Another Billion?
- The amount of overall Chicago debt to be paid off with future city property tax collections rose by more than $1 billion last year — marking yet another troubling financial trend for Mayor Rahm Emanuel as he tries to right the financial ship.
But there's a bit of a silver lining in that cloud — the bulk of the new borrowing was done to execute Emanuel's plan to rid the city of risky borrowing deals that could have resulted in even bigger financial troubles down the road.
The level of property tax-backed city debt was about $9.4 billion at the end of 2015, compared with about $8.3 billion the year before, according to the city's annual financial report made public Friday.
That means that for years to come, the city will continue to spend nearly every penny of the $1.2 billion-plus collected from property taxes each year to pay down debt and fund employee pension systems, leaving almost nothing for day-to-day city operations. A small amount is used to cover library operating costs.
So when do we start laying off aldercreatures?
Labels: money questions
posted by SCC at 12:01 AM
16 Comments:
I'm no Rahm supporter but he has done more to shore up the pensions including the police in the last couple years than dum dum Richie did in 25 years.
This Rahm seems to be making a muddled mess of things. And our citizens and police (yes, they are citizens) are paying the piper.
He leaves us in deep do-do.
Alder persons are elected officials, they are necessary and exempt from spending cuts.
Rahm is such a good administrator, isn't he?! Probably worked at Enron at some point.
There is a hole in the bucket. Keep putting water into it.
Anything that TD has done to shore up pensions has been done due to legal requirements. I he hadn't paid the money, the state would have deposited state income tax owed to the City directly into the funds. He actually managed to get the law changed so he was able to pay far less than what was required kicking the can further down the road,
How about using our tax money that is going to his TIF funds to pay bills and or pensions instead of giving it to his political donors and friends as a reward for donating to his political fund.?
What accounting school did the Feds go to?
The best way I have heard Chicago's current financial status described, "The former mayor got into office and had a 20+ year party for all his friends and then snuck out the back door without paying the check."
Rahm is shoring up the retirees pension payments by taking away retirees health care benefits. Benefits that could be paid for if Rahm would only cut back on social welfare benefits paid to his voters. Remember this all you working coppers your turn is coming when you retire. ♠️
That's Rahmenomics for you.
A billion here, a billion there next thing you know Rahm's talking about real money.
Rahm didn't do anything to shore up pensions. Nothing.
Unless you call raising taxes and fees as something positive.
Wake up, Rahm is spending money on frivolous construction, spending money on ambiguous speculation, money he (we) don't have.
Borrowing without any intention to pay the principle, yet his preferred lenders are being paid favorable guaranteed interest.
Oh, it's us the taxpayer paying interest on the interest.
Rahm is no Daley, he's a bigger thief and his bandits extend far beyond Chicago.
Another democrat criminal that will never see anyone stand up an challenge his financial decisions that are in no way ethical.
Building parks and bridges, airports and garages, bike lanes and retrofitting for questionable green technology.
All non revenue generating atrocities, except of course for the private contractors and suppliers.
Now go pay your real estate tax bill because the water and garbage fee is coming within a week.
"I'm no Rahm supporter but he has done more to shore up the pensions including the police in the last couple years than dum dum Richie did in 25 years."
I hope you don't think he did this on his own free will?
I dont know how much that property tax revenue is, as a percentage of total revenue collected (does any one know?) but I'll bet it's way over 50%.
And if all the property tax revenue is going to service debt and pension payments, that is beyond any type of "tipping point". From a financial standpoint, that is a "code blue" emergency. At this point, keeping things going is merely a shell game. This whole city is about one more cheeseburger away from a financial heart attack.
I think things are going to start falling apart, and pretty fast. And absent some major concession from some of the large stakeholders (not likely), I think that bankruptcy will be the only option.
Call the next case. Not a cop.
Anonymous Anonymous said...
I dont know how much that property tax revenue is, as a percentage of total revenue collected (does any one know?) but I'll bet it's way over 50%.
And if all the property tax revenue is going to service debt and pension payments, that is beyond any type of "tipping point". From a financial standpoint, that is a "code blue" emergency. At this point, keeping things going is merely a shell game. This whole city is about one more cheeseburger away from a financial heart attack.
I think things are going to start falling apart, and pretty fast. And absent some major concession from some of the large stakeholders (not likely), I think that bankruptcy will be the only option.
Call the next case. Not a cop.
Your first statement was true You really don't know. Property taxes make up only 15% of total chicago revenue, a small portion
https://www.illinoispolicy.org/reports/busting-the-myth-that-chicago-taxes-are-low-an-analysis-of-chicagos-taxation-and-revenue-in-perspective/
Ok fees and taxes raised yet pension contributions raised also. Sounds fine with me.
Abolish TIF districts plenty of money available.
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