Click here to read the full report. Click here to read the press release for this report. AT A GLANCE The Civic Federation released this report in advance of the April 2, 2019 Chicago municipal election for consideration by the public and candidates for Mayor, Treasurer, Aldermanic Office and the City Clerk. The report details the City of Chicago’s major financial challenges, as well as options and recommendations to stabilize the City’s financial position. SUMMARY In April 2019…
This article discusses $3.5 million in fees the City of Chicago accrued from consultants, financial advisors and attorneys while reviewing two bids to privatize Midway Airport. Mayor Rahm Emanuel halted the deal after one of the two remaining bidding teams dropped out. The Civic Federation said it was wise for the City to devote these resources to careful evaluation, rather than risk selling a multibillion dollar asset without understanding the full impact of the deal.
The long-term lease of assets by the City of Chicago is one of the most significant financial undertakings by the City in recent years. These groundbreaking transactions have received national attention and been examined by other governments interested in new models of public-private partnerships. Recognizing the importance of these actions, the Civic Federation continues to examine these complex transactions and use of the proceeds. The Civic Federation’s annual budget analysis of the City of…
Managed competition is a form of alternative service delivery or public-private partnership (P3) that requires in-house service units of a government to compete with external providers under a controlled or managed process. It involves comparing the costs and benefits of contracting out public services versus the costs and benefits of those same services being provided by public employees. This approach was pioneered by the city of Phoenix, Arizona in the 1970s and has since been utilized by a…
Managed competition is a form of alternative service delivery that requires in-house service units of a government to compete with external providers under a controlled or managed process. The purpose of this issue brief is to describe managed competition, provide a short history of its use and results, identify managed competition best practices and review the forms of managed competition being used in selected jurisdictions including San Diego, California; Charlotte, North Carolina; Cook…
As described last week in the Civic Federation’s blog, the Chicago City Council recently approved an ordinance changing the City’s tiered parking tax rates to percentage-based rates of 18% on weekends and 20% on weekdays effective July 1, 2013. Yesterday, the Cook County Board of Commissioners approved similar changes to their parking tax ordinance. Effective September 1, 2013, the County’s parking tax will change from a tiered rate system to percentage-based rates of 6% for periods of 24 hours…
On March 8, 2013, Governor Quinn signed HB5547, which gave home-rule municipalities and counties with populations over 2,000,000 (essentially Chicago and Cook County) the ability to tax parking garages by percentage rather than by a flat tax. Soon after, Chicago’s City Council approved changes to the City’s parking garage tax system accordingly. Cook County is in the process of making similar changes. On April 8th, the Finance Committee of the City Council approved an ordinance changing…
Mayor Rahm Emanuel announced proposed changes to Chicago’s parking meter lease agreement April 29, including a reduced compensation rate paid to the company for meters not in use during construction or street fairs. The Civic Federation said the changes represent better management of a bad deal for the City and its taxpayers. The new agreement is expected to significantly reduce the City’s liabilities throughout the duration of the 75-year lease that was signed in 2009.
On Monday April 29th, Mayor Rahm Emanuel announced that an agreement had been reached in the disputes between the City of Chicago and Chicago Parking Meters LLC (CPM), whose investors include Morgan Stanley, Allianz Capital Partners and Abu Dhabi Investment Authority. The agreement potentially determines how much the City owes to CPM for lost revenue of meters altered for City use. Additionally, an arbitration panel settled a separate dispute between CPM and the City with regard to disabled…
This article examines the Chicago Infrastructure Trust, introduced by Mayor Emanuel in March 2012 to attract private sector funds to rebuild the City of Chicago’s aging infrastructure. It cites the State of Illinois Infrastructure report, which found that State and local governments could need to invest $300 billion throughout the next 30 years to maintain depleted public infrastructure throughout the State.
