This blog examines some of the long-term obligations of the City of Chicago and its overlapping local governments using a per capita indicator based on bonded debt and unfunded pension liabilities. Rating agencies and other financial analysts commonly monitor overlapping direct debt trends as an affordability indicator when governments consider debt issuance. The indicator reflects the premise that the entire population of a jurisdiction benefits from and bears the cost of infrastructure…
In the past year, Chicago residents have experienced several increases in the taxes imposed on cigarette and tobacco purchases. The new rates are shown in the following chart and are described in more detail below. (Click to enlarge.) Cigarette Tax (per pack) Cigarette packs have 20 cigarettes. State and local laws specify tax per cigarette, but per pack is used here for simplicity. On April 1, 2009, the federal tax on cigarettes increased by $0.62 to $1.0066 per pack. Effective June 24,…
This report compares effective property tax rates in selected communities around metropolitan Chicago and finds that effective tax rates in 2010 for residential and commercial properties rose for each of the 32 municipalities studied. Additionally, effective tax rates in 2010 were higher than they were 10 years ago for all communities studied, except for industrial properties in Chicago, which were down by 15.1% since 2001. Between 2009 and 2010 commercial effective tax rates in each of the 12…
Since 1988 the City of Chicago and its four pension funds have been party to the settlement of City of Chicago v. Korshak regarding how much the City, the funds and annuitants pay for healthcare. The City pays for a portion of the retiree healthcare premiums and the pension funds subsidize part of the annuitant portion of the premium, with retirees paying the balance of the premium costs. The settlement agreement expires June 30, 2013. Before the settlement expires, the commission created by…
On December 12, 2012, an ordinance to create an independent budget office was introduced to City Council. The ordinance, sponsored by Aldermen Ameya Pawar (47th Ward), Michelle Smith (43rd Ward) and Pat Dowell (3rd Ward), was assigned to the Committee on Committees, Rules and Ethics to be considered. Although more detail about the proposal is needed, the Civic Federation supports the initiative that would allow aldermen to seek independent, professional expertise before considering major…
A look back at the Civic Federation’s blog this year provides a preview of upcoming fiscal challenges for local governments in 2013. Pension Funding The most urgent fiscal challenge for Illinois governments continues to be the pension funding crisis. The combined funded ratio for the four City of Chicago pension funds fell to 43.3% in FY2011. The funded status of the Cook County Pension Fund also fell in FY2011 to 57.5%. The County’s fund was over 90% funded as recently as FY2000. The…
Last week the Civic Federation marked the end of the FY2013 budget season with a blog that summarized the proposed budgets for the nine local governments the Federation monitors. These governments include: the City Colleges of Chicago, Chicago Public Schools (CPS), DuPage County, City of Chicago, Cook County, Chicago Transit Authority (CTA), Forest Preserve District of Cook County, Metropolitan Water Reclamation District of Greater Chicago (MWRD) and Chicago Park District. This blog focuses on…
Last week marked the end of the budget season for the nine local governments monitored by the Civic Federation. These governments include: the City Colleges of Chicago, Chicago Public Schools (CPS), DuPage County, City of Chicago, Cook County, Chicago Transit Authority (CTA), Forest Preserve District of Cook County, Metropolitan Water Reclamation District of Greater Chicago (MWRD) and Chicago Park District. This blog provides a summary the proposed FY2013 budgets and how appropriations have…
This report provides estimates of the total market value of real property in Cook County from 2001-2010 and shows how property value is spread among the City of Chicago, the northern and the southern suburbs. The full market value of real estate in Cook County was approximately $449.8 billion in tax assessment year 2010. This represents a decline of $100.3 billion, or 18.2%, from the 2009 estimated full value. Tax year 2010 is the most recent year for which data are available. Click here to…
As highlighted in the Civic Federation’s analysis of the proposed FY2013 City of Chicago budget and discussed in last week’s blog post, Chicago faces difficult choices due to the continued decline of its four pension funds. The Police and Fire pension funds have the lowest actuarial funded ratios at 35.6% and 28.3%. The funded ratio shows the percentage of pension liabilities covered by assets. The lower the percentage, the more difficulty a government may have in meeting future obligations.…
