Chicago Wed Oct 21 2009

Mayor Daley's Budget: One Fine Piece of Assets

Mayor Daley will be dipping into the city's reserves, specifically the $1bn+ fund created by the leasing of the city's parking meters to a private operator, to cover the enormous budget deficit of half a billion dollars that the city projects for next year.

The Mayor is holding to his pledge not to raise taxes and fees, saying that it isn't the time to ask families to pay more.

From Dan Mihalopolous and Hal Dardick, here's what some aldermen had to say:

"I think this is what reserve are made for," said Ald. Howard Brookins Jr., 21st. "Clearly, it's raining. While we don't know when this economic recovery will come, it's not going to be for a couple of years."

But Ald. Manuel Flores, 1st, said he was "very concerned" about dipping into the reserve fund. "That was intended for us to generate additional revenue through interest," Flores said. "You are selling off that asset. You are throwing that asset away."

"If the parking meter money is depleted within five years, then what happens for the next 70 years of that contract?" asked Ald. Scott Waguespack, 32nd, one of five aldermen who voted against the meter lease.

— Ramsin Canon / Comments (0)