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Proposed 2012 Chicago Budget Includes Fee Hikes, Consolidations and Restructuring

On Wednesday, October 12, Mayor Rahm Emanuel unveiled the proposed 2012 City of Chicago budget during a special City Council meeting. The budget included municipal service cuts and consolidations, increases in fees and fines, and the restructuring of several long-running city programs. The proposal represents the first stage in the budget approval process. The aldermen will hold public hearings over the next two months, and the City Council will meet several times to discuss the budget details. The final budget is not due for approval until December.

 One of the most significant parts of the proposed budget is the water and sewer rate increases. The current rate is $2.01 per 1000 gallons. It will increase to $2.51 in 2012; $2.89 in 2013; $3.32 in 2014; and $3.82 in 2015. In other words, most households’ water and sewer bill will increase by $210 over the course of next year. The increases would fund a program that would repair and modernize the city’s water and sewer system. Emanuel argues that the repairs are long overdue, and that the program has the added benefit of creating jobs. As of this writing, many aldermen are urging residents to buy water meters. Today, residents with water meters pay an average of $100 less for their water than those without them. If the rate increases are implemented, those with meters would save an average of $120.

The proposed budget also calls for a city vehicle sticker fee increase. Under the new system, stickers would cost $135 for large passenger cars and trucks, $200 for trucks under 16,000 pounds; and $450 for trucks over 16,000 pounds. Stickers for small and standard cars would still cost $75. But whereas in the past, the “large passenger vehicles” were defined as vehicles over 4,500 pounds, the new budget brings the limit down to 4,000. This means that many minivans that would be eligible for $75 sticker under the current definition would soon require a $135 sticker. City Clerk Susana Mendoza, whose office issues city stickers, is lobbying the aldermen to keep the rates for large passenger vehicles the same. Emanuel insisted that the increases were fair, because they largely impact the vehicles that do most damage to the city streets, and that most Chicagoans would not be affected.

The budget also calls for the implementation of the “congestion premium” for drivers who park in the downtown public garages during weekdays. Their rates would increase by $2. Holders of the more expensive weekly and monthly would face even larger increases. The funds raised through the congestion premium would be used to renovate two downtown CTA stations and launch new CTA Bus Rapid Transit program.

But perhaps the most potentially contentious aspect of the proposed budget is the revamp of Chicago’s garbage collection system, moving from the ward-based system to a grid-based system. Emanuel argued that the grid-based system would be cheaper and more efficient. The ward-based system gave aldermen considerable control over garbage collection within their own wards. So far, Ald. Pawar (47th) has expressed support for their move, but it is unclear how many aldermen would be willing to give up one of their biggest perks.

Other noteworthy aspects of the proposed budget include reducing hours in neighborhood libraries, consolidation of police districts, and increasing fines for “neighborhood safety violations” and nuisance violations. The later includes uncut weeds, illegal dumping, over-accumulation of garbage and noise ordinance violations.

The full summary of the budget proposal and related documents can be accessed at http://www.chicagobudget.org/