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Record #: O2015-7778   
Type: Ordinance Status: Failed to Pass
Intro date: 10/21/2015 Current Controlling Legislative Body: Committee on Finance
Final action:
Title: Amendment of Municipal Code Chapter 2-32 by adding new Section 2-32-627 establishing Property Tax Relief Program
Sponsors: Smith, Michele, Moreno, Proco Joe, Hopkins, Brian , Moore, Joseph, Osterman, Harry, Cappleman, James, Sadlowski Garza, Susan, Pawar, Ameya, O'Connor, Patrick, Dowell, Pat, Arena, John, Burns, William D.
Topic: MUNICIPAL CODE AMENDMENTS - Title 2 - City Government & Administration
Attachments: 1. O2015-7778.pdf
Related files: R2019-362, SO2015-6461
ORDINANCE O

PROPERTY TAX INCREASE AND TAX RELIEF PROGRAM 2015


WHEREAS, the City of Chicago is facing a massive budget shortfall in four pension plans and a pension deficit of up to $550 million that must be paid December 2015; and
WHEREAS, in 2014, the City collected $824 million in property taxes and roughly $478 million went to payments for the four city pension funds: Police, Fire, Municipal, and Laborers; and
WHEREAS, on May 12, 2015, Moody's Investors Service announced it lowered the City of Chicago's credit rating to non-investment, or junk bond, status as a result of unfunded pension obligations; and
WHEREAS, there is a dire need for additional revenue to fulfill pension debt obligations; and
WHEREAS, by not funding pension liabilities, the debt will continue to grow and affect Chicago's fiscal operations and impact expenditures for critical areas such as education, public welfare, and infrastructure; and
WHEREAS, to fulfill obligations Chicago must raise additional revenue to address the city's financial liabilities; and
WHEREAS, increasing the property tax rate in the City may provide the financial soundness to pay for the city's fiscal obligations; and
WHEREAS, working families are already financially burdened and a significant property tax increase could harm them substantially; and
WHEREAS, to ease this burden the City will provide temporary property tax relief assistance to the hardest hit households; and
WHEREAS, in order to assist low and middle income families negatively affected by a property tax increase, the City of Chicago will institute a Property Tax Relief Program; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CHICAGO:

SECTION 1. The above recitals are expressly incorporated herein and made part hereof as though fully set forth herein.

SECTION 2. Chapter 2-32 ofthe Municipal Code of Chicago is amended by adding a new Section 2-32-627 as follows:

2-32-627 Property tax relief program.

(a) As used in this Section:

"App...

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