* This is interesting…
Scoopsville? Sneed hears a super secret deal is afoot at City Hall, which could potentially cause an aldermanic revolt . . . and sigh of relief!
• • Translation: It’s hush hush, but Sneed is told Mayor Daley’s fiscal advisers are working on a deal to privatize the city’s parking meters, which could potentially reap 1 BILLION bucks for the cash-strapped city. […]
• • The backshot: “If the aldermen knew what was going on secretly — and that come June or July, there might be this $1 billion windfall, it would make it harder to push for the higher property tax, which would only net the city about $108 million,” a source said. […]
• • The shot in the arm: The sweetener to the deal is already on the books; a provision to raise the parking meter rates, which is clearly a carrot for whomever buys the meters. Sneed hears the city has already hired a law firm to do the legal work on selling the meters and retained an investment banking firm to do the financial advisory work.
• • The flipshot: “In fairness to Mayor Daley, these are not easy transactions, and even though it might be a good idea, the revenue may not be forthcoming in time to help the 2008 budget . . . hence the need for the property tax raise,” said a fiscal source. “It took two years to seal the Skyway sale. And they are still working on selling Midway airport. And the beauty of the property tax is the ability to use it as a federal income tax deduction.”
* You can bet the tongues will be wagging at the Hall about Sneed’s story today. Aldermen are desperate to avoid Daley’s tax hikes and are in full panic freakout mode, and Daley is talking about unspecified compromise…
One week after chiding recalcitrant aldermen — and calling newspaper editorials that blasted his $293 million tax package “an insult to me” — Daley struck a more conciliatory tone.
“It is very controversial. I understood that when I presented it. I could have ducked the other way. But I was willing to propose it and listen to the comments about. … I’m very optimistic. I think … we can work it out and compromise in a lot of different ways,” Daley said.
“This is going to be a whole process of listening to criticism, listening to praise, suggestions to improve it. It’s like a moon coming across. The state has been in such a controversy for the whole year and I’m being part of that. … Then, you have the county. But you live with that. I have a responsibility, which I will fulfill. But at the same time, you understand these are very challenging economic times. I’m not pulling things out of the hat.”
By talking compromise, the mayor is simply facing reality: There is no way he can get the 26 votes he needs to approve the largest property tax increase in Chicago history.
* Meanwhile, in DuPage, the grim reality is setting in…
Residents of DuPage County can expect less effective law enforcement and cutbacks or longer waits for health and virtually all other services provided by the county if the proposed 2008 budget released Tuesday is adopted, officials said Tuesday.
It calls for the layoff of about 235 county employees, or about 10.6 percent of county government. Hardest hit are the agencies related to law enforcement, including the Sheriff’s Department, which loses 104 positions, the state’s attorney’s office, three, the Probation Department, 29, and the court clerk, 18.
The $376 million budget plan is about $52 million less than the 2007 plan, which had called for cutting about 40 jobs and trims of social programs, including the county’s Convalescent Center.
Officials whose functions would be affected by the proposed cuts expressed dismay. […]
The board must adopt a new budget before the 2008 fiscal year begins Dec. 1. Members could make some changes in the plan, but raising new revenue in any significant amount is unlikely unless the legislature passes and the governor signs a pending bill authorizing DuPage and other suburban counties to impose a sales tax on cigarettes of $1 per pack. Even that appears to be insufficient to roll back the cuts proposed by Schillerstrom because it would raise an estimated $25 million a year for the county when the cuts total $52 million.
Thoughts?
- The Fox - Wednesday, Oct 17, 07 @ 9:21 am:
Sneed’s PR client Ald. Ed Burke smudged his fingerprints on this one.
- Lainer - Wednesday, Oct 17, 07 @ 9:28 am:
“which could potentially reap 1 BILLION bucks…” could her source have been Dr. Evil
- triplecynic - Wednesday, Oct 17, 07 @ 9:43 am:
Ah, yes, the old asset sale. That’s always a sign of an organization’s fiscal health.
I pity my generation–by the time we’re the demographic group holding office, there won’t be any revenue-producing assets with which to fund city services. You think taxes are high now….
- so-called "Austin Mayor" - Wednesday, Oct 17, 07 @ 9:45 am:
Rich,
A single party controls Chicago politics.
Chicago’s malignant and long-ignored financial schemes are now metastasizing.
A single party controls DuPage County politics.
DuPage County’s malignant and long-ignored financial schemes are now metastasizing.
Maybe two-party government is part of the answer to these problems.
Nah… that’s crazy-talk.
– SCAM
- Garp - Wednesday, Oct 17, 07 @ 10:06 am:
Dupage seems to have over stepped their stide when they built the Taj Mahal of court houses to prosecute DUI’s? People are not drinking and driving in Dupage like they used too. Although this is a good thing, they seem to have based their budget on levying fines and now they are left with new buildings, lots of employees and not enough criminals to pay their salaries and rent.
- zatoichi - Wednesday, Oct 17, 07 @ 10:33 am:
Thought Dupage was growing, which is good but more expense. The cry for “Better Service but No Taxes” only goes so far. Every one of those services costs something and which cost is going down? Want to build? Concrete, steel, and copper are jumping. Minimum wage increases add to wage compression. Electric dereg? That check you got covers two weeks. Who covers the increases for the remaining 50 weeks. Ethanol is great until the price for corn jumps and hamburger/corn based products cost more. Someone will always find “fat” and make claims of pork. Sure it exists at some level. Most of the cost is for real services people say they want, but the tax support has to be there to handle costs as they climb. What company does not face the exact same situation? The choice is always the same in the end regardless of the verbage. Revenue must exceed expense or you simply will not exist.
- Cassandra - Wednesday, Oct 17, 07 @ 10:43 am:
If the parking meters could generate all that cash if privately operated, how come they can’t do it now for the city. I mean, we know a lot of cash falls off the city trucks on the way to the bank, but this is ridiculous.
As to Du Page, they could send their not-indigent-enough-for Medicaid patients to Cook County (Stroger) Hospital and let Cook County pay for them.
Oh, wait, they’re already doing that.
- MOON - Wednesday, Oct 17, 07 @ 11:14 am:
CASSANDRA
The parking meters do not generate $1,000,000,000 annually. A prospective purchaser is buying an income stream. Assuming a 100 year lease with a discount rate of 7%, the annual revenue collected from parking meters is $70,000; not the $1,000,000,000 you are suggesting! Get your facts correct and understand what is proposed before making such uneducated remarks!
- Cassandra - Wednesday, Oct 17, 07 @ 11:36 am:
Moon-
Prospective buyers are only going to buy that income stream if they can make a nice (really nice) profit.
So why can’t the city make the same really nice profit. I know about having to employ all those Democratic hacks–it cuts into profits–but still.
I didn’t say the parking meters would generate one billion annually. Maybe you should read the whole post before you comment.
I know it’s hard for Mayor Daley fans to be objective, but still……
My post stands as is.
- the Other Anonymous - Wednesday, Oct 17, 07 @ 11:37 am:
Chicago already has some of the most aggressive parking enforcement programs in the country. Imagine how much worse it could get if the meters were privatized, since the private company would not be under civic pressure.
I know it’s not a meter violation, but a few years ago the Sun Times ran an article (maybe a series of articles) about some the aggressive tactics used by parking enforcement agents in Chicago. The article pressured the city to back off a bit; would such an article pressure a private company with a ten-year contract to back off?
Government services should be provided by governments, not private individuals.
- wallace - Wednesday, Oct 17, 07 @ 12:06 pm:
I have an even better idea than selling the parking meters, sell all of the streets and then charge us tolls to use them. Asset sale to finance current expenses is a sure sign of pending financial disaster. Once you start doing this you have to keep doing it in order to finance the next year and then the next. Maybe we could sell Daley, some carnival out there might want him.
- Rich Miller - Wednesday, Oct 17, 07 @ 12:09 pm:
Maybe they could make drivers pay to turn red lights green.
- Adam Smith - Wednesday, Oct 17, 07 @ 2:23 pm:
Schillerstrom has been governing DuPage like a Dem for years. Expanding govt services and spending wherever he can and grabbing at any chance to raise more taxes. The county is certainly growing as are comensurate needs, but the assessed valuation of the county has boomed as well. The problem is that Shillerstrom has no sense of fiscal restraint.
- Anon from BB - Wednesday, Oct 17, 07 @ 4:22 pm:
What happened was that during the boom years of the 90’s, Schillerstrom kept cutting property taxes that DuPage County could collect. Local residents loved him, because he cut their property taxes.
Now that the piper has come calling, Schillerstrom is loathe to raise the same property taxes he cut a decade ago.
- Sam Adams - Wednesday, Oct 17, 07 @ 5:05 pm:
After receiving a $75 million state bailout–at the expense of municipal water customers–only five years ago Schillerstrom’s got real nerve to blame the Legislature for his problems now. His own county officials threw him under the bus yesterday by saying that there had been no planning in the last four years.
- Dismayed - Wednesday, Oct 17, 07 @ 6:11 pm:
Maybe it should be made known the exhorbitant wages Chairman Schillerstrom and the other DuPage County Board members earn for just a part-time position and only meeting once or twice a month. On top of that, DuPage County tax dollars pay for health care for life after they fulfill just one term. Not to mention $400.00 a month for a vehicle stipend that takes them to one or two board meetings a month. The people of DuPage County really need to educate themselves and realize where their tax dollars are really going!!
- PCC - Tuesday, Oct 23, 07 @ 10:38 am:
What’s worse is that parking meters reach deep into the neighborhoods and serve (or could serve) policy purposes broader than simply raising revenues for the city. This move would come just as the city, prodded by some neighborhood groups, is starting to move towards optimizing parking pricing. A private operator won’t have the same incentives to work with neighborhoods.
Again, taking out second mortgages on anything that brings in cash is not a good sign.