projects that will contribute to the attainment
of national ambient air quality standards in
designated non-attainment areas.
$60.7 million for Surface Transportation º
programs to resurface, reconstruct and
rehabi l i tate the Federal - Ai d Hi ghway
System.
$195. 2 mi l l i on for the Hi ghway Bri dge º
Program to fund bridge projects, such as
Wacker Drive.
$5.0 million in carryover ARRA funds – Energy º
Efficiency and Conservation Block Grant to
support energy efficient street lighting and
traffic lighting projects.
PUBLIC SERVICE ENTERPRISE
The Public Service Enterprise category consists
of the Department of Water Management
and the Department of Aviation. The 2011
recommendation for grant funded programs in this
category is $235.6 million which reflects a $30.2
million decrease from the 2010 appropriation. The
Department of Aviation is the primary recipient
of grant funding in this category with a 2011
projection of $235.5 million of which $68.5 million
are carryover funding for Department of Aviation
airport improvement programs.
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THE CAPITAL IMPROVEMENT
PROGRAM AND ITS
RELATIONSHIP TO THE ANNUAL
APPROPRIATION
The Capital Improvement Program (CIP) is the
City’s planned budget for the construction,
improvement, maintenance and replacement of
City-owned infrastructure and facilities that are
critical to support and enhance neighborhoods,
stimulate the economy and improve services.
When appropriate, the CIP includes enhancements
to improve efficiency or promote historic or
cultural characteristics of communities. The CIP is
published annually and is a five-year schedule of
infrastructure projects and a spending “blueprint”
based upon the most current revenue projections
and project priorities.
Whereas the operating budget, set forth in the
Annual Appropriation Ordinance, authorizes
expendi tures for one year that pri mari l y
support delivery of essential services, the Capital
Improvement Program (CIP) is a projection of costs
for projects that yield physical assets.
Both the CIP and the Annual Appropriation
Ordinance are policy documents that are used
to plan and manage resources and both are
influenced by the economy, federal and state
budgets and budget policies, and the needs of
Chicago citizens. The operating budget must
authorize expenditures for debt service associated
with capital project bonds and any additional
operating and maintenance costs associated
with municipal facilities that result from capital
programs.
Because capital programs and priorities must
be adjusted to respond to changing needs and
demands, capital improvement planning is an
ongoing process. New construction may be
required and existing infrastructure requires
periodic rehabilitation, replacement or other
improvements to protect the City’s previous
investments. The CIP is an outline of planned
expenditures for capital projects over the next five
years given available resources and is not intended
to provide an all-inclusive inventory of the City’s
capital needs.
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THE CAPITAL IMPROVEMENT
PROGRAM PROCESS
The CIP process begins at the start of the City’s
fiscal year and ends with the release of the CIP
in early summer and the Annual Appropriation
Ordinance process begins in the spring and ends
when the ordinance goes into effect on January
1st, of the next fiscal year.
The CI P devel opment process begi ns wi th
departments submi tti ng fi ve- year capi tal
improvement recommendations to the Office of
Budget and Management (OBM) in the winter.
OBM then prepares draft recommendations
for discussion at public hearings in the spring.
OBM then reviews the recommended plans and
prepares a revised CIP based on available funding,
and citizen and departmental recommendations
and publishes the final CIP in the summer.
2010-2014 CAPITAL
IMPROVEMENT PROGRAM
OVERVIEW
The 2010-2014 CIP allocates $1.8 billion for 2010
and more than $8.5 billion for 2010 – 2014. CIP
resources include general obligation bond issues,
TIFs, private sources and special assessments such
as the shared sidewalk program. Revenue bonds
support Water, Sewer and Aviation improvements
and state and federal funding contribute to
transportation and municipal improvements.
Major components of the 2010-2014 Capital
Improvement Plan are:
NEIGHBORHOOD AND TRANSPORTATION
INFRASTRUCTURE
In 2010, the neighborhood and transportation
infrastructure sections of the CIP are financed, in
part, with more than $97 million in neighborhood
capital improvement bonds. Projects in this
category of capi tal i mprovement i ncl ude
resurfacing of residential streets, replacement of
cracked and broken sidewalk and curb and gutter,
and construction of assessable curb ramps. New
residential lighting continues to be an important
investment in the neighborhoods as it provides
increased lighting levels and reduced tree branch
interference while reducing maintenance costs
and increasing reliability. All of these projects are
considered the core of the annual neighborhood
and transportation infrastructure sections of the
capital program.
The 2010-2014 CIP is a plan that works hand-in-hand
with other local agencies’ capital improvement
plans to enhance the city’s neighborhoods. In 2010,
we will continue the shoreline protection efforts
to rebuild the city’s lake front shoreline. We will
also continue to fund the popular Campus Parks
Program to create neighborhood open spaces
adjacent to our schools.
AVIATION AND O’HARE MODERNIZATION
PROGRAM
The 2010-2014 CIP includes $767.2 million for 2010
and $4.2 billion over the plan’s five year period,
for improvements at both Midway and O’Hare
International airports, including the O’Hare
Modernization Program. This funding will be
generated by revenue bonds, passenger facility
charges and Federal Airport Development Aid.
These funds will provide for security improvements,
airfield rehabilitation and residential and school
sound insulation at both Midway and O’Hare as
well as construction projects within the OMP.
When fully implemented, a modernized O’Hare
Airport will more efficiently move people and
goods, create additional growth opportunities for
area businesses, and create new jobs throughout
the region.
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SEWERS
The 2010-2014 CIP includes $207.9 million for 2010
and $839.5 million over the plan’s five year period
for sewer system capital improvement program
totals. The Department of Water Management
is responsible for approximately 4,400 miles of
sewers, 225,000 drainage structures and 148,000
manholes. In 2010 more than 12 miles of sewers
will be reconstructed and over 40 miles of sewers
are anticipated to be lined and rehabilitated. The
sewer capital plan provides for the replacement
of deteriorated or undersized sewers based upon
physical inspection, maintenance and repair
records, and hydraulic expansion. Construction
costs are about $4million per mile for most
sewers and substantially more for the sewers
in the downtown area. The financing for the
improvements comes from current and prior
year revenue bonds and anticipated future year
revenue bonds and the three year rate increase
initiated in the 2008 budget support additional
bonds for capital improvements.
WATER
The 2010-2014 CIP includes $191.3 million for
2010 and $1.4 billion over the plan’s five year
period for improvements to capital assets
in the Department of Water Management’s
water system which included cribs, intake and
distribution tunnels, two purification plants, 12
pumping stations, 4,230 miles of distribution
and feeder mains and 162,000 water meters.
The department’s capital plan is designed to
improve water service and increase reliability.
Specific activities include maintaining the City’s
two purification plants, upgrading various
pumping stations, increasing available water
supply by installing new and replacing old
grid mains and replacing unreliable meters to
ensure proper accountability of water use. As
with sewer projects, financing for water system
improvements comes from revenue bonds
whose continued financing is supported by the
2008 rate increases.
Bond funds $1,198.9 64% $5,862.5 68%
Federal funds 458.8 25% 1,114.1 13%
State funds 71.7 4% 342.1 4%
City funds 82.6 4% 898.8 10%
TIF funds 43.2 2% 52.7 1%
Other funds 14.4 1% 314.4 4%
Total $1,869.4 100% $8,584.6 100%
2010 2010-2014
CITY OF CHICAGO CAPITAL IMPROVEMENT PLAN
FUND RESOURCES
$ Millions
TABLE 15
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CHICAGO PUBLIC LIBRARY
The mission of the Library’s capital improvement
program is to update branch library buildings
through new constructi on, consol i dati on or
renovation of existing facilities. The Library’s capital
program is designed to minimize maintenance and
rental costs, provide safe structurally sound and
inviting facilities, and ensure that current and future
service needs area met. The Chicago Public Library
consists of the downtown Harold Washington
Library Center, two regional libraries and 76 branch
libraries. Two new branches will be opened in the
fall of 2010, one of which is a replacement branch.
In 2011another three libraries will be added to the
system. As these additional branch location have a
direct budget impact, the Library’s 2011 operating
budget has been increased to cover additional
personnel required.
For more information on the City’s 2010–2014 CIP,
please refer to the Capital Improvement Program
2010–2014 book available for viewing at any branch
of the Chicago Public Library or on-line through the
OBM web site.
PROJECTED PROJECTS
Projected projects to be funded as
part of the 2010 CIP include:
Reconstructing 12 miles of sewers and lining º
and rehabilitating an additional 40 miles;
Resurfacing more than 500 blocks of local º
streets;
Constructing 30 blocks of alleys and resurfacing º
70 more;
Repl ac i ng mor e t han 120 bl oc ks of º
sidewalks;
Installing 100 blocks of new residential street º
lighting;
Beginning or continuing construction of º
several major bridges: Wacker Drive at the
Congress Interchange; Laramie Avenue
Viaduct at Polk Street; Halsted Street over
North Branch Canal and Lawrence Avenue
over the Kennedy Expressway;
Installing new or upgraded traffic signals at º
35 intersections;
Continued construction of West Humboldt º
Park, Greater Grand Crossing, Little Village
and Dunning Branch Libraries; and
Completing construction of the 23rd District º
Police Station and extensive rehabilitation of
Area 2, District 5 headquarters.
BUDGET 2011
HOW CHICAGO BUDGETS
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Each year, the City prepares its annual budget that
accounts for the City’s revenue from taxes and other
resources and a plan for what the City intends to
spend over the course of the following year. In
accordance with the State of Illinois Municipal
Code, the City produces a balanced budget.
Beginning in the summer, City departments inform
the Office of Budget and Management (OBM)
of their needs for personnel and non-personnel
expenses for the upcoming year. OBM prepares the
Preliminary Budget based on requests submitted
by the departments and funds the City expects will
be available for these needs. By Executive Order,
the Preliminary Budget is filed with the City Clerk
on or before July 31st of each year. Copies are
made available to the City Council and the general
public.
The City conducts annual Preliminary Budget
Hearings to allow citizens to express their opinions
concerning items within the proposed budget.
After receiving input from Chicago residents,
the Mayor and the Budget Director meet with
Commissioners from the City departments to
develop one final budget for the entire City
government. When these steps are complete, the
City compiles the Mayor’s proposed budget, which
is then introduced to the City Council.
The City Council holds departmental and public
heari ngs on the budget and may propose
amendments to it.
Once the budget is approved by the City Council,
it becomes the Appropriation Ordinance. The
Appropriation Ordinance is implemented on
January 1st of the following year.
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BUDGET DOCUMENTS
The City seeks to produce budget documents that
satisfy the criteria established by the Government
Finance Officers Association (GFOA) Distinguished
Budget Program. The City’s budget documents this
year include:
PRELIMINARY BUDGET
The Preliminary Budget contains information on
the previous year’s revenues and expenditures
based upon financial unaudited data. Released in
late summer, it is a midyear analysis of the current
year’s budget and an estimate of revenues and
expenditures for the next fiscal year.
BUDGET OVERVIEW AND REVENUE ESTIMATES
The Budget Overview and Revenue Estimates
provides a complete summary of the proposed
budget and is written for a general audience.
The Budget Overview and Revenue Estimates
al so contai n detai l ed i nformati on on the
City’s anticipated revenues, expenditures and
positions.
BUDGET RECOMMENDATIONS
In accordance with Illinois State Law, on or before
November 15th of each year, the Mayor submits
the administration’s budget recommendation to
the City Council. The Budget Recommendations
contain the line-item detail for all local funds of
the proposed budget.
PROGRAM AND BUDGET SUMMARY
The Program and Budget Summary is a companion
publication to the Budget Recommendations and
provides an overview of the City’s programs and
services, as well as annual performance data. The
performance data reflects monthly reporting
by City departments, which in turn is the basis
for regular accountability meetings between
departments and City executives. Throughout
the year, City officials make policy changes and
adjust resources in order to achieve performance
goals. On an annual basis, performance data is
used to make budgetary decisions for the coming
year. The Program Budget and Summary provides
the personnel and non-personnel costs for all City
programs and lists all funding sources supporting
each department and bureau.
DRAFT ACTION PLAN
The Draft Acti on Pl an presents programs
and resources that address key housing and
community development needs identified by the
City. The Draft Action Plan details a proposed
comprehensive annual budget for the City’s
Community Development Block Grant, Emergency
Shelter Grant, Home Investment Partnership Grant
and Housing Opportunities for Persons with AIDS
Grant programs.
FINAL ACTION PLAN
The Final Action Plan is the City of Chicago’s
approved annual budget for the City’s Community
Development Block Grant, Emergency Shelter
Grant, Home Investment Partnership Grant, and
Housing Opportunities for Persons with AIDS Grant
programs which is submitted to the U.S. Department
of Housing and Urban Development for funding
consideration. The final text incorporates public
comments gathered during a 30-day comment
period.
ANNUAL APPROPRIATION ORDINANCE
The Annual Appropriation Ordinance is the City
of Chicago’s line-item budget, as passed by City
Council.
CAPITAL IMPROVEMENT PROGRAM
The Capital Improvement Program book is a
comprehensive list of capital improvements
scheduled to occur in the City over the next five
years. It is released annually in the summer.
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MARCH
Draft Capital Improvement Plan is released.
JUNE
Departments submit preliminary revenue and
expense estimates to the Office of Budget and
Management (OBM).
JULY
In accordance with the Municipal Code, the
City files the proposed Preliminary Budget
estimates with the City Clerk and presents
them to City Council and the general public;
The five-year Capital Improvement Plan book
is released.
AUGUST/SEPTEMBER
The Mayor holds public hearings on the
proposed Preliminary Budget that allow the
public to provide input on the development of
the City budget; OBM receives detailed budget
requests from departments; OBM holds a
series of hearings with each department.
With the public and department input, OBM
works to balance department requests with
available resources.
OCTOBER
The Mayor submits a proposed budget to City
Council for review before November 15th in
accordance with Illinois State Law. The budget
is available for public review. The City Council
conducts hearings on the budget, including at
least one public hearing to gather comments
on the proposed programs and budgets
recommended in the Draft Action Plan.
NOVEMBER/DECEMBER
Addi ti ons or changes to the proposed
budget are considered; City Council must
approve a balanced budget by December
31st. The Final Action Plan is submitted to
the U.S. Department of Housing and Urban
Development for funding consideration.
Budget recommendations become the Annual
Appropriation Ordinance.
JANUARY
The City’s Annual Appropriation Ordinance
goes into effect.
THROUGHOUT THE YEAR
Throughout the year, OBM manages the
resources provided through the Annual
Appropriation Ordinance. On a weekly and
monthly basis, the OBM reviews revenues
and expenditures and any trends or events
that may affect these. On a monthly basis,
City departments provide information about
how well City programs and services are
performing to ensure that budget resources
maximize taxpayer value.
8u0CE! C/LEN0/R
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INTRODUCTION
The City’s financial policies provide the basic
framework for the fiscal management of the City.
These policies are developed within the parameters
of the established provisions of the City’s Municipal
Code and the Illinois Municipal Code, and are
intended to assist the City Council, the Office of
Budget and Management, the Office of the City
Treasurer, the Department of Finance and the
Department of Revenue in evaluating current
activities and proposals for future programs.
The policies adhere to the City’s commitment to
maintain internal control, safeguard assets and
meet fiduciary responsibilities. Reserve, capital,
and debt management and fixed asset policies
are included. These policies are reviewed and
modified to accommodate changing circumstances
and conditions.
FINANCIAL PLANNING POLICIES
The City adopts its annual budget in the context of
a long-term financial outlook emphasizing high-
quality municipal services.
The corporate fund’s long-term outlook considers
assumptions for revenues, expenditures and
changes to fund bal ance. The assumpti ons
are evaluated each year as part of the budget
development process.
All City expenditures are approved by City Council
through the Annual Appropriation Ordinance.
BALANCED BUDGET
In accordance with the Illinois Municipal Code (065
ILCS 5/8-2-6), the City develops a balanced budget
every year.
OPERATING POLICIES
Pursuant to the City’s Municipal Code (2-32-010,
2-32-03), the Department of Finance provides core
fiscal functions and manages the disbursement
of City funds. The City Comptroller is the fiscal
agent of the City and exercises general supervision
over all City officers charged with the receipt,
collection or disbursement of City revenues and
all funds required to be in the custody of the City
Treasurer.
Pursuant to Municipal Code (2-32-060) revenue
policies, the City Treasurer receives all monies
belonging to the City. At the end of each month,
the City Treasurer issues a sworn statement to the
Comptroller showing the state of the treasury at
the date of such account and the balance of the
money in the treasury.
REVENUE POLICIES
The City maintains a diversified and stable revenue
base to protect it from short-term fluctuations
in any single revenue source. The City estimates
its annual revenues by objective and analytical
processes. Revenues are responsibly estimated
and updated twice yearly. To support its revenue
system, the City does the following:
º Lstablishes user charges and fees. as
permitted by law at a level related to the
cost of providing that service. including
indirect costs.
º Pursues legislative change. where
necessary. to authorize adjustments in
user fees. and
º Collects tax revenues owed to the City.
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Revenue Diversification
A diversified and stable revenue system shelters
the City from short-term fluctuations in any single
revenue source.
User Fees and Charges
Periodically, the City recalculates the cost of
selected activities currently supported by user fees
and charges to identify the effect of inflation and
other cost increases. The City sets fees and user
charges for each enterprise fund, such as Water
and Sewer, at a level that fully supports the total
direct and indirect costs of operation. The City
reviews the cost of services it provides for the
potential implementation of user fees and charges
on an annual basis.
GRANTS POLICIES
Pursuant to Executive Order 91-1, the City identifies
and applies for federal, state, and private grants
to support its initiatives and programs not paid for
by taxes. The City’s grants management process
requires that all grant applications, renewals and
awards be approved to ensure that each grant
supports the City’s mission and conforms to City
policies and that grant funds are fully developed
and expended according to grantor guidelines.
Grant budgets are established to include the
City’s administrative costs for program operations
including employee fringe benefits. Expected
grants and cash donations are appropriated
annually through the budget process, passed by
the City Council and published in the City’s Annual
Appropriation Ordinance.
OBM creates a quarterly report of grant activity
citywide. Grant revenue is reported annually as
Fund 925.
EXPENDITURE POLICIES
The Ci ty appropri ates suffi ci ent funds for
operating expenditures necessary to maintain
an established scope and quality of City services.
The City continually examines its services in order
to reduce operating expenditures, and enhance
the scope and quality of services it provides to
taxpayers.
Personnel
Pursuant to Municipal Code (2-74-010), personnel
expenditures reflect the minimum staffing needed
to meet the social, economic and program needs
of Chicago residents. To attract and retain
employees, the City endeavors to maintain a
compensation and benefit package competitive
with the public and, when quantifiable, private
services industries.
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The City adheres to the Employee Benefit and
Compensation Plan which governs compensation
administration and benefits for all City positions
that are regul ated by the Mayor and Ci ty
Council.
Vendors
The City utilizes contracted vendors for the
provision of the goods and services required
to meet the needs of the people of Chicago.
Contractors that can perform the required level
of services at a lower cost and more efficiently
and effectively than City personnel are used as
necessary.
Most Ci ty contracts are awarded through
competitive bidding processes. Contracts for goods
and services with a value of more than $100,000
are awarded by competitive sealed bid after public
advertisement. Contracts for goods and services
with a value of less than or equal to $100,000
are considered “small orders” and are awarded
through a simplified process of mailed or faxed
bid solicitations, without public advertisement.
Bids for contracts valued under $250,000 may be
solicited by telephone when a good or service
is necessary to meet a genuine emergency.
Competitive procurements based on qualifications
and pricing are used for professional services, such
as engineering or accounting, and other instances
in which the legislature has determined that the
public interest is best served by not engaging in
a bid process. Goods that can only be obtained
from a single source may be purchased without a
competitive process, but both the absence of other
sources and the justification for the purchase must
be fully documented.
The City also implements other policies through
its contracts for goods and services. Pursuant
to Municipal Code (2-92-430), the Department
of Procurement Services establishes a goal of
awarding at least 25 percent of the annual dollar
value of all contracts to qualified minority-
owned businesses and five percent of the annual
dollar value of all contracts to qualified women-
owned businesses. In addition, pursuant to
Municipal Code (2-92-610), City contractors and
their subcontractors are required to pay a living
wage to covered employees while contracted
with the City. City construction contracts require
the use of City residents for at least 50% of the
workforce on a project, and require contractors to
pay the prevailing wage established by the Illinois
Department of Labor for their work. All vendors
are required to disclose persons that own 7.5% or
more of the business so that the City may enforce
its decisions to bar non-responsible vendors from
gaining City contracts.
CAPITAL DEBT MANAGEMENT
DEBT CAPACITY, ISSUANCE AND MANAGEMENT
The City issues debt to ensure future taxpayers,
who will benefit from investment, will pay a share
of its costs and will confine long-term borrowing
and capital leases to capital improvements,
projects or equipment that will not be financed
from current resources.
Any capital project or equipment funded through
the issuance of bonds is financed for a weighted
average period not to exceed the life of the
project or equipment. The City maintains strong
communication about its financial condition with
bond and credit rating institutions.
The City issues debt in a manner that complies with
state and federal laws, existing bond covenants
and prudent financial management.
OPERATING/CAPITAL EXPENDITURE
ACCOUNTABILITY
Capital assets are defined as assets or a network
of assets with an initial cost that exceeds $5,000
and with an estimated useful life in excess of one
year for all capital. Existing capital equipment is
replaced when needed to ensure the optimal
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productivity and safety of City employees and
residents. Existing capital equipment associated
with corporate fund operations depreciates by
charges to the departments using the equipment.
Expenditures for additional capital equipment
are made only to maintain or enhance employee
productivity, improve quality of service or expand
scope of service.
INVESTMENT CASH
MANAGEMENT
INVESTMENT POLICY
The City’s Investment Policy ensures that all
funds provide the highest investment return
using authorized instruments while meeting
the City’s daily cash flow demands in conformity
with the City’s Municipal Code. The Investment
Policy ensures the safety of principal, while
managing liquidity requirements of debt service
and other financial obligations, providing the
highest investment return using authorized
investment instruments, and promoting economic
development in the City.
City investments are undertaken in a manner that
seeks to ensure the preservation of capital in the
portfolio. To attain this objective, diversification
is required to ensure that the City Treasurer
prudently manages market, interest rate and
credit risk. All investments are fully payable (both
principal and interest) within ten years from the
date of purchase. The investment portfolio is
designed to obtain the highest available return,
taking into account the City Treasurer’s investment
risk constraints and cash flow needs. A variety of
financial instruments and maturities, properly
balanced, help to ensure liquidity and reduce
risk or interest rate volatility and loss of principal.
Diversifying investments and maturities avoids
incurring unreasonable risks in the investment
portfolio regarding specific security types, issuers
or individual financial institutions.
The City’s Municipal Code authorizes the City
Treasurer to invest funds in certain classes of
securities. The City’s Investment Policy has been
prepared in accordance with the Public Funds
Investment Act (30 ILCS 235/2.5). The City will
maintain an investment policy based on the
Government Finance Officers Association Model
Investment Policy.
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CASH MANAGEMENT
The Comptroller’s Office, the Office of Budget
and Management, the Chief Financial Officer and
the Office of the City Treasurer meet regularly to
manage the City’s cash flow.
The Department of Revenue col l ects and
deposits all funds on a schedule which ensures
cash availability. The Office of the City Treasurer
invests funds to yield financial security, integrity
and liquidity.
FINANCIAL RESERVE
The City develops a balanced budget every year. In
the event of a surplus at the end of the year, the
City budgets that surplus in the next year.
The City established a $500 million long-term
reserves from the lease of the Chicago Skyway in
2005. The interest on this reserve is included as
part of the City’s budget each year.
The City establishes and maintains operating
reserves in its enterprise funds to pay for expenses
caused by unforeseen emergencies or shortfalls
caused by revenue declines.
RISK MANAGEMENT
The City operates a risk management program to
minimize financial losses and protect residents and
City employees. The program limits exposure to
accidental and catastrophic losses, protects assets
and assures continuity of operations.
FINANCIAL REPORTING
The City maintains a high standard of accounting
practices in conformance with uniform financial
reporting in Illinois and Generally Accepted
Accounting Principals (GAAP) in the United States
as promulgated by the Governmental Accounting
Standards Board.
An Independent Certified Public Accounting
firm performs a financial audit annually and an
official opinion and annual financial report are
published.
The Comprehensive Annual Financial Report
(CAFR) presents the status of the City’s finances
on a basis consistent with GAAP.
The City fully discloses information about its
financial position by way of budget reports and
audits.
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8/'l' Cf 8u0CE!lNC
The basis of budgeting refers to when revenues
and expenditures are recognized in the City’s
accounts.
Generally, the City prepares and presents the annual
budget on a modified accrual basis of accounting,
with the exception of property taxes. Modified
accrual basis of accounting is an accounting method
that measures the performance and position of a
company or, in this case, a government agency, by
recognizing revenue when earned as long as the
revenue is collectible within the period or soon
enough to be used to pay liabilities of the current
period.
The City accounts for revenues as soon as the
revenues are both measurable and available.
Revenues are considered available when they
are deemed collectible either during the account
period or soon enough thereafter. Revenues are
used to pay liabilities that apply to the account
period.
The City records revenues from licenses and permits,
charges for services and other miscellaneous
revenues when the revenues are received in cash
at the time of service. For budgeting, property
taxes are considered revenue for the year in which
they are levied.
Appropriations include both cash payments and
encumbrances, or funds that are committed
pursuant to a contract, that are related to the
fiscal year. Expenditures are generally recorded
when an event or transaction occurs.
The City’s budgetary basis of accounting used for
budgeting differs from the City’s actual GAAP basis
reporting. The key differences are:
º 1he CiIy budgeIs ehcumbrahces as expehdi-
tures, whereas the GAAP basis reflects encum-
brances as reservations of fund balance.
º 1he CiIy's budgeI classi!es as revehues boIh
long-term debt proceeds and operating
Irahs!ers-ih, whereas CAAP classi!es Ihese as
oIher !hahcial sources.
º 1he CiIy does hoI budgeI doubI!ul accouhI
expenditures, an account that has been delin-
quent for a period of at least ninety (90) days,
and where collection is unlikely; however,
doubtful account expenditures are reported
under GAAP.
º 1he CiIy budgeI classi!es Ihe prior year's sur-
plus as revenue, whereas GAAP records it as a
portion of fund balance.
Appropriations are made at the line item and/or
account level, and presented by fund and by City
department. All annual appropriations lapse at
year end if they remain unused and unencumbered.
Encumbered appropriations are carried forward
to the following year.
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BUDGET 2011
BUDGET DETAILS
O v e r v i e w a n d R e v e n u e E s t i m a t e s
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SAMPLE TABLES
This section contains Revenue, Expenditure, Personnel and Grant tables that summarize the 2011 Budget
Recommendations. The below diagrams clarify the table layouts. The Expenditure and Personnel table
layouts are identical and, therefore, only an Expenditure table is included below.
HOW TO READ BUDGET DETAIL
REVENUE
Year-End Budget
Estimate Projection
($ millions) 2005 2006 2007 2008 2009 2010 2011
Public Utility Taxes & Fees
Electricity Use 101.6 $ 96.7 $ 102.3 $ 99.5 $ 93.7 $ 100.4 $ 98.8 $
Electricity IMF 92.8 89.4 94.6 92.2 86.9 92.9 91.2
Telecommunications 147.7 140.8 154.4 158.9 152.5 144.3 147.7
Natural Gas Utility 109.0 105.9 102.9 120.2 94.0 83.8 86.4
Natural Gas Use 25.1 26.1 27.4 33.0 32.8 32.4 33.5
Cable Television 15.9 16.7 19.3 21.0 21.4 22.0 22.0
Total - Public Utility Taxes & Fees 492.1 $ 475.5 $ 501.0 $ 524.8 $ 481.3 $ 475.9 $ 479.5 $
Actual
Revenue Category
Current Year
Estimate
Next Year
Pr oj ecti on
Revenue Sources
Hi stori cal Col l ecti ons
EXPENDITURES
2011 2010-2011
($ millions) 2007 2008 2009 2010 Proposed % change
Finance and Administration
Office of the Mayor 6.54 $ 7.56 $ 6.70 $ 6.24 $ 6.13 $ -1.7%
Office of Budget & Management 2.68 2.69 2.07 1.85 2.08 12.1%
Department of Innovation and Technology 15.42 15.14 14.06 24.32 25.44 4.6%
City Clerk 9.33 9.64 9.94 9.17 9.06 -1.1%
Department of Finance 15.31 16.11 15.71 14.58 14.78 1.4%
City Treasurer 2.28 2.36 2.18 2.14 2.15 0.7%
Department of Revenue 47.83 50.04 47.78 50.73 52.90 4.3%
Department of Administrative Hearings 7.15 7.27 8.21 7.20 7.28 1.1%
Department of Law 36.96 36.65 34.36 32.27 33.36 3.4%
Office of Compliance - 2.49 2.88 3.31 3.46 4.5%
Department of Human Resources 8.58 6.82 8.15 7.29 5.91 -18.9%
Department of Procurement Services 9.77 9.39 8.21 6.20 5.73 -7.6%
Department of General Services 187.64 203.53 204.28 218.40 195.86 -10.3%
Department of Fleet Management 115.13 123.65 132.71 117.14 117.50 0.3%
Total - Finance and Administration 464.62 $ 493.34 $ 497.24 $ 500.84 $ 481.67 $ -3.8%
Appropriation
Expenditure Category
Hi stori cal
Appropri ati ons
Next Year
Recommendati on


Department Names
Current
Appropri ati on
REVENUE
EXPENDITURES
GRANTS
($ millions)
2010
Appropriation 2010 Actual
2011 New
Grants #
Prior Year(s)
Carryover
2011
Projected
Total #
2010Appr. -
2011
Projected $
change
City Development
Department of Cultural Affairs and Special Events * 4.8 $ 3.2 $ 5.4 $ - $ 5.4 $ 0.7 $
Mayor's Office of Special Events 0.2 0.1 - - - (0.2)
Department of Housing and Economic Development ** 323.0 333.6 79.9 218.2 298.1 (24.9)
Total - City Development 327.9 $ 337.0 $ 85.4 $ 218.2 $ 303.5 $ (24.4) $
Next Year
Esti mates
Current Year Actual to
Appropri ati on
Expenditure Category
Department Names
GRANTS
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REVENUE
THE CORPORATE FUND
$ MILLIONS
TABLE 16
Year-End Budget
Estimate Projection
2005 2006 2007 2008 2009 2010 2011
Public Utility Taxes & Fees
Electricity Use 101.6 $ 96.7 $ 102.3 $ 99.5 $ 93.7 $ 100.4 $ 98.8 $
Electricity IMF 92.8 89.4 94.6 92.2 86.9 92.9 91.2
Telecommunications 147.7 140.8 154.4 158.9 152.5 144.3 147.7
Natural Gas Utility 109.0 105.9 102.9 120.2 94.0 83.8 86.4
Natural Gas Use 25.1 26.1 27.4 33.0 32.8 32.4 33.5
Cable Television 15.9 16.7 19.3 21.0 21.4 22.0 22.0
Total - Public Utility Taxes & Fees 492.1 $ 475.5 $ 501.0 $ 524.8 $ 481.3 $ 475.9 $ 479.5 $
City Sales Tax/HROT
Total - Home Rule Occupation Tax 220.6 $ 266.3 $ 265.4 $ 243.5 $ 224.9 $ 229.8 $ 233.5 $
Transaction Taxes
Real Property Transfer 236.3 $ 242.3 $ 205.8 $ 119.5 $ 61.9 $ 70.9 $ 65.3 $
Personal Property Lease Transaction 82.5 90.2 92.1 119.3 112.2 104.1 105.2
Motor Vehicle Lessor Tax 6.3 6.5 6.9 6.3 5.6 5.4 5.5
Total - Transaction Taxes 325.2 $ 339.0 $ 304.7 $ 245.1 $ 179.6 $ 180.5 $ 175.9 $
Transportation Taxes
Parking Tax 81.7 $ 83.6 $ 88.1 $ 85.3 $ 93.1 $ 92.0 $ 92.8 $
Vehicle Fuel Tax 61.0 60.3 58.1 54.9 53.9 47.4 47.8
Ground Transportation Tax 9.3 8.8 9.1 8.6 8.8 9.0 9.0
Total - Transportation Taxes 152.0 $ 152.8 $ 155.2 $ 148.7 $ 155.9 $ 148.4 $ 149.6 $
Recreation Taxes
Amusement Tax 53.1 $ 57.5 $ 68.8 $ 69.0 $ 79.1 $ 82.7 $ 81.8 $
Auto Amusement Tax 1.4 1.3 1.3 1.1 1.2 1.2 1.2
Boat Mooring Tax 0.9 1.3 1.1 1.3 1.4 1.3 1.3
Liquor Tax 19.6 20.1 21.0 32.0 32.1 32.0 32.0
Municipal Cigarette Tax 27.5 32.9 28.4 24.3 21.0 18.7 18.7
Non-Alcoholic Beverage Tax 10.7 10.9 11.5 18.8 18.1 18.8 18.8
Off Track Betting 2.0 2.0 1.8 1.5 1.3 1.4 1.4
Total - Recreation Taxes 115.2 $ 126.1 $ 133.9 $ 148.0 $ 154.0 $ 156.0 $ 155.1 $
Business Taxes
Hotel Tax 46.3 $ 59.7 $ 61.9 $ 64.3 $ 50.1 $ 52.1 $ 52.9 $
Employers' Expense Tax 22.7 22.9 23.6 23.9 23.9 22.0 19.6
Foreign Fire Insurance Tax 4.3 4.4 4.4 4.1 5.5 4.8 4.5
Total - Business Taxes 73.3 $ 87.1 $ 89.9 $ 92.3 $ 79.6 $ 78.9 $ 77.0 $
TOTAL LOCAL TAXES 1,378.6 $ 1,446.8 $ 1,450.1 $ 1,402.4 $ 1,275.2 $ 1,269.4 $ 1,270.7 $
Proceeds & Transfers In
Skyway Long-Term Reserve Interest 25.0 $ 25.0 $ 25.0 $ 25.0 $ 25.0 $ 25.0 $ 15.0 $
Skyway Mid-Term Reserve 50.0 50.0 50.0 50.0 50.0 50.0 50.0
Parking Meter Revenue Replacement Fund Interest - - - - - 20.0 20.0
Parking Meter Revenue Replacement Fund - - - - 20.0 190.0 119.9
Parking Meter Mid-Term Reserve - - - 100.0 50.0 100.0 82.8
Parking Meter Budget Stabilization Fund - - - - 217.6 102.4 -
Proceeds & Transfers In-Other 58.3 40.1 79.5 84.2 111.9 85.9 206.9
TOTAL PROCEEDS & TRANSFERS IN 133.3 $ 115.1 $ 154.5 $ 259.2 $ 474.6 $ 573.3 $ 494.6 $
Actual
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REVENUE CONTINUED
THE CORPORATE FUND
$ MILLIONS
TABLE 16
Year-End Budget
Estimate Projection
2005 2006 2007 2008 2009 2010 2011
Actual
Intergovernmental Revenue
State Income Tax 212.9 $ 232.3 $ 253.5 $ 268.8 $ 201.0 $ 201.7 $ 267.9 $
State Sales Tax/ROT 250.4 271.1 277.8 274.6 251.7 258.0 263.1
Personal Prop Replacement Tax (Corporate Share) 94.6 82.3 124.2 109.7 50.8 30.8 42.0
Municipal Auto Rental Tax 3.2 3.7 3.8 3.8 3.4 3.2 3.2
Reimbursements 2.1 2.8 3.4 2.3 1.7 1.7 1.7
TOTAL INTERGOVERNMENTAL 563.2 $ 592.2 $ 662.7 $ 659.3 $ 508.6 $ 495.3 $ 577.9 $
Licenses & Permits
Alcohol Dealers License 11.7 $ 11.9 $ 17.1 $ 11.4 $ 12.1 $ 10.3 $ 9.8 $
Business Licenses 20.4 20.3 29.7 21.8 22.2 19.8 18.2
Building Permits 42.5 36.9 51.4 31.0 16.2 17.0 21.4
Other Permits and Certificates 39.4 42.2 42.4 43.4 42.7 40.7 39.1
Prior Period Fines 6.8 6.5 7.5 7.1 7.3 7.4 6.8
Total - Licenses & Permits 120.9 $ 117.7 $ 148.2 $ 114.7 $ 100.5 $ 95.2 $ 95.4 $
Fines, Forfeitures & Penalties
Total - Fines 194.5 $ 203.0 $ 220.6 $ 257.5 $ 252.5 $ 258.4 $ 254.4 $
Charges for Services
Inspection 10.3 $ 13.7 $ 12.4 $ 10.8 $ 14.7 12.5 $ 11.2 $
Health 0.8 0.9 1.1 1.1 0.7 - -
Information 1.0 1.1 0.8 0.8 0.8 0.8 0.8
Safety 36.4 60.0 56.1 43.8 50.3 51.7 65.5
Other Charges 7.8 7.4 12.6 13.2 11.6 11.5 11.4
Current Expenses 11.0 6.6 7.7 7.2 9.4 8.4 8.4
Total - Charges for Services 67.2 $ 89.7 $ 90.8 $ 76.9 $ 87.5 $ 84.9 $ 97.2 $
Municipal Parking
Total - Municipal Parking 23.2 $ 26.5 $ 28.1 $ 28.8 $ 9.1 $ 6.8 $ 6.8 $
Leases, Rentals & Sales
Sale of Land 23.5 $ 2.7 $ 12.4 $ 0.3 $ 0.8 $ 7.5 $ 8.8 $
Vacation of Streets 5.8 5.2 3.0 4.7 1.8 0.5 0.5
Sale of Impounded Autos 0.2 0.2 0.1 0.2 0.1 0.2 0.2
Sale of Materials 0.9 1.0 2.0 3.1 2.1 1.5 1.1
Rentals and Leases 4.1 5.0 5.3 5.5 6.0 5.8 5.8
Total - Leases, Rentals & Sales 34.5 $ 14.2 $ 22.8 $ 13.8 $ 10.7 $ 15.6 $ 16.5 $
Interest Income
Total - Interest Income 5.9 $ 12.9 $ 10.1 $ 3.1 $ 3.0 $ 3.0 $ 3.0 $
Internal Service Earnings
Enterprise Funds 109.6 $ 115.3 $ 118.3 $ 117.9 $ 128.2 $ 128.4 $ 133.8 $
Special Revenue Funds 52.3 44.1 55.5 102.9 96.2 91.0 93.4
Intergovernmental Funds 38.8 31.2 43.2 32.7 27.7 30.3 88.7
Other Reimbursements 49.6 62.8 66.0 46.7 37.0 22.8 33.8
Total - Internal Service Earnings 250.2 $ 253.4 $ 283.0 $ 300.2 $ 289.1 $ 272.6 $ 349.6 $
Other Revenue
Total - Other Revenue 25.9 $ 12.6 $ 19.1 $ 19.1 $ 25.4 $ 21.2 $ 84.7 $
TOTAL NON-TAX REVENUE 722.4 $ 730.0 $ 822.6 $ 814.0 $ 777.8 $ 757.6 $ 907.6 $
TOTAL CORPORATE FUND REVENUE 2,797.4 $ 2,884.0 $ 3,089.9 $ 3,135.0 $ 3,036.3 $ 3,095.7 $ 3,250.9 $
Prior Year Unreserved Fund Balance 42.2 $ 57.6 $ 26.8 $ 4.6 $ 1.5 $ 2.7 $ 9.4 $
TOTAL CORPORATE FUND RESOURCES 2,839.7 $ 2,941.7 $ 3,116.7 $ 3,139.6 $ 3,037.7 $ 3,098.3 $ 3,260.2 $
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REVENUE CONTINUED
SPECIAL REVENUE FUNDS
$ MILLIONS
TABLE 17
Year-End Budget
Estimate Projection
2005 2006 2007 2008 2009 2010 2011
Vehicle Tax Fund - 300
Vehicle Sticker Tax 96.7 $ 95.1 $ 97.8 $ 98.7 $ 105.7 $ 104.4 $ 104.4 $
Impoundment Fees 13.3 16.1 16.4 13.5 10.8 11.0 11.0
Abandoned Auto Towing 0.2 0.1 0.1 0.1 0.0 0.0 0.0
Sale of Impounded Autos 6.1 5.2 5.7 7.5 2.5 4.1 4.1
Pavement Cut Fees 3.6 5.0 3.1 4.6 3.7 4.1 3.1
Commercial Refuse Container Fee - - - - 6.9 6.9 6.9
Other Resources 22.9 19.9 19.9 28.5 17.3 16.5 16.6
Total Fund Revenue 142.8 $ 141.4 $ 142.9 $ 152.8 $ 146.9 $ 147.0 $ 146.0 $
Prior Year Unreserved Fund Balance (5.7) (10.7) (10.8) (33.8) (13.5) (7.5) (2.3)
Total Fund Resources 137.1 $ 130.8 $ 132.1 $ 119.0 $ 133.4 $ 139.5 $ 143.7 $
Motor Fuel Tax Fund - 310
Motor Fuel Tax Distribution 84.5 $ 83.3 $ 83.0 $ 75.8 $ 74.2 $ 73.0 $ 73.3 $
Proceeds of Debt - - - - - - 5.6
Interest and Other 0.4 0.4 - 0.1 1.5 12.6 6.2
Total Fund Revenue 85.0 $ 83.7 $ 83.0 $ 75.9 $ 75.6 $ 85.6 $ 85.2 $
Prior Year Unreserved Fund Balance (1.3) 4.6 (12.3) (15.6) (35.6) (36.5) (19.0)
Total Fund Resources 83.7 $ 88.2 $ 70.7 $ 60.3 $ 40.0 $ 49.1 $ 66.2 $
Special Service Area Number One
Maintenance - 326
Property Tax Levy 1.1 $ 1.1 $ 0.9 $ - $ - $ - $ - $
Transfer from Corporate Fund 0.9 0.9 0.9 - - - -
- $
Total Fund Revenue 2.0 $ 2.0 $ 1.8 $ - $ - $ - $ - $
Total Fund Resources 2.0 $ 2.0 $ 1.8 $ - $ - $ - $ - $
Library Funds: Buildings and Sites - 342,
Maintenance and Operation - 346
Proceeds of Debt 50.8 $ 33.0 $ 27.9 $ 70.4 $ 70.4 $ 70.4 $ 70.4 $
Corporate Fund Subsidy 17.0 30.5 42.5 16.0 13.8 15.7 15.7
Rental of Facilities 0.2 0.2 0.2 0.2 0.4 0.5 0.5
Interest 1.1 0.7 0.5 0.8 0.1 0.1 0.1
Fines 1.3 1.5 1.6 1.8 2.6 2.9 2.9
Skyway Proceeds 5.0 5.0 - - - - -
Transfers In 1.1 1.1 3.3 2.8 - - -
Other Revenue 0.0 0.0 0.1 0.0 1.0 0.0 0.0
Total Fund Revenue 76.6 $ 72.1 $ 76.1 $ 92.0 $ 88.3 $ 89.6 $ 89.6 $
Prior Year Unreserved Fund Balance 4.7 6.1 (2.1) (2.4) 3.5 5.2 5.7
Total Fund Resources 81.28 $ 78.1 $ 74.0 $ 89.5 $ 91.8 $ 94.8 $ 95.3 $
Emergency Communication Fund - 353
Telephone Surcharge 31.9 $ 25.1 $ 29.8 $ 82.8 $ 75.8 $ 73.1 $ 71.8 $
Total Fund Revenue 31.9 $ 25.1 $ 29.8 $ 82.8 $ 75.8 $ 73.1 $ 71.8 $
Prior Year Unreserved Fund Balance (5.5) (1.3) (1.2) 0.3 0.2 (0.5) -
Total Fund Resources 26.4 $ 23.8 $ 28.6 $ 83.2 $ 75.9 $ 72.6 $ 71.8 $
Actual
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REVENUE CONTINUED
SPECIAL REVENUE FUNDS
$ MILLIONS
TABLE 17
Year-End Budget
Estimate Projection
2005 2006 2007 2008 2009 2010 2011
Actual
Special Events and Municipal Hotel
Operators' Occupation Tax Fund - 355
Hotel Operator's Tax 13.8 $ 16.7 $ 17.7 $ 18.4 $ 14.0 $ 14.6 $ 14.8 $
Recreation Fees and Charges - - - - - - 16.5
Rental and Charges - 0.4 - - - 0.8 0.8
Proceeds of Debt 7.1 6.8 7.0 1.0 2.5 2.5 2.5
Interest and Other 1.4 0.4 7.3 7.4 6.5 6.5
Total Fund Revenue 22.3 $ 23.9 $ 25.1 $ 26.8 $ 23.8 $ 24.4 $ 41.1 $
Prior Year Unreserved Fund Balance 0.2 0.0 1.5 (0.9) (0.4) (1.5) (4.5)
Total Fund Resources 22.5 $ 23.9 $ 26.6 $ 25.8 $ 23.5 $ 23.0 $ 36.6 $
Special Events Fund - 356
Recreation Fees and Charges 21.3 $ 21.8 $ 22.5 $ 23.3 $ 19.5 $ 17.5 $ - $
Interest 0.1 0.2 0.1 0.1 0.0 0.0 -
Total Fund Revenue 21.4 $ 22.0 $ 22.6 $ 23.4 $ 19.5 $ 17.5 $ - $
Prior Year Unreserved Fund Balance (0.4) 0.4 (1.0) (0.5) (3.1) (5.2) -
Total Fund Resources 21.0 $ 22.4 $ 21.6 $ 22.9 $ 16.5 $ 12.4 $ - $
City Relief Fund - 660
Proceeds of Debt 17.0 $ 12.6 $ 3.6 $ 0.8 $ - $ - $
Transfer in - - - 9.2 - -
Total Fund Revenue 17.0 $ 12.6 $ 3.6 $ 10.0 $ - $ - $ - $
Prior Year Unreserved Fund Balance (7.3) (4.3) (5.6) (10.3) - -
Total Fund Resources 9.7 $ 8.3 $ (2.0) $ (0.3) $ - $ - $ - $
CTA Real Property Transfer Tax Fund - 0B09
Real Property Transfer Tax-CTA Portion - $ - $ - $ 30.4 $ 25.4 $ 28.4 $ 26.1 $
Total Fund Revenue - $ - $ - $ 30.4 $ 25.4 $ 28.4 $ 26.1 $
Prior Year Unreserved Fund Balance - - - - (0.0) (0.2) -
Total Fund Resources - $ - $ - $ 30.4 $ 25.4 $ 28.2 $ 26.1 $
Tax Increment Financing Administration
Fund - 0B21
TIF Administrative Reimbursement - $ - $ - $ - $ - $ - $ 5.9 $
Total Fund Revenue - $ - $ - $ - $ - $ - $ 5.9 $
Prior Year Unreserved Fund Balance - - - - - - -
Total Fund Resources - $ - $ - $ - $ - $ - $ 5.9 $
TOTAL SPECIAL REVENUE 398.9 $ 382.8 $ 384.9 $ 494.1 $ 455.3 $ 465.7 $ 465.8 $
TOTAL SPECIAL REVENUE RESOURCES 383.7 $ 377.5 $ 353.4 $ 430.9 $ 406.4 $ 419.6 $ 445.7 $
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REVENUE CONTINUED
PENSION FUNDS
$ MILLIONS
TABLE 18
Year-End Budget
Estimate Projection
2005 2006 2007 2008 2009 2010 2011
Municipal Employees' Annuity and
Benefit Fund - 681
Property Tax Levy 131.3 $ 127.6 $ 125.7 $ 124.4 $ 126.7 $ 126.8 $ 121.3 $
Personal Prop Replacement Tax 22.2 22.4 22.3 21.3 30.3 36.2 34.3
Library Property Tax Levy - - 5.7 5.7 5.7
Interest 0.4 0.8 0.5 0.4 - - -
Proceeds of Debt 10.0 - - 2.5 0.0 - -
Total Fund Revenue 163.9 $ 150.8 $ 148.5 $ 148.7 $ 162.7 $ 168.7 $ 161.3 $
Laborers' and Retirement Board
Employees' Annuity and Benefit Fund -
Property Tax Levy - $ - $ - $ 0.6 $ 9.5 $ 13.7 $ 11.8 $
Personal Prop Replacement Tax - - - - 4.0 4.5 3.9
Proceeds of Debt - - - 15.5 - - -
Total Fund Revenue - $ - $ - $ 16.1 $ 13.4 $ 18.2 $ 15.6 $
Policemen's Annuity and Benefit Fund -
683
Property Tax Levy 125.8 $ 128.1 $ 125.3 $ 136.8 $ 135.2 $ 140.2 $ 143.8 $
Personal Prop Replacement Tax 18.6 26.5 22.1 24.9 40.9 46.3 47.4
Interest - - 0.5 0.5 0.1 - -
Proceeds of Debt 20.0 - - 12.2 - - -
Total Fund Revenue 164.4 $ 154.7 $ 147.9 $ 174.4 $ 176.2 $ 186.4 $ 191.2 $
Firemen's Annuity and Benefit Fund -
684
Property Tax Levy 53.8 $ 74.8 $ 63.7 $ 63.8 $ 63.4 $ 64.3 $ 66.1 $
Personal Prop Replacement Tax 5.8 16.6 11.3 10.6 20.8 21.2 21.8
Interest - - 0.2 0.2 0.0 - -
Proceeds of Debt - - - - - - -
Total Fund Revenue 59.6 $ 91.5 $ 75.3 $ 74.6 $ 84.3 $ 85.5 $ 87.9 $
TOTAL PENSION FUNDS 387.9 $ 396.9 $ 371.6 $ 413.7 $ 436.6 $ 458.9 $ 456.1 $
Actual
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REVENUE CONTINUED
DEBT SERVICE FUNDS
$ MILLIONS
TABLE 19
Year-End Budget
Estimate Projection
2005 2006 2007 2008 2009 2010 2011
Sales Tax Bond Redemption and Interest
Fund - 505
Home Rule Retailers Occupation Tax 26.3 $ 19.2 $ 25.5 $ 28.8 $ 26.0 $ 26.0 $ 26.7 $
Interest and Other - 0.4 0.6 0.1 96.7 - -
Total Fund Revenue 26.3 $ 19.6 $ 26.1 $ 28.9 $ 122.7 $ 26.0 $ 26.7 $
Prior Year Unreserved Fund Balance - (0.5) (0.9) (0.3) - (0.8) -
Total Fund Resources 26.3 $ 19.1 $ 25.2 $ 28.6 $ 122.7 $ 25.2 $ 26.7 $
Equipment Note Redemption and Interest
Fund - 509
Property Tax Levy 11.4 $ 12.4 $ - $ - $ - $ - $ - $
Transfer In 1.7 1.8 1.8 - - - -
Other Revenue - - -
Total Fund Revenue 13.1 $ 14.2 $ 1.8 $ - $ - $ - $ - $
Prior Year Unreserved Fund Balance - 1.8 - - -
Total Fund Resources 13.1 $ 15.9 $ 1.8 $ - $ - $ - $ - $
General Obligation Bond Redemption and
Interest Fund - 510
Property Tax Levy 307.2 $ 311.4 $ 290.9 $ 338.4 $ 364.1 $ 368.4 $ 370.5 $
Transfer In - - - - - 33.0 -
Other Revenue 9.3 9.3 2.1 18.0 65.0 29.3 38.1
Total Fund Revenue 316.5 $ 320.6 $ 293.0 $ 356.4 $ 429.1 $ 430.7 $ 408.6 $
Prior Year Unreserved Fund Balance 18.5 9.0 - 13.9 - 3.0 13.0
Total Fund Resources 335.0 $ 329.6 $ 293.0 $ 370.2 $ 429.1 $ 433.7 $ 421.6 $
Daily Tender Note Redemption and Interest
Fund - 512
Property Tax Levy 16.2 $ 12.7 $ 3.9 $ - $ - $ - $ - $
Transfers In & Interest - - - - - - -
Total Fund Revenue 16.2 $ 12.7 $ 3.9 $ - $ - $ - $ - $
Prior Year Unreserved Fund Balance - - - - - -
Total Fund Resources 16.2 $ 12.7 $ 3.9 $ - $ - $ - $ - $
Library Bond Redemption and Interest Fund -
516
Property Tax Levy - $ - $ - $ - $ 6.0 $ 4.3 $ 4.3 $
Total Fund Revenue - $ - $ - $ - $ 6.0 $ 4.3 $ 4.3 $
Prior Year Unreserved Fund Balance - - - - 0.3 - -
Total Fund Resources - $ - $ - $ - $ 6.3 $ 4.3 $ 4.3 $
Actual
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REVENUE CONTINUED
DEBT SERVICE FUNDS
$ MILLIONS
TABLE 19
Year-End Budget
Estimate Projection
2005 2006 2007 2008 2009 2010 2011
Actual
Library Daily Tender Note Redemption and
Interest Fund - 521
Property Tax Levy 53.4 $ 34.7 $ 31.7 $ 26.1 $ 70.3 $ 73.4 $ 73.4 $
Total Fund Revenue 53.4 $ 34.7 $ 31.7 $ 26.1 $ 70.3 $ 73.4 $ 73.4 $
Prior Year Unreserved Fund Balance 1.1 3.3 4.5 - - -
Total Fund Resources 53.4 $ 35.8 $ 35.0 $ 30.7 $ 70.3 $ 73.4 $ 73.4 $
Emergency Communication Bond
Redemption and Interest Fund - 525
Telephone Surcharge & Interest 9.1 $ 22.3 $ 23.3 $ 22.3 $ 22.1 $ 22.3 $ 22.3 $
Total Fund Revenue 9.1 $ 22.3 $ 23.3 $ 22.3 $ 22.1 $ 22.3 $ 22.3 $
Prior Year Unreserved Fund Balance 13.2 1.0 1.0 0.0 0.0 -
Total Fund Resources 22.3 $ 23.4 $ 24.4 $ 22.3 $ 22.2 $ 22.3 $ 22.3 $
City College Bond Redemption and Interest
Fund - 549
Property Tax Levy 5.7 $ 5.7 $ 6.4 $ 34.9 $ 36.3 $ 36.6 $ 36.6 $
Total Fund Revenue 5.7 $ 5.7 $ 6.4 $ 34.9 $ 36.3 $ 36.6 $ 36.6 $
Prior Year Unreserved Fund Balance - - 0.5 - 1.9 - -
Total Fund Resources 5.7 $ 5.7 $ 6.9 $ 34.9 $ 38.2 $ 36.6 $ 36.6 $
TOTAL DEBT SERVICE FUND REVENUE 440.4 $ 429.9 $ 386.2 $ 468.6 $ 686.5 $ 593.4 $ 572.0 $
TOTAL DEBT SERVICE FUND RESOURCES 472.1 $ 442.3 $ 390.2 $ 486.8 $ 688.8 $ 595.6 $ 585.0 $
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REVENUE CONTINUED
ENTERPRISE
$ MILLIONS
TABLE 20
Year-End Budget
Estimate Projection
2005 2006 2007 2008 2009 2010 2011
Water Fund - 200
Water Fees 333.7 $ 317.2 $ 317.7 $ 358.1 $ 397.0 $ 443.0 $ 443.0 $
Transfer In 16.3 28.8 35.3 42.3 38.3 28.0 28.0
Miscellaneous and Other 10.6 26.9 23.0 25.7 21.5 21.0 21.0
Interest Earnings 4.9 3.0 2.7 0.5 1.0 1.1 1.1
Total Fund Revenue 365.4 $ 375.9 $ 378.7 $ 426.5 $ 457.7 $ 493.1 $ 493.1 $
Sewer Fund - 314
Sewer Fees 141.3 $ 134.3 $ 132.4 $ 158.7 $ 173.9 $ 196.6 $ 196.6 $
Transfer-In 14.7 12.1 11.0 8.7 14.1 10.8 10.8
Miscellaneous & Other 1.9 1.3 1.9 1.9
Total Fund Revenue 156.0 $ 146.4 $ 143.5 $ 169.3 $ 189.3 $ 209.3 $ 209.3 $
Midway Airport Fund - 610
Rates, Charges and Other 152.6 $ 160.5 $ 183.4 $ 186.8 $ 176.0 $ 217.5 $ 220.9 $
Total Fund Revenue 152.6 $ 160.5 $ 183.4 $ 186.8 $ 176.0 $ 217.5 $ 220.9 $
O'Hare Airport Fund - 740
Rates, Charges and Other 621.8 $ 672.0 $ 766.5 $ 825.9 $ 715.7 $ 892.5 $ 899.3 $
Total Fund Revenue 621.8 $ 672.0 $ 766.5 $ 825.9 $ 715.7 $ 892.5 $ 899.3 $
TOTAL ENTERPRISE FUNDS 1,295.8 $ 1,354.8 $ 1,472.0 $ 1,608.6 $ 1,538.8 $ 1,812.4 $ 1,822.6 $
Actual
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E\lEN0l!uRE'
APPROPRIATION BY FUNCTION AND ORGANIZATIONAL UNIT
ALL LOCAL FUNDS
$ MILLIONS
TABLE 21
2011 2011-2010
2006 2007 2008 2009 2010 Proposed % change
Finance and Administration
Office of the Mayor 6.3 $ 6.5 $ 7.6 $ 6.7 $ 6.2 $ 6.1 $ -1.7%
Office of Budget & Management 2.8 2.7 2.7 2.1 1.9 2.1 12.1%
Department of Innovation & Technology 15.1 15.4 15.1 14.1 24.3 25.4 4.6%
City Clerk 9.4 9.3 9.6 9.9 9.2 9.1 -1.1%
Department of Finance 15.2 15.3 16.1 15.7 14.6 14.8 1.4%
City Treasurer 2.2 2.3 2.4 2.2 2.1 2.2 0.7%
Department of Revenue 46.4 47.8 50.0 47.8 50.7 52.9 4.3%
Department of Administrative Hearings 6.6 7.2 7.3 8.2 7.2 7.3 1.1%
Department of Law 34.6 37.0 36.7 34.4 32.3 33.4 3.4%
Office of Compliance - - 2.5 2.9 3.3 3.5 4.5%
Department of Human Resources 8.5 8.6 6.8 8.2 7.3 5.9 -18.9%
Department of Procurement Services 9.6 9.8 9.4 8.2 6.2 5.7 -7.6%
Department of General Services 177.0 187.6 203.5 204.3 218.4 195.9 -10.3%
Department of Fleet Management 108.0 115.1 123.7 132.7 117.1 117.5 0.3%
Total - Finance and Administration 441.8 $ 464.6 $ 493.3 $ 497.2 $ 500.8 $ 481.7 $ -3.8%
Legislative and Elections
City Council 16.9 $ 17.5 $ 19.7 $ 20.4 $ 19.6 $ 19.6 $ 0.0%
City Council Committees 5.4 5.6 5.6 5.8 5.7 5.7 -0.1%
Legislative Inspector General - - - - - 0.1 -
City Council Legislative Reference Bureau 0.4 0.4 0.4 0.4 0.4 0.4 0.0%
Board of Election Commissioners 13.3 19.0 14.1 10.5 13.1 19.2 47.3%
Total - Legislative and Elections 36.0 $ 42.5 $ 39.9 $ 37.2 $ 38.8 $ 45.0 $ 16.2%
Appropriation
City Development
Department of Planning & Development 14.4 $ 19.4 $ 18.2 $ - $ - $ - $ -
Mayor's Office of Workforce Development - 5.7 5.4 - - - -
Department of Housing 15.4 31.4 32.3 - - - -
Department of Community Development - - - 36.8 31.3 - -100.0%
Department of Housing and Economic Development * - - - - - 26.1 -
Department of Cultural Affairs 12.2 14.1 14.7 13.7 12.5 - -100.0%
Department of Cultural Affairs and Special Events ** - - - - - 32.3 -
Mayor's Office of Special Events 26.3 27.0 28.8 28.2 24.7 - -100.0%
Total - City Development 68.3 $ 97.6 $ 99.5 $ 78.7 $ 68.5 $ 58.3 $ -14.8%
Community Services
Department of Public Health 36.9 $ 45.9 $ 45.3 $ 37.8 $ 33.9 $ 33.8 $ -0.2%
Commission on Human Relations 2.2 2.2 2.3 2.1 2.0 1.9 -2.4%
Chicago Department of Senior Services 3.0 6.6 7.1 - - - -
Mayor's Office for People with Disabilities 1.6 1.8 1.8 1.6 1.7 1.1 -38.4%
Department of Family & Support Services - - - 20.3 25.2 17.4 -31.0%
Department of Children & Youth Services 3.2 4.2 4.9 - - - -
Department of Human Services 7.2 8.1 8.7 - - - -
Chicago Public Library 50.5 53.5 54.9 54.6 54.1 55.2 2.1%
Total - Community Services 104.6 $ 122.3 $ 124.9 $ 116.4 $ 116.8 $ 109.3 $ -6.4%
* The 2011 recommended budget combines the Departments of Community Development and Zoning and Land Use Planning into the Department of Housing and Economic Development
** The 2011 recommended budget merges the Department of Cultural Affairs and the Mayor's Office of Special Events into the Department of Cultural Affairs and Special Events
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E\lEN0l!uRE' CONTINUED
APPROPRIATION BY FUNCTION AND ORGANIZATIONAL UNIT
ALL LOCAL FUNDS
$ MILLIONS
TABLE 21
2011 2011-2010
2006 2007 2008 2009 2010 Proposed % change
Appropriation
Public Safety
Police Board 0.4 $ 0.4 $ 0.5 $ 0.5 $ 0.4 $ 0.4 $ -4.6%
Independent Police Review Authority - - 5.8 6.9 7.4 7.5 1.7%
Chicago Police Department 1,215.3 1,248.7 1,234.6 1,236.5 1,243.0 1,316.2 5.9%
Office of Emergency Management & Communication 87.4 95.6 98.7 99.2 86.8 95.9 10.5%
Chicago Fire Department 454.4 474.7 489.7 487.5 499.8 509.4 1.9%
Total - Public Safety 1,757.5 $ 1,819.4 $ 1,829.2 $ 1,830.5 $ 1,837.4 $ 1,929.5 $ 5.0%
Regulatory
Office of Inspector General 3.7 $ 5.4 $ 5.5 $ 5.9 $ 6.0 $ 6.0 $ 0.1%
Department of Zoning & Land Use Planning * - - - 6.4 6.4 - -100.0%
Department of Zoning 2.2 2.5 2.7 - - - -
Department of Buildings 24.6 22.3 31.6 27.3 26.0 26.7 2.7%
Department of Construction & Permits 8.9 8.9 - - - - -
Department of Business Affairs & Consumer Protection - - - 16.2 15.3 14.3 -6.8%
Department of Consumer Services 9.8 9.5 9.8 - - - -
Department of Environment 3.9 4.8 5.7 4.9 4.6 3.5 -24.3%
Commission on Animal Care & Control 4.7 4.7 4.9 4.6 4.5 3.9 -13.4%
Department of Business Affairs & Licensing 8.9 8.4 9.0 - - - -
License Appeal Commission 0.2 0.2 0.2 0.2 0.2 0.2 0.4%
Board of Ethics 0.8 0.8 0.8 0.6 0.6 0.6 6.4%
Total - Regulatory 67.7 $ 67.6 $ 70.2 $ 66.1 $ 63.6 $ 55.1 $ -13.3%
Infrastructure Services
Department of Streets and Sanitation 355.4 $ 357.3 $ 362.8 $ 303.1 $ 243.5 $ 240.9 $ -1.1%
Chicago Department of Transportation 98.7 98.9 99.8 89.9 133.5 126.5 -5.2%
Total - Infrastructure Services 454.0 $ 456.2 $ 462.6 $ 393.0 $ 377.1 $ 367.4 $ -2.6%
Public Service Enterprise
Office of the O'Hare Modernization Program 4.2 $ 4.3 $ 4.5 $ 5.2 $ - $ - $ -
Department of Aviation 296.8 307.4 319.1 351.6 360.5 363.5 0.8%
Department of Water Management 237.7 232.7 244.5 263.9 248.5 252.6 1.6%
Total - Public Service Enterprises 538.61 $ 544.31 $ 568.17 $ 620.70 $ 609.00 $ 616.01 $ 1.2%
General Financing Requirements
Pension Funds 398.0 $ 421.7 $ 457.0 $ 454.9 $ 458.9 $ 456.1 $ -0.6%
Loss in Collection of Taxes 18.9 16.5 19.7 19.3 19.3 19.4 0.4%
Finance General 1,675.0 1,933.9 2,135.6 2,224.4 2,403.5 2,431.8 1.2%
Total - General Financing Req. 2,091.9 $ 2,372.1 $ 2,612.3 $ 2,698.5 $ 2,881.7 $ 2,907.3 $ 0.9%
Total - All Functions 5,560.4 $ 5,986.5 $ 6,300.0 $ 6,338.3 $ 6,493.6 $ 6,569.6 $ 1.2%
Deduct Reimbursements Between Funds (268.2) (285.5) (311.3) (302.2) (317.0) (344.4)
Deduct Proceeds of Debt (45.1) (31.7) (70.4) (70.4) (70.4) (70.4)
Net Grand Total 5,247.1 5,669.3 5,918.3 5,965.7 6,106.1 6,154.8 0.8%
* The 2011 recommended budget combines the Departments of Community Development and Zoning and Land Use Planning into the Department of Housing and Economic Development
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lER'CNNEL
Represents Full Time Positions only. Refer to Program and Budget Summary book for Full Time Equivalent (FTE) positions.
POSITIONS BY FUNCTION AND ORGANIZATIONAL UNIT
ALL LOCAL FUNDS
$ MILLIONS
TABLE 22
2011 2011-2010
2006 2007 2008 2009 2010 Proposed change
Finance and Administration
Office of the Mayor 78 78 85 78 78 78 -
Office of Budget & Management 33 29 30 21 21 24 3
Department of Innovation & Technology 91 92 90 71 80 80 -
City Clerk 129 125 124 119 108 106 (2)
Department of Finance 214 215 212 186 180 182 2
City Treasurer 23 23 23 22 21 22 1
Department of Revenue 385 385 375 328 352 345 (7)
Department of Administrative Hearings 50 50 50 46 44 43 (1)
Department of Law 408 415 405 354 346 362 16
Office of Compliance - - 31 35 36 32 (4)
Department of Human Resources 121 122 108 97 89 79 (10)
Department of Procurement Services 147 136 131 103 80 76 (4)
Department of General Services 439 431 423 355 393 400 7
Department of Fleet Management 821 817 839 747 681 673 (8)
Total - Finance and Administration 2,939 2,918 2,926 2,562 2,509 2,502 (7)
Legislative and Elections
City Council 234 234 234 233 234 234 -
Board of Election Commissioners 137 137 136 124 124 124 -
Total - Legislative and Elections 371 371 370 357 358 358 -
City Development
Department of Planning & Development 88 129 113 - - - -
Mayor's Office of Workforce Development - 2 2 - - - -
Department of Housing 4 10 8 - - - -
Department of Community Development - - - 56 52 - (52)
Department of Housing and Economic Development * - - - - - 145 145
Department of Cultural Affairs 50 50 46 37 37 - (37)
Department of Cultural Affairs and Special Events ** - - - - - 86 86
Mayor's Office of Special Events 71 71 68 52 51 - (51)
Total - City Development 213 262 237 145 140 231 91
Community Services
Department of Public Health 444 443 428 296 271 266 (5)
Commission on Human Relations 32 31 31 25 24 24 -
Chicago Department of Senior Services 26 26 28 - - - -
Mayor's Office for People with Disabilities 15 15 17 16 14 12 (2)
Department of Family & Support Services - - - 33 28 28 -
Department of Children & Youth Services - - 1 - - - -
Department of Human Services 5 5 11 - - - -
Chicago Public Library 987 985 987 825 826 839 13
Total - Community Services 1,509 1,505 1,503 1,195 1,163 1,169 6
* The 2011 recommended budget combines the Departments of Community Development and Zoning and Land Use Planning into the Department of Housing and Economic Development
** The 2011 recommended budget merges the Department of Cultural Affairs and the Mayor's Office of Special Events into the Department of Cultural Affairs and Special Events
Appropriation
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lER'CNNEL CONTINUED
Represents Full Time Positions only. Refer to Program and Budget Summary book for Full Time Equivalent (FTE) positions.
POSITIONS BY FUNCTION AND ORGANIZATIONAL UNIT
ALL LOCAL FUNDS
$ MILLIONS
TABLE 22
2011 2011-2010
2006 2007 2008 2009 2010 Proposed change
Appropriation
Public Safety
Police Board 2 2 2 2 2 2 -
Independent Police Review Authority - - 97 97 97 97 -
Chicago Police Department 16,176 16,216 16,109 15,854 15,764 15,575 (189)
Office of Emergency Management & Communication 1,083 1,093 1,116 1,001 1,005 1,001 (4)
Chicago Fire Department 5,154 5,194 5,193 5,184 5,176 5,175 (1)
Total - Public Safety 22,415 22,505 22,517 22,138 22,044 21,850 (194)
Regulatory
Office of Inspector General 51 61 65 65 71 71 -
Department of Zoning & Land Use Planning * - - - 74 73 - (73)
Department of Zoning 41 41 46 - - - -
Department of Buildings 320 278 376 271 271 258 (13)
Department of Construction & Permits 107 104 - - - - -
Department of Business Affairs & Consumer Protection - - - 193 190 187 (3)
Department of Consumer Services 141 137 131 - - - -
Department of Environment 51 51 51 36 35 33 (2)
Commission on Animal Care & Control 86 85 86 75 68 70 2
Department of Business Affairs & Licensing 109 109 107 - - - -
License Appeal Commission 2 2 2 1 1 1 -
Board of Ethics 11 11 9 7 7 7 -
Total - Regulatory 919 879 873 722 716 627 (89)
Infrastructure Services
Department of Streets and Sanitation 2,857 2,912 2,916 2,455 2,012 1,999 (13)
Chicago Department of Transportation 716 683 673 563 794 769 (25)
Total Infrastructure Services 3,573 3,595 3,589 3,018 2,806 2,768 (38)
Public Service Enterprise
Office of the O'Hare Modernization Program 55 55 55 54 - - -
Department of Aviation 1,366 1,343 1,282 1,222 1,285 1,282 (3)
Department of Water Management 2,510 2,434 2,378 2,208 2,135 2,135 -
Total - Public Service Enterprises 3,931 3,832 3,715 3,484 3,420 3,417 (3)
Grand Total (Local Funds) 35,870 35,867 35,730 33,621 33,156 32,922 (234)
* The 2011 recommended budget combines the Departments of Community Development and Zoning and Land Use Planning into the Department of Housing and Economic Development
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CR/N!'
GRANT FUNDS BY FUNCTION
$ MILLIONS
TABLE 23
2010
Appropriation
2010
Actual
2011 New
Grants
Prior Year(s)
Carryover
2011
Proposed
Total
2010 - 2011
total $
change
Finance and Administration
Office of the Mayor - $ - $ - $ - $ - $ - $
Office of Budget & Management 7.1 7.8 5.2 0.8 6.0 (1.2)
Department of Business & Information Srvcs 106.5 18.3 83.8 18.3 102.0 (4.5)
City Clerk - - - - - -
Department of Finance 1.4 1.4 1.4 - 1.4 0.0
City Treasurer 0.2 - - - - (0.2)
Department of Revenue - - - - - -
Department of Administrative Hearings - - - - - -
Office of Compliance 0.3 0.3 0.2 - 0.2 (0.0)
Department of Law 1.5 1.5 1.7 - 1.7 0.1
Department of Human Resources - - - - - -
Department of Procurement Services - - - - - -
Department of General Services 11.7 9.3 1.3 7.5 8.8 (2.9)
Department of Fleet Management - - - - - -
-
Total - Finance and Administration 128.8 $ 38.7 $ 93.6 $ 26.5 $ 120.1 $ (8.7) $
Legislative and Elections
City Council - $ - $ - $ - $ - $ - $
City Council Committees - - - - - -
City Council Legislative Reference Bureau - - - - - -
Board of Election Commissioners - - - - - -
Total - Legislative and Elections - $ - $ - $ - $ - $ - $
City Development
Department of Cultural Affairs and Special Events * 4.8 $ 3.2 $ 5.4 $ - $ 5.4 $ 0.7 $
Mayor's Office of Special Events 0.2 0.1 - - - (0.2)
Department of Housing and Economic Development ** 323.0 333.6 79.9 218.2 298.1 (24.9)
Total - City Development 327.9 $ 337.0 $ 85.4 $ 218.2 $ 303.5 $ (24.4) $
Community Services
Department of Public Health 157.9 $ 144.2 $ 138.0 $ 15.6 $ 153.6 $ (4.3) $
Commission on Human Relations 1.2 1.2 1.3 - 1.3 0.0
Mayor's Office for People with Disabilities 4.1 3.4 3.5 0.3 3.9 (0.2)
Department of Family And Support Services 467.6 456.1 323.2 94.8 418.0 (49.6)
Chicago Public Library 20.4 8.9 18.1 1.0 19.2 (1.3)
Total - Community Services 651.3 $ 614.0 $ 484.1 $ 111.8 $ 595.9 $ (55.3) $
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CR/N!' CONTINUED
2010
Appropriation
2010
Actual
2011 New
Grants
Prior Year(s)
Carryover
2011
Proposed
Total
2010 - 2011
total $
change
Public Safety
Police Board - $ - $ - $ - $ - $ - $
Chicago Police Department 110.0 108.4 23.8 71.9 95.7 (14.4)
Office of Emergency Management & Communication 216.9 168.9 54.7 127.0 181.7 (35.2)
Chicago Fire Department 8.0 12.8 5.3 12.1 17.4 9.4
Total - Public Safety 334.9 $ 290.1 $ 83.7 $ 211.0 $ 294.7 $ (40.2) $
Regulatory
Office of Inspector General - $ - $ - $ - $ - $ - $
Department of Zoning and Land Use Planning ** 4.2 2.7 - - - (4.2)
Department of Buildings 5.7 5.7 7.7 - 7.7 2.0
Department of Construction & Permits - - - - - -
Department of Business Affairs and Consumer Protection 1.4 1.1 0.8 0.2 1.0 (0.4)
Department of Consumer Services - - - - - -
Department of Environment 50.0 48.6 18.9 31.9 50.8 0.8
Commission on Animal Care & Control 0.2 0.2 0.3 - 0.3 0.1
Mayor's License Commission & Liquor Control - - - - - -
Department of Business Affairs & Licensing - - - - - -
License Appeal Commission - - - - - -
Board of Ethics - - - - - -
Office of Cable Communications - - - - - -
Total - Regulatory 61.3 $ 58.3 $ 27.6 $ 32.1 $ 59.7 $ (1.6) $
Infrastructure Services
Department of Streets & Sanitation 2.00 $ 2.00 $ - $ - $ - $ (2.00) $
Chicago Department of Transportation 824.4 516.8 506.3 5.0 511.3 (313.1)
Total - Infrastructure Services 826.4 $ 518.8 $ 506.3 $ 5.0 $ 511.3 $ (315.1) $
Public Service Enterprise
Office of the O'Hare Modernization Program - $ - $ - $ - $ - $ - $
Department of Aviation 204.7 113.9 167.0 68.5 235.5 30.8
Department of Water Management 0.7 0.7 - 0.1 0.1 (0.6)
Total - Public Service Enterprises 205.4 $ 114.6 $ 167.0 $ 68.7 $ 235.7 $ 30.2 $
Total - All Functions 2,536.0 $ 1,971.3 $ 1,447.7 $ 673.3 $ 2,121.0 $ (415.1) $
** The 2011 recommended budget combines the Departments of Community Development and Zoning and Land Use Planning into the Department of Housing and Economic Development
GRANT FUNDS BY FUNCTION
$ MILLIONS
TABLE 23
BUDGET 2011
BUDGET GLOSSARY
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Accrual Accounting: An accounting method that
measures the performance and position of an
organization by recognizing economic events
regardless of when cash transactions happen.
Amusement Tax: A tax imposed upon the patrons
of any amusement within the City of Chicago
including sporting events, theater productions and
a variety of other entertainment activities. The
tax rate is 5% of the fee paid to witness in-person
live theatrical, live musical or other live cultural
performances that take place in a venue whose
maximum capacity is more than 750 persons. For
all other types of amusement, the tax rate is 9% of
the fee paid for the privilege to enter, to witness,
to view or to participate in such amusement. The
tax does not apply to the admission fees to witness
in person live theatrical, live musical or other live
cultural performances that take place in a venue
whose maximum capacity is not more than 750
persons. Authorization: Municipal Code 4-156-
020.
Appropriation: An amount of money in the budget,
authorized by the Mayor and the City Council, for
expenditures by departments for specific purposes.
Appropriations are made by account group within
each department and fund.
Assessed Valuation: The product of the market
value of property within the boundaries of the City
of Chicago and the assessment level. Effective for
the 2009 tax year, the assessed value of a residential
property represents 10% of its market value; the
assessed value of a commercial or industrial property
represents 25% of market value. Authorization:
Cook County 10/25 ordinance.
Automatic Amusement Device Tax: A tax imposed
on each automatic amusement device or machine
used within the City of Chicago for gain or profit.
The tax rate is $150 per non-gambling machine
and $225 per gambl i ng machi ne annual l y.
Authorization: Municipal Code 4-156-160.
Basis of Accounting: The method used to recognize
increases and decreases in financial resources.
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Basis of Budgeting: The method used to determine
when revenue and expenditures are recognized
for budgetary purposes.
Boat Mooring Tax: A tax imposed on the mooring
or docking of any watercraft for a fee in or on a
harbor, river or other body of water within the
corporate limits or jurisdiction of the City. The
tax rate is 7% of the mooring or docking fee.
Authorization: 3-16-030.
Bottled Water Tax: A tax imposed on the retail sale
of bottled water in the city of Chicago. The tax
rate is $0.05 per bottle. Authorization: Municipal
Code 3-43-030.
Cable Franchise Fee: A franchise fee imposed on
the privilege of operating cable television systems
within the public ways of the City of Chicago. The
fee is 5% of annual gross revenues. Authorization:
Municipal Code 4-280-170.
Capital Budget: The current year spending for
capital projects.
Capital Improvement Plan: A multi-year projection
of the government’s capital needs. The City’s
capital improvement plan is produced yearly, and
outlines capital projects for five years.
Cash Accounti ng: The opposi te of accrual
accounting, cash accounting recognizes transactions
only when cash is received or paid out.
Charges for Service: Charges levied for services
provided by the City of Chicago that are not
covered by general tax revenue. Such services
include building inspections, information and
safety services.
Cigarette Tax: A tax of $.034 per cigarette ($0.68
per pack of twenty) is imposed upon all cigarettes
possessed for sale within the City of Chicago. The
tax is paid by the purchase of tax stamps from
the City of Chicago Department of Revenue.
Wholesale cigarette dealers are responsible for
purchasing and affixing tax stamps to each package
of cigarettes prior to delivery to the retail cigarette
dealer. Retail cigarette dealers pass the tax on to
the ultimate consumers. Authorization: Municipal
Code 3-42-020.
CIP: Capital Improvement Program
Commerci al Paper: Short-term, unsecured,
discounted, and negotiable notes sold by one
company to another in order to satisfy immediate
cash needs.
Corporate Fund (General Fund): A fund used to
account for resources other than those accounted
for in other funds. The Corporate Fund finances
many diverse activities such as police and fire
protection, trash collection and disposal, and
health programs.
Debt Policies: A financial management tool for
government entities authorized to issue debt
(bonds, leases or short-term notes).
Debt Service Funds: Debt Service Funds are used to
account for the accumulation of resources for, and
the payment of, long-term debt and related costs.
Revenue bonds issued for enterprise funds and
debt for special taxing districts are not included
in debt service funds.
Doubtful Account: An account balance that has
been delinquent for a period of at least ninety (90)
days, and where collection is unlikely.
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Electricity Infrastructure Maintenance Fee (IMF):
A fee authorized by state legislation as part of
the electricity deregulation that is imposed on
electricity deliverers to compensate the City of
Chicago for the privilege of using the public rights-
of-way. The IMF rate varies based on the number
of kilowatt-hours delivered to each purchaser.
Authorization: Municipal Code 3-54-030.
Electricity Use Tax: A tax imposed on the privilege
of using or consuming electricity acquired in a
purchase at retail and used or consumed within the
corporate limits of the City. The tax rate varies based
on the number of kilowatt-hours used or consumed.
Authorization: Municipal Code 3-53-020.
Emergency Telephone System Surcharge: A
surcharge imposed on all billed subscribers of
telecommunications services within the corporate
limits of the City for the purpose of funding a
portion of the maintenance and operation of the
City’s emergency 9-1-1 systems. The surcharge
rate is $2.50 per network connection and wireless
telephone number per month. Authorization:
Municipal Code 3-64-030 and 7-50-020.
Employers’ Expense Tax: A tax imposed on
employers who employ 50 or more full-time
employees who perform 50% or more of their work
within the City of Chicago. The tax rate is $4 per
employee per month. Authorization: Municipal
Code 3-20-030.
Encumbrances: Contractual commitments to be
performed by a third party.
Enterpri se Funds: Funds establ i shed by a
government to account for acquisition, operation,
and maintenance of government services such
as water, sewers and the airports. These funds
are typically self-supporting in that they derive
revenue from user charges.
Fines, Forfeitures, and Penalties: Fines and any
associated penalties levied for violations of the
Municipal Code. The primary source of this type
of revenue is from parking tickets. Also included in
this category are red light fines, moving violations,
sanitation code violations, and housing court
fines.
Foreign Fire Insurance Tax: A tax imposed on any
business not incorporated in the State of Illinois
that is engaged in selling fire insurance in the City
of Chicago. The tax is paid for the maintenance,
use, and benefit of the Chicago Fire Department.
The tax rate is 2% of the gross receipts received for
premiums. Authorization: Municipal Code 4-308-
020.
FY: Fiscal Year.
GAAP: Generally Accepted Accounting Principles.
General Fund: See Corporate Fund.
GO Bonds: General Obligation bonds.
Ground Transportation Tax: A tax imposed on the
occupation of providing ground transportation
to passengers for hire in the City of Chicago.
The tax rate is $78 per month for each taxicab,
$3.50 per day for each non-taxicab vehicle with a
seating capacity of 10 or fewer passengers, $6 per
day for each non-taxicab vehicle with a seating
capacity of 11 to 24 passengers, and $9 per day for
each non-taxicab vehicle with a capacity of more
than 24 passengers. Authorization: Municipal Code
3-46-030.
Home Rule Municipal Retailers’ Occupation Tax: A
tax imposed on the occupation of selling tangible
personal property, other than property titled
or registered with the State of Illinois, which is
sold at retail in the City of Chicago. The tax rate
is 1.25% of the gross receipts from such sales.
Grocery food and prescription and nonprescription
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medicines are generally exempt from the tax. The
tax is administered and collected by the Illinois
Department of Revenue and disbursed monthly
to the City. Authorization: Municipal Code
3-40-030.
Hotel Accommodations Tax: A tax imposed on the
rental or lease of hotel accommodations in the City
of Chicago. The tax rate is 3.5% of the gross rental
or leasing charge. Authorization: Municipal Code
3-24-030.
Illinois Retailers’ Occupation Tax: A tax imposed on
the occupation of selling tangible personal property
at retail in Illinois. The tax rate is 6.25% of the
selling price. The tax is administered and collected
by the Illinois Department of Revenue. Sixteen
percent of the tax (1% of the 6.25%) is distributed
to municipalities monthly. Authorization: 35 Illinois
Compiled Statutes (ILCS) 120/2-10.
Illinois Use Tax: A tax imposed on the use of
tangible personal property purchased outside
Illinois but used in the State. The tax rate is
6.25% of the selling price. The tax is administered
and collected by the Illinois Department of
Revenue. Sixteen percent of the tax (1% of the
6.25%) is distributed to municipalities. The City
receives 20% of the 1% portion allocated to
municipalities. Authorization: 35 ILCS 105/1.
Income Tax: A tax imposed by the State of Illinois
on the privilege of earning or receiving income
in Illinois. The tax rate is 4.8% of net income
for corporations and 3% of net income for
individuals, trusts and estates. Of the net income tax
receipts after refund, 1/10 is diverted to the Local
Government Distributive Fund that is distributed to
municipalities based on population. Authorization:
35 ILCS 5/201; 30 ILCS 115/1, 115/2.
Internal Service Earning: A reimbursement to the
Corporate Fund for services that are to be paid from
other City Funds. Certain internal service earnings
are allocated using cost accounting methods;
others are reimbursed using intergovernmental
purchase orders.
Lease Transaction Tax: See Personal Property Lease
Transaction Tax
Licenses and Permits: Licenses and permits are
required for the operation of business activity
in the City of Chicago. Authorization: Municipal
Code Chapter 4-4.
Liquor Tax: A tax imposed on the retail sale of
alcoholic beverages in the City of Chicago. Each
wholesale dealer who sells to a retail dealer
located in the City of Chicago collects the tax and
any such retail alcoholic beverage dealer in turn
collects the tax from the retail purchaser. The tax
rate is $0.29 per gallon of beer, $0.36 per gallon for
alcoholic liquor containing 14% or less of alcohol
by volume, $0.89 per gallon for liquor containing
more than 14% and less than 20% of alcohol by
volume, and $2.68 per gallon for liquor containing
20% or more of alcohol by volume. Authorization:
Municipal Code 3-44-030.
Modified Accrual Basis of Accounting: Under the
modified accrual basis of accounting, revenues are
recognized when they become measurable and
available. Expenditures are recognized when the
liability is incurred.
Motor Fuel Tax: A tax imposed by the State of Illinois
on the sale of motor fuel within the state. The
tax rate is $0.19 per gallon of gasoline. A portion
of the revenue is distributed to municipalities
and townships based on a statewide allocation
formula and population. Authorization: 35 ILCS
505/2, 505/8.
Motor Vehicle Lessor Tax: A tax imposed on the
privilege of leasing motor vehicles in the City of
Chicago to a lessee on a daily or weekly basis. The
lessor is allowed to pass this tax along to his lessees
as a separate charge on his rental bills or invoices.
The tax is $2.75 per vehicle per rental period.
Authorization: Municipal Code 3-48-030.
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Municipal Automobile Renting Occupation Tax: A
tax imposed on occupation of renting automobiles
in the City of Chicago. The tax rate is 1% of the
rental price. The tax is administered and collected by
the Illinois Department of Revenue and distributed
to the City monthly. Authorization: Municipal Code
3-40-490, -500.
Municipal Automobile Renting Use Tax: A tax
imposed on the privilege of using, in the City
of Chicago, automobiles which are rented from
companies outside of Illinois, and which are
titled or registered with the State of Illinois.
The tax rate is 1% of the rental price. The tax
is administered and collected by the Illinois
Department of Revenue and distributed to the
City monthly. Authorization: Municipal Code
3-60-030, -040.
Municipal Hotel Operators’ Occupation Tax: A tax
authorized by state legislation and imposed on
the occupation of renting hotel accommodations
in the City of Chicago. The tax rate is 1% of gross
receipts. The tax is administered and collected by
the Illinois Department of Revenue and distributed
monthly to the City for the purpose of promoting
tourism and conventions. Authorization: Municipal
Code 3-40-470.
Municipal Parking: A category of revenues that
currently includes revenue generated by various
parking permits. Historical collections reflected in
this category also include parking meter revenues
generated prior to the long term lease of the City’s
parking meter operation in 2009.
Natural Gas Use Tax: A tax imposed on the privilege
of using or consuming in the City of Chicago gas
that is purchased in a sale at retail from sellers
not subject to the Natural Gas Utility Tax. The tax
rate is $0.063 per therm. Authorization: Municipal
Code 3-41-030.
Natural Gas Utility Tax: A tax imposed on the
occupation of distributing, supplying, furnishing,
or selling gas for use or consumption within the
City of Chicago. The tax rate is 8% of gross receipts.
Authorization: Municipal Code 3-40-040.
Off-Track Betting Tax and Admission Fee: A tax
imposed on the pari-mutuel handle (total amount
wagered) generated by off-track betting parlors
within the City of Chicago. The tax rate is 1%
of the total pari-mutuel handle. In addition, an
admission charge of $1 is levied on the patrons.
Authorization: 230 ILCS 5/26(h)(10.1), 5/27(f);
Municipal Code 4-156-125.
Parking Tax: A tax imposed on the privilege of
parking a motor vehicle in any parking lot or
garage in the City of Chicago. The tax rate varies
based on the payment frequency and parking
charge. The tax imposed on a daily parker is $1 if
the charge is greater than $2 but less than $5; $1.75
if the charge is $5 or more but less than $12; and $3
if the charge is $12 or more. The tax imposed on
weekly parkers is $5 if the charge is greater than
$10 but less than $25; $8.75 if the charge is $25 or
more but less than $60; and $15, if the charge or
fee is $60 or more. The tax imposed on monthly
parkers is $20 if the charge is greater than $40 but
less than $100; $35 if the charge is $100 or more
but less than $240; and $60 if the charge is $240
or more. There is no tax for parking charges that
do not exceed $2 for daily parkers, $10 for weekly
parkers, or $40 for monthly parkers. Authorization:
Municipal Code 4-236-020.
Pension Trust Funds: The City’s employees are
covered under four contributory defined benefit
retirement plans established by state statute and
administered by independent pension boards.
These plans are the Municipal Employees’ Annuity
and Benefit Fund, the Laborers’ and Retirement
Board Employees’ Annuity and Benefit Fund,
the Policemen’s Annuity and Benefit Fund, and
the Firemen’s Annuity and Benefit Fund. Each
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independent pension board has authority to
invest the assets of its respective plan subject to
the limitations set forth in 40 ILCS 5/1-113. The
City makes payments to the Pension Trust Fund
from its property tax collections as required by
state statute.
Per capita: A concept that incorporates ability-to-
pay per community resident. Typically, a wealthier
community with a high per capita income level can
manage a larger debt burden than an impoverished
community with a low per capita income level.
Personal Property Lease Transaction Tax: A tax
imposed on the lease, rental or use of rented
personal property in the City of Chicago. The tax rate
is 8% of the lease or rental price. Authorization:
Municipal Code 3-32-030.
Personal Property Replacement Tax—Income
Taxes: A state income tax on corporations and
partnerships, trusts and subchapter S corporations
that was created to replace the personal property
tax. The tax rate is 2.5% for corporations and
1.5% for partnerships, trusts and subchapter S
corporations. The tax allocation formula is based
on the 1976 distribution of the repealed personal
property tax. Authorization: 35 ILCS 5/201(c), (d);
30 ILCS 115/12.
Personal Property Replacement Tax—Invested
Capital Taxes: State invested capital taxes imposed
on public utilities were created to replace the
personal property tax. The tax rate is 0.8%.
The tax allocation formula is based on the 1976
distribution of the repealed personal property tax.
Authorization: 35 ILCS 610/2a.1, 615/2a.1, 620/2a.1,
625/2a.1; 30 ILCS 115/12.
Proceeds of Debt: Proceeds of debt are generated
from the sale of bonds or notes. Tender notes are
issued in anticipation of property tax collections.
The proceeds from tender notes, which are equal
to the net property tax levy, are distributed to the
Corporate Fund and the two library funds.
Property Tax: A tax levied on the equalized assessed
valuation of real property in the City of Chicago.
Cook County collects the tax with assistance from
the Illinois Department of Revenue. Authorization
for the City’s property tax levy occurs through
bond ordinances and property tax levy ordinances
in connection with the annual appropriation
ordinances.
Real Property Transfer Tax: A tax imposed on
privilege of transferring title to, or beneficial
interest in, real property located in the City of Chicago.
The tax rate is $3.75 per $500 of transfer price, or
fraction thereof, of the real property or the
beneficial interest in real property and is paid by
the transferee. Authorization: Municipal Code
3-33-030.
Real Property Transfer Tax - CTA Portion: A
supplemental tax on the transfer of real property
in the City of Chicago for the purpose of providing
fi nanci al assi stance to the Chi cago Transi t
Authority. The transfer rate is $1.50 per $500 of
the transfer price or fraction thereof and is paid
by the transferor. Authorization: Municipal Code
3-33-030.
Restaurant and Other Places for Eating Tax: A tax
imposed on each place for eating located in the
City of Chicago. The tax rate is 0.25% of the selling
price of all food and beverages sold at retail by the
place for eating. Authorization: Municipal Code
3-30-030.
Simplified Telecommunications Tax: A tax imposed
on the privilege of originating or receiving
intrastate or interstate telecommunications within
the City of Chicago. The tax rate is 7% of the gross
charge for telecommunications purchased at retail.
Authorization: Municipal Code 3-73-030.
Soft Drink Taxes: A tax imposed on the occupation
of selling retail soft drinks other than fountain
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soft drinks in the City of Chicago. The rate of tax is
3% of gross receipts. The tax is administered and
collected by the Illinois Department of Revenue
and distributed to the City monthly. In addition,
a tax is imposed on the occupation of selling
fountain soft drinks at retail in the City. The tax
rate is 9% of the cost price of the soft drink syrup
or concentrate. Authorization: Municipal Code
3-45-040, -060.
Special Revenue Fund: A fund established by a
government to account for the operations of a
specific activity and revenue generated from
carrying out this activity. Special Revenue Funds
are used to account for the proceeds of specific
revenue sources other than special assessments,
expendable trusts, or major capital projects
requiring separate accounting because of legal or
regulatory provisions or administrative action.
Transfers-in: The residual funding available to
transfer into the Corporate Fund once obligations
have been met within other fund sources.
Tel ecommuni cat i ons Tax: See Si mpl i f i ed
Telecommunications Tax
Use Tax for Nontitled Personal Property: A tax
imposed on the privilege of using in the City of
Chicago nontitled tangible personal property
which is purchased at retail from a retailer located
outside the City. The tax rate is 1% of the property’s
selling price. Authorization: Municipal Code 3-27-
030.
Use Tax for Titled Personal Property: A tax imposed
on the privilege of using in the City of Chicago
titled personal property that is purchased at
retail from a retailer located outside the City
and titled or registered in the City. The tax rate
is 1.25% of the property’s selling price. The
Illinois Department of Revenue administers and
collects the tax on behalf of the City when titled
personal property is purchased from a retailer
in Cook, DuPage, Lake, Kane, McHenry or Will
counties. Authorization: Municipal Code 3-28-
030.
Vacation of Streets and Alleys: The transfer of
ownership of City of Chicago owned streets and
alleys to private parties. The price is determined
by fair market value.
Vehicle Fuel Tax: A tax imposed on the privilege
of using vehicle fuel purchased or used within the
Chicago City limits. The tax rate is $0.05 per gallon.
Authorization: Municipal Code 3-52-020.
Vehicle Sticker Fee: See Wheel Tax License
Wheel Tax License: An annual fee imposed on
the privilege of operating a motor vehicle within
the City of Chicago that is owned by a resident
of the City of Chicago. The fee is $75 for smaller
passenger automobiles and $120 for larger
passenger automobiles. The fee varies for other
classifications.
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C i t y o f C h i c a g o
RICHARD M. DALEY, MAYOR
O f f i c e o f B u d g e t a n d Ma n a g e m e n t
EUGENE L. MUNIN, BUDGET DIRECTOR

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