OVERVIEW AND REVENUE ESTIMATES by mmcsx

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BUDGET 2011

    OVERVIEW AND REVENUE ESTIMATES

                     Richard M. Daley
                          Mayor
                                   January 1, 2010




The Government Finance Officers Association of the United States and Canada (GFOA) presented
a Distinguished Budget Presentation Award to City of Chicago, Illinois for their Annual Budget
beginning January 01, 2010. In order to receive this award, a governmental unit must publish a
budget document that meets program criteria as a policy document, as an operations guide, as a
financial plan, and as a communications device.

This award is valid for a period of one year only. We believe our current budget continues to
conform to program requirements, and we are submitting it to GFOA to determine its eligibility
for another award.
C    i   t   y   o   f   C   h   i   c   a   g   o




BUDGET 2011

    OVERVIEW AND REVENUE ESTIMATES
2011 Overview and Revenue Estimates




Dear Chicago Residents:

We are in a time of austerity, as the worst national       At the same time, we have also worked to manage
recession in over seventy years continues to impact        government more efficiently and control spending
people, business and every level of government,            to protect taxpayers. We have done this with one
in Chicago and across the nation.                          goal in mind – to create a government that is
                                                           smaller in size, but greater in performance.
With those challenges in mind, I propose a
2011 balanced budget that better manages our               Since I’ve been Mayor, we’ve cut spending by
resources while meeting the needs of Chicagoans            nearly $3 billion, including almost a half billion
and protecting taxpayers.                                  dollars since 2009 alone, while still providing
                                                           important city services. We will end next year
While our revenues have finally started to increase,
                                                           with 6,600 fewer non-public safety employees
they are rising very slowly. It will take several
                                                           than when I took office.
more years for them to return to pre-recession
levels.                                                    We have reshaped government and reduced
                                                           overlap by consolidating departments. Under the
The fact is that Chicago has experienced a $1
                                                           2011 budget there will be 10 fewer departments
billion decrease in revenues since the recession
                                                           than when I took office.
began, nearly all of which in revenue streams
that are most economically sensitive – real estate         To fund government we’ve raised property taxes
transfer, sales and income taxes.                          as the last resort – by an average of less than 1.3
                                                           percent a year since I’ve been Mayor, far lower
But had we not worked for years to better
                                                           than the rate of inflation.
manage government, control costs and transform
our economy, the recession would have been far             Because people and businesses are hurting, I will
worse in Chicago.                                          not propose any increase in taxes, fines or fees
                                                           in 2011, including property taxes. This will be
When I took office in 1989, Chicago was a rust
                                                           the third year in a row that we haven’t raised
belt city that many people had written off. But
                                                           property taxes.
together we transformed our economy, so that
today, Chicago is among the top tier of cities             We have implemented management improvements
competing for the jobs of the 21st century.                including renegotiating contracts, implementing
                                                           hiring freezes, reducing overtime, leveraging




                                                                                      continued on next page




                                                       I
2011 Overview and Revenue Estimates



technology, requiring furlough days for employees          We will create a new small business fund to
and cutting spending across the board.                     provide loans for start ups, expansions and day-
                                                           to-day operations.
We will continue our freeze on non-safety hiring,
which has been in effect since 2008, as well as cut        We will continue to invest to improve Chicago’s
more positions. We will also continue to require           infrastructure to improve quality of life and make
all non-union employees, starting with me, to              our neighborhoods ready to create jobs and
take furlough days and unpaid holidays, and are            opportunity and welcome new businesses.
counting on the unions serving the City to again
                                                           I believe Chicago is better off today that it was
agree to take part.
                                                           on that spring morning 21 years ago when I first
Even as we hold the line on spending in most               took the oath of office. Together, we’ve brought
areas, we continue to address the most immediate           Chicago into the 21st century, beyond our greatest
and pressing problem facing many of our                    expectations.
neighborhoods – violence on our streets and in
                                                           But, we can’t coast on our accomplishments.
our homes.
                                                           There is still more to be done, and together, we
In 2011, we will put more police officers on street        can keep Chicago moving forward.
duty, hire new police recruits, and reinvent the
                                                           Sincerely,
CAPS program to more fully engage Chicagoans
to make our communities safer.


                                                           Mayor Richard M. Daley




                               |                                              |

                                                      II
2011 Overview and Revenue Estimates




     Message from Mayor Richard M. Daley    I

     List of Tables and Charts             IV

     2011 Proposed Budget




     Chicago Facts and Financial Profile




                                           38


     2011 Proposed Budget Analyses




     How Chicago Budgets




     Budget Detail




     Budget Glossary




                                  III
2011 Overview and Revenue Estimates
                       CONTINUED




                 IV
2011 Overview and Revenue Estimates
                       CONTINUED




                 V
BUDGET 2011
 O verview and Revenue Estimates




 2011 PROPOSED BUDGET
2011 Overview and Revenue Estimates
2011 Overview and Revenue Estimates
                     CONTINUED




                 2
2011 Overview and Revenue Estimates
                     CONTINUED
2011 Overview and Revenue Estimates
                               direCtor’S diSCuSSion CONTiNued
Skyway	long-term	reserve.		This	$500	million	                    •	   	$1	million	in	funding	for	a	youth	jobs	
reserve	represents	more	than	15	percent	of	the	                       program;
City’s	general	fund	in	the	budget,	above	the	
                                                                 •	   	$1	million	to	provide	job-training	programs	
recommended	amount	by	the	Government	Finance	
                                                                      for	ex-offenders;
Officers	Association.
                                                                 •	   	$750,000	 for	 our	 Share	 the	 Warmth	
                                                                      program	which	helps	needy	families	pay	
MAINTAINING	FUNDING	TO	IMPROVE	
QUALITY	OF	LIFE	FOR	HOMEOWNERS,	                                      their	heating	bills;	
BUSINESSES,	AND	THOSE	MOST	IN	NEED                               •	   	$700,000	in	new	funding	for	homeless	
                                                                      shelter	beds;	
Over	a	four-year	period	which	started	in	2010,	
the	City	of	Chicago	plans	to	invest	$100	million	                •	   	$700,000	for	our	Plan	to	End	Homelessness,	
from	the	parking	meter	transaction	through	the	                       which	provides	transition	assistance	for	
Parking	Meter	Human	Infrastructure	Fund.	                             those	in	need;

This	$100	million	fund	is	helping	improve	the	                   •	   	$ 6 0 0 , 0 0 0 	 t o 	 m a i n t a i n 	 f u n d i n g 	 f o r	
quality	of	life	for	Chicago	homeowners,	businesses,	                  emergency	home	repairs;
and	those	residents	most	in	need,	particularly	                  •	   	$400,000	to	maintain	funding	to	provide	
those	severely	impacted	by	the	national	economic	                     home	modifications	for	individuals	with	
recession.                                                            disabilities;
2011	marks	the	second	year	for	the	Parking	Meter	                •	   	$250,000	to	supplement	the	City’s	job	
Human	Infrastructure	Fund.	The	fund	was	meant	to	                     training	program	for	adult	and	dislocated	
continue	support	to	critical	human	infrastructure	                    workers;
programs	that	had	previously	been	funded	by	the	
Chicago	Skyway	Human	Infrastructure	Fund	from	                   •	   $250,000	to	provide	emergency	food	boxes	
2005	through	2009.                                                    for	needy	families;	and

A	total	of	$21.65	million	from	the	Parking	Meter	                •	   	$200,000	 in	 new	 funding	 to	 provide	
Human	Infrastructure	Fund	will	be	allocated	in	                       case	management	for	domestic	violence	
the	2011	budget,	including:                                           victims.		

   •	   	$8.4	million	for	the	Chicago	Tech	program	
        to	provide	technology	training	for	recently	         CONCLUSION
        laid-off	workers;
                                                             Chicago	will	continue	to	face	these	economic	
   •	   	$2	million	for	home-delivered	meals	to	             challenges	for	next	several	years,	and	we	will	be	
        seniors;	                                            tested	to	continue	to	provide	the	quality	services	
                                                             our	residents	need	and	deserve.	
   •	   	$1.6	million	in	multi-family	affordable	
        housing	loans;                                       Under	the	leadership	of	Mayor	Daley,	the	2011	
                                                             budget	 proposal	 is	 a	 responsible	 plan	 that	
   •	   	$1.5	million	for	out-of-school	and	after-
                                                             protects	taxpayers	and	improves	the	management	
        school	programs	for	youth;
                                                             of	government,	and	takes	the	needed	steps	to	
   •	   $1.3	million	for	the	Low-Income	Housing	             continue	moving	this	great	City	forward,	even	in	
        Trust	Fund;                                          the	most	difficult	of	times.
   •	   	$1	million	for	a	new	program	to	help	small	
        businesses	obtain	loans;	




                                Visit www.cityofchicago.org • Call 311 City Services

                                                         4
2011 Overview and Revenue Estimates




EXPENDITURE REDUCTIONS             $96.9 MILLION




MAXIMIZING REIMBURSEMENTS          $98.0 MILLION




MODEST GROWTH IN REVENUES          $91.3 MILLION



STRATEGIC FINANCIAL OPTIONS        $68.2 MILLION




DEBT RESTRUCTURING                $142.0 MILLION



TIF SURPLUS                        $38.5 MILLION



USE OF ASSET LEASE FUNDS          $119.9 MILLION




                              5
2011 Overview and Revenue Estimates




TABLE 1




Corporate Fund




All Local Funds




                  6
2011 Overview and Revenue Estimates
                                                                                  CONTINUED




CHART 1                                                      Sales Taxes
                            Income Taxes
                                6.8%                            8.5%
                                                                                     Utility Taxes
                                                                                         7.8%

                  Property Tax
                     13.5%
                                                                                                   Aviation
                                                                                                    18.2%




                                                                                       Sewer & Water
                                                                                          11.4%
                     Other Resources
                         29.6%                                   Fines, Forfeitures and
                                                                        Penalties
                                                                          4.2%




CHART 2
                             Non Tax Revenue                               Utility Taxes
                                  17.2%                                       14.7%



          Unreserved Fund Balance
                   0.3%


                                                                                           Sales Tax
                                                                                            15.2%
             Other Local Taxes
                  17.2%




                                                                                      Income Tax
                Reimbursements                                                           9.5%
                    10.7%

                                                                         Proceeds & Transfers
                     Advance Parking Meter
                                                                               10.5%
                          Mid term
                             1.0%               Borrow from Parking
                                               Meter Long term reserve
                                                        3.7%




                                                         7
2011 Overview and Revenue Estimates
                                                                     CONTINUED




CHART 3
                       City Development
                                           Community Services
                              1.0%
          Legislative &                         1.8%
            Elections                                                    Public Safety
              0.7%                                                          31.4%
            Finance &
          Ad i i     i
          Administration
               7.8%


      Benefits & Other                                                        Regulatory
          11.9%                                                                 0.9%
                                                                          Infrastructure
                                                                             Services
                                                                               6.0%

                                                                        Public Service
                      Debt Service                                       Enterprises
                        21.0%                                              10.0%
                                                     Pension Funds
                                                         7.4%



CHART 4
              General Services            Streets and Sanitation
                   2.8%                            5.7%
                                                                          Fire
           All other Departments
                                                                         14.8%
                    9.7%

           Transportation                                                       Emergency
                2.3%                                                          Management and
                                                                              Communication
                                                                                   2.7%

            Finance General
                 19.7%




                  Fleet Management                                       Police
                         2.5%                                            39.8%




                                                 8
2011 Overview and Revenue Estimates

    KEEPING OUR NEIGHBORHOODS SAFE AND OUR CITY SECURE




                            9
2011 Overview and Revenue Estimates
                                         CONTINUED
    KEEPING OUR NEIGHBORHOODS SAFE AND OUR CITY SECURE
2011 Overview and Revenue Estimates
                                        CONTINUED
      IMPROVING EDUCATION, PROTECTING OUR CHILDREN
2011 Overview and Revenue Estimates
                                        CONTINUED
      IMPROVING EDUCATION, PROTECTING OUR CHILDREN
     2011 Overview and Revenue Estimates
                                                  CONTINUED
STRENGTHENING CHICAGO’S ECONOMY, CREATING JOBS AND NEIGHBORHOOD OPPORTUNITIES
     2011 Overview and Revenue Estimates
                                                  CONTINUED
STRENGTHENING CHICAGO’S ECONOMY, CREATING JOBS AND NEIGHBORHOOD OPPORTUNITIES
     2011 Overview and Revenue Estimates
                                                   CONTINUED
IMPROVING OUR CITY’S INFRASTRUCTURE AND ENHANCING NEIGHBORHOOD QUALITY OF LIFE
     2011 Overview and Revenue Estimates

IMPROVING OUR CITY’S INFRASTRUCTURE AND ENHANCING NEIGHBORHOOD QUALITY OF LIFE
 2011 Overview and Revenue Estimates
                                               CONTINUED
KEEPING OUR NEIGHBORHOODS AFFORDABLE AND PROTECTING THOSE MOST IN NEED
  2011 Overview and Revenue Estimates
                                               CONTINUED
KEEPING OUR NEIGHBORHOODS AFFORDABLE AND PROTECTING THOSE MOST IN NEED
2011 Overview and Revenue Estimates
                                        CONTINUED
    BETTER MANAGING GOVERNMENT, PROTECTING TAXPAYERS
2011 Overview and Revenue Estimates
                                        CONTINUED
    BETTER MANAGING GOVERNMENT, PROTECTING TAXPAYERS
2011 Overview and Revenue Estimates
                                        CONTINUED
    BETTER MANAGING GOVERNMENT, PROTECTING TAXPAYERS
BUDGET 2011
 O verview and Revenue Estimates




    CHICAGO FACTS AND
     FINANCIAL PROFILE
2011 Overview and Revenue Estimates


Chicago is a world-class city with unsurpassed                                       With world-famous museums, lakefront parks
beauty, drawing visitors from around the nation                                      and vibrant ethnic neighborhoods, Chicago
and the globe. Located on the shores of Lake                                         offers something for everyone and a quality of
Michigan in the heart of the Midwest, Chicago                                        life unparalleled by any other major metropolitan
is home to world-championship sports teams, an                                       area.
internationally acclaimed symphony orchestra,
renowned architecture and much more.

The third largest city in the United States, Chicago
is located in Cook County, Illinois and is comprised
of 228 square miles, is 26 miles long and is 579 feet
above sea level.

  Demographics                                                                      Population by Race                         2,850,502
  Chicago’s 2.7 million people live in 77 ethnically                                White                                       1,327,777
  diverse neighborhoods in more than one million                                    Black or African American                     946,127
  households. The City is comprised of 50 wards and                                 American Indian and Alaskan Native              8,886
  has 1.5 million registered voters.                                                Asian                                         150,116
                                                                                    Native Hawaiian and Other Pacific Islander        297
  Government                                                                        Some Other Race                               371,557
  A mayor and 50-person City Council govern the                                     Two or More Races                              45,742
  City and work to provide residents, businesses and                                Population by Hispanic or Latino Origin
  visitors quality municipal services. Elected officials                            Not Hispanic or Latino                                          72.7%
  serve four-year terms.                                                            Hispanic or Latino                                              27.3%

  Infrastructure                                                                    Households                                                   1,072,886
  The City maintains approximately 200,000 street                                   Median Household Income (Estimate)                              $45,734
                                                                                    Families Below Poverty Level                                     18.0%
  lights, 81,000 alley lights and 2,880 signaled
                                                                                    Unemployment Rate (June)                                         11.4%
  intersections. There are 45 moveable bridges, 139
  viaducts and 19 pedestrian underpasses.                                           Gender
                                                                                    Male                                                         1,390,027
  More than 43.4 million people per month ride                                      Female                                                       1,460,475
  the Chicago Transit Authority, the second largest
  public transportation system in the United States.                                Age
  More than 81 million people travel to and from                                    Children under age five                                        211,264
                                                                                    Older Adults (age 65 and older)                                290,886
  Chicago’s airports in 2009. Visitors and residents
                                                                                    Median Age                                                        32.9
  alike enjoy 570 parks and more than 315 miles of
  bike paths.

  Economy
  Chicago is a national manufacturing and transpor-
  tation hub and is home to some of the world’s
  largest corporations. The area’s top employers
  include city, state and county governments, univer-
  sities, airports and banks.
  Chicago hosted 45.6 million domestic and overseas
  visitors in 2008, including 32.4 million domestic
  leisure travelers, 11.7 million domestic business
  travelers and 1.3 million overseas visitors. These
  visitors contributed more than $11.8 billion to
  Chicago’s economy.

Sources: US Census Bureau, World Business Chicago, Chicago Convention and Tourism Bureau and Regional Transit Authority Northeastern Illinois.
Unemployment figure is not seasonally adjusted. Claritas Inc. 2009 Estimates




                                                                               22
2011 Overview and Revenue Estimates
                                                                                             CONTINUED


QUALITY OF LIFE                                                            COST OF LIVING INDEX
                                                                           New York (Manhattan)                                      217.2
                                                                           San Francisco                                             162.9
   500 in the metropolitan area                                            Los Angeles                                               141.6
                                                                           Washington, D.C                                           138.6
                                                                           Boston                                                    130.9
                                                                           Philadelphia                                              123.9
                                                                           Chicago                                                   113.2
   libraries and more than 70 neighborhood
                                                                           Miami                                                     109.8
   libraries                                                               U.S. Average                                              100.0
                                                                           Source: ACCRA Cost of Living Index, 2009 Annual Average; World Business
                                                                           Chicago



                                                                           CLIMATE
                                                                           2009 Average Daily Temperature—Fahrenheit

                                                                                                              High               Low
                                                                                      January                 23.9               7.8
                                                                                      July                    78.4               60.4

                                                                           2009 Annual Precipitation in Inches                   42.6
                                                                           2009 Annual Snowfall in Inches                        51.0

   Source: World Business Chicago, Chicago Convention and Tourism          Source: National Oceanic and Atmospheric Administration
   Bureau, Chicago Park District



TOP THREE ANNUAL EVENTS
Event                            2009 Attendance                    Date

Taste of Chicago                       3,350,000                    late June/early July
Air and Water Show                     2,200,000                    mid August
Blues Festival                            640,000                   early June
2011 Overview and Revenue Estimates


                                                                                                                                                      CITY OF CHICAGO
                                                                                                                                                     COMMUNITY AREAS




         EDISON PARK
                                                                               ROGERS PARK

                                                                    WEST RIDGE

                                      FOREST GLEN
                                                                                                                                                                    CITY OF CHICAGO
                                                                                                                                                                    RICHARD M. DALEY
         NORWOOD PARK                                                                 EDGEWATER                                                                          MAYOR
                                                    NORTH PARK
                               JEFFERSON
                                                                          LINCOLN                                                                                         SEPTEMBER 2006
                                  PARK
                                                                          SQUARE
 OHARE
                                                      ALBANY PARK
                                                                                           UPTOWN



                                  PORTAGE PARK            IRVING PARK
                                                                                                                                                                                 N
           DUNNING                                                       NORTH CENTER
                                                                                          LAKE VIEW
                                                               AVONDALE

                   MONTCLARE




                                                   HERM
                               BELMONT CRAGIN
                                                                LOGAN SQUARE                   LINCOLN PARK


                                                    OSA

                                                                                                             NEAR NORTH
                                                                             WEST TOWN                          SIDE
                                                   HUMBOLDT PARK
                                      AUSTIN



                                                    WEST      EAST
                                                   GARFIELD GARFIELD                                                                    LOOP
                                                     PARK     PARK
                                                                                    NEAR WEST SIDE



                                                          NORTH LAWNDALE                                                                          NEAR
                                                                                                                                                 SOUTH
                                                                                    LOWER WEST SIDE




                                                                                                                                ARMOUR SQ
                                                                                                                                                  SIDE


                                                                                                     BR
                                                          SOUTH LAWNDALE                                I   DG
                                                                                                              EP                                  DOUGLAS
                                                                                    MCKINLEY                    O                   UARE
                                                                                                                    RT
                                                                                      PARK



                                                                                                                                                          OA
                                                                                                                                                             KL
                                                                                                                                                                A
                                                                    BRIGHTON


                                                                                                                                                               ND
                                                                                                                                  FULL ER PARK




                                                                      PARK                                                                         GRAND
                                                     ARCHER                            NEW CITY                                                  BOULEVARD KEN
                                                     HEIGHTS                                                                                                        W
                                                                                                                                                                     OO
                                                                                                                                                                          D


                                  GARFIELD RIDGE                                                                                                                    HYDE
                                                                        GAGE PARK                                                                WASHINGTON
                                                           WEST                                                                                                     PARK
                                                                                                                                                    PARK
                                                          ELSDON
                                                                                                                    ENGLEWOOD
                                                                                         ENGLEWOOD
                                                                                            WEST




                                     CLEARING                                                                                                               WOODLAWN

                                                                   CHICAGO LAWN

                                                    WEST LAWN                                                                                     GREATER
                                                                                                                                                   GRAND                  SOUTH SHORE
                                                                                                                                                  CROSSING
                                                                    ASHBURN
                                                                                                                                                                        AVALON         SOUTH CHICAGO
                                                                                        AUBURN GRESHAM                                                                   PARK
                                                                                                                                                   CHATHAM
                                                                                                                                                                BU




                                                                                                                                                                                CALUMET
                                                                                                                                                                   R




                                                                                                                                                                                HEIGHTS
                                                                                                                                                                    NS
                                                                                                                                                                        ID E




                                                                                                     WASHINGTON
                                                                                                       HEIGHTS
                                                                                     BEVERLY
                                                                                                                                                              PULLMAN
                                                                                                                                                                                                 EAST SIDE
                                                                                                                                      ROSELAND

                                                                  MOUNT
                                                                GREENWOOD            MORGAN PARK                                                                               SOUTH DEERING



                                                                                                             WEST PULLMAN




                                                                                                                                                         RIVERDALE

                                                                                                                                                                                           HEGEWISCH




                                                          24
2011 Overview and Revenue Estimates



CHICAGO’S ECONOMY                                             The Census Bureau estimated 1.5 million Chicago
                                                              residents in the labor force in 2009, slightly higher
The overall economic environment affects City                 than the estimate of 1.35 million in 2000. In 2009,
government in both revenues and expenses. The                 the percentage of Chicago’s population over age
health of the economy determines how much                     16 that was in the labor force was 66.4 percent.
revenue the City collects from economically                   This is slightly lower than State of Illinois’ rate of
sensitive sources such as sales, income, real estate          67.0 percent and above the national rate of 65.3
transfer, hotel and amusement taxes. The economy              percent.
also affects the services the City provides in several        AGE DISTRIBUTION
ways. Inflation increases the amount the City has
                                                              The U.S. Census Bureau reports that the age
to pay for its purchases. Further, city residents
                                                              distribution of Chicagoans is much like that of
tend to rely on certain City services more during
                                                              Illinois and the nation as a whole. For example,
challenging economic times. Chicago’s economy
                                                              approximately 23.4 percent of Chicago residents
is, therefore, dependent on the national and state
                                                              are under the age of 18 and 10.5 percent are
economies within which it functions.
                                                              between the ages of 18 and 24, very close to
                                                              the national figures. However, at 33.6 percent,
DEMOGRAPHICS                                                  Chicago’s share of residents between the ages of
                                                              25 to 44 is higher than that of both Illinois (27.4
Chicago’s population and labor force are relatively           percent) and the United States (27.1 percent).
stable. The U.S. Census Bureau reports that the               Conversely, Chicago’s share of residents ages 45
City’s population was 3,005,000 in 1980. It fell to           and older is lower than Illinois and the United
2,783,000 in 1990 and rebounded to 2,896,000 in               States.
2000. In 2009, the estimate was slightly lower at
2,850,502.




AGE DISTRIBUTION, 2009
CHART 5


                                  40%
                                                                                                         Chicago
                                  35%
                                                                                                         Illinois
% of Total Household Population




                                  30%                                                                    U.S.


                                  25%

                                  20%

                                  15%

                                  10%

                                  5%

                                  0%
                                        <18   18-24           25-44                  45-64                      65+
                                                          Age Category




                                                         25
2011 Overview and Revenue Estimates
                                                                                    CONTINUED



Chicago’s age distribution in 2009 also closely               than Chicago – 78.2 percent versus 66.0 percent.
matched its peer cities: New York, Los Angeles,               Only 14.4 percent of San Francisco’s population is
Houston and Philadelphia. By contrast, San                    under 18, compared with 23.4 percent in Chicago.
Francisco and Boston are both smaller cities                  A higher concentration of 18 to 24 year-olds
where the cost of living and housing is high,                 in Boston reflects the number of colleges and
relative to the rest of the country. San Francisco’s          universities in the area.
percentage of residents over age 25 is much higher


AGE DISTRIBUTION, LARGE AND SELECTED CITIES, 2009
CHART 6

                                  50%
                                                                                                        Chicago
                                  45%
                                                                                                        New York City
                                  40%                                                                   Los Angeles
% of Total Household Population




                                                                                                        Houston
                                  35%
                                                                                                        Philadelphia
                                  30%                                                                   San Francisco

                                  25%                                                                   Boston


                                  20%

                                  15%

                                  10%

                                  5%

                                  0%
                                        <18   18-24             25-44                45-64                       65+
                                                            Age Category

UNEMPLOYMENT RATE

The City of Chicago’s annual average                         to 4.6 percent in 2006, and rose to 10.1 percent
unemployment rate, tracked by the U.S. Bureau of             in 2009. Chicago’s June 2010 unemployment rate
Labor Statistics, decreased from 8.3 percent in 2002         was 11.4 percent, compared to 10.6 percent for
to 5.3 percent in 2006, then rose to 10.9 percent in         the State of Illinois and 9.6 percent nationally. (All
2009. During the same period, the State of Illinois’         rates are not seasonally adjusted.)
unemployment rate fell from 6.5 percent in 2002




                                                       26
2011 Overview and Revenue Estimates
                                                                                                                     CONTINUED



ANNUAL AVERAGE UNEMPLOYMENT RATES, 2002 TO 2009
TABLE 2
                     Year               Chicago                   Illinois                 U.S.            Difference (Chicago – U.S.)

                     2002                  8.3%                       6.5%                 5.9%                               2.4%

                     2003                  8.1%                       6.7%                 6.1%                               2.0%

                     2004                  7.5%                       6.2%                 5.6%                               1.9%

                     2005                  7.1%                       5.8%                 5.0%                               2.1%

                     2006                  5.3%                       4.6%                 4.5%                               0.8%

                     2007                  5.7%                       5.1%                 4.6%                               1.2%

                     2008                  7.0%                       6.4%                 5.9%                               1.1%

                     2009                 10.9%                   10.1%                    10.1%                              0.8%
               Rates not seasonally adjusted



Similar to other major cities, Chicago’s                                             Chicago’s June 2010 unemployment rate at
unemployment rate is higher than the nation’s                                        11.4 percent was slightly lower than that of Los
rate. In 2006, the gap between Chicago’s                                             Angeles at 13.5 percent and Philadelphia’s at
unemployment rate and the nation’s was only 0.8                                      11.9 percent. New York City and Houston were
percent. This gap increased to 2.1 percent at the                                    lower than Chicago at 9.5 percent and 8.5 percent,
end of June, 2009 and decreased to 0.9 percent at                                    respectively. Among nearby cities, St. Louis and
the end of June, 2010. Generally, the gap between                                    Milwaukee had unemployment rates similar
local and national rates is wider during recessions                                  to Chicago at 11.6 percent and 11.0 percent,
and smaller during periods of economic growth.                                       respectively, while Detroit was much higher at
                                                                                     23.7 percent.

UNEMPLOYMENT RATES FOR LARGE CITIES, 2001–MID 2010
CHART 7
                                                                      00             0 0
 16%


 14%
                                                                                                                                     Los Angeles, 13.5%

 12%                                                                                                                                 Philadelphia, 11.9%
                                                                                                                                     Chicago, 11.4%
 10%
                                                                                                                                     New York City, 9.5%
                                                                                                                                     Houston, 8.5%
                                                                                                                                     H t 8 5%
 8%


 6%


 4%


 2%


 0%
        2001       2002         2003           2004           2005            2006         2007         2008          2009       Jun 10
                                   Chicago            New York City          Los Angeles      Houston          Philadelphia




                                                                              27
2011 Overview and Revenue Estimates
                                                                                    CONTINUED



ECONOMIC DIVERSITY
                                                      EMPLOYMENT BY INDUSTRY, 2009
Chicago’s economy is well-diversified, based on
data from the U.S. Census Bureau. In fact, of the
                                                          TABLE 3
                                                          In
major industry categories, Chicago is within 2.0
percent of the national share of every one except          Industry Type             Chicago    Illinois   U.S.

construction and retail trade, where Chicago is            Agriculture               0%         1%         2%
3.0 percent below, and professional and business           Construction              4%         5%         7%
services, where Chicago is 4.0 percent above.              Manufacturing             9%         13%        10%
This also means that, with suitable caution, it is         Wholesale Trade           2%         3%         3%
reasonable to look at the directions of national           Retail Trade              9%         11%        12%
economic forecasts and project them onto the               Transportation,           6%         6%         5%
local situation.                                           Warehousing, Utilities
                                                           Information               3%         2%         2%
                                                           Finance, Insurance,       9%         8%         7%
                                                           Real Estate,
                                                           Rental and Leasing
                                                           Professional              15%        11%        11%
                                                           and Business Services
                                                           Education, Health         23%        22%        23%
                                                           Care, Social Services
                                                           Leisure and               11%        9%         9%
                                                           Hospitality
                                                           Other Services            5%         5%         5%
                                                           Public Administration     4%         4%         5%




                                                     28
2011 Overview and Revenue Estimates
                                                                         CONTINUED



INCOME

Chicago’s median household income was
$45,734 in 2009, about 8.9 percent less than the
United States and 15.3 percent less than Illinois
as a whole. The average (or mean) household
income for Chicago was $68,826, similar to that
of the nation at $68,914 and 6.2 percent less
than Illinois as a whole. It is to be expected that
Chicago’s income figures would be lower than
the national or statewide levels, reflecting the
higher concentration of poverty typical of most
large cities.

Comparing the income distribution of Chicago
to the nation and to Illinois demonstrates that
Chicago has proportionately more households
with income under $10,000 and fewer with
incomes between $50,000 and $150,000. At
other income levels, such as low to lower-middle
income and upper income, Chicago’s population
is close to the national and Illinois percentages.




ANNUAL HOUSEHOLD INCOME, 2009
CHART 8


 $80,000
                                                                      Median   Mean
 $70,000

 $60,000

 $50,000

 $40,000

 $30,000

 $20,000

 $10,000

     $-
                         U.S.                              Illinois             Chicago




                                                      29
2011 Overview and Revenue Estimates
                                                                                                                                                              CONTINUED




HOUSEHOLD INCOME DISTRIBUTION, 2009
CHART 9

  14%
                                                                                                                                                                                       U.S.
  12%
                                                                                                                                                                                       Illinois
  10%
                                                                                                                                                                                       Chicago

   8%

   6%

   4%

   2%

   0%




                                                                                                                                                                                                  $200K+
                                                                                                                                                                     124999


                                                                                                                                                                              149999


                                                                                                                                                                                        199999
          <$10000


                    $10K 14999


                                 $15K 19999


                                              $20K 24999


                                                           $25K 29999


                                                                        $30K 34999


                                                                                     $35K 39999


                                                                                                  $40K 44999


                                                                                                                $45K 49999


                                                                                                                             $50K 59999


                                                                                                                                          $60K 74999


                                                                                                                                                        $75K 99999

                                                                                                                                                                     $100K


                                                                                                                                                                              $125K


                                                                                                                                                                                        $150K
POVERTY                                                                                                        POVERTY RATES, 2009
As a large city, one area where Chicago differs                                                                TABLE 4
markedly from the state and the nation as a
whole, but not from its peers, is in the share of                                                                Area                                  Families                    Individuals
its population living in poverty. Serving the needs                                                              United States                           14.3%                          10.5%
of this population is a significant part of Chicago’s                                                            Illinois                                13.3%                            9.9%
budget. In poor economic times, the number of                                                                    Chicago                                 21.6%                          18.0%
people in poverty grows, increasing the number of
                                                                                                                 New York City                           18.7%                          15.8%
people who depend on the City for basic services,
                                                                                                                 Los Angeles                             19.8%                          16.1%
even as City revenues may not keep pace.
                                                                                                                 Houston                                 20.6%                          17.5%
                                                                                                                 Philadelphia                            25.0%                          19.9%
2011 Overview and Revenue Estimates
                                                                                                                                                CONTINUED



REVENUES SENSITIVE TO                                                                                 Although the recent recession officially ended
                                                                                                      in June 2009, it dealt a devastating blow to
THE ECONOMY
                                                                                                      economically sensitive revenues that may take
                                                                                                      years to rebuild.
It is useful to consider the types of revenue
sources that support the City’s corporate fund:                                                       In fiscal year 2011, economically sensitive revenues
stable sources that grow with the underlying                                                          are projected to generate $1,006.5 million, or 30.9
transactions and economically sensitive sources                                                       percent out of total corporate fund revenues of
that track the economy.                                                                               $3.26 billion. This is a sharp decline from pre-
                                                                                                      recession years when economically sensitive
Stable sources are generally of a fixed-rate nature
                                                                                                      revenues made up approximately 40 percent of
and do not experience large fluctuations in
                                                                                                      corporate fund revenue. These revenues are
response to the economy or price changes. Per-
                                                                                                      expected to generate $250 million less than the
unit taxes, licenses/permits and fines are examples
                                                                                                      amount generated in 2007.
of such sources. Due to the widespread nature of
the recent recession and its ripple effect through                                                    Through 2011, economically sensitive revenues are
multiple sectors of the economy, even these stable                                                    expected to experience a total loss that exceeds $1
sources have experienced declines.                                                                    billion due to the recession and its aftermath.

Economically sensitive sources include sales,                                                         Approximately half of this will be the result of
income, real estate transfer, hotel and amusement                                                     losses in the real estate transfer tax, a casualty of
taxes. As the chart below reflects, these revenue                                                     the battered real estate market that witnessed
sources historically have grown over time with the                                                    approximately 25 percent declines in the number
economy. However, these sources are not immune                                                        of home sales and the median sales price.
to economic down cycles such as that experienced
                                                                                                      Income taxes will make up almost a third of
in the 1991-1992 recession, the 2000-2002 period
                                                                                                      the losses, reflecting a weakened labor market
following the bursting of the dot-com bubble
                                                                                                      struggling with the doubling of the unemployment
and the attacks of September 11, 2001, and most
                                                                                                      rate and an economy that is not fostering hiring
recently, the 2007-2009 recession.
                                                                                                      at a level to produce significant growth.


ECONOMICALLY SENSITIVE REVENUES, 1989–2011 FORECASTED
CHART 10A
           $1,400

           $1,200                               CURRENT DOLLARS                        1989 DOLLARS

                                                Current $Trend line                    1989 $ Trend Line
           $1,000
Millions




            $800

            $600

            $400

            $200

               $-
                                                                                                                                                                             2010YE
                    1989

                           1990

                                  1991

                                         1992

                                                   1993

                                                           1994

                                                                  1995

                                                                         1996

                                                                                1997

                                                                                       1998

                                                                                              1999

                                                                                                      2000

                                                                                                             2001

                                                                                                                    2002

                                                                                                                           2003

                                                                                                                                  2004

                                                                                                                                         2005

                                                                                                                                                 2006

                                                                                                                                                        2007

                                                                                                                                                               2008

                                                                                                                                                                      2009



                                                                                                                                                                                      2011F
2011 Overview and Revenue Estimates
                                                                                                         CONTINUED



 Sales taxes account for nearly $200 million of the                       In fact, the annual Sporting News list of Best
 losses as household wealth has deteriorated and                          Sports Cities ranked Chicago the best sports
 consumer sentiment is apprehensive, at best, and                         town in the U.S. for 2010 predominantly due to
 remains at depressed levels compared with prior                          the Blackhawks championship. Other businesses
 recoveries.                                                              within the hospitality industry have not been as
                                                                          “recession-proof.”
 The hotel tax will make up $28 million of the
 losses reflecting double digit declines in the hotel                     Overall, even with the economy on the road to
 occupancy rate and average room rate. Recent                             recovery, the City will continue to address increased
 indicators suggest that there is some basis for                          expenses at 2011 levels with economically sensitive
 optimism for the hotel industry, but it is against                       revenues performing at 2004 levels.
 economic headwinds that may dampen potential
 growth.

 The amusement tax has been able to sustain some
 growth, but not at the same rate experienced prior
 to the recession. The success of Chicago’s sport
 teams may be credited with this lone highlight.



ECONOMICALLY SENSITIVE REVENUES,
2000–2011, CORPORATE FUND SHARE
CHART 10B

             $1,400
$ millions




             $1,200


                                                                                                                        Hotel & Amusement
             $1,000
                                                                                                                               $135

                                                                                                                                      Real Estate
              $800
              $
                                                                                                                                      Transaction
                                                                                                                                          $65

              $600
                                                                                                                                       Income*
                                                                                                                                         $264
              $400
                                                                                                                                        Sales
                                                                                                                                        $497
              $200



                $0
                      2000   2001   2002   2003   2004      2005       2006      2007      2008       2009   2010 Revised 2011 Recs

                                                         *Reflects income tax activity months (not adjusted for the State’s delay in distribution)
2011 Overview and Revenue Estimates
                                                                            CONTINUED



NATIONAL AND STATE                                    flexibility to respond and head that off, or at least
                                                      to delay it. But, with national deficits and debts
FORECASTS
                                                      much higher and short-term interest rates near
                                                      zero, that flexibility no longer exists. From that
During the past three years, the United States has
                                                      perspective, the very slow and uncertain recovery
undergone the worst financial crisis in modern
                                                      is less surprising.
history. Of the 13 recessions that have occurred
since the Great Depression, none has been as          The current economic downturn will take a long
damaging in terms of the length, breadth and          time to fully understand. Nonetheless, forecasts
depth as this one. Furthermore, this has been a       for the current national and state picture agree
world-wide recession, similar to the 1930s and        on a number of points.
unlike anything since.
                                                      The U.S. recession started in December 2007 and
The crisis began in the financial sector, most        ended in June 2009. In affirming the official end
notably in the market for securities backed by        of the recession, the National Bureau of Economic
residential mortgages, and became the result of       Research did not conclude that the economy had
the rapid deflation of a very large asset bubble.     returned to operating at normal capacity, only
It has since spread through most sectors of the       that the recession ended and a recovery began
economy triggering a decline in the nation’s gross    in June 2009.
domestic product, a loss of more than eight million
                                                      However, this recovery has been anemic, far slower
jobs, a doubling of the unemployment rate and
                                                      than many expected and slower than the pattern
an erosion of household wealth and consumer
                                                      of virtually all post-war recessions. The phrase
confidence. The ranks of the working-age poor
                                                      “growth recession” has been used to describe it,
climbed to the highest level since the 1960s,
                                                      meaning the aggregate ecomony is growing but
leaving one in seven Americans in poverty.
                                                      per capita economic activity is stable or shrinking.
This is in contrast to most postwar recessions        In other words, growth in GDP that is less than
which were considered normal business cycle           necessary to keep up with population growth.
corrections. The 2000-2002 dot-com bust might         The phrase also suggests little or no change in
have precipitated a recession similar to this, but    employment, certainly not enough growth in
the world’s governments had enough financial          employment to keep up with population. In fact,
2011 Overview and Revenue Estimates
                                                                            CONTINUED



economists estimate that at least 100,000 net new     Based on a recent survey, it was estimated that
jobs must be created each month just to keep pace     more than two-in-ten, or 21 percent, of all
with growth in the labor market.                      homeowners are “underwater,” meaning they
                                                      currently owe more on their home loans than they
The Federal government has attempted several
                                                      could sell their house for in today’s market. Almost
economic stimulus programs, the biggest of which
                                                      one-fourth of all homes sold in Illinois during the
was the American Recovery and Reinvestment
                                                      second quarter of 2010 were foreclosures. As long
Act of 2009. While the long-term effects of this
                                                      as this continues, median prices will remain below
program are not yet known, it is clear that there
                                                      average, sales inventory, currently at a 12.5 month
were some short-term positive outcomes. The Cash
                                                      supply, will remain above average and the real
for Clunkers and Homebuyer’s Assistance Programs
                                                      estate market will remain soft.
appear to have created some momentum, but it
is not clear whether this generated net positive      Corporate profits recovered somewhat in late
gains or merely shifted demand and economic           2009 and early 2010, relatively speaking, fueling
activity forward in time. The hoped-for multiplier    a stronger stock market from March 2009 until
of more than a dollar of economic activity for each   June 2010. However, it appears that much of
dollar spent, has been elusive, as businesses and     this profitability has been due to aggressively
individuals have tried to use any extra money to      reducing costs, including reducing workforces
work down their debts.                                and inventories. It has generally not been due
                                                      to strong demand, and the cost savings having
Looking ahead, as the nation attempts to climb
                                                      largely been achieved, there is skepticism whether
out of the economic trough, it is evident that
                                                      profits can continue to grow strongly.
troubles linger. Confusing and often contradictory
economic data have left the public uneasy over        Employment is expected to recover very slowly.
the potential for a double-dip recession, serving     This is a consensus of all the economic forecasts
only to perpetuate the problem.                       reviewed. Unemployment is a lagging indicator,
                                                      which means that it moves several months after
The collapse of the real estate market is expected
                                                      changes in the underlying economy. Employers
to continue to weigh on the economy as declines
                                                      tend to be reluctant to reduce their workforces
in home values, foreclosures and lack of credit
                                                      at the outset of a slumping economy and also
availability keep the market out of equilibrium.
2011 Overview and Revenue Estimates
                                                                              CONTINUED



reluctant to increase their workforces when the         The Illinois economy moves in lockstep with the
economy starts to get better. For instance, the         national economy. Illinois is fortunate in that its
recovery from the comparatively mild 2000-2003          economy is quite diverse, and it has not suffered
recession was characterized as a “jobless recovery.”    the extreme problems of states such as Nevada,
Forecasters predict the unemployment rate to            Arizona and Florida. Nonetheless, given the
remain above 9 percent through 2011.                    continued weak employment forecast, as well
                                                        as continued likelihood of consumer hesitancy
Personal consumption spending is recovering
                                                        to spend, the State of Illinois is anticipating only
slowly, and it may be several years before it reaches
                                                        very modest growth in its revenues.
pre-recession levels. Frugality in spending and
borrowing habits are the new norm as concern            In addition, the state is currently contending with
persists that it could take several years for home      a $13 billion budget deficit that has triggered a
values and family finances to recover.                  downgrade in its debt rating and will require
                                                        severe reductions in service and/or increases in
Additional concerns expressed by various
                                                        revenues to fully address. This is certain to have a
forecasters include uncertainty about the federal
                                                        spill-over effect on local governments.
tax code after 2010; impending federal deficits,
which are projected to result in the doubling of        In summary, the national and state outlook
federal debt in the next few years; the potential for   remains uncertain and there is little reason for
increased inflation; the weakening of the dollar;       strong optimism in 2011, or for the next few years.
and uncertainty regarding large government              For the foreseeable future, it is anticipated that
initiatives which may have significant fiscal and       economic activity will remain below pre-recession
economic consequences, such as those concerning         levels.
health care.
2011 Overview and Revenue Estimates
                                                                               CONTINUED



LOCAL OUTLOOK                                            recession, it is not expected to regain solid
                                                         ground in the near future and it may be years
The local economy mirrors the national economy           before economic recovery is fully realized. The
but with a general lag in the trend. It is anticipated   projected performance in specific revenue sources
that City revenues will experience only marginal         is discussed in greater detail in the Revenue
growth against recession years’ revenues and             Analysis section, but there are general areas of
the need to fund basic services will outpace the         concern presumed in the projections that are likely
resources available to do so.                            to affect City resources during the remainder of
                                                         2010 and into 2011.
The City of Chicago is not alone in contending with
the economic fallout. According to the National          Chief among these concerns is the employment
League of Cities’ annual report on cities’ fiscal        picture. The City’s unemployment rate for June
conditions, financial officers report the largest        2010 was 11.4 percent (not seasonally adjusted)
spending cuts and loss of revenue in the 25-year         and is not anticipated to return to the pre-
history of the survey and 87 percent of city finance     recession level of 5.8 percent for some time.
officers report their cities are worse off financially   Employment levels not only have a direct impact
than in 2009.                                            on income taxes, but also play a significant role in
                                                         the performance of other revenues that rely on a
Financial pressures continue to force cities to          public perception of strength in the economy to
make tough decisions, including scaling back             flourish, such as revenues related to real estate,
workforces, reducing services, and canceling             business, recreation, tourism and consumption.
capital infrastructure projects. According to the
U.S. Department of Labor, local governments cut          With the exception of some potential commercial
76,000 jobs in September 2010, the largest cut by        transactions, the real estate market will remain
local governments in 28 years.                           soft. The number and median prices of home
                                                         sales in the City will continue to recover very
The current outlook for the City reflects the            slowly. Boom cycle activity experienced from 2003-
expectation that due to the depth of the decline         2007 that elevated real estate transfer taxes and
experienced by the local economy during the              construction-related revenue to unprecedented
2011 Overview and Revenue Estimates
                                                                    CONTINUED



growth will not return as the real estate market
trudges through the current bust cycle.

Consumer confidence will remain apprehensive
and result in limited consumer spending that
focuses on necessities.

The actions of the federal and state government
will also play a role on the local economy. It is not
yet clear how the expiration of federal stimulus
funding will impact the local economy. In addition,
the state’s financial situation, which has already
manifested in the delay in distributions to local
governments, will continue to be problematic. Any
action to alleviate the state’s situation is certain
to impact the local economy.

This chapter relies on information from the following sources:

     State of Illinois Fiscal Year 2011 Budget, Economic Outlook
     and Revenue Forecast

     Illinois Commission on Government Forecasting and
     Accountability, 2010 Monthly Briefings

     Federal Reserve Board Beige Books for the Seventh
     District-Chicago, 2010

     Federal Reserve Board of Governors, Current Economic
     Conditions by Federal Reserve District, August 2010

     New York Federal Reserve Bank, U.S. Economy and
     Financial Markets, September 2010

     Philadelphia Federal Reserve Bank: Business Outlook
     Survey, September 2010; Survey of Professional
     Forecasters, 3rd Quarter 2010; The Livingston Survey, June
     2010; Aruoba-Diebold-Scotti Business Conditions Index, 3rd
     Quarter 2010; and State Leading Indexes, July 2010

     Chicago Federal Reserve Bank: Chicago Fed Midwest
     Manufacturing Index (CFMMI), Aug. 26, 2010 and Chicago
     Fed National Activity Index (CFNAI), Aug. 23, 2010

     Regional Economics Applications Laboratory, Institute
     of Government and Public Affairs, University of Illinois:
     Housing Price Forecast: Illinois and Chicago MSA, 2010
     Monthly Reports

     Pew Research Center report “How the Great Recession Has
     Changed Life in America,” June 2010

     National League of Cities: “City Fiscal Conditions in 2010,”
     October 2010

     The Kiplinger Letter

     Sporting News Magazine

     UCLA, Press Release for report “The Uncertain Economy,”
     September 2010

     U.S. Department of Commerce, Bureau of the Census web
     site: www.census.gov, American Community Survey tables

     U.S. Department of Labor, Bureau of Labor Statistics web
     site: www.bls.gov
2011 Overview and Revenue Estimates


DEBT AND CREDIT OUTLOOK

The City’s overall financial position has benefitted   General obligation debt can be used for any
from its diligent management of resources and          lawful uses permitted by ordinance. Long-term
strategic long-term decisions. The City continues      debt will be used to finance municipal facilities,
to make significant expenditure and personnel          improvement projects and certain equipment
reductions and implement additional creative           where it is appropriate to spread the cost over
management practices to operate more efficiently       more than one budget year. In so doing, the City
and effectively in difficult financial times.          recognizes that future taxpayers, who will benefit
                                                       from the investment, will pay a share of its cost.
As of August 2010, the City’s bond ratings remain
                                                       Short-term debt is appropriate for some capital
high. Fitch has assigned a rating of “AA” and
                                                       equipment purchases and to satisfy the City’s cash
Moody’s Investors Service has assigned a rating
                                                       flow needs.
of “Aa3”. The Standard & Poor’s rating of “AA-”
remains the highest rating the City has received       General obligation debt service is payable from
from S&P since 1978.                                   any moneys, revenues, receipts, income, assets or
                                                       funds of the City legally available for such purpose.
These high ratings affect the City and its taxpayers
                                                       Revenues for enterprise and other revenue bonds
in a few important ways. The City can sell its
                                                       must exceed debt service by the legally required
bonds at lower interest rates, so taxpayers save
                                                       coverage ratios based on the applicable trust
and provide additional funds for neighborhood
                                                       indentures.
improvements. The ratings also allow the City
to be more flexible to respond to other funding
                                                                                     2008     2009   2010
needs.                                                                              Rating   Rating Rating

                                                        Fitch Ratings                 AA      AA      AA
GENERAL OBLIGATION DEBT
                                                        Moody’s Investors Service    Aa3      Aa3    Aa3
As of August 2010, the City’s net direct long-          Standard & Poor's            AA-      AA-    AA-
term general obligation debt, which includes
all general obligation debt except tender notes
and commercial paper, totaled $6.952 billion or
$2,400.67 on a per capita basis. This equates to
2.17 percent of the total estimated fair cash value
of property located within the City.

The City will use $374.8 million of the property tax
levy for the purpose of paying general obligation
debt service (excluding tender notes, commercial
paper and bonds paid from other sources in 2010).
An additional $36.6 million will is required for
the City College Bond Redemption and Interest
Fund.
BUDGET 2011
 O verview and Revenue Estimates




                                   2011 PROPOSED BUDGET ANAYSES
          2011 PROPOSED
        BUDGET ANALYSES
2011 Overview and Revenue Estimates


APPROPRIATION SUMMARY
$ Millions
TABLE 5

                                                                  2010              2011        %
                                                     Year-End Estimate   Proposed Budget    Change

Corporate Fund                                                $3,098.3          $3,260.2       5.2%

Special Revenue Funds                                            419.6             445.7       6.2%

Pension Funds                                                    458.9             456.1      (0.6%)

Debt Service Funds                                               595.6             585.0      (1.8%)

Enterprise Funds                                               1,812.4           1,822.6       0.6%

Total Resources                                               $6,384.8          $6,569.6       2.9%

  Less Proceeds of Debt                                         (70.4)             (70.4)

  Less Internal Transfer                                       (346.9)            (344.4)

Net Appropriation                                             $5,967.4          $6,154.8       3.1%


REVENUE OVERVIEW

The 2011 proposed appropriation for all local City   type are summarized in the above table. Proceeds
funds is $6.15 billion, an increase of 0.8 percent   of debt issues transferred between funds and
from the 2010 appropriation and 3.1 percent from     reimbursements or internal transfers between
the 2010 year-end estimate.                          funds are deducted from the total resources to
                                                     more accurately reflect the City appropriation.
The 2010 year-end revenue estimate and 2011
                                                     Each fund and its respective revenue sources are
proposed budget for each governmental fund
                                                     discussed in detail in the pages that follow.
2011 Overview and Revenue Estimates


PROPERTY TAX LEVY                                              LIBRARIES

The City of Chicago is one of seven taxing districts           The 2008 budget separated the library levy from
reflected on City residents’ bills. According to the           the aggregate City of Chicago levy and provided
most recent report released by the Cook County                 for $83.4 million in funding for the Chicago Public
Clerk’s Office, the 2008 total property tax extension          Library system. In 2011, the proposed budget
is $3.90 billion across all taxing districts within the        holds constant the library levy at $83.4 million,
City of Chicago, of which 21.4 percent is allocated            or 10.5 percent of the total levy. This funding
to the City of Chicago.                                        supports the operations of the libraries as well as
                                                               debt service on library general obligation debt.
The City operates under a self-imposed property
tax cap which allows the levy to increase only by
the rate of inflation or five percent, whichever is            CORPORATE
less. The 2011 proposed budget does not increase
the City’s property tax levy.                                  After all pension, debt service and library funding
                                                               obligations have been met, the corporate fund
                                                               receives the remainder of the property tax levy.
PENSIONS AND DEBT SERVICE
                                                               The 2011 budget reflects that no property taxes
                                                               will be available for the corporate fund for the
In 2011, 43.0 percent of the City’s general levy,
                                                               seventh consecutive year.
or $343.0 million, will be used to fund pension
contributions for City employees. State law
mandates that the City contribute an amount to
each pension fund based upon payroll contributions
made by employees.

In 2011, the City’s long-term debt obligations
will require $370.5 million or 46.5 percent from
the property tax levy to retire existing debt
service related to the City’s Capital Improvement
program.




                                                          40
2011 Overview and Revenue Estimates
                                                                          CONTINUED



2008 PROPERTY TAX EXTENSION
$3.90 BILLION (WITHIN CITY OF CHICAGO ONLY)
CHART 11
                                                             Board of Education
                                                             and School Finance
                                                                  Authority
                                                                   53.8%




                                                                                 City Colleges
                                                                                     3.2%
        Park District                                                             Cook County
           6.7%                                                                      8.6%

                                                                            Forest Preserve
                                                                                 1.1%
                        City of Chicago              Metropolitan Water
                             21.4%                   Reclamation District
                                                           5.2%

2011 PROPOSED PROPERTY TAX LEVY
$796.9 MILLION
CHART 12
                                                         Chicago Public
                                                            Library*
                                                             10.5%
                                                                            Municipal Employees'
                Long Term Debt                                               Annuity and Benefit
                    46.5%                                                           Fund
                                                                                   15.2%

                                                                                 Laborers' and
                                                                                Retirement Board
                                                                               Employees' Annuity
                                                                                and Benefit Fund
                                                                                      1.5%



                                                             Policemen's Annuity
                              Firemen's Annuity
                                                              and Benefit Fund
                              and Benefit Fund
                                                                   18.0%
                                    8.3%

* This includes $5.7 million designated for the Municipal Employees Annuity and Benefit Fund.
2011 Overview and Revenue Estimates


CORPORATE FUND                                                             any unreserved fund balance from the prior
                                                                           year. Due to the dramatic impact of the recent
T h e c o r p o r a t e f u n d i s t h e C i t y ’s g e n e r a l         national recession, the City’s revenues are not
operating fund. It supports public safety, health,                         expected to meet the costs of providing City
transportation, streets and sanitation and other                           services. Therefore, in addition to various cost
City operations and services.                                              saving measures, the 2011 budget proposes the
                                                                           strategic use of reserves, debt restructuring and
Total available resources to the corporate fund                            declaration of a tax increment financing surplus
include revenues generated during the year and                             to continue to maintain essential City services.

CORPORATE FUND SUMMARY
$ MILLIONS
TABLE 6
                                                                                                       2010           2011
                                                                       2009           2010
                                                                                                  Year End        Proposed
                                                                      Actual        Budget
                                                                                                  Estimates         Budget

 Tax Revenue
      Utility Taxes and Fees                                          $481.3        $479.8          $475.9          $479.5

      Transaction Taxes                                                   179.6      172.7           180.5           175.9

      Transportation Taxes                                                155.9      155.7           148.4           149.6

      Recreation Taxes                                                    154.0      154.8           156.0           155.1

      Business Taxes                                                       79.6        78.1            78.9            77.0

      Sales and Use Taxes                                                 476.6      460.4           487.7           496.6
      Income Tax & PPRT                                                   251.8      210.3           232.5           309.9

      Other Intergovernmental                                               5.1         5.7             4.9             4.9

 Total Tax Revenue                                                   $1,783.8      $1,717.4        $1,764.8        $1,848.7


 Non-Tax Revenue
      Licenses and Permits                                            $100.5        $105.7           $95.2           $95.4

      Fines, Forfeitures and Penalties                                    252.5      262.9           258.4           254.4

      Charges for Services                                                 87.5        77.8            84.9            97.2

      Municipal Parking                                                     9.1         6.0             6.8             6.8

      Leases, Rentals and Sales                                            10.7        19.4            15.6            16.5

      Reimbursement, Interest & Other                                     317.5      303.3           296.8           437.4

 Total Non-Tax Revenue                                                $777.8        $775.2          $757.6          $907.6
      Proceeds and Transfers In                                       $474.6        $687.2          $573.3          $494.6

 Total Revenue to the Corporate Fund                                 $3,036.3      $3,179.7        $3,095.7        $3,250.9

      Prior Year Unreserved Fund Balance                                   $1.5        $0.0            $2.7            $9.4

 Total Corporate Fund Resources                                      $3,037.7      $3,179.7        $3,098.3        $3,260.2




                                                                     42
2011 Overview and Revenue Estimates
                                                                              CONTINUED



CORPORATE FUND SUMMARY                                   auto rental tax. The 2011 proposed budget projects
                                                         tax revenue to grow by $83.9 million from the
As discussed in the section on the Economy’s Effect      2010 year-end estimate and comprise 56.7 percent
on Chicago’s Budget, the recession that began in         of the corporate fund revenue.
December 2007 officially ended in June 2009,
but it dealt a devastating blow to economically
                                                         UTILITY TAXES AND FEES
sensitive revenues that may take years to rebuild.
After 18 months of declines, some revenue streams
                                                         Utility taxes and fees include taxes on electricity,
are slowly starting to turn to the positive. This
                                                         natural gas and telecommunications, as well as
moderate growth is expected to continue, but it
                                                         fees received from companies for the right to
is against a deep falloff, during which revenues
                                                         operate within the City of Chicago. Utility taxes
plummeted to 2004 levels. It is anticipated that
                                                         and fees are expected to generate $479.5 million
City revenues will experience only marginal
                                                         in 2011, accounting for 25.9 percent of total tax
growth against recession years’ revenues and the
                                                         revenue and 14.7 percent of total corporate fund
need to fund basic services will easily outpace the
                                                         revenue.
resources available to do so.
                                                         The electricity use tax and the electricity infras-
The 2011 proposed budget projects corporate
                                                         tructure maintenance fee (IMF) are imposed
fund resources will total $3.3 billion, an increase of
                                                         on the number of kilowatt hours of electricity
2.5 percent from the 2010 budget and 5.2 percent
                                                         used. Electricity-related collections are highly
from the 2010 year-end estimate. The budget
                                                         dependent on weather conditions and electricity
anticipates the strategic use of reserves, debt
                                                         rates. During 2010, summer temperatures were
restructuring and declaration of a tax increment
                                                         higher than average, with ComEd estimating
financing surplus to mitigate the falloff from the
                                                         that residential customers used 55 to 65 percent
economic decline. (Detailed discussions on these
                                                         more energy to cool their homes compared to
options are included in sections that follow.)
                                                         last year, one of the coolest summers on record.
                                                         The 2011 projection assumes historical electricity
REVENUE SOURCES FOR THE CORPORATE FUND
                                                         consumption.
As shown in the corporate fund summary table, the
                                                         The natural gas utility tax and the natural gas
corporate fund is comprised of both tax revenue
                                                         use tax are imposed on natural gas consumption.
and non-tax revenue. Following is a discussion on
                                                         The natural gas utility tax is an 8.0 percent tax
the noteworthy elements that affect the corporate
                                                         imposed on the sale of natural gas and the natural
fund 2011 projections.
                                                         gas use tax is a 6.3 cents per-therm tax imposed on
                                                         entities that do not pay the utility tax. Natural gas
TAX REVENUE                                              tax collections are highly dependent on weather
                                                         conditions and natural gas prices. Gas prices
Corporate fund tax revenue consists of local tax         during 2008 were historically high, with rates
revenue and intergovernmental tax revenue.               as high as 149.9 cents per therm. During 2009,
Local tax revenue includes utility, transaction,         gas charges declined by 48 percent to 55.1 cents
transportation, recreation and business taxes.           to per therm and have remained in this range
Intergovernmental tax revenue includes the City’s        throughout 2010 with a year-to-date average of
share of the Illinois sales and use tax, income tax,     53.9 cents per therm. The 2011 projection assumes
personal property replacement tax and municipal          only minimal growth in gas charges at historical
                                                         consumption levels.
2011 Overview and Revenue Estimates
                                                                                 CONTINUED



ELECTRICITY/INFRASTRUCTURE MAINTENANCE FEE
2005 TO 2011 PROJECTED
CHART 13

              $250
                            Electricity IMF
                            Electricity Use


              $200




              $150
   Millions




              $100




               $50




                $0
                     2005          2006                2007        2008   2009      2010         2011
                                                                                  Estimated    Projected

NATURAL GAS AND GAS USE TAX
2005 TO 2011 PROJECTED
CHART 14
              $180


              $160               Natural Gas Use
                                 Natural Gas Utility

              $140


              $120


              $100
   Millions




              $80


              $60


              $40


              $20


               $0
                     2005          2006                2007        2008   2009       2010        2011
                                                                                   Estimated   Projected




                                                              44
2011 Overview and Revenue Estimates
                                                                                 CONTINUED



Telecommunications tax collections, which have               to only a quarter of the amount collected at
demonstrated strong growth in recent years in the            its height. Based on year-to-date trends, 2010
wireless sector that have offset the falloff in the          year-end collections are expected to decline by
landline sector, are now manifesting an industry-            nearly $171 million from 2006 peak collections,
wide decline. The 2010 year-end estimate and                 generating the lowest annual collections since
2011 projection assumes this will persist and                1997. This is despite low interest rates and the
accounts for the resolution of various outstanding           Federal Home Buyer Tax Credit stimulus program
overpayment credits.                                         in effect for most of the year. Through 2011, real
                                                             estate transaction tax revenues are expected to
The cable television franchise fee is imposed on
                                                             experience a total loss of more than $500 million
businesses that operate cable television systems in
                                                             due to the recession and its aftermath.
Chicago. The 2011 projection assumes no growth
will occur in this revenue source.                           The real estate market is expected to remain soft
                                                             for the foreseeable future. Opportunistic buyers
                                                             may generate some momentum, particularly in the
TRANSACTION TAXES                                            commercial market, as was the case this year with
                                                             the sale of the office building at 300 N. LaSalle,
Transaction taxes include taxes on the transfer of           a record sale on a per-square foot basis and the
real estate, the lease or rental of personal property        city’s biggest real estate transaction since 2004.
and the short-term lease of motor vehicles within
the City of Chicago. Transaction taxes are expected          In the residential market, foreclosures, tight
to generate $175.9 million in 2011, accounting for           lending and an overabundance of property on the
9.5 percent of total tax revenue and 5.4 percent             market will keep growth constrained. The 2011
of corporate fund revenue.                                   projection assumes a 8 percent decline from 2009
                                                             year-end estimates.
In the years leading up to the recession, real estate
transfer tax collections reached record levels.              Personal property lease transaction tax applies
During the boom period from 2004 through 2007,               to the lease or rental of personal proper ty.
collections totaled $190.8 million, $236.3 million,          Collections during 2010 have suffered due to
$242.3 million and $205.8 million respectively. The          the recessionary economy’s impact on personal
collapse of the real estate market swept the nation          consumption and tourism. The 2011 projection
into a bust cycle that drove down these collections          assumes only minimal growth from the 2010 year-
                                                             end estimate.




                                                        45
2011 Overview and Revenue Estimates
                                                                  CONTINUED



TELECOMMUNICATIONS TAX
2005 TO 2011 PROJECTED
CHART 15

                $180


                $160


                $140


                $120


                $100
  Millions




                $80


                $60


                $40


                $20


                 $0
                        2005    2006    2007        2008   2009      2010        2011
                                                                   Estimated   Projected

CABLE FRANCHISE FEE
2005 TO 2011 PROJECTED
CHART 16
             $25




             $20




             $15
     Millions




             $10




                $5




                $0
                       2005    2006    2007     2008       2009      2010        2011
                                                                   Estimated   Projected




                                               46
2011 Overview and Revenue Estimates
                                                             CONTINUED



REAL ESTATE TRANSFER TAX
2005 TO 2011 PROJECTED
CHART 17

              $250




              $200




              $150
    Millions




              $100




               $50




                $0
                     2005   2006   2007        2008   2009      2010        2011
                                                              Estimated   Projected


PERSONAL PROPERTY LEASE TAX
2005 TO 2011 PROJECTED
CHART 18
              $140



              $120



              $100



               $80
   Millions




               $60



               $40



               $20



               $0
                     2005   2006   2007        2008   2009      2010        2011
                                                              Estimated   Projected




                                          47
2011 Overview and Revenue Estimates
                                                                                 CONTINUED



TRANSPORTATION TAXES                                         Vehicle fuel tax collec tions have remained
                                                             depressed. During 2008, historically high gas
Transportation taxes include those on parking                prices at an annual average of $3.78 per gallon
transactions, vehicle fuel purchases and the                 reduced collections considerably as consumers
provision of ground transportation for hire                  and airlines implemented fuel conser vation
within the City of Chicago. Transportation taxes             strategies. Although gas prices since that time
are expected to generate $149.6 million in 2011,             have moderated and are currently averaging
accounting for 8.1 percent of total tax revenue and          $3.02 per gallon, collections have not rebounded.
4.6 percent of total corporate fund revenue.                 This is due in part to the economic downturn, but
                                                             it is also believed that the downward trend may
Parking tax collections have continued to suffer             be the new norm as consumers have placed more
through 2010 as a result of the recession’s impact           emphasis on fuel efficiency. The 2011 projection
on various industries that are tied to parking               assumes only slight grow th in this revenue
activity, including retail and tourism. In addition,         source.
the overall decline in business and employment is
manifesting in a reduced need for office space as            Ground transportation tax colle c tions are
evidenced by current downtown office vacancy                 expected to remain level in 2011. The majority of
rates. The 2011 projection assumes only minimal              these collections are from taxicab drivers who pay
year-over-year growth.                                       a flat rate of $78 per month. It is assumed that
                                                             this taxpayer base will remain constant.




PARKING TAX
2005 TO 2011 PROJECTED
CHART 19

               $100




               $80




               $60
    Millions




               $40




               $20




                $0
                      2005   2006          2007             2008        2009         2010         2011
                                                                                   Estimated    Projected




                                                       48
2011 Overview and Revenue Estimates
                                                        CONTINUED



VEHICLE FUEL TAX
2005 TO 2011 PROJECTED
CHART 20

             $70



             $60



             $50



             $40
  Millions




             $30



             $20



             $10



                $0
                     2005   2006   2007   2008   2009      2010        2011
                                                         Estimated   Projected

GROUND TRANSPORTATION TAX
2005 TO 2011 PROJECTED
CHART 21
             $10

                $9

                $8

                $7

                $6
     Millions




                $5

                $4

                $3

                $2

                $1

                $0
                     2005   2006   2007   2008   2009      2010        2011
                                                         Estimated   Projected
2011 Overview and Revenue Estimates
                                                                                CONTINUED



RECREATION TAXES                                           attendance. The 2011 projection assumes 3 percent
                                                           growth from the 2010 year-end estimate excluding
Recreation taxes include taxes on amusements,              post season activity.
auto amusement devices, mooring (docking) of               The liquor tax is based on the number of gallons
boats, liquor purchases, cigarette purchases,              of alcoholic beverages purchased with the rate
non-alcoholic beverage purchases and off-track             varying depending on the alcohol-by-volume
betting within the City of Chicago. Recreation             content of the beverage. The 2011 revenue
taxes are expected to generate $155.1 million              projection assumes level consumption from the
in 2011, accounting for 8.4 percent of total tax           2010 estimate.
revenue and 4.8 percent of total corporate fund
                                                           Cigarette tax collections have fallen year-over-
revenue.
                                                           year as purchase activity has declined in response
Amusement tax collections have been able to                to the smoking bans and tax rate increases passed
sustain growth through the recession. From die-            by the various taxing jurisdictions in recent years.
hard fans to newfound fans, Chicago has lived up           With no changes anticipated in the coming year,
to the distinction bestowed upon it in Sporting            the 2011 projection assumes flat consumption
News Magazine’s annual list of Best Sports Cities          from 2010.
as the best sports city in the U.S. for 2010.
                                                           Non-alcoholic beverage tax collections are
A highlight that will remain with the City for             expected to grow slightly in 2010 due an expansion
years to come was the Stanley Cup Championship             in the state’s definition of soft drinks to include
win by the Chicago Blackhawks and the related              some previously exempt purchases effective
celebrations that lifted a recession-weary city out        September 2009 and to remain flat in 2011.
of the doldrums.

Unfortunately, other businesses within the
hospitality industry have not been as “recession-
proof” as evidenced by the decline in live theater




                                                      50
2011 Overview and Revenue Estimates
                                                        CONTINUED



AMUSEMENT TAX
2005 TO 2011 PROJECTED
CHART 22


               $90


               $80


               $70


               $60


               $50
    Millions




               $40


               $30


               $20


               $10


                $0
                     2005   2006   2007   2008   2009      2010        2011
                                                         Estimated   Projected

LIQUOR TAX
2005 TO 2011 PROJECTED
CHART 23
               $35



               $30



               $25



               $20
  Millions




               $15



               $10



               $5



               $0
                     2005   2006   2007   2008   2009      2010        2011
                                                         Estimated   Projected
2011 Overview and Revenue Estimates
                                                         CONTINUED



CIGARETTE TAX
2005 TO 2011 PROJECTED
CHART 24

              $35



              $30



              $25



              $20
   Millions




              $15



              $10



               $5



               $0
                     2005   2006   2007    2008   2009      2010        2011
                                                          Estimated   Projected


NON-ALCOHOLIC BEVERAGE TAXES
2005 TO 2011 PROJECTED
CHART 25

               $20

               $18

               $16

               $14

               $12
    Millions




               $10

               $8

               $6

               $4

               $2

               $0
                     2005   2006   2007    2008   2009      2010        2011
                                                          Estimated   Projected




                                          52
2011 Overview and Revenue Estimates
                                                                              CONTINUED



BUSINESS TAXES                                           in the positive for the most recent months. Hotel
                                                         industry analysts are forecasting that momentum
Business taxes include taxes on the lease of hotel       will continue to build during the remainder of 2010
accommodations, the employment of more than              which will lead to the beginning of a turnaround
fifty employees and the sale of fire insurance within    in 2011. Hotel tax collections for the 2010 year-end
the City of Chicago. Business taxes are expected         and 2011 projection account for these forecasts
to generate $77.0 million in 2011, accounting for        but assume only 1.5 percent growth and still below
4.2 percent of total tax revenue and 2.4 percent         historical collections.
of total corporate fund revenue.                         Employers’ expense tax collections are expected
Hotel accommodations tax collections are                 to decline predominantly due to legislative actions
beginning to experience some year-over-year              fostered by the City in 2010 and proposed for 2011
growth after 18 months of declines brought on            to encourage job creation by local employers.
by the recession’s impact on tourism, business           In 2010, an amendment was passed to 1) relieve
travel and convention attendance. According to           businesses with no obligation for the tax in the
hotel statistics maintained by the Convention and        tax year ending June 30, 2009 of an obligation for
Tourism Bureau, year-over-year average occupancy         the tax in the tax years ending June 30, 2010 or
rates are up 2.7 percentage points and average           June 30, 2011; and 2) cap the amount of liability
room rates are down 2.4 percent, but have been           for the tax to insure that no employer’s obligation



HOTEL ACCOMMODATIONS TAX
2005 TO 2011 PROJECTED
CHART 26

               $70



               $60



               $50



               $40
    Millions




               $30



               $20



               $10



               $0
                     2005     2006          2007        2008         2009         2010          2011
                                                                                Estimated     Projected
2011 Overview and Revenue Estimates
                                                                              CONTINUED




for the tax would increase in the tax years ending        considered taxable is that the employee must earn
June 30, 2010 or June 30, 2011.                           $900 per quarter. Under this change, an employee
                                                          must earn $4,300 per quarter. The salary of $4,300
In 2011, the City proposes an amendment to
                                                          equates to current Illinois minimum wage ($8.25
reduce the number of taxable employees for
                                                          per hour) at 40 hours per week so that only full-
which businesses are currently liable through a
                                                          time employees are considered taxable.
change in the definition of a taxable employee.
Currently, one element for which an employee is

EMPLOYERS’ EXPENSE TAX
2005 TO 2011 PROJECTED
CHART 27


              $25




              $20




              $15
   Millions




              $10




              $5




              $0
                    2005   2006         2007          2008          2009         2010         2011
                                                                               Estimated    Projected




                                                     54
2011 Overview and Revenue Estimates
                                                                               CONTINUED



SALES AND USE TAXES                                         tax receipts began a year-over-year decline of 8.9
                                                            percent per month on average that would carry
Sales and use tax revenue is generated from                 on for the next 17 months.
the Chicago Home Rule Occupation and Use                    During 2010, a slow growth trend has emerged
taxes (HROT) and the Illinois Municipal Retailer            that has mirrored national indices on consumer
Occupation and Use taxes (MROT). Occupation                 confidence and consumer sentiment of fluctuating
taxes are assessed on the retailer and collected            consumer attitudes. While this growth has been
from the purchaser at the point of sale, while use          welcome news, it is against a very depressed
taxes are imposed on the privilege of using certain         base and still well below pre-recession levels.
types of personal property within the City.                 Through 2011, sales tax revenues are expected
Effective July 1, 2010, general merchandise                 to experience a total loss of nearly $200 million
purchases in Chicago are subject to a combined              due to the recession and its aftermath.
sales tax rate of 9.75 percent, of which the City           It is unlikely that a resurgence in consumer
receives the 1.25 percent HROT and 1.0 percent              spending is on the horizon. Household wealth has
MROT. The remainder is attributed to the State              deteriorated and expectations about labor market
of Illinois, the Regional Transportation Authority          conditions leave consumers feeling apprehensive,
and Cook County as detailed in the chart on the             at best. Overall, sales and use taxes are expected
next page.                                                  to grow by less than 2 percent in 2011.
The City of Chicago imposes the HROT on the
retail sale of tangible personal property excluding
most sales of food, medicine and medical
appliances. The tax is collected and enforced by
the Illinois Department of Revenue. Additional
components of the HROT include the nontitled
use tax, titled use tax and restaurant tax, all of
which are collected and enforced by the Chicago
Department of Revenue. As listed, the HROT
amount is net of $26.7 million of debt service
obligations in 2011.

The State of Illinois also collects and enforces
the MROT on behalf of municipalities. Its tax
base differs from the HROT in that it includes
qualifying food and drugs.

Sales and use taxes are expected to generate
$496.6 million in 2011, accounting for 26.9
percent of total tax revenue and 15.2 percent of
total corporate fund revenue.

From 2004 to 2007, sales and use tax base receipts
grew approximately 7.8 percent on average per
year. In the Fall of 2008, the point at which most
economists agree the economy fell off a cliff, sales




                                                       55
2011 Overview and Revenue Estimates
                                                                          CONTINUED



SALES TAXES
2005 TO 2011 PROJECTED
CHART 28

        $600
                                                                          State Sales Tax/ROT
                                                                         City Sales Tax/HROT

        $500



        $400



        $300
  Millions




        $200



        $100



             $0
                     2005      2006      2007       2008          2009      2010                 2011
                                                                          Estimated            Projected


SALES TAXES
9.75% SALES TAX BREAKDOWN
CHART 29
                                          State of Illinois ROT
                                                 5.00%




                                                                                         RTA
                                                                                        1.00%
             Municipal ROT
                1.00%                                                        RTA/County ROT
                                                                                 0.25%


                  City of Chicago HROT                            Cook County HROT
                           1.25%                                        1.25%



                                                   56
2011 Overview and Revenue Estimates
                                                                                 CONTINUED



INCOME TAX                                                   The City is working with the State to ensure all
                                                             outstanding distributions are received by the end
Income taxes include the State of Illinois Income            of fiscal year 2011.
Tax and the Personal Property Replacement Tax                On an activity basis (without regard to distribution
(PPRT), both of which are distributed to the City            delays), in the Fall of 2008, income tax and PPRT
of Chicago based on defined formulas. Income                 receipts began a year-over-year decline of 14.1
taxes are expected to generate $418.1 million in             percent per month on average that would carry
gross collections in 2011, of which $309.9 million is        on for the next 20 months.
designated for the corporate fund, accounting for
                                                             During 2010, these receipts began to turn to the
16.8 percent of total tax revenue and 9.5 percent
                                                             positive as news came out that unemployment in
of total corporate fund revenue.
                                                             Illinois dropped for the first time in more than
Income taxes have been hard hit by a weakened                three years and corporate profits began to show
labor market struggling with the doubling of                 some life. Still, employment remains weak. The
the unemployment rate and the shrinking of                   City’s unemployment rate for June 2010 was
corporate profits.                                           11.4 percent (not seasonally adjusted) and is not
Compounding the problem, the State of Illinois’              anticipated to return to the pre-recession level of
fiscal crisis has lead to a delay in distributions to        5.8 percent for some time. Through 2011, income
local governments. In 2009, the City was unable              tax revenues are expected to experience a total
to recognize two distributions totaling $32.3                loss of nearly $340 million due to the recession
million because funds were not released by the               and its aftermath.
state in a timely manner. During 2010, as many               Overall, gross tax collections for the income tax
as 148 days have elapsed from the date the state             and PPRT on an activity basis (without regard to
authorizes the distribution to the date the funds            distribution delays) are expected to grow by 6.2
are ultimately released to the City; prior to 2009,          percent in 2011, with most of the growth on the
this took 23 days on average.                                corporate income tax side.




                                                        57
2011 Overview and Revenue Estimates
                                                                  CONTINUED



INCOME TAXES
2005 TO 2011 PROJECTED
CHART 30

              $400
                                                       Personal Prop Replacement Tax
                                                      (Corporate Share)
              $350                                     State Income Tax



              $300


              $250


              $200
   Millions




              $150


              $100


              $50


               $0
                     2005   2006   2007        2008   2009            2010               2011
                                                                    Estimated          Projected




                                          58
2011 Overview and Revenue Estimates
                                                                             CONTINUED



NON-TAX REVENUE                                         Construction activity in Chicago experienced a
                                                        severe decline as a result of the recession. Activity
Non-tax revenue consists of revenue from licenses       is expected to remain well below peak levels for
and permits; fines, forfeitures and penalties;          the immediate future as the real estate market
various charges for services; municipal parking;        stabilizes and therefore, revenue from building
leases, rentals and sales; internal service earnings;   permits and construction related permits will not
interest and other revenue. The 2011 proposed           experience growth.
budget projects non-tax revenue to grow by
$150 million from the 2010 year-end estimate
                                                        FINES, FORFEITURES &
and comprise 27.8 percent of the corporate fund
revenue.
                                                        PENALTIES

                                                        Fines, forfeitures and penalties include parking
LICENSES AND PERMITS                                    tickets, red-light camera tickets and other
                                                        administrative hearings and court related fines.
Licenses and permits include alcohol dealer             Fines, forfeitures and penalties are expected to
licenses, business licenses, building permits           generate $254.4 million in 2011, accounting for 28
and various other permits. Licenses and permits         percent of total non-tax revenue and 7.8 percent
are expected to generate $95.4 million in 2011,         of total corporate fund revenue.
accounting for 10.5 percent of total non-tax
                                                        The 2011 projection for fines, forfeitures and
revenue and 2.9 percent of total corporate fund
                                                        penalties represents a 1.5 percent decline from
revenue.
                                                        the 2010 year-end estimate which accounts for
Business license revenue has declined due to the        no additional red light installations and a decline
recession as well as legislative changes by the City    in ticket issuance at existing cameras with safer
intended to assist businesses and spur economic         motorist behavior.
activity during the downturn.
2011 Overview and Revenue Estimates
                                                          CONTINUED



LICENSES AND PERMITS
2005 TO 2011 PROJECTED
CHART 31

         $160


         $140


         $120


         $100
      Millions




             $80


             $60


             $40


             $20


                 $0
                       2005   2006   2007   2008   2009     2010        2011
                                                          Estimated   Projected


FINES, FORFEITURES AND PENALTIES
2005 TO 2011 PROJECTED
CHART 32
             $300



             $250



             $200
  Millions




             $150



             $100



                 $50



                 $0
                       2005   2006   2007   2008   2009     2010        2011
                                                          Estimated   Projected




                                            60
2011 Overview and Revenue Estimates
                                                                          CONTINUED



OTHER NON-TAX REVENUES                                $16.5 million in 2011, accounting for 1.8 percent
                                                      of total non-tax revenue and 0.5 percent of 2011
                                                      corporate fund revenue.
CHARGES FOR SERVICES
                                                      Land sales, which continue to fall below peak levels
Charges for services include revenues generated       due to the downturn in the real estate market,
from such activities as inspections, public           account for $8.8 million of this category. This
information requests, safety charges, other           includes revenue anticipated from the reduction
miscellaneous charges and current expenses            in City office space needs in the DePaul Center.
reimbursements. Charges for services are projected
                                                      The sale of materials, which has been impacted by
to generate $97.2 million in 2011, accounting for
                                                      sharp declines in the global demand for recyclable
10.7 percent of total non-tax revenue and 3.0
                                                      materials, will decline in 2011 due to the City’s
percent of total corporate fund revenue.
                                                      efforts to privatize recycling.
The 2010 year-end estimate and 2011 projection
for charges for services account for agreements       INTERNAL SERVICE EARNINGS
currently in effect for safety reimbursements and
                                                      This category represents transfers to the corporate
assume inspection related activity in line with
                                                      fund for central services (police, fire, streets and
historical levels. In 2011, the recommended budget
                                                      sanitation, and others) provided to other City
anticipates an increased reimbursement from the
                                                      funds.
Chicago Public Schools for safety-related services
provided by the Chicago Police Department.            The corporate fund receives reimbursements for
                                                      specific and identifiable projects as delineated in
MUNICIPAL PARKING                                     Appendix A of the 2011 Budget Recommendations.
                                                      The 2011 projection for Internal Service Earnings
Municipal parking includes revenues generated
                                                      is $349.6 million, accounting for 38.5 percent of
from parking meters (prior to the concession of the
                                                      total non-tax revenue and 10.7 percent of total
City’s parking meter and parking lot operations)
                                                      corporate fund revenue.
and various parking permits.

Municipal parking revenue is expected to generate     OTHER REVENUE
$6.8 million in 2011, accounting for 0.7 percent
                                                      This category represents revenue that does not fall
of total non-tax revenue and 0.2 percent of total
                                                      within other defined categories and is generally
corporate fund revenue.
                                                      made up of non-recurring revenue sources.
In 2011, no parking meter revenue will be realized
                                                      Other revenues is projected to generate $84.7
in this category. The remainder of the revenue
                                                      million in 2011, accounting for 9.3 percent of total
is made up of various parking permits which are
                                                      non-tax revenue and 2.6 percent of total corporate
expected to remain level with 2010.
                                                      fund revenue. The 2011 budget anticipates $38.5
                                                      million in proceeds due to the declaration of
LEASES, RENTALS AND SALES
                                                      surplus across multiple Tax Increment Financing
Leases, rentals and sales include revenues            districts.
generated from the sale of City-owned land,
impounded vehicles and other personal property.
Leases, rentals and sales are expected to generate
2011 Overview and Revenue Estimates
                                                                                    CONTINUED



PROCEEDS AND TRANSFERS-IN                                  amount by the Government Finance Officers
                                                           Association.
Proceeds and Transfers-in includes transfers               The dramatic impact of the recent national
into the corporate fund from other City funds              recession on the City’s revenues requires a reliance
and proceeds from short-term borrowing.                    on the City’s long-term reserves. The 2010 budget
Transfers-in represent movement of resources into          included a temporary partial use of $250 million
the corporate fund from reserves and other non-            of the parking meter long-term reserve (Parking
recurring revenue sources. Proceeds represent              Meter Revenue Replacement Fund). However,
short-term borrowing in anticipation of debt               due to significant expense savings and revenues
restructuring and other debt refunding.                    exceeding the original budget projections, the
                                                           amount of long-term reserves needed for 2010
LONG-TERM RESERVES                                         operations will decreased by $60 million to $190
The City established a $500 million long-term              million.
reserve with the lease of the City’s Skyway in             While the national recession commencing in 2007
2005 and a $400 million long-term reserve with             officially ended in June of 2009, the impact of this
the concession of the parking meter operations             18 month recession – the longest since the end of
in 2009.                                                   World War II – continues to dramatically reduce
Realizing the importance of maintaining reserves,          City revenues. Since the peak year of 2007, the
the 2011 budget preserves the $500 million Skyway          City has lost $1.03 billion in economically sensitive
long-term reserve. This $500 million reserve               revenues, including the $297.1 million reduction
represents over 15 percent of the City’s general           from the peak projected for 2011.
fund in the 2011 budget, above the recommended


2011 RECOMMENDATIONS: LONG AND MID-TERM RESERVES
$ MILLIONS
TABLE 7

                                                                                                    Estimated Balance
                                           2009                     2010                2011
                                                                                                      on 12/31/2011
                                      Budget      Actual      Budget      Revised      Budget
Skyway
Long-term reserve                 $         - $         - $         - $          - $            - $               500
Long-term annual annuity                   25          25          25           25             15
Mid-term annuity                           50          50          50           50             50
                            Total $       75 $         75 $       75 $         75 $            65
Parking Meter
Long-term reserve                  $        - $         - $       250 $       190 $        120 $                   54
Long-term annual annuity                   20          20          20          20           20
Mid-term annuity                           50          50         150         100           83
Budget Stabilization “Rainy Day”          218         218         102         102            -
                             Total $      288 $       288 $       522 $       412 $        223

Parking Meter Human Infrastructure Fund
                                                                                                    $              22


Grand Total                                                                                         $            576




                                                      62
2011 Overview and Revenue Estimates
                                                                            CONTINUED



ECONOMICALLY SENSITIVE
REVENUES
$1.03 BILLION LOST SINCE 2007 PEAK YEAR
$ MILLIONS (BASED ON ACTIVITY MONTHS)
CHART 33

        $
                        2008
                      $(108.10)

  $(200.00)
                        2009
                      $(308.60)

  $(400.00)




                        2010
                        20 0
  $(600.00)
                      $(317.55)


  $(800.00)

                        2011
                      $(297.15)
 $(1,000.00)



                      $1.03 billion
 $(1,200.00)




Because these important revenue sources to the         from the Skyway mid-term reserve and $50 million
City remain sluggish and well below 2007 levels,       from the parking meter mid-term reserve in 2011.
the corporate fund will continue to rely on the use    The 2010 budget called for the advancement from
of long-term reserves in 2011 to fund essential City   the originally scheduled parking meter mid-term
services. The 2011 budget recommends drawing           reserve of $100 million from 2012 into 2010.
$119.9 million from the parking meter long-term        However, due to significant expense savings
reserve fund, leaving an estimated balance of          and revenues exceeding the original budget
$54.0 million on December 31, 2011.                    projections, the 2011 budget recommendations
                                                       reflect moving one-half of the $100 million from
In total, $75.9 million of parking meter reserves is
                                                       2010 to 2011.
estimated for December 31, 2011. This represents
the $54.0 million in from the long-term reserve
                                                       OTHER PROCEEDS AND TRANSFERS-IN
and the $21.9 million estimated balance in the
parking meter human infrastructure fund.               General obligation debt restructuring will provide
                                                       for $91.9 million in resources available in 2011. An
MID-TERM RESERVES                                      additional $55 million of proceeds is anticipated as
                                                       the result of other financial initiatives, including
Both the Skyway and parking meter transactions
                                                       the monetizing and/or restructuring of other
established mid-term reserves and as scheduled,
                                                       financial transactions.
$50 million will transfer into the corporate fund
2011 Overview and Revenue Estimates
                                                                                    CONTINUED



SPECIAL REVENUE FUNDS                                          MOTOR FUEL TAX FUND

                                                               The motor fuel tax fund is another source of
Special revenue funds are used to account for
                                                               revenue for City street repair and maintenance.
revenue from specific taxes and other sources
                                                               The state imposes a 19 cent tax per gallon of
that by law are designated to finance particular
                                                               gas of which the City receives a distributive
functions. The 2011 proposed budget projects
                                                               share based on its population. In addition to this
special revenue fund resources of $445.7 million,
                                                               regular distribution, the City anticipates additional
an increase of 6.2 percent over the 2010 year-end
                                                               funding from the state as part of the Illinois Jobs
estimate.
                                                               Now! program. Announced in September 2010,
                                                               the state intends to make a $100 million capital
VEHICLE TAX FUND
                                                               investment in local transportation needs, of which
The vehicle tax fund is used for City street repair            the City is estimated to receive approximately
and maintenance. Vehicle tax fund revenue is                   $12.5 million in 2010 and additional funding in five
primarily generated through the sale of vehicle                subsequent installments. Total resources available
stickers. This revenue source is expec ted to                  to the motor fuel tax fund are projected to be
generate $104.4 million in 2011.                               $66.2 million in 2011.

The vehicle tax fund will also receive revenue from
                                                               LIBRARY FUNDS
impoundment fees, abandoned auto towing fees,
pavement cut fees, commercial refuse container                 The City maintains Chicago Public Library funds for
fees and reimbursements from other local, state                maintenance and operations and for buildings and
and federal funds for maintenance of the public                sites. Including proceeds of debt supported by the
way (detailed in Appendix B of the 2010 Budget                 separate Chicago Public Library Property Tax Levy,
Recommendations).                                              interest income, facility rental revenue, fines, and
                                                               prior-year unreserved balance, the total resources
Total resources available to the vehicle tax fund
                                                               available to the library funds are projected to be
are projected to be $143.7 million in 2011.
                                                               $95.3 million in 2011 which includes a corporate
                                                               fund subsidy of $15.7 million.
SPECIAL REVENUE FUNDS
$ MILLIONS
TABLE 8
                                                                                           2010            2011
                                                   2009                   2010
                                                                                       Year End        Proposed
                                                  Actual                Budget
                                                                                       Estimate          Budget
 Vehicle Tax Fund                                 $133.4                $147.6            $139.5            $143.7
 Motor Fuel Tax Fund                                  40.0                 74.1             49.1              66.2
 Library Funds                                        91.8                 93.9             94.8              95.3
 Emergency Communication Fund                         75.9                 76.5             72.6              71.8
 Hotel Tax Fund*                                      23.5                 23.1             23.0              36.6
 Special Events Fund*                                 16.5                 19.8             12.4               0.0
 CTA Real Estate Transfer Tax Fund                    25.4                 22.8             28.2              26.1
 TIF Administration Fund                                   -                  -              0.0               5.9
 Total                                            $406.4                $457.8            $419.6            $445.7
*The 2011 budget proposes to merge the Hotel Tax and Special Events Funds




                                                      64
2011 Overview and Revenue Estimates
                                                               CONTINUED



VEHICLE TAX FUND
2005 TO 2011 PROJECTED
CHART 34
             $160


             $140


             $120


             $100
  Millions




              $80


              $60


              $40


              $20


               $0
                    2005   2006   2007        2008   2009     2010        2011
                                                            Estimated   Projected

MOTOR FUEL TAX FUND
2005 TO 2011 PROJECTED
CHART 35

             $100

             $90

             $80

             $70

             $60
  Millions




             $50

             $40

             $30

             $20

             $10

              $0
                    2005   2006   2007    2008       2009     2010        2011
                                                            Estimated   Projected




                                         65
2011 Overview and Revenue Estimates
                                                                                                  CONTINUED



EMERGENCY COMMUNICATIONS FUND                                          2011 projection account for these forecasts but
                                                                       assume only 1.5 percent growth and still below
The emergency communications fund finances
                                                                       historical collections.
expenditures related to the maintenance and
operation of the City’s emergency communications                       Proceeds from food and beverage ticket sales,
and 911 Center. It is funded through the collection                    vendor fees and external corporate sponsorship at
of the emergency telephone system (911) surcharge                      City-sponsored events are projected to generate
on all billed subscribers of telecommunications                        $16.5 million in 2011.
services within the City. The surcharge is levied                      Other revenues that support this fund include
at a rate of $2.50 per month per landline and                          revenues from the street furniture program and
wireless connection. In 2011, the 911 surcharge is                     ice rink rentals which are expected to remain level.
projected to generate $94.2 million. This revenue                      Total resources available to the special events and
supports both the emergency communication                              hotel tax fund are projected to be $36.6 million
bond redemption fund and the emergency                                 in 2011.
communications fund. After funding debt service
of $22.3 million, the emergency communications                         CTA REAL ESTATE TRANSFER TAX FUND
fund will reimburse the corporate fund for
the Office of Emergency Management and                                 The CTA Real Estate Transfer Tax Fund supports
Communications’ operating costs.                                       public transportation in the City. On April 1, 2008,
                                                                       a supplemental real estate transfer tax became
SPECIAL EVENTS AND HOTEL TAX FUND                                      effective for the purpose of providing financial
                                                                       assistance to the Chicago Transit Authority
The special events and hotel tax fund supports                         (CTA).
the promotion of tourism in Chicago. It is funded
primarily by the municipal hotel occupation tax.                       As discussed in the corporate fund City real estate
Historically two separate funds, the 2011 budget                       transfer tax section, real estate activity is expected
proposes to merge the Special Events and Municipal                     to remain constrained in 2011.
Hotel Tax funds.                                                       Total available resources to the CTA real estate
Similar to the corporate fund hotel accommodations                     transfer tax fund are projected to be $26.1 million
tax, municipal hotel occupation tax collections                        in 2011.
are beginning to experience some year-over-year
                                                                       TAX INCREMENT FINANCING ADMINSTRATION
growth after several months of declines brought
                                                                       FUND
on by the recession’s impact on tourism, business
travel and convention attendance. According to                         In order to be in compliance with state law, the
hotel statistics maintained by the Convention and                      2011 budget includes a new Tax Increment Finance
Tourism Bureau, year-over-year average occupancy                       Administration Fund. In 2011, $5.9 million of
rates are up 2.7 percentage points and average                         administrative expenses incurred by the City will
room rates are down 2.4 percent, but have been                         be reimbursed through Tax Increment Financing
in the positive for the most recent months.                            administrative reimbursement.
Hotel industry analysts are forecasting that
m o m e n tu m wi l l c o n t i n u e t o b u i l d d u r i n g
the remainder of 2010 which will lead to the
beginning of a turnaround in 2011. Municipal
hotel tax collections for the 2010 year-end and




                                                                  66
2011 Overview and Revenue Estimates
                                                                           CONTINUED



EMERGENCY COMMUNICATIONS FUND
2005 TO 2011 PROJECTED
CHART 36
        $600
                                                                     State Sales Tax/ROT
                                                                   City Sales Tax/HROT

        $500



        $400



        $300
  Millions




        $200



        $100



                 $0
                       2005   2006   2007    2008       2009            2010               2011
                                                                      Estimated          Projected

SPECIAL EVENTS AND MUNICIPAL HOTEL TAX FUND
2005 TO 2011 PROJECTED
CHART 37

                 $60
                                                         Special Events Fund - 356

                                                         Special Events and Municipal Hotel Operators'
                 $50                                     Occupation Tax Fund - 355




                 $40



                 $30
      Millions




                 $20



                 $10



                 $0
                       2005   2006   2007        2008    2009            2010                2011
                                                                       Estimated           Projected




                                            67
2011 Overview and Revenue Estimates


PENSION FUNDS

The City currently contributes to four pension              Prior to issuing the annual preliminary budget,
funds as required by the Illinois Compiled Statutes.        the City requests from pension fund actuaries
The funds provide retirement, death and disability          a determination on the contribution that the
benefits to covered employees. The four funds are:          City is required to incorporate within budget
The Municipal Employees’ Annuity and Benefit                recommendations. The following table illustrates
Fund, Laborers’ and Retirement Board Employees’             the City’s contribution.
Annuit y and Benefit Fund, the Policemen’s
                                                            Actuary analysis concluded that a total of $456.1
Annuity and Benefit Fund, and the Firemen’s
                                                            million will be required to meet the City’s legally
Annuity and Benefit Fund. In addition, certain
                                                            required employer contributions in 2011. This
employees of the Chicago Board of Education also
                                                            obligation will be financed with $348.7 million
participate in the municipal fund, for which the
                                                            in property tax collections and $107.4 million in
City is required to satisfy employer contributions
                                                            personal property replacement tax collections.
through separate property tax levy and personal
property tax replacement revenues.



CITY PENSION CONTRIBUTIONS
TABLE 9

                                                       2009
                                                                              Multiplier                 2011
                                                    Member
                                                                       Proposed Budget1      City Contribution
                                               Contributions

Municipal Employees’ Annuity
                                               $129,038,000        X               1.25      =   $161,297,000
and Benefit Fund

Laborers’ and Retirement Board
                                                $15,640,000        X               1.00           $15,640,000
Employees’ Annuity and Benefit Fund

Firemen’s Annuity and Benefit Fund2             $38,913,000        X               2.26           $87,944,000

Policemen’s Annuity and Benefit Fund            $95,615,000        X               2.00          $191,229,000

Total Resources

1
 Multipliers are set in State statute.
2
 An additional $1.3 million is set aside for the fund apart from the contribution calculation
 due to State statute.




                                                       68
2011 Overview and Revenue Estimates


DEBT SERVICE FUNDS                                      all general obligation debt except tender notes
                                                        and commercial paper, totaled $6.952 billion or
Debt service funds rely on property tax levies          $2,400.67 on a per capita basis. This equates to
and certain other revenues that are used for            2.17 percent of the total estimated fair cash value
the payment of principal and interest and the           of property located within the City.
redemption of general obligation bond issues.           As of August 2010, the City’s bond ratings remain
Not including debt supported by other sources           high. Fitch has assigned a rating of “AA” and
than the City’s property tax, the 2011 budget           Moody’s Investors Service has assigned a rating
recommendations reflect a total appropriation of        of “Aa3”. The Standard & Poor’s rating of “AA-”
$411.4 million to service general obligation debt.      is the highest rating the City has received from
This includes a property tax levy of $370.5 million.    S&P since 1978.
Capital debt service funding for the Library capital
program will remain at $4.3 million.                    DAILY TENDER NOTES
General obligation debt can be used for any lawful      The City issues short-term debt through daily
uses permitted by ordinance. Long-term debt will        tender notes to provide working capital for
be used to finance municipal facilities, projects       several operating funds. The 2011 tender notes are
and certain equipment where it is appropriate to        funded by the 2011 property tax levy. Proceeds
spread the cost over more than one budget year. In      from tender notes are distributed to the library
so doing, the City recognizes that future taxpayers     operations funds.
who will benefit from the investment will pay a
share of its cost. Short-term debt is appropriate for   OTHER DEBT SERVICE
some capital equipment purchases and to satisfy
                                                        Other debt service funds that do not rely on
the cash flow needs of the City on an extremely
                                                        property taxes are the emergency communication
limited basis.
                                                        bond fund and the sales tax bond redemption and
Debt service accounts for 46.5 percent of the City’s    interest fund.
property tax levy not including the library debt.
As of August 2010, the City’s net direct long-
term general obligation debt, which includes
2011 Overview and Revenue Estimates


ENTERPRISE FUNDS                                             93.9 percent of total resources. In 2011, the sewer
                                                             rate is set at 86 percent of water fees collected
Enterprise funds support the operation, main-                within the City. The remaining $12.7 million in
tenance, and capital costs of the City’s water               resources is the result of transfers and other
and sewer systems, and O’Hare and Midway                     income.
International Airports. The 2011 proposed budget
                                                             O’HARE AND MIDWAY INTERNATIONAL
projects enterprise fund resources of $1.8 billion,
                                                             AIRPORT FUNDS
an increase of 0.6 percent over the 2010 year-end
estimate.                                                    In accordance with airport use agreements, the
                                                             airport enterprise funds are supported by rental
WATER FUND                                                   and landing fees charged to the airlines and by
The water fund is projected to have $493.1 million           concessions and other revenues generated from
in total available resources in 2011, of which water         airport activities. After taking into account all non-
fees are projected to generate $443 million, or              airline revenue sources, airline rates and charges
89.8 percent of total resources. An additional $28           are adjusted to generate sufficient revenue to
million will be generated by transfers from other            operate the airports and to fund debt service
funds for work performed by the Department                   requirements.
of Water Management. Miscellaneous resources                 In 2011, total projected revenues from O’Hare
account for $21 million and interest income is               and Midway operations, including concession and
projected at $1.1 million.                                   rental fees, airport rates and charges and other
                                                             revenue sources, are projected to be $899.3 million
SEWER FUND                                                   for O’Hare and $220.9 million for Midway.
The sewer fund is projected to have $209.3 million
in total available resources in 2011, of which sewer
fees are projected to generate $196.6 million, or



ENTERPRISE FUND APPROPRIATION SUMMARY
$ MILLIONS
TABLE 10

                                                                                        2010              2011
                                                2009               2010
                                                                                    Year-End          Proposed
                                               Actual            Budget
                                                                                    Estimate            Budget

 Water Fund                                     $457.7              $499.9              $493.1            $493.1

 Sewer Fund                                      189.3               211.5               209.3              209.3

 Midway Airport Fund                             176.0               210.0               217.5              220.9

 O’Hare Airport Fund                             715.7               879.0               892.5              899.3

 Total Resources                              $1,538.8            $1,800.5            $1,812.4           $1,822.6




                                                        70
2011 Overview and Revenue Estimates


OVERVIEW                                                 These groups are Finance and Administration,
                                                         Legislative and Elections, City Development,
The proposed budget reflects expenditures for             Community Services, Public Safety, Regulatory,
2011 totaling $6.15 billion for all local funds. This    Infrastructure Services and Public Service
is a less than a 1.0 percent increase over the 2010      Enterprises. The City budget also contains a Finance
appropriation.                                           General budget for citywide expenditures such as
                                                         pension obligations, debt service and employee
The City’s budgeted expenditures presented in            health care that is managed by the Office of
this Expenditures and Personnel section reflect           Budget and Management and the Department
the City’s corporate and other local funds. As part      of Finance.
of an ongoing effort to increase transparency in
government, the Tax Increment Financing fund             Of the proposed 2011 budget, Finance General
is included as a local fund in the 2011 proposed         and Public Safety represent 44.3 percent and
budget. In addition to local funds, many of the          29.4 percent of the overall budget respectively.
City’s programs and services are also funded in          Public Safety costs represent 57.6 percent of the
part by grant funds which are discussed in the           corporate fund budget, and together with an
next section titled “Grants.”                            estimated $323.6 million share of health care costs
                                                         in Finance General, these departments represent
City Departments are organized into functional           67.5 percent of the proposed corporate fund
groups defined and discussed later in this section.       budget.


PUBLIC SAFETY SHARE OF THE 2011
PROPOSED CORPORATE FUND BUDGET
CHART 38




                                 All Other
                                Departments
                                   32.5%


                                                             Public Safety *
                                                                 67.5%




                                                        *Includes estimated share of employee benefits
2011 Overview and Revenue Estimates
                                                                      CONTINUED



The next largest categories are Public Service          bargaining agreements with unions determine the
Enterprises, Finance and Administration and             majority of these costs. The 2011 proposed budget
Infrastructure Services with 9.4 percent, 7.3           reduces the number of full-time positions across
percent and 5.6 percent of projected 2011 costs         all local funds by 0.7 percent, or 234 budgeted
respectively. City Development and Community            positions eliminated across funds.
Services together represent 2.6 percent of the
                                                        While the proposed 2011 budget decreases the
2011 proposed budget for local funds. However,
                                                        position count, the cost of the workforce increases
these departments are funded primarily by grants
                                                        each year in wages, benefits and pension costs.
and receive only a small portion of funding from
                                                        The majority of the City’s workforce is covered
corporate and other local funds.
                                                        by collective bargaining agreements which will
The City’s personnel costs represent the most           represent 29,859 of the local funds full time
significant portion of its budget needs. For            positions, or 90.7 percent of the City’s total
Chicago, more than 83 percent of corporate funds        positions. The City has agreements with collective
are budgeted for personnel costs, which include         bargaining units for the proposed budget year
salaries, health care, overtime pay, Medicare           and rates for union covered employees are based
payments, workers’ compensation, vacation               on those contractual agreements.
and unemployment compensation. Collective



PROPOSED BUDGET BY FUNCTION
$ MILLIONS
TABLE 11


                                                            2010               2011                  %
                                                          Budget    Proposed Budget              Change


 Finance and Administration                               $500.8              $481.7                -3.8%

 Legislative and Elections                                   38.8                45.0              16.2%

 City Development                                            68.5                58.3             -14.8%
 Community Services                                        116.8                109.3               -6.4%

 Public Safety                                            1,837.4             1,929.5               5.0%

 Regulatory                                                  63.6                55.1             -13.3%

 Infrastructure Services                                   377.1                367.4               -2.6%

 Public Service Enterprises                                609.0                616.0               1.2%
 General Financing Requirements                           2,881.7             2,907.3               0.9%

 Total - All Functions Before Reimbursements             $6,493.6            $6,569.6               1.2%

   Deduct Reimbursements Between Funds                    (317.0)             (344.4)                    -

   Deduct Proceeds of Debt                                 (70.4)              (70.4)                    -

 Net Total Appropriations                                $6,106.1            $6,154.8               0.8%




                                                   72
2011 Overview and Revenue Estimates
                                                                      CONTINUED



The 2011 proposed budget anticipates funding            the added costs of employee health care. To
contractual increases for outstanding union             control this expenditure growth while supporting
contracts within the Finance General budget. In         healthy lifestyles among its employees, the
addition, the City’s agreements with bargaining         City aggressively negotiates with health care
units represented by Coalition of Union Public          plan providers and offers wellness and disease
Employees (COUPE) and Unit II (civilian public          management programs. In 2011, budgeted health
safety) to reduce personnel cost through reduced        care costs for City employees and its annuitants
work weeks, unpaid holidays and replacing some          are $502.4 million net of contributions across all
overtime with compensatory time will continue           local funds.
into 2011.

Health care costs represent $408.7 million or
12.5 percent of the proposed 2011 corporate
expenditures. Each year, the City must absorb



LOCAL FUNDS POSITION COUNT 10-YEAR HISTORY
CHART 39
  40,000


  39,000   38,802

                    37,918
  38,000

                             37,127
  37,000


  36,000
                                      35,881   35,870    35,867    35,730

  35,000


  34,000                                                                    33,621
                                                                                      33,156
                                                                                               32,922
  33,000


  32,000


  31,000


  30,000


  29,000
            2002     2003     2004     2005     2006       2007     2008      2009      2010     2011
2011 Overview and Revenue Estimates
                                                     CONTINUED



POSITION COUNTS BY FUNCTION
TABLE 12

                                            2010              2011     2010-2011
                                          Budget   Proposed Budget       Change


 Finance and Administration                2,509             2,502            (7)

 Legislative and Elections                   358                 358               -

 City Development                            140                 231          91

 Community Services                        1,163             1,169                 6

 Public Safety                            22,044            21,850          (194)

 Regulatory                                  716                 627         (89)

 Infrastructure Services                   2,806             2,768           (38)

 Public Service Enterprises                3,420             3,417            (3)

 Total - All Functions                    33,156            32,922          (234)




UNION VS. NON-UNION POSITIONS
CHART 40



                              Non Union
                                9.3%




                                          Union
                                          90.7%




                                     74
2011 Overview and Revenue Estimates


EMPLOYEE HEALTH CARE BUDGETS – ALL LOCAL FUNDS
$ MILLIONS
CHART 41


           $550.0
Millions




                                                                                        $502.4
           $500.0
                                                                               $465.3
           $450.0

                                                                      $411.7
           $400.0
           $400 0
                             $374.9            $374.4        $378.1
                    $367.4            $361.8
           $350.0



           $300.0



           $250.0



           $200.0



           $150.0
                     2004     2005     2006     2007          2008     2009     2010    2011 Recs




                                                                                                    / /




                                                        75
2011 Overview and Revenue Estimates
                                                                            CONTINUED



2011 PROPOSED EXPENDITURES                                   The 2011 budget for Finance and Administration
                                                             reflects the City’s commitment to efficiently
City departments are strategically organized into            manage resources while continuing to provide
eight functional categories. The functional units            necessary services to both the City and Chicago
include: Finance and Administration, Legislative             residents.
and Elections, City Development, Community                   The departments that comprise the Finance and
Services, Public Safety, Regulatory, Infrastructure          Administration category include:
Services and Public Service Enterprises.

The Program and Budget Summary book
contains program descriptions, performance
data and budget allocation by program for each
City department contained in these budget                            Technology
recommendations. Please refer to the Program and
Budget Summary for more detailed information
on each City department.
                                                                     Comptroller
The following is a brief overview of the
proposed expenditures organized by functional
categories.


FINANCE AND ADMINISTRATION

The departments within the Finance and
Administration category manage the City’s
finances, human resources, legal functions
and day-to-day government operations. These
departments manage the City’s $6.15 billion
budget and ensure that funds are allocated
appropriately to achieve the City’s objectives and
maximize value for taxpayers. The Finance and                In total, the proposed budget recommends funding
Administration departments are critical to ensure            the Finance and Administrative departments at
that the City can provide direct services to citizens        $481.7 million, a decrease of $19.1 million or 3.8
in a timely and cost-effective manner.                       percent, from the 2010 budget. The number of
                                                             positions recommended for these departments
The departments within this category are
                                                             will decrease by seven from 2,509 to 2,502 in the
responsible for the managing the City’s hiring
                                                             2011 proposed budget.
needs, technology resources, facilities and
vehicles. Trades people complete approximately               Significant changes in the recommended budgets
140,000 work orders annually to maintain and                 of Finance and Administrative departments
enhance public buildings and more than 120,000               include:
work orders to maintain the City’s vehicle fleet,            The Department of Innovation and Technology’s
including police cars.                                       proposed budget reflects an increase of 4.6 percent,
                                                             or $1.1 million above the 2010 appropriation




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2011 Overview and Revenue Estimates
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which is related to annual maintenance costs                was previously referred to as Certification and
for technology projects that have completed                 Compliance. The proposed budget also includes
development in 2010. These projects were focused            a net reduction of four positions as a result of two
on changing processes in areas that will improve            reorganizations. The first proposed reorganization
the City’s service to residents and businesses while        transfers the responsibility for Diversity and
also increasing revenue collection.                         Equal Employment Opportunity, along with six
                                                            positions, from the Office of Compliance to the
The Office of the City Clerk’s proposed budget
                                                            Department of Human Resources. The second
reflects a slight decrease of 1.1 percent, or
                                                            proposed reorganization completes the transfer of
approximately $100,000 below the 2010
                                                            employee training programs from the Department
appropriation as a result of non-personnel
                                                            of Human Resources to the Office of Compliance.
decreases. In addition to non-personnel reductions,
                                                            The transition of training responsibilities began
the Office of the City Clerk will eliminate two
                                                            in 2010 and will be completed this year with the
vacant positions in the proposed 2011 budget.
                                                            transfer of two additional positions. The two
The Department of Revenue’s proposed budget                 positions will work in the workforce compliance
reflects an increase of 4.3 percent, or $2.2 million        division, which provides educational guidance and
above the 2010 appropriation due to higher non-             training to City managers, employees, vendors and
personnel costs related to contractual increases.           delegate agencies.
Although the overall budget will increase,
                                                            The proposed budget for the Department of Human
the department reduced its position count by
                                                            Resources reflects a decrease of $1.4 million, or
eliminating seven non-revenue generating
                                                            18.9 percent from the 2010 appropriation. The
vacancies.
                                                            decrease is primarily attributable to the personnel
The Office of Compliance’s proposed budget                  reductions through the elimination of 10 vacant
reflects an increase across local funds of 4.5              positions. The department’s budget also reflects
percent, or approximately $150,000 above the 2010           personnel changes as a result of proposing to
appropriation. This increase is primarily due to an         realign department responsibilities. As discussed
increase in non-personnel costs across local funds          above, the proposed budget includes transferring
to support the Supplier Diversity program, which            responsibility for employee training programs to




                                                       77
2011 Overview and Revenue Estimates
                                                                            CONTINUED



the Office of Compliance and moving responsibility            LEGISLATIVE AND ELECTIONS
for Diversity and Equal Employment Opportunity
from the Office of Compliance to the Department of            The departments that comprise the Legislative and
Human Resources. In addition, the Labor Relations             Elections category include:
division will move from the Department of Human
Resources to the Department of Law in proposed
budget.                                                               the Legislative Reference Bureau

The Department of General Services’ proposed 2011
budget reflects a decrease of $22.5 million or 10.3           In total, the proposed budget recommends funding
percent primarily attributable to reductions in non-          the Legislative and Elections departments at $45.0
personnel expenses. The department’s proposed                 million, an increase of $6.3 million, or 16.2 percent
non-personnel reductions include a savings of $16.1           from the 2010 budget. The number of positions
million as a result of locking-in lower natural gas           recommended for the Legislative and Elections
prices, $5.2 million from lower contracted electricity        depar tment s will remain unchange d at 35 8
costs, $1.9 million due to lease reductions and               positions.
$700,000 in contractual office and building services.
                                                              The Board of Election Commissioners’ proposed
The budget also includes the proposed consolidation
                                                              budget requires a 47.3 percent increase, or $6.2
of the Graphics and Reproduction Center (GRC)
                                                              million above the 2010 appropriation to support
into the Department of General Services which
                                                              the Municipal General Election scheduled in 2011.
will transfer 32 positions valued at $1.8 million and
                                                              During the 2011 calendar year, the Board of Election
non-personnel items totaling $1.2 million into the
                                                              Commissioners will conduct a Municipal General
department. The personnel increase from the GRC
                                                              Election in the City of Chicago for the offices of
positions is offset by a reduction of 25 vacancies,
                                                              Mayor, City Clerk, City Treasurer and Aldermen and
resulting in a net increase of seven positions over
                                                              Municipal Runoff and supplementary Aldermanic
the 2010 appropriation.
                                                              ele c tions if ne ce s s ar y. T he majorit y of the
The Department of Fleet Management’s proposed                 proposed increase is attributable to additional
2011 budget reflects an increase of approximately             seasonal staffing resources needed to conduct the
$360,000, or 0.3 percent from the 2010 appropriation.         Election.
The department’s budget increase is primarily due
to non-personnel costs related to the aviation fund.
The department’s personnel budget, however, will              CITY DEVELOPMENT
decrease as a result of eliminating eight vacant
positions.                                                    The City Development categor y includes
                                                              departments overseeing community, economic and
The proposed budget for the Department of
                                                              cultural development in Chicago. City Development
Procurement Services reflects a decrease of
                                                              d e p ar tm e nt s wo rk wi th Chic a g o re sid e nt s ,
$470,000, or 7.6 percent, attributable to both
                                                              community groups, business and civic leaders,
personnel and non-personnel reductions. The
                                                              as well as state and federal agencies to promote
department’s proposed personnel budget reflects
                                                              economic development.
a reduction of four positions, due to the elimination
of vacancies.                                                 The City has a variety of strategies to encourage
                                                              and guide future economic development. One
                                                              important mechanism is Tax Increment Financing




                                                         78
2011 Overview and Revenue Estimates


( T I F ), w hich u tilize s p u b lic inve s tm e nt to   The total budgeted positions for these
encourage private investment. For each dollar of           departments will increase by 92, which is largely
public investment, the City anticipates five dollars       due to the inclusion of many of the responsibilities
of private investment in TIF areas. Through the            of the former Department of Zoning and Land Use
City’s incentive to invest in otherwise blighted           Planning into the new department. The position
neighborhoods, TIF projects have proven successful         count increase is also attributable to including 30
in improving neighborhoods.                                Tax Increment Finance funded positions in the
                                                           local funds budget.
The City also leverages public and private dollars
to achieve its Five-Year Affordable Housing Plan.          The newly formed Department of Housing and
Both the Downtown Density Bonus and the Chicago            Economic Development was created by merging
Par tnership for Af fordable Neighborhoods                 most of the former Department of Zoning and
are examples of how the City uses the private              Land Use Planning with the Depar tment of
development market to achieve the goal of having           Community Development to streamline and
enough affordable housing for all Chicagoans.              bring efficiencies to the development process in
                                                           order to attract and facilitate these projects that
Cultural development, tourism and local special
                                                           benefit the City’s economy. Zoning ordinance
events have a significant effect on the City’s
                                                           administration, planning and land use policy,
economy and enhance Chicago’s quality of life.
                                                           l a n d m a r k s , s u s t ain a b l e d e v e l o p m e n t a n d
The City’s lakefront festivals draw more than
                                                           mapping functions from the former Department
10 million people annually and attendance at
                                                           of Zoning and Land Use Policy will move to the
the SummerDance festival has nearly doubled
                                                           newly created department. The newly created
in the past three years. The City also provides
                                                           department will be responsible for the City’s
grants to more than 300 local artists and non-
                                                           economic development activities.
profit organizations annually and develops and
implements public art programs.                            The Department of Cultural Affairs and Special
                                                           Events is a newly merged department comprised of
The Depar tments that comprise the City
                                                           the merger of the former Department of Cultural
Development category include:
                                                           Affairs with the Mayor’s Office of Special Events.
                                                           The new department will realize efficiencies and
        Development                                        synergies in planning, producing, and assisting
                                                           arts and entertainment programs in the City.
        Events                                             The 2011 budget for this department includes a
                                                           reduction in positions and a reduction in the non-
In total, the proposed budget recommends
                                                           personnel budgets compared to the 2010 budget
funding the City Development departments at
                                                           of the combined departments. The reductions
$58.3 million, a reduction of $10.1 million, or
                                                           represent cost-saving measures identified between
14.8 percent, from the 2010 budget. The budget
                                                           the programs and functions of the two legacy
decrease is primarily due to the elimination
                                                           departments. Despite the proposed position and
or reduc tion of programs within the newly
                                                           budget reductions, the department will maintain
merged Deparment of Housing and Economic
                                                           free and beneficial, family-friendly and cultural
Development, as well as the shift of Parking Meter
                                                           arts programs in 2011.
Human Infrastructure funds from the corporate
fund to its own appropriated fund.
2011 Overview and Revenue Estimates
                                                                          CONTINUED



COMMUNITY SERVICES                                         people with disabilities. Additionally, 400 people
                                                           with disabilities were served by the Independent
The City of Chicago is committed to serving its            Living Program.
families and communities and providing for                 In Chicago, more than 17,500 children are served
those most in need. To achieve these goals, the            by Head Start and an additional 600 are enrolled
departments within this category often partner             in Early Head Start. The City provides after school
with delegate agencies that provide community-             programming for nearly 19,000 students, helps
based programming and assistive services. The              approximately 4,000 students with a broad range
success of these departments is often measured             of job-readiness programs and places nearly
in long-term outcomes such as the health of                18,000 youth in summer jobs.
newborns, a child’s readiness to begin school or
                                                           Six community service centers will serve more than
a family’s ability to be self sufficient.
                                                           70,000 families in 2011. In 2010, the City expects to
The City expects to serve approximately 110,000            provide more than 40,000 people with emergency
patients at its health clinics in 2010. These are          shelter throughout the year and to handle more
primarily people who do not have private insurance         than 5,000 requests for crisis intervention. The
or the means to procure health care. Through its           City responds to these needs immediately and,
Fast Tracks Clinics, the department will provide           based on the need for ongoing assistance, works
an estimated 7,500 immunizations. This year, the           with families to help them attain long-term self
food safety inspectors (Sanitarians) will conduct          sufficiency. The proposed budget continues
15,000 inspections of food establishments for              funding for domestic violence programs, veterans
health code compliance.                                    resources, the Plan to End Homelessness and
The City delivers meals to nearly 10,000 needy             ex-offender re-entry initiatives.
seniors. A current total of 16 senior satellite and        The Chicago Public Library continues to host
regional centers provide a place for seniors to            inspiring programs to support all Chicago residents
congregate, learn and recreate. Two new centers            in their enjoyment of reading and pursuit of
will open in 2011.                                         lifelong learning. The 51,0 0 0 children who
The City annually handles approximately 25,000             participated in the 2010 summer reading program,
calls for information and referral services for            “Art is Artageous”, read an average of 25 books.




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2011 Overview and Revenue Estimates
                                                                      CONTINUED



In 2011, annual circulation is expected to exceed      decrease, the number of budgeted positions in the
9.0 million materials. In addition to free reading     departments will increase by six. A major change
programs, Chicago Public Library continues to          from the 2010 budget is that the Parking Meter
offer free one-hour Internet sessions to the public.   Human Infrastructure funds will be budgeted
In 2011, it expects to offer 2.9 million sessions,     outside of the corporate fund and in a separate
equal to their 2010 projected total. In addition       Parking Meter Fund. Many of the departments in
to the various on-line subscription databases,         the Community Services category will experience
Sony Reader compatible eBooks and an audio             decreases based on the shift of these funds.
book catalog accessible to iPod users continues
                                                       The Department of Public Health’s proposed
to be offered. In order to better serve the one
                                                       budget reflects a continued effort to generate
million persons who visit a library building each
                                                       efficiencies and control costs. The department
month, the Chicago Public Library will monitor the
                                                       eliminated five vacant positions, which will have
progress of the self check-out stations initiated in
                                                       a minimal impact on the department’s current
2010 for books at select branches.
                                                       service levels. The position reductions were off-
The departments that comprise the Community            set by small increases to necessary non-personnel
Services category include:                             items such as increased technology costs. The
                                                       changes in the 2011 budget will not affect the
                                                       ability of the department to service its clients,
                                                       but rather will provide the City’s overall budget
        Services                                       with slight relief while continuing to provide its
                                                       community health programs.

                                                       The Department of Family and Support Services
                                                       suppor t s coordinated ser vices designed to
                                                       assist Chicago’s most vulnerable residents, and
        Disabilities
                                                       provides assistance to families on their pathway
In total, the 2011 proposed budget recommends          to self-sufficiency, especially through this current
funding the Community Services departments             economic crisis. The department is comprised
at $109.3 million, a decrease of $7.4 million or       of human services, senior services, children and
6.4 percent, from the 2010 budget. Despite this        youth services, workforce development services,
2011 Overview and Revenue Estimates
                                                                                      CONTINUED



domestic violence programs and the City’s Plan                         PUBLIC SAFETY
to End Homelessness. Because these services are
all under one unified department, numerous                             The City’s Public Safety departments further Mayor
e f f i ci e n ci e s a n d im p rove m e n t s to s e r v i ce        Daley’s mission to make our neighborhoods safe
delivery through program integration and the                           and our City secure. The City handles approximately
maximization of funding sources have occurred.                         5.0 million calls annually for emergency service, 90
There is virtually no change to the proposed 2011                      percent of which are answered within two rings.
budget as the $7.8 million reduction is primarily                      The average dispatch time for police calls in which
attributable to the shift of the Parking Meter                         a resident or police officer is in imminent danger
funds from the corporate fund to a separately                          is only 4.4 minutes, while the average response
appropriated fund.                                                     time for Emergency Medical Services is just 3.8
The Chicago Public Librar y proposed 2011                              minutes.
budget reflects an increase of $1.1 million or 2.1                     The City receives more than 4.5 million calls
percent. This proposed increase is attributable                        annually for non-emergency (311) services. Chicago
to both personnel and non-personnel costs.                             is recognized as a national leader in analyzing
The department’s proposed budget reflects an                           requests from the public and using the information
increase of 13 positions due to the anticipated                        to improve City services and programs.
opening of four libraries branches in 2011.
Capital funds will allow the opening of Dunning,                       The departments that comprise the Public Safety
Greater Grand Crossing, Little Village, and West                       category include:
Humboldt Park library branches. The overall non-
personnel increase is attributed to data hardware,
telephone maintenance and rental equipment
and services.

The Commission on Human Relations proposed
2011 budget reflects a slight decrease, which                                  Communications
reflects the department’s contribution to the
City’s overall cost-cutting measures. While the
position count stayed level, there were non-                           In total, the proposed budget reflects funding
personnel expense reductions that will not impact                      the Public Safety departments at $1.9 billion,
programs or services.                                                  reflecting an increase of $92.1 million or 5.0
                                                                       percent, from the 2010 budget. The proposed
The proposed budget for the Mayor’s Office for                         budget reflects a decrease 194 civilian public
People with Disabilities will decrease by $650,000                     safety positions.
or 38.4 percent. The reduction is primarily due to
transfer of the HomeMod program to the Parking                         The 2011 proposed budget for the Chicago Police
Meter Fund and the elimination of two vacancies                        Department reflects an increase of $73.2 million,
from the corporate fund budget. Other smaller                          which is a 5.9 percent increase from the 2010
reductions include the transfer of the Youth                           appropriation. This increase is tied directly to the
Employment program costs to a grant fund,                              interest arbitration award for the police unions
and the elimination of AccessChicago from the                          which dictated a cumulative 10 percent wage
2011 budget. The free, one-day AccessChicago                           increase for the five-year period of July 1, 2007
Expo will not take place in 2011, but will return                      through June 30, 2012.
in 2012.




                                                                  82
2011 Overview and Revenue Estimates


The Police Department’s budget reflects 189          the addition of the 17 positions from the Police
fewer positions, 42 from layoffs, 17 reassigned      Information Service Division, OEMC’s budget
to OEMC and 130 vacancies eliminated. These          reflects a net loss of four positions through vacancy
reductions will not impact the number of sworn       reductions.
officers budgeted, which remains unchanged. In
                                                     The proposed budget for the Chicago Fire
addition, more than 300 able bodied officers have
                                                     Department will increase by $9.6 million or 1.9
been moved from administrative duties back to
                                                     percent from the 2010 appropriation. The increase
neighborhood patrols.
                                                     is due to personnel cost, contractual obligations,
The 2011 budget proposal for the Office of           and aligning the Injury on Duty budget with
Emergency Management and Communications              actual costs. The proposed budget reflects seven
(OEMC) reflects an increase of $9.1 million or       fewer uniform exempt positions as a result of
10.5 percent, primarily attributable to moving       management efficiencies which are balanced by
the Chicago Police Department information            an increase in seven uniform strength positions.
service section to OEMC as part of information       As a result, the Fire Department’s sworn count will
technology consolidation. This move seeks to         remain unchanged for 2011.
leverage technology decisions across all public
safety agencies and reduce overall costs. Despite


SWORN PUBLIC SAFETY POSITIONS VS. CIVILIAN: 2002-2011
CHART 42


  21,000
                                                     # of Civilian Positions Citywide Local Funds
                                                     # of Budgeted Positions Sworn (Public Safety)
  20,000


  19,000


  18,000


  17,000


  16,000


  15,000


  14,000


  13,000


  12,000
           2002     2003    2004     2005     2006   2007       2008        2009        2010         2011
2011 Overview and Revenue Estimates


REGULATORY
                                                                   Consumer Protection
The departments within this category are
responsible for the day-to-day enforcement of
City ordinances, as well as compliance with local,
state and federal laws. Much of the enforcement
activity takes place through routine inspections or
inspections conducted as a result of a complaint.
The City inspects approximately 300,000 buildings          In total, the proposed budget recommends
annually. The largest portion, approximately               funding the Regulatory departments at $55.1
105,000, represents annual compliance inspections.         million, a 13.3 percent decrease from the 2010
Another 77,000 inspections are conducted as part of        appropriation. The 2011 proposed budget for
the permitting process. The City reviews more than         this group of departments reflects a reduction
39,000 construction permit applications annually.          of 89 positions. The majority of the decrease is
Approximately 8,000 of these applications require          due to the proposed merging of the Department
a standard plan review.                                    of Zoning and Land Use Planning with the
                                                           Department of Community Development to
The City’s regulatory enforcement activities serve
                                                           create the Department of Housing and Economic
to protect public health and safety and protect
                                                           Development.
consumers. The City conducts approximately
20,000 taxicab safety inspections annually and over        The Department of Business Affairs and Consumer
124,000 annual retail inspections, investigations          Protection’s (BACP) proposed budget will decrease
and tests. The City responds to approximately              by $1 million or 6.8 percent, due to both personnel
64,000 service requests about animal-related               and non-personnel expense reductions. In addition
safety matters and receives and cares for more             to eliminating three non-revenue generating
than 21,000 animals each year at the City’s animal         vacancies, BACP’s budget reflects a reduction
care facility. The Commission on Animal Care and           of $525,000 that had been funded in 2010 for
Control protects residents and animals, including          Small Business Development. This program was
strays and victims of inhumane treatment.                  designed to provide access to capital and technical
                                                           support to small businesses with start up funds
The City has achieved an 86 percent compliance
                                                           from the 2010 budget. The program included
rate through its tobacco sales compliance program
                                                           a small business loan loss pool that allowed
and a 96 percent compliance rate on sales of
                                                           microlenders and community banks to expand
alcohol to minors. The City successfully enforces
                                                           underwriting criteria for small business loans.
the ordinance forbidding illegal dumping of
                                                           It also included a technical assistance training
materials which has resulted in responsible parties
                                                           component that provided training to City and
cleaning up waste in the amount of $4.0 million
                                                           delegate agency staff to provide more in-depth
in 2009 and an expected $6.0 million by the end
                                                           technical assistance for small businesses poised
of 2010.
                                                           to expand and grow. Given this approach, the
The departments that comprise the Regulatory               business community will benefit from the original
category include:                                          funding for several years.

                                                           The Department of Buildings’ proposed budget
                                                           reflects an increase of $700,000 or 2.7 percent.
                                                           The increase is due to moving the Developer




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2011 Overview and Revenue Estimates
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Services permit review costs to the department’s                              percent decrease, or $2.6 million from the 2010
2011 anticipated expenditures. In prior years,                                appropriation. The proposed budget reflects a net
this expense was budgeted as a reduction in the                               decrease of 13 positions resulting from vacancy
department’s permit revenues. Another change                                  reductions. In addition to the personnel changes,
in the proposed 2011 budget is moving the seven                               the department’s proposed budget includes non-
zoning investigators from the former department                               personnel reductions in several areas.
of Zoning and Land Use Planning to the Department
                                                                              The Chicago Department of Transportation’s
of Buildings. Despite the additional personnel, the
                                                                              proposed 2011 budget recommendation reflects a
Department of Building’s position count reflects a
                                                                              decrease of $7.0 million or 5.2 percent across local
net reduction of 13 positions in local funds which
                                                                              funds when compared to 2010. The department’s
is the result of eliminating three vacancies and
                                                                              2011 budget includes a decrease of 25 positions
transferring additional positions to grant funds.
                                                                              which is the result of vacancy reductions within the
The proposed budget for the Office of the                                     department. In addition to personnel reductions,
Inspector General remains level with the                                      the budget includes non-personnel reductions
revised 2010 appropriation. The revised 2010                                  due to reduced revenue from the Motor Fuel Tax
appropriation transferred responsibility for                                  fund.
monitoring of the City’s hiring and employment
pursuant to Shakman Accord from the Office of
Compliance to the Office of the Inspector General.
                                                                              PUBLIC SERVICE ENTERPRISE
As a result, the Office of the Inspector General is
now responsible for ensuring compliance with the                              The Public Service Enterprise departments are
law and court-imposed protocols for the removal                               funded by user fees and include departments
of all vestiges of patronage and favoritism in hiring                         that operate the City’s airports, water supply and
and employment actions in City government.                                    infrastructure.

                                                                              The departments that comprise the Public Service
                                                                              Enterprise category include:
INFRASTRUCTURE SERVICES

The departments that comprise the Infrastructure
Services category include:
                                                                              The City of Chicago operates O’Hare and Midway
                                                                              International Airports and includes the O’Hare
           Sanitation                                                         Modernization Program which is a comprehensive
                                                                              initiative aimed at reconfiguring O’Hare’s runways.
                                                                              The program is critical to reducing airport delays
In total, the proposed budget recommends
                                                                              and congestion and to the significant and
funding the Infrastructure Services departments
                                                                              widespread impact of O’Hare and on the regional
at $367.4 million, a decrease of $9.6 million, or 2.6
                                                                              economy.
percent from the 2010 appropriation. The number
of positions recommended for the Infrastructure                               The City supplies high-quality drinking water to
Services departments will decrease by 38 positions,                           all of Chicago and 125 suburban communities. In
from 2,806 positions to 2,768.                                                order to maintain its ability to deliver fresh water
                                                                              and remove wastewater, the City will construct or
The proposed 2011 budget for the Department
                                                                              replace approximately 40 miles of water mains and
o f S t r e e t s a n d S a n i t a t i o n ’s r e f l e c t s a 1 . 1
                                                                              eleven miles of sewer mains in 2011.




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2011 Overview and Revenue Estimates
                                                                            CONTINUED



In total, the proposed budget recommends                      than salaries the City must make up the difference.
funding the Public Service Enterprise departments             The increase in employee health care costs also
at $616.0 million, a increase of $7.0 million or 1.2          reflects certain changes to employee health care
percent, from the 2010 budget. The number of                  coverage mandated by the Patient Protection and
positions recommended for the Public Service                  Affordable Healthcare Act.
Enterprise departments will decrease by three
                                                              The City’s required contribution to employee
positions, from 3,420 positions to 3,417.
                                                              pension funds are contained within Finance
The Department of Aviation’s proposed 2011                    General. In 2011, $456.1 million is required
budget will increase by 0.8 percent, or $3.0                  to meet the City’s legally required employer
million, due to contractual increases for a variety           contributions.
of services including security, waste disposal and
                                                              The City’ funding for civilian employees who
the Airport Transit System.
                                                              are injured on duty is budgeted in Finance
The 2011 proposed budget for the Department of                General across funds. These expenses include
Water Management reflects an increase of $4.0                 compensation for lost time as provided by State
million or 1.6 percent, primarily due to personnel            statute, associated medical costs, investigation and
cost increases. The department’s 2011 proposed                litigation costs, and settlements. This program,
position count remains level with 2010.                       administered by the Committee on Finance,
                                                              affects every department. The significant increase
                                                              in funding, $24.5 million, is provided to ensure
GENERAL FINANCING                                             adequate resources are available to manage and
REQUIREMENTS                                                  resolve claims in a timely and economical manner.
                                                              While this is an increase in funding for Fund 100
General Financing Requirements, or Finance                    of $11.7 million, it is $2.0 million less compared
General, represent cross-departmental expenses                to the 2009 actual expenditures
that include employee benefits, contributions
                                                              General obligation bonds that support the City’s
to employee pension funds and long-term debt
                                                              Capital Improvement Program require a budget
payments. The Finance General proposed budget
                                                              to retire the debt service obligations. The Finance
for 2011 increases by 0.9 percent or $25.6 million
                                                              General budget reflects a total of $585.0 million
from the 2010 appropriation.
                                                              within the debt service funds to support general
The proposed 2011 Finance General budget                      obligation debt and short term tender notes. Debt
includes a $37.1 million, or 8.0 percent, increase            service payments on special revenue or enterprise
in health care benefits for active employees and              fund supported capital projects are budgeted for
annuitants. The majority of this increase is in active        within the enterprise funds Finance General.
employee health care costs which are projected
to increase $19.9 million or 5.6 percent over the
2010, net of contributions. Annuitant health care
costs are projected to increase by $17.3 million, or
15.8 percent over the 2010 appropriation, net of
contribution. In addition to regular inflationary
increases, each year the City bears a greater
portion of health care costs that it shares with
employees. Employee contributions are based
on salaries and when health care costs rise faster




                                                         86
2011 Overview and Revenue Estimates


The City receives grant funds from federal and              assistance to the unemployed and state and local
state agencies, foundations and other private               fiscal stabilization. Since the announcement of
entities for specific purposes that support ongoing         ARRA, grant opportunities have increased in
services, programs and capital improvements.                2010 and the City has made it a priority to seek
The annual amount of appropriated grant funds               this grant support where available. The actual
varies with the availability of grants to meet City         2010 grant revenue received from the estimated
needs.                                                      appropriation was $2.0 billion, of which $462.9
                                                            million was from ARRA funds.
In 2010, the City estimated receiving grant revenue
of $2.5 billion. This amount includes an estimated          In 2011, the City estimates receiving $2.1 billion
$555.0 million in American Reinvestment and                 in grant revenue, which is a 5.6 percent decrease
Recovery Act (ARRA) stimulus funding that was               in Federal funds; a 45.4 percent decrease in State
approved in February of 2009 by President Obama.            funds; an increase of 24.7 percent in private funds;
ARRA funds are one time grants from 2009 to                 and an increase of 17.8 percent in program income.
2012 to be used as supplemental appropriations              It also reflects a 34.0 percent decrease in stimulus
for job preservation and creation, infrastructure           funds. The overall grant revenue is expected to
investment, energy ef ficienc y and science,                decrease by 16.4 percent.




2011 ESTIMATE OF GRANT REVENUE–SUMMARY
$ MILLIONS
TABLE 13


                                                                                          2011             2011
                                                                                 Appropriation    Appropriation
                                     2010            2010
 Grantor/Type                                                    2011 Estimate           -2010            -2010
                              YE Estimate    Appropriation
                                                                                    Estimate $      Estimate %
                                                                                       Change           Change

 Federal Programs not
                                 $1,276.4         $1,616.3            $1,526.0          $(90.3)          (5.6)%
 Including ARRA
 Federal AARA Stimulus
                                    462.9             555.0              365.2          (189.8)         (34.2)%
 Program

 State Government
                                    189.6             318.6              173.8          (144.8)         (45.4)%
 Agencies

 Public and Private
                                     26.6              24.3               30.2              6.0          24.7%
 Agencies

 Federal Community
 Development Block                     4.5                 3.3             5.2              1.9          57.6%
 Grant Program Income

 Other Grant Program
                                     11.4              18.6               20.5              2.0          10.8%
 Income

 Total                           $1,971.3         $2,536.0            $2,121.0         $(415.0)         (16.4)%




                                                      87
2011 Overview and Revenue Estimates
                                                      CONTINUED



Grant funds are received on various fiscal year           This section summarizes grant fund changes from
time periods, and many grants awarded to the              the 2010 appropriation to the 2011 recommendation
City are for multiple years. One example is the           with department groupings from the previous
ARRA funding which spans from 2009 to 2012. The           Expenditure and Personnel section. The details
majority of carryover funds listed in the budget          about the Community Development Block Grant
is from multi-year grants, the estimated grant            (CDBG) program which represents $93.1 million
carryover for 2011 is $673.3 million representing         of the 2011 recommendation for grant funded
31.7 percent of the total grant revenue.                  programs, can be found in the 2011 Final Action
                                                          Plan.


GRANT POSITIONS SUMMARY
TABLE 14


                                                            2010                 2011
Grantor/Type                                                                                     Change
                                                    Appropriation            Estimate


Finance and Administration                                     51                  54                   3


City Development                                              104                 103                  (1)


Community Services                                          1,432               1,404                (28)


Public Safety                                                 122                 125                   3


Regulatory                                                    112                 125                  13


Total                                                       1,821               1,811                (10)




                                                     88
2011 Overview and Revenue Estimates
                                                     CONTINUED



FINANCE AND ADMINISTRATION                             III are to stabilize neighborhoods by bringing
                                                       vacant foreclosed homes into compliance with
The primary recipients of grant funding in the         the municipal code and occupied as quickly as
Finance and Administration category are the            possible in target areas. The funds will be used
Office of Budget and Management, Department            for acquisition, rehabilitation and disposition of
of Innovation and Technology, Department of            vacant, foreclosed residential properties. The City
Finance, Department of Law and Department              expects to assist up to 2,500 units over the next
of General Services. The departments within            3 to 5 years.
this section are not departments that typically        In addition, the Department of Housing and
received grant funding; however in 2011 these          Economic Development anticipates receiving
departments are expected to receive $120.1             $1.5 million in estimated carryover funding in the
million in grant funds. Of this, $11.1 million are     Community Development Block Grant - Recovery
non-ARRA funds, which are projected to have level      (CDBG-R) for the Troubled Buildings Initiative
funding in 2011.                                       Distressed Condominium Program. The funds will
The 2011 estimates also include $7.5 million in        be used to facilitate the acquisition, rehabilitation
ARRA carryover funding for energy efficient            and recovery of distressed condominium buildings
upgrades and lighting retrofits that will be           identified via the Trouble Buildings Initiative
managed by the Department of General Services.         multi-family program.
In addition, the Department of Innovation and          The 2011 recommendation also includes $89.1
Technology will receive $16.0 million from the         million for the Department of Housing and Economic
Federal Government’s $7.2 billion in broadband-        Development HOME Investment Partnerships
related grant opportunities. The two funded            Program, which provides financial assistance to
Smart Chicago projects - Sustainable Broadband         affordable housing developers, homebuyers and
Adoption and Public Computer Centers - will            community-based organizations.
expand computer access, technology training and
broadband adoption across Chicago.
                                                       COMMUNITY SERVICES
CITY DEVELOPMENT                                       The Community Services category consists of
                                                       the Department of Family and Support Services,
The City Development category includes the             Chicago Department of Public Health, Department
Department of Housing and Economic Development         of Human Relations, Chicago Public Library and the
and the Department of Cultural Affairs and Special     Mayor’s Office for People with Disabilities (MOPD).
Events. The departments within this category           This 2011 budget recommendation estimates that
anticipate an estimated $303.5 million in grant        this category will receive $595.9 million dollars
funding for 2011, of which $218.1 million are          in 2011 which includes $111.8 million in 2010
funds from the previous fiscal year.                   carryover funding. The grant funding estimates
The Department of Housing and Economic                 for Community Services in 2011 include:
Development expects the Neighborhood                       $21.5 million for the Area Plan on Aging,
Stabilization Programs (NSP) I and II to carryover         which provides advocacy and support for
$98.2 million along with the recently received             seniors through several initiatives including:
$16.0 million in NSP III funds for a total of              Intake and Assessment Prevention in Long-
$114.2 million in 2011. The goal of the NSP I, II,
2011 Overview and Revenue Estimates
                                                  CONTINUED



 Term Care Facilities , Elder Abuse and Neglect        supportive services. The 2011 Head Start grant
 Program and Elder Abuse Criminal Justice              award provides continuing full and part day
 Training Program.                                     Early Head Start and Head Start services to
                                                       eligible Chicago children ages 0 - 5.
 $30.0 million in ARRA carryover for the
 Homelessness Prevention and Rapid                     $24.9 million in Workforce Investment Act
 Re-housing Program which will continue to             funding for adult, dislocated workers and
 help support:                                         summer youth employment training and
                                                       placement services.

   households who are currently housed but             $46.1 million for Employment Related Child
   at immediate risk of homelessness;                  Care program, which provides childcare to
                                                       eligible families for children ages six weeks
                                                       to twelve years.
   households who are currently living in
   a homeless shelter or interim housing               $28.7 million for the Ryan White HIV CARE
   programs into permanent housing; and                Act (Title I) to provide a comprehensive array
                                                       of services to persons living with AIDS in the
                                                       Chicago Eligible Metropolitan Area. Special
   Services to provide services specific to
                                                       emphasis is given to minority populations
   housing retention to households receiving
                                                       through the Minority AIDS Initiative.
   short-term or medium-term financial
   assistance.                                         $8.6 million for Public Health Emergency
                                                       Preparedness, to develop staff and systems that
 $22.5 million in Community Service Block Grant
                                                       are ready to detect, investigate and respond to
 funding to target poverty and homelessness.
                                                       bioterrorist incidents. Includes development
 $143.3 million in Head Start, Early Head Start        of a network of health professionals available
 and ARRA Head Start program funding to                to respond when needed and creation of
 reach Infant-Toddler, Pre-School Aged Children        communication channels to provide accurate
 and School-Aged Children and their families           information to the public.
 with quality child care, pre-school and other
2011 Overview and Revenue Estimates
                                                         CONTINUED



PUBLIC SAFETY                                              REGULATORY

The Office of Emergency Management and                     The Regulatory departments are the Department
Communications, Chicago Police Department,                 of Environment, Department of Buildings, Business
and the Chicago Fire Department comprise the               Affairs and Consumer Protection and Animal Care
Public Safety category. The total estimated grant          and Control. The Department of Environment is the
funding for Public Safety in 2011 is $294.7 million        primary recipient of grant funding in this group.
which reflects $210.9 million in carryover funding.        The departments in this group are expected to
Some of the primary grants include:                        receive level or reduced grant funding in 2011. The
                                                           expected grant funding for this category in 2011
    $27.6 million for the Chicago Police Department
                                                           is $59.7 million. Department of Environment will
    Byrne Justice Assistance Programs to improve
                                                           carryover approximately $19.9 million dollars of
    safety and investigative capacity through the
                                                           ARRA funding into 2011. Grant funding activities
    replacement of equipment and purchase of
                                                           for the this section include:
    vehicles.
                                                               $1.0 million for the Weatherization Innovation
    $12.0 million for the Chicago Police Department
                                                               Pilot Program to encourage innovation in the
    COPS Hiring program to hire of 50 additional
                                                               delivery of weatherization services to low
    sworn officers.
                                                               income households.
    $30.3 million from the Transit Security Grant
                                                               $1.0 million for the Chicago Area Plug-in
    to support projects through the Chicago
                                                               Electric Vehicle Support Project that will be
    Transit Authority including the Explosives
                                                               responsible for developing and implementing
    Detection Canine program, Visible Intermodal
                                                               an initial charging infrastructure for the
    Prevention, the Response Team and training
                                                               Chicagoland region.
    program.
                                                               $13.0 million for the Chicago Area Alternative
    $6.3 million in federal funding from the
                                                               Fuels Deployment grant — this is ARRA
    Assistance to Firefighters Grant, which
                                                               carryover funding that will allow the
    provides 1 year of financial assistance to local
                                                               Department of Environment to implement the
    fire departments with the objective to protect
                                                               Chicago Area Alternative Fuel Deployment
    citizens and firefighters against the effects of
                                                               Project. This project proposes to deploy 554
    fire and fire-related incidents. $131.0 million in
                                                               alternative fuel hybrid vehicles and install
    support for the Urban Areas Security Initiative
                                                               153 alternative fuel fueling electric vehicle
    (USAI), of which $91.0 million is carryover.
                                                               charging stations throughout the Chicago
    The funds will be put towards Urban Area’s
                                                               region.
    Strategy and Preparedness Plan to prevent,
    protect, respond and recover from any disaster
    or emergency situation.
2011 Overview and Revenue Estimates
                                                       CONTINUED



INFRASTRUCTURE SERVICES                                      $195.2 million for the Highway Bridge
                                                             Program to fund bridge projects, such as
Streets and Sanitation and Chicago Department                Wacker Drive.
of Transportation are the departments that                   $5.0 million in carryover ARRA funds – Energy
comprise this category with 2011 projected grant             Efficiency and Conservation Block Grant to
funding at $511.3 million. The Infrastructure                support energy efficient street lighting and
Services estimated budget reflects a $313.0 million          traffic lighting projects.
decrease from 2010 appropriation. The biggest
portion of the decrease is $55.2 million from the
2010 ARRA funding with the remainder of the              PUBLIC SERVICE ENTERPRISE
decrease resulting from reduced State and other
Federal grant funds. The 2011 activity in this           The Public Service Enterprise category consists
category includes:                                       of the Department of Water Management
                                                         and the Department of Aviation. The 2011
    $20.8 million for High Priority/SAFETEA-LU
                                                         recommendation for grant funded programs in this
    (Legacy for Users) program which is a
                                                         category is $235.6 million which reflects a $30.2
    reauthorization of the Federal Transportation
                                                         million decrease from the 2010 appropriation. The
    Bill for transit-related and street construction
                                                         Department of Aviation is the primary recipient
    improvements.
                                                         of grant funding in this category with a 2011
    $101.6 million for Congestion Mitigation Air         projection of $235.5 million of which $68.5 million
    Quality program, a federal program financing         are carryover funding for Department of Aviation
    projects that will contribute to the attainment      airport improvement programs.
    of national ambient air quality standards in
    designated non-attainment areas.

    $60.7 million for Surface Transportation
    programs to resurface, reconstruct and
    rehabilitate the Federal-Aid Highway
    System.
2011 Overview and Revenue Estimates


THE CAPITAL IMPROVEMENT                               Both the CIP and the Annual Appropriation
                                                      Ordinance are policy documents that are used
PROGRAM AND ITS
                                                      to plan and manage resources and both are
RELATIONSHIP TO THE ANNUAL                            influenced by the economy, federal and state
APPROPRIATION                                         budgets and budget policies, and the needs of
                                                      Chicago citizens. The operating budget must
The Capital Improvement Program (CIP) is the          authorize expenditures for debt service associated
City’s planned budget for the construction,           with capital project bonds and any additional
improvement, maintenance and replacement of           operating and maintenance costs associated
City-owned infrastructure and facilities that are     with municipal facilities that result from capital
critical to support and enhance neighborhoods,        programs.
stimulate the economy and improve services.
                                                      Because capital programs and priorities must
When appropriate, the CIP includes enhancements
                                                      be adjusted to respond to changing needs and
to improve efficiency or promote historic or
                                                      demands, capital improvement planning is an
cultural characteristics of communities. The CIP is
                                                      ongoing process. New construction may be
published annually and is a five-year schedule of
                                                      required and existing infrastructure requires
infrastructure projects and a spending “blueprint”
                                                      periodic rehabilitation, replacement or other
based upon the most current revenue projections
                                                      improvements to protect the City’s previous
and project priorities.
                                                      investments. The CIP is an outline of planned
Whereas the operating budget, set forth in the        expenditures for capital projects over the next five
Annual Appropriation Ordinance, authorizes            years given available resources and is not intended
expenditures for one year that primarily              to provide an all-inclusive inventory of the City’s
support delivery of essential services, the Capital   capital needs.
Improvement Program (CIP) is a projection of costs
for projects that yield physical assets.
2011 Overview and Revenue Estimates
                                                                       CONTINUED



THE CAPITAL IMPROVEMENT                               capital improvement bonds. Projects in this
                                                      category of capital improvement include
PROGRAM PROCESS
                                                      resurfacing of residential streets, replacement of
                                                      cracked and broken sidewalk and curb and gutter,
The CIP process begins at the start of the City’s
                                                      and construction of assessable curb ramps. New
fiscal year and ends with the release of the CIP
                                                      residential lighting continues to be an important
in early summer and the Annual Appropriation
                                                      investment in the neighborhoods as it provides
Ordinance process begins in the spring and ends
                                                      increased lighting levels and reduced tree branch
when the ordinance goes into effect on January
                                                      interference while reducing maintenance costs
1st, of the next fiscal year.
                                                      and increasing reliability. All of these projects are
The CIP development process begins with               considered the core of the annual neighborhood
departments submitting five-year capital              and transportation infrastructure sections of the
improvement recommendations to the Office of          capital program.
Budget and Management (OBM) in the winter.
                                                      The 2010-2014 CIP is a plan that works hand-in-hand
OBM then prepares draft recommendations
                                                      with other local agencies’ capital improvement
for discussion at public hearings in the spring.
                                                      plans to enhance the city’s neighborhoods. In 2010,
OBM then reviews the recommended plans and
                                                      we will continue the shoreline protection efforts
prepares a revised CIP based on available funding,
                                                      to rebuild the city’s lake front shoreline. We will
and citizen and departmental recommendations
                                                      also continue to fund the popular Campus Parks
and publishes the final CIP in the summer.
                                                      Program to create neighborhood open spaces
                                                      adjacent to our schools.
2010-2014 CAPITAL
                                                      AVIATION AND O’HARE MODERNIZATION
IMPROVEMENT PROGRAM
                                                      PROGRAM
OVERVIEW
                                                      The 2010-2014 CIP includes $767.2 million for 2010
The 2010-2014 CIP allocates $1.8 billion for 2010     and $4.2 billion over the plan’s five year period,
and more than $8.5 billion for 2010 – 2014. CIP       for improvements at both Midway and O’Hare
resources include general obligation bond issues,     International airports, including the O’Hare
TIFs, private sources and special assessments such    Modernization Program. This funding will be
as the shared sidewalk program. Revenue bonds         generated by revenue bonds, passenger facility
support Water, Sewer and Aviation improvements        charges and Federal Airport Development Aid.
and state and federal funding contribute to           These funds will provide for security improvements,
transportation and municipal improvements.            airfield rehabilitation and residential and school
Major components of the 2010 -2014 Capital            sound insulation at both Midway and O’Hare as
Improvement Plan are:                                 well as construction projects within the OMP.

                                                      When fully implemented, a modernized O’Hare
NEIGHBORHOOD AND TRANSPORTATION
                                                      Airport will more efficiently move people and
INFRASTRUCTURE
                                                      goods, create additional growth opportunities for
In 2010, the neighborhood and transportation          area businesses, and create new jobs throughout
infrastructure sections of the CIP are financed, in   the region.
part, with more than $97 million in neighborhood
2011 Overview and Revenue Estimates
                                                                      CONTINUED



SEWERS                                                WATER

The 2010-2014 CIP includes $207.9 million for 2010
                                                      The 2010-2014 CIP includes $191.3 million for
and $839.5 million over the plan’s five year period
                                                      2010 and $1.4 billion over the plan’s five year
for sewer system capital improvement program
                                                      period for improvements to capital assets
totals. The Department of Water Management
                                                      in the Department of Water Management’s
is responsible for approximately 4,400 miles of
                                                      water system which included cribs, intake and
sewers, 225,000 drainage structures and 148,000
                                                      distribution tunnels, two purification plants, 12
manholes. In 2010 more than 12 miles of sewers
                                                      pumping stations, 4,230 miles of distribution
will be reconstructed and over 40 miles of sewers
                                                      and feeder mains and 162,000 water meters.
are anticipated to be lined and rehabilitated. The
                                                      The department’s capital plan is designed to
sewer capital plan provides for the replacement
                                                      improve water service and increase reliability.
of deteriorated or undersized sewers based upon
                                                      Specific activities include maintaining the City’s
physical inspection, maintenance and repair
                                                      two purification plants, upgrading various
records, and hydraulic expansion. Construction
                                                      pumping stations, increasing available water
costs are about $4million per mile for most
                                                      supply by installing new and replacing old
sewers and substantially more for the sewers
                                                      grid mains and replacing unreliable meters to
in the downtown area. The financing for the
                                                      ensure proper accountability of water use. As
improvements comes from current and prior
                                                      with sewer projects, financing for water system
year revenue bonds and anticipated future year
                                                      improvements comes from revenue bonds
revenue bonds and the three year rate increase
                                                      whose continued financing is supported by the
initiated in the 2008 budget support additional
                                                      2008 rate increases.
bonds for capital improvements.




CITY OF CHICAGO CAPITAL IMPROVEMENT PLAN
FUND RESOURCES
$ Millions

TABLE 15


                                          2010                               2010-2014

 Bond funds                              $1,198.9      64%                        $5,862.5        68%

 Federal funds                              458.8      25%                         1,114.1        13%

 State funds                                 71.7       4%                           342.1          4%

 City funds                                  82.6       4%                           898.8        10%

 TIF funds                                   43.2       2%                            52.7          1%

 Other funds                                 14.4       1%                           314.4          4%

 Total                                   $1,869.4     100%                        $8,584.6       100%
2011 Overview and Revenue Estimates
                                                                       CONTINUED



CHICAGO PUBLIC LIBRARY
                                                                    PROJECTED PROJECTS
The mission of the Library’s capital improvement             Projected projects to be funded as
program is to update branch library buildings                   part of the 2010 CIP include:
through new construction, consolidation or
renovation of existing facilities. The Library’s capital   Reconstructing 12 miles of sewers and lining
                                                           and rehabilitating an additional 40 miles;
program is designed to minimize maintenance and
                                                           Resurfacing more than 500 blocks of local
rental costs, provide safe structurally sound and
                                                           streets;
inviting facilities, and ensure that current and future
                                                           Constructing 30 blocks of alleys and resurfacing
service needs area met. The Chicago Public Library
                                                           70 more;
consists of the downtown Harold Washington
                                                           Replacing more than 120 blocks of
Library Center, two regional libraries and 76 branch       sidewalks;
libraries. Two new branches will be opened in the
                                                           Installing 100 blocks of new residential street
fall of 2010, one of which is a replacement branch.        lighting;
In 2011another three libraries will be added to the
                                                           Beginning or continuing construction of
system. As these additional branch location have a         several major bridges: Wacker Drive at the
direct budget impact, the Library’s 2011 operating         Congress Interchange; Laramie Avenue
budget has been increased to cover additional              Viaduct at Polk Street; Halsted Street over
                                                           North Branch Canal and Lawrence Avenue
personnel required.                                        over the Kennedy Expressway;
For more information on the City’s 2010–2014 CIP,          Installing new or upgraded traffic signals at
please refer to the Capital Improvement Program            35 intersections;
2010–2014 book available for viewing at any branch         Continued construction of West Humboldt
of the Chicago Public Library or on-line through the       Park, Greater Grand Crossing, Little Village
                                                           and Dunning Branch Libraries; and
OBM web site.
                                                           Completing construction of the 23rd District
                                                           Police Station and extensive rehabilitation of
                                                           Area 2, District 5 headquarters.
BUDGET 2011
 O verview and Revenue Estimates




 HOW CHICAGO BUDGETS
2011 Overview and Revenue Estimates


Each year, the City prepares its annual budget that         The City conducts annual Preliminary Budget
accounts for the City’s revenue from taxes and other        Hearings to allow citizens to express their opinions
resources and a plan for what the City intends to           concerning items within the proposed budget.
spend over the course of the following year. In
                                                            After receiving input from Chicago residents,
accordance with the State of Illinois Municipal
                                                            the Mayor and the Budget Director meet with
Code, the City produces a balanced budget.
                                                            Commissioners from the City departments to
Beginning in the summer, City departments inform            develop one final budget for the entire City
the Office of Budget and Management (OBM)                   government. When these steps are complete, the
of their needs for personnel and non-personnel              City compiles the Mayor’s proposed budget, which
expenses for the upcoming year. OBM prepares the            is then introduced to the City Council.
Preliminary Budget based on requests submitted
                                                            The City Council holds departmental and public
by the departments and funds the City expects will
                                                            hearings on the budget and may propose
be available for these needs. By Executive Order,
                                                            amendments to it.
the Preliminary Budget is filed with the City Clerk
on or before July 31st of each year. Copies are             Once the budget is approved by the City Council,
made available to the City Council and the general          it becomes the Appropriation Ordinance. The
public.                                                     Appropriation Ordinance is implemented on
                                                            January 1st of the following year.




                                                       97
2011 Overview and Revenue Estimates


BUDGET DOCUMENTS                                            adjust resources in order to achieve performance
                                                            goals. On an annual basis, performance data is
The City seeks to produce budget documents that             used to make budgetary decisions for the coming
satisfy the criteria established by the Government          year. The Program Budget and Summary provides
Finance Officers Association (GFOA) Distinguished           the personnel and non-personnel costs for all City
Budget Program. The City’s budget documents this            programs and lists all funding sources supporting
year include:                                               each department and bureau.


PRELIMINARY BUDGET                                          DRAFT ACTION PLAN

The Preliminary Budget contains information on              The Draft Action Plan presents programs
the previous year’s revenues and expenditures               and resources that address key housing and
based upon financial unaudited data. Released in            community development needs identified by the
late summer, it is a midyear analysis of the current        City. The Draft Action Plan details a proposed
year’s budget and an estimate of revenues and               comprehensive annual budget for the City’s
expenditures for the next fiscal year.                      Community Development Block Grant, Emergency
                                                            Shelter Grant, Home Investment Partnership Grant
BUDGET OVERVIEW AND REVENUE ESTIMATES                       and Housing Opportunities for Persons with AIDS
                                                            Grant programs.
The Budget Overview and Revenue Estimates
provides a complete summary of the proposed
                                                            FINAL ACTION PLAN
budget and is written for a general audience.
The Budget Overview and Revenue Estimates                   The Final Action Plan is the City of Chicago’s
also contain detailed information on the                    approved annual budget for the City’s Community
City’s anticipated revenues, expenditures and               Development Block Grant, Emergency Shelter
positions.                                                  Grant, Home Investment Partnership Grant, and
                                                            Housing Opportunities for Persons with AIDS Grant
BUDGET RECOMMENDATIONS                                      programs which is submitted to the U.S. Department
                                                            of Housing and Urban Development for funding
In accordance with Illinois State Law, on or before
                                                            consideration. The final text incorporates public
November 15th of each year, the Mayor submits
                                                            comments gathered during a 30-day comment
the administration’s budget recommendation to
                                                            period.
the City Council. The Budget Recommendations
contain the line-item detail for all local funds of
                                                            ANNUAL APPROPRIATION ORDINANCE
the proposed budget.
                                                            The Annual Appropriation Ordinance is the City
PROGRAM AND BUDGET SUMMARY                                  of Chicago’s line-item budget, as passed by City
                                                            Council.
The Program and Budget Summary is a companion
publication to the Budget Recommendations and
                                                            CAPITAL IMPROVEMENT PROGRAM
provides an overview of the City’s programs and
services, as well as annual performance data. The           The Capital Improvement Program book is a
performance data reflects monthly reporting                 comprehensive list of capital improvements
by City departments, which in turn is the basis             scheduled to occur in the City over the next five
for regular accountability meetings between                 years. It is released annually in the summer.
departments and City executives. Throughout
the year, City officials make policy changes and




                                                       98
2011 Overview and Revenue Estimates



MARCH                                                   on the proposed programs and budgets
                                                        recommended in the Draft Action Plan.
Draft Capital Improvement Plan is released.

                                                        NOVEMBER/DECEMBER
JUNE
                                                        Additions or changes to the proposed
Departments submit preliminary revenue and              budget are considered; City Council must
expense estimates to the Office of Budget and           approve a balanced budget by December
Management (OBM).                                       31st. The Final Action Plan is submitted to
                                                        the U.S. Department of Housing and Urban
                                                        Development for funding consideration.
JULY                                                    Budget recommendations become the Annual
                                                        Appropriation Ordinance.
In accordance with the Municipal Code, the
City files the proposed Preliminary Budget
estimates with the City Clerk and presents              JANUARY
them to City Council and the general public;
The five-year Capital Improvement Plan book             The City’s Annual Appropriation Ordinance
is released.                                            goes into effect.


AUGUST/SEPTEMBER                                        THROUGHOUT THE YEAR

The Mayor holds public hearings on the                  Throughout the year, OBM manages the
proposed Preliminary Budget that allow the              resources provided through the Annual
public to provide input on the development of           Appropriation Ordinance. On a weekly and
the City budget; OBM receives detailed budget           monthly basis, the OBM reviews revenues
requests from departments; OBM holds a                  and expenditures and any trends or events
series of hearings with each department.                that may affect these. On a monthly basis,
                                                        City departments provide information about
With the public and department input, OBM               how well City programs and services are
works to balance department requests with               performing to ensure that budget resources
available resources.                                    maximize taxpayer value.


OCTOBER

The Mayor submits a proposed budget to City
Council for review before November 15th in
accordance with Illinois State Law. The budget
is available for public review. The City Council
conducts hearings on the budget, including at
least one public hearing to gather comments




                                                   99
2011 Overview and Revenue Estimates


INTRODUCTION                                            OPERATING POLICIES

The City’s financial policies provide the basic         Pursuant to the City’s Municipal Code (2-32-010,
framework for the fiscal management of the City.        2-32-03), the Department of Finance provides core
These policies are developed within the parameters      fiscal functions and manages the disbursement
of the established provisions of the City’s Municipal   of City funds. The City Comptroller is the fiscal
Code and the Illinois Municipal Code, and are           agent of the City and exercises general supervision
intended to assist the City Council, the Office of      over all City officers charged with the receipt,
Budget and Management, the Office of the City           collection or disbursement of City revenues and
Treasurer, the Department of Finance and the            all funds required to be in the custody of the City
Department of Revenue in evaluating current             Treasurer.
activities and proposals for future programs.
                                                        Pursuant to Municipal Code (2-32-060) revenue
The policies adhere to the City’s commitment to         policies, the City Treasurer receives all monies
maintain internal control, safeguard assets and         belonging to the City. At the end of each month,
meet fiduciary responsibilities. Reserve, capital,      the City Treasurer issues a sworn statement to the
and debt management and fixed asset policies            Comptroller showing the state of the treasury at
are included. These policies are reviewed and           the date of such account and the balance of the
modified to accommodate changing circumstances          money in the treasury.
and conditions.
                                                        REVENUE POLICIES
                                                        The City maintains a diversified and stable revenue
FINANCIAL PLANNING POLICIES
                                                        base to protect it from short-term fluctuations
                                                        in any single revenue source. The City estimates
The City adopts its annual budget in the context of
                                                        its annual revenues by objective and analytical
a long-term financial outlook emphasizing high-
                                                        processes. Revenues are responsibly estimated
quality municipal services.
                                                        and updated twice yearly. To support its revenue
The corporate fund’s long-term outlook considers        system, the City does the following:
assumptions for revenues, expenditures and
changes to fund balance. The assumptions
are evaluated each year as part of the budget
development process.

All City expenditures are approved by City Council
through the Annual Appropriation Ordinance.

BALANCED BUDGET
In accordance with the Illinois Municipal Code (065
ILCS 5/8-2-6), the City develops a balanced budget
every year.
2011 Overview and Revenue Estimates
                                                             CONTINUED



Revenue Diversification                                 to reduce operating expenditures, and enhance
A diversified and stable revenue system shelters        the scope and quality of services it provides to
the City from short-term fluctuations in any single     taxpayers.
revenue source.
                                                        Personnel
User Fees and Charges                                   Pursuant to Municipal Code (2-74-010), personnel
Periodically, the City recalculates the cost of         expenditures reflect the minimum staffing needed
selected activities currently supported by user fees    to meet the social, economic and program needs
and charges to identify the effect of inflation and     of Chicago residents. To attract and retain
other cost increases. The City sets fees and user       employees, the City endeavors to maintain a
charges for each enterprise fund, such as Water         compensation and benefit package competitive
and Sewer, at a level that fully supports the total     with the public and, when quantifiable, private
direct and indirect costs of operation. The City        services industries.
reviews the cost of services it provides for the
potential implementation of user fees and charges
on an annual basis.

GRANTS POLICIES
Pursuant to Executive Order 91-1, the City identifies
and applies for federal, state, and private grants
to support its initiatives and programs not paid for
by taxes. The City’s grants management process
requires that all grant applications, renewals and
awards be approved to ensure that each grant
supports the City’s mission and conforms to City
policies and that grant funds are fully developed
and expended according to grantor guidelines.

Grant budgets are established to include the
City’s administrative costs for program operations
including employee fringe benefits. Expected
grants and cash donations are appropriated
annually through the budget process, passed by
the City Council and published in the City’s Annual
Appropriation Ordinance.

OBM creates a quarterly report of grant activity
citywide. Grant revenue is reported annually as
Fund 925.

EXPENDITURE POLICIES
The City appropriates sufficient funds for
operating expenditures necessary to maintain
an established scope and quality of City services.
The City continually examines its services in order
2011 Overview and Revenue Estimates
                                                             CONTINUED



The City adheres to the Employee Benefit and           dollar value of all contracts to qualified women-
Compensation Plan which governs compensation           owned businesses. In addition, pursuant to
administration and benefits for all City positions     Municipal Code (2-92-610), City contractors and
that are regulated by the Mayor and City               their subcontractors are required to pay a living
Council.                                               wage to covered employees while contracted
                                                       with the City. City construction contracts require
Vendors                                                the use of City residents for at least 50% of the
The City utilizes contracted vendors for the           workforce on a project, and require contractors to
provision of the goods and services required           pay the prevailing wage established by the Illinois
to meet the needs of the people of Chicago.            Department of Labor for their work. All vendors
Contractors that can perform the required level        are required to disclose persons that own 7.5% or
of services at a lower cost and more efficiently       more of the business so that the City may enforce
and effectively than City personnel are used as        its decisions to bar non-responsible vendors from
necessary.                                             gaining City contracts.

Most City contracts are awarded through
competitive bidding processes. Contracts for goods     CAPITAL DEBT MANAGEMENT
and services with a value of more than $100,000
are awarded by competitive sealed bid after public
advertisement. Contracts for goods and services        DEBT CAPACITY, ISSUANCE AND MANAGEMENT
with a value of less than or equal to $100,000         The City issues debt to ensure future taxpayers,
are considered “small orders” and are awarded          who will benefit from investment, will pay a share
through a simplified process of mailed or faxed        of its costs and will confine long-term borrowing
bid solicitations, without public advertisement.       and capital leases to capital improvements,
Bids for contracts valued under $250,000 may be        projects or equipment that will not be financed
solicited by telephone when a good or service          from current resources.
is necessary to meet a genuine emergency.
                                                       Any capital project or equipment funded through
Competitive procurements based on qualifications
                                                       the issuance of bonds is financed for a weighted
and pricing are used for professional services, such
                                                       average period not to exceed the life of the
as engineering or accounting, and other instances
                                                       project or equipment. The City maintains strong
in which the legislature has determined that the
                                                       communication about its financial condition with
public interest is best served by not engaging in
                                                       bond and credit rating institutions.
a bid process. Goods that can only be obtained
from a single source may be purchased without a        The City issues debt in a manner that complies with
competitive process, but both the absence of other     state and federal laws, existing bond covenants
sources and the justification for the purchase must    and prudent financial management.
be fully documented.
                                                       OPERATING/CAPITAL EXPENDITURE
The City also implements other policies through        ACCOUNTABILITY
its contracts for goods and services. Pursuant
                                                       Capital assets are defined as assets or a network
to Municipal Code (2-92-430), the Department
                                                       of assets with an initial cost that exceeds $5,000
of Procurement Services establishes a goal of
                                                       and with an estimated useful life in excess of one
awarding at least 25 percent of the annual dollar
                                                       year for all capital. Existing capital equipment is
value of all contracts to qualified minority-
                                                       replaced when needed to ensure the optimal
owned businesses and five percent of the annual
2011 Overview and Revenue Estimates
                                                           CONTINUED



productivity and safety of City employees and        City investments are undertaken in a manner that
residents. Existing capital equipment associated     seeks to ensure the preservation of capital in the
with corporate fund operations depreciates by        portfolio. To attain this objective, diversification
charges to the departments using the equipment.      is required to ensure that the City Treasurer
Expenditures for additional capital equipment        prudently manages market, interest rate and
are made only to maintain or enhance employee        credit risk. All investments are fully payable (both
productivity, improve quality of service or expand   principal and interest) within ten years from the
scope of service.                                    date of purchase. The investment portfolio is
                                                     designed to obtain the highest available return,
                                                     taking into account the City Treasurer’s investment
INVESTMENT CASH                                      risk constraints and cash flow needs. A variety of
MANAGEMENT                                           financial instruments and maturities, properly
                                                     balanced, help to ensure liquidity and reduce
                                                     risk or interest rate volatility and loss of principal.
INVESTMENT POLICY
                                                     Diversifying investments and maturities avoids
The City’s Investment Policy ensures that all
                                                     incurring unreasonable risks in the investment
funds provide the highest investment return
                                                     portfolio regarding specific security types, issuers
using authorized instruments while meeting
                                                     or individual financial institutions.
the City’s daily cash flow demands in conformity
with the City’s Municipal Code. The Investment       The City’s Municipal Code authorizes the City
Policy ensures the safety of principal, while        Treasurer to invest funds in certain classes of
managing liquidity requirements of debt service      securities. The City’s Investment Policy has been
and other financial obligations, providing the       prepared in accordance with the Public Funds
highest investment return using authorized           Investment Act (30 ILCS 235/2.5). The City will
investment instruments, and promoting economic       maintain an investment policy based on the
development in the City.                             Government Finance Officers Association Model
                                                     Investment Policy.
2011 Overview and Revenue Estimates
                                                             CONTINUED



CASH MANAGEMENT                                        RISK MANAGEMENT
The Comptroller’s Office, the Office of Budget
and Management, the Chief Financial Officer and        The City operates a risk management program to
the Office of the City Treasurer meet regularly to     minimize financial losses and protect residents and
manage the City’s cash flow.                           City employees. The program limits exposure to
                                                       accidental and catastrophic losses, protects assets
The Department of Revenue collects and
                                                       and assures continuity of operations.
deposits all funds on a schedule which ensures
cash availability. The Office of the City Treasurer
invests funds to yield financial security, integrity   FINANCIAL REPORTING
and liquidity.
                                                       The City maintains a high standard of accounting
                                                       practices in conformance with uniform financial
FINANCIAL RESERVE
                                                       reporting in Illinois and Generally Accepted
                                                       Accounting Principals (GAAP) in the United States
The City develops a balanced budget every year. In
                                                       as promulgated by the Governmental Accounting
the event of a surplus at the end of the year, the
                                                       Standards Board.
City budgets that surplus in the next year.
                                                       An Independent Certified Public Accounting
The City established a $500 million long-term
                                                       firm performs a financial audit annually and an
reserves from the lease of the Chicago Skyway in
                                                       official opinion and annual financial report are
2005. The interest on this reserve is included as
                                                       published.
part of the City’s budget each year.
                                                       The Comprehensive Annual Financial Report
The City establishes and maintains operating
                                                       (CAFR) presents the status of the City’s finances
reserves in its enterprise funds to pay for expenses
                                                       on a basis consistent with GAAP.
caused by unforeseen emergencies or shortfalls
caused by revenue declines.                            The City fully discloses information about its
                                                       financial position by way of budget reports and
                                                       audits.
2011 Overview and Revenue Estimates


The basis of budgeting refers to when revenues         fiscal year. Expenditures are generally recorded
and expenditures are recognized in the City’s          when an event or transaction occurs.
accounts.
                                                       The City’s budgetary basis of accounting used for
Generally, the City prepares and presents the annual   budgeting differs from the City’s actual GAAP basis
budget on a modified accrual basis of accounting,      reporting. The key differences are:
with the exception of property taxes. Modified
                                                                                                    -
accrual basis of accounting is an accounting method
                                                          tures, whereas the GAAP basis reflects encum-
that measures the performance and position of a
                                                          brances as reservations of fund balance.
company or, in this case, a government agency, by
recognizing revenue when earned as long as the
revenue is collectible within the period or soon          long-term debt proceeds and operating
enough to be used to pay liabilities of the current
period.

The City accounts for revenues as soon as the
revenues are both measurable and available.               expenditures, an account that has been delin-
Revenues are considered available when they               quent for a period of at least ninety (90) days,
are deemed collectible either during the account          and where collection is unlikely; however,
period or soon enough thereafter. Revenues are            doubtful account expenditures are reported
used to pay liabilities that apply to the account         under GAAP.
period.
                                                                                                      -
The City records revenues from licenses and permits,      plus as revenue, whereas GAAP records it as a
charges for services and other miscellaneous              portion of fund balance.
revenues when the revenues are received in cash
                                                       Appropriations are made at the line item and/or
at the time of service. For budgeting, property
                                                       account level, and presented by fund and by City
taxes are considered revenue for the year in which
                                                       department. All annual appropriations lapse at
they are levied.
                                                       year end if they remain unused and unencumbered.
Appropriations include both cash payments and          Encumbered appropriations are carried forward
encumbrances, or funds that are committed              to the following year.
pursuant to a contract, that are related to the
                                                                                                  Chicago
                                                                                                  Residents




                                                                                                                                                                         City
                            City Council                                                          Mayor                             City Clerk
                                                                                                                                                                       Treasurer



                              Council                                                             Office of
                            Committees                                                           the Mayor




    Finance and                Legislative and            City                  Community                           Public                                   Infrastructure          Public Service
                                                                                                                                       Regulatory
   Administration                 Elections           Development                Services                           Safety                                      Services              Enterprise


                                                       Department of
    Office of Budget           Board of Election                               Department of                        Police              Office of the     Department of Streets     Department of
                                                        Housing and
   and Management               Commissioners                                   Public Health                       Board            Inspector General       and Sanitation        Water Management
                                                   Economic Development


                                                      Department of
      Department of                                                           Commission on                   Independent Police      Department of       Chicago Department         Department of
                                                    Cultural Affairs and
Innovation and Technology                                                     Human Relations                  Review Authority         Buildings          of Transportation            Aviation
                                                      Special Events


                                                                                                                                     Department of
    Department of                                                            Mayor’s Office for                    Police
                                                                                                                                   Business Affairs and
       Finance                                                             People with Disabilities              Department
                                                                                                                                   Consumer Protection


                                                                              Department of
    Department of                                                                                         CAPS Implementation         Department of
                                                                            Family and Support
       Revenue                                                                                                   Office                Environment
                                                                                  Services


                                                                                                          Office of Emergency
   Department of                                                                  Chicago                                          Commission on Animal
                                                                                                           Management and
Administrative Hearings                                                         Public Library                                       Care and Control
                                                                                                           Communications


    Department of                                                                                                                     License Appeal
                                                                                                               Fire Department
         Law                                                                                                                            Commission



       Office of
                                                                                                                                      Board of Ethics
      Compliance



   Department of
  Human Resources



    Department of
 Procurement Services



   Department of
   General Services
                                                                                                                                                                                                      2011 Overview and Revenue Estimates




    Department of
  Fleet Management
BUDGET 2011
 O verview and Revenue Estimates




         BUDGET DETAILS
2011 Overview and Revenue Estimates
                                 HOW TO READ BUDGET DETAIL
This section contains Revenue, Expenditure, Personnel and Grant tables that summarize the 2011 Budget
Recommendations. The below diagrams clarify the table layouts. The Expenditure and Personnel table
layouts are identical and, therefore, only an Expenditure table is included below.

SAMPLE TABLES

REVENUE
  REVENUE                                                                                                                                              Current Year                     Next Year
                                                                                         Historical Collections
                                                                                                                                                        Estimate                        Projection

                                                                                                                                                         Year-End                        Budget
                                                                                                  Actual                                                 Estimate                       Projection
  ($ millions)                                                        2005             2006        2007             2008            2009                         2010                             2011
                                         Revenue Category
  Public Utility Taxes & Fees
  Electricity Use                                                 $ 101.6     $        96.7   $ 102.3         $     99.5    $    93.7              $                   100.4     $                98.8
  Electricity IMF                                                    92.8              89.4      94.6               92.2         86.9                                   92.9                      91.2
  Telecommunications                         Revenue Sources        147.7             140.8     154.4              158.9        152.5                                  144.3                     147.7
  Natural Gas Utility                                               109.0             105.9     102.9              120.2         94.0                                   83.8                      86.4
  Natural Gas Use                                                    25.1              26.1      27.4               33.0         32.8                                   32.4                      33.5
  Cable Television                                                   15.9              16.7      19.3               21.0         21.4                                   22.0                      22.0

         Total - Public Utility Taxes & Fees                      $ 492.1     $ 475.5         $ 501.0         $ 524.8       $ 481.3                $                   475.9     $               479.5




EXPENDITURES
  EXPENDITURES                                                                                  Historical                              Current                               Next Year
                                                                                              Appropriations                          Appropriation                        Recommendation


                                                                                                     Appropriation                                               2011                     2010-2011
  ($ millions)                         Expenditure Category                   2007                 2008          2009                       2010               Proposed                   % change

  Finance and Administration
  Office of the Mayor                                                     $     6.54          $       7.56           $       6.70      $      6.24             $         6.13                   -1.7%
  Office of Budget & Management                                                 2.68                  2.69                   2.07             1.85                       2.08                   12.1%
  Department of Innovation and Technology                                      15.42                 15.14                  14.06            24.32                      25.44                    4.6%
  City Clerk                                                                    9.33                  9.64                   9.94             9.17                       9.06                   -1.1%
  Department of Finance                                                        15.31                 16.11                  15.71            14.58                      14.78                    1.4%
  City Treasurer                                                                2.28                  2.36                   2.18             2.14                       2.15                    0.7%
  Department of Revenue                                Department Names        47.83                 50.04                  47.78            50.73                      52.90                    4.3%
  Department of Administrative Hearings                                         7.15                  7.27                   8.21             7.20                       7.28                    1.1%
  Department of Law                                                            36.96                 36.65                  34.36            32.27                      33.36                    3.4%
  Office of Compliance                                                           -                    2.49                   2.88             3.31                       3.46                    4.5%
  Department of Human Resources                                                 8.58                  6.82                   8.15             7.29                       5.91                  -18.9%
  Department of Procurement Services                                            9.77                  9.39                   8.21             6.20                       5.73                   -7.6%
  Department of General Services                                              187.64                203.53                 204.28           218.40                     195.86                  -10.3%
  Department of Fleet Management                                              115.13                123.65                 132.71           117.14                     117.50                    0.3%
        Total - Finance and Administration                                $   464.62          $     493.34           $     497.24      $    500.84             $       481.67                   -3.8%




GRANTS
  GRANTS                                                                                      Current Year Actual to                                                             Next Year
                                                                                                 Appropriation                                                                   Estimates



  ($ millions)
                                                                                                                                                                                                       2010Appr. -
                                   Expenditure Category                                                                                                                                      2011         2011
                                                                                          2010                                              2011 New             Prior Year(s)             Projected   Projected $
                                                                                      Appropriation               2010 Actual                Grants            # Carryover                   Total   #   change
  City Development
  Department of Cultural Affairs and Special Events *                        $                      4.8   $                   3.2       $                5.4       $              -       $      5.4     $      0.7
  Mayor's Office of Special Events                               Department Names                   0.2                       0.1                        -                        -              -             (0.2)
  Department of Housing and Economic Development **                                               323.0                     333.6                       79.9                    218.2          298.1          (24.9)
  Total - City Development                                                        $               327.9   $                 337.0       $               85.4       $           218.2      $    303.5     $    (24.4)
2011 Overview and Revenue Estimates
                                                          REVENUE
THE CORPORATE FUND
$ MILLIONS
TABLE 16
                                                                                                                             Year-End   Budget
                                                                                      Actual                                 Estimate  Projection
                                                            2005          2006            2007         2008          2009         2010       2011

 Public Utility Taxes & Fees
  Electricity Use                                    $     101.6    $     96.7    $     102.3    $     99.5    $     93.7    $    100.4    $     98.8
  Electricity IMF                                           92.8          89.4           94.6          92.2          86.9          92.9          91.2
  Telecommunications                                       147.7         140.8          154.4         158.9         152.5         144.3         147.7
  Natural Gas Utility                                      109.0         105.9          102.9         120.2          94.0          83.8          86.4
  Natural Gas Use                                           25.1          26.1           27.4          33.0          32.8          32.4          33.5
  Cable Television                                          15.9          16.7           19.3          21.0          21.4          22.0          22.0

       Total - Public Utility Taxes & Fees           $     492.1    $    475.5    $     501.0    $    524.8    $    481.3    $    475.9    $    479.5

 City Sales Tax/HROT
       Total - Home Rule Occupation Tax              $     220.6    $    266.3    $     265.4    $    243.5    $    224.9    $    229.8    $    233.5

 Transaction Taxes
  Real Property Transfer                             $     236.3    $    242.3    $     205.8    $    119.5    $     61.9    $     70.9    $     65.3
  Personal Property Lease Transaction                       82.5          90.2           92.1         119.3         112.2         104.1         105.2
  Motor Vehicle Lessor Tax                                   6.3           6.5            6.9           6.3           5.6           5.4           5.5

       Total - Transaction Taxes                     $     325.2    $    339.0    $     304.7    $    245.1    $    179.6    $    180.5    $    175.9

 Transportation Taxes
  Parking Tax                                        $      81.7    $     83.6    $      88.1    $     85.3    $     93.1    $     92.0    $     92.8
  Vehicle Fuel Tax                                          61.0          60.3           58.1          54.9          53.9          47.4          47.8
  Ground Transportation Tax                                  9.3           8.8            9.1           8.6           8.8           9.0           9.0

       Total - Transportation Taxes                  $     152.0    $    152.8    $     155.2    $    148.7    $    155.9    $    148.4    $    149.6

 Recreation Taxes
  Amusement Tax                                      $      53.1    $     57.5    $      68.8    $     69.0    $     79.1    $     82.7    $     81.8
  Auto Amusement Tax                                         1.4           1.3            1.3           1.1           1.2           1.2           1.2
  Boat Mooring Tax                                           0.9           1.3            1.1           1.3           1.4           1.3           1.3
  Liquor Tax                                                19.6          20.1           21.0          32.0          32.1          32.0          32.0
  Municipal Cigarette Tax                                   27.5          32.9           28.4          24.3          21.0          18.7          18.7
  Non-Alcoholic Beverage Tax                                10.7          10.9           11.5          18.8          18.1          18.8          18.8
  Off Track Betting                                          2.0           2.0            1.8           1.5           1.3           1.4           1.4

       Total - Recreation Taxes                      $     115.2    $    126.1    $     133.9    $    148.0    $    154.0    $    156.0    $    155.1

 Business Taxes
  Hotel Tax                                          $      46.3    $     59.7    $      61.9    $     64.3    $     50.1    $     52.1    $     52.9
  Employers' Expense Tax                                    22.7          22.9           23.6          23.9          23.9          22.0          19.6
  Foreign Fire Insurance Tax                                 4.3           4.4            4.4           4.1           5.5           4.8           4.5

       Total - Business Taxes                        $      73.3    $     87.1    $      89.9    $     92.3    $     79.6    $     78.9    $     77.0

       TOTAL LOCAL TAXES                             $    1,378.6   $   1,446.8   $    1,450.1   $   1,402.4   $   1,275.2   $   1,269.4   $   1,270.7


 Proceeds & Transfers In
      Skyway Long-Term Reserve Interest               $     25.0    $     25.0    $      25.0    $     25.0    $     25.0    $     25.0    $     15.0
      Skyway Mid-Term Reserve                               50.0          50.0           50.0          50.0          50.0          50.0          50.0
      Parking Meter Revenue Replacement Fund Interest         -             -              -             -             -           20.0          20.0
      Parking Meter Revenue Replacement Fund                  -             -              -             -           20.0         190.0         119.9
      Parking Meter Mid-Term Reserve                          -             -              -          100.0          50.0         100.0          82.8
      Parking Meter Budget Stabilization Fund                 -             -              -             -          217.6         102.4            -
      Proceeds & Transfers In-Other                         58.3          40.1           79.5          84.2         111.9          85.9         206.9

       TOTAL PROCEEDS & TRANSFERS IN                 $     133.3    $    115.1    $     154.5    $    259.2    $    474.6    $    573.3    $    494.6
2011 Overview and Revenue Estimates
                                                    REVENUE CONTINUED

THE CORPORATE FUND
$ MILLIONS
TABLE 16
                                                                                                                           Year-End   Budget
                                                                                    Actual                                 Estimate  Projection
                                                          2005          2006            2007         2008          2009         2010       2011
 Intergovernmental Revenue
  State Income Tax                                  $    212.9    $    232.3    $     253.5    $    268.8    $    201.0    $    201.7    $    267.9
  State Sales Tax/ROT                                    250.4         271.1          277.8         274.6         251.7         258.0         263.1
  Personal Prop Replacement Tax (Corporate Share)         94.6          82.3          124.2         109.7          50.8          30.8          42.0
  Municipal Auto Rental Tax                                3.2           3.7            3.8           3.8           3.4           3.2           3.2
  Reimbursements                                           2.1           2.8            3.4           2.3           1.7           1.7           1.7

       TOTAL INTERGOVERNMENTAL                      $    563.2    $    592.2    $     662.7    $    659.3    $    508.6    $    495.3    $    577.9

 Licenses & Permits
  Alcohol Dealers License                           $     11.7    $     11.9    $      17.1    $     11.4    $     12.1    $     10.3    $      9.8
  Business Licenses                                       20.4          20.3           29.7          21.8          22.2          19.8          18.2
  Building Permits                                        42.5          36.9           51.4          31.0          16.2          17.0          21.4
  Other Permits and Certificates                          39.4          42.2           42.4          43.4          42.7          40.7          39.1
  Prior Period Fines                                       6.8           6.5            7.5           7.1           7.3           7.4           6.8

       Total - Licenses & Permits                   $    120.9    $    117.7    $     148.2    $    114.7    $    100.5    $     95.2    $     95.4

 Fines, Forfeitures & Penalties
       Total - Fines                                $    194.5    $    203.0    $     220.6    $    257.5    $    252.5    $    258.4    $    254.4

 Charges for Services
  Inspection                                        $     10.3    $     13.7    $      12.4    $     10.8          14.7    $     12.5    $     11.2
  Health                                                   0.8           0.9            1.1           1.1           0.7            -             -
  Information                                              1.0           1.1            0.8           0.8           0.8           0.8           0.8
  Safety                                                  36.4          60.0           56.1          43.8          50.3          51.7          65.5
  Other Charges                                            7.8           7.4           12.6          13.2          11.6          11.5          11.4
  Current Expenses                                        11.0           6.6            7.7           7.2           9.4           8.4           8.4

       Total - Charges for Services                 $     67.2    $     89.7    $      90.8    $     76.9    $     87.5    $     84.9    $     97.2

 Municipal Parking
      Total - Municipal Parking                     $     23.2    $     26.5    $      28.1    $     28.8    $       9.1   $       6.8   $       6.8

 Leases, Rentals & Sales
  Sale of Land                                      $     23.5    $       2.7   $      12.4    $       0.3   $       0.8   $       7.5   $       8.8
  Vacation of Streets                                      5.8            5.2           3.0            4.7           1.8           0.5           0.5
  Sale of Impounded Autos                                  0.2            0.2           0.1            0.2           0.1           0.2           0.2
  Sale of Materials                                        0.9            1.0           2.0            3.1           2.1           1.5           1.1
  Rentals and Leases                                       4.1            5.0           5.3            5.5           6.0           5.8           5.8

       Total - Leases, Rentals & Sales              $     34.5    $     14.2    $      22.8    $     13.8    $     10.7    $     15.6    $     16.5

 Interest Income
       Total - Interest Income                      $       5.9   $     12.9    $      10.1    $       3.1   $       3.0   $       3.0   $       3.0

 Internal Service Earnings
  Enterprise Funds                                  $    109.6    $    115.3    $     118.3    $    117.9    $    128.2    $    128.4    $    133.8
  Special Revenue Funds                                   52.3          44.1           55.5         102.9          96.2          91.0          93.4
  Intergovernmental Funds                                 38.8          31.2           43.2          32.7          27.7          30.3          88.7
  Other Reimbursements                                    49.6          62.8           66.0          46.7          37.0          22.8          33.8

       Total - Internal Service Earnings            $    250.2    $    253.4    $     283.0    $    300.2    $    289.1    $    272.6    $    349.6

 Other Revenue
       Total - Other Revenue                        $     25.9    $     12.6    $      19.1    $     19.1    $     25.4    $     21.2    $     84.7

       TOTAL NON-TAX REVENUE                        $    722.4    $    730.0    $     822.6    $    814.0    $    777.8    $    757.6    $    907.6


 TOTAL CORPORATE FUND REVENUE                       $   2,797.4   $   2,884.0   $    3,089.9   $   3,135.0   $   3,036.3   $   3,095.7   $   3,250.9

         Prior Year Unreserved Fund Balance         $     42.2    $     57.6    $      26.8    $       4.6   $       1.5   $       2.7   $       9.4

 TOTAL CORPORATE FUND RESOURCES                     $   2,839.7   $   2,941.7   $    3,116.7   $   3,139.6   $   3,037.7   $   3,098.3   $   3,260.2
2011 Overview and Revenue Estimates
                                                 REVENUE CONTINUED

SPECIAL REVENUE FUNDS
$ MILLIONS
TABLE 17

                                                                                                               Year-End   Budget
                                                                         Actual                                Estimate  Projection
                                                  2005        2006           2007        2008         2009          2010       2011

 Vehicle Tax Fund - 300
  Vehicle Sticker Tax                        $    96.7   $   95.1    $      97.8    $   98.7     $   105.7     $   104.4     $   104.4
  Impoundment Fees                                13.3       16.1           16.4        13.5          10.8          11.0          11.0
  Abandoned Auto Towing                            0.2        0.1            0.1         0.1           0.0           0.0           0.0
  Sale of Impounded Autos                          6.1        5.2            5.7         7.5           2.5           4.1           4.1
  Pavement Cut Fees                                3.6        5.0            3.1         4.6           3.7           4.1           3.1
  Commercial Refuse Container Fee                   -          -              -           -            6.9           6.9           6.9
  Other Resources                                 22.9       19.9           19.9        28.5          17.3          16.5          16.6

                       Total Fund Revenue    $   142.8 $     141.4 $       142.9 $      152.8 $      146.9     $   147.0 $       146.0
  Prior Year Unreserved Fund Balance              (5.7)      (10.7)        (10.8)       (33.8)       (13.5)         (7.5)         (2.3)
 Total Fund Resources                        $   137.1 $     130.8 $       132.1 $      119.0 $      133.4     $   139.5 $       143.7


 Motor Fuel Tax Fund - 310
  Motor Fuel Tax Distribution                $    84.5   $   83.3    $      83.0    $   75.8     $    74.2     $    73.0     $    73.3
  Proceeds of Debt                                 -          -              -           -             -             -             5.6
  Interest and Other                               0.4        0.4              -         0.1           1.5          12.6           6.2

                       Total Fund Revenue    $    85.0 $     83.7    $       83.0 $      75.9 $       75.6     $    85.6 $        85.2
  Prior Year Unreserved Fund Balance              (1.3)       4.6           (12.3)      (15.6)       (35.6)        (36.5)        (19.0)
 Total Fund Resources                        $    83.7 $     88.2    $       70.7 $      60.3 $       40.0     $    49.1 $        66.2


 Special Service Area Number One
 Maintenance - 326
  Property Tax Levy                          $     1.1   $    1.1    $       0.9    $    -       $     -       $     -       $     -
  Transfer from Corporate Fund                     0.9        0.9            0.9             -             -             -             -
                                                                                                                             $         -
                        Total Fund Revenue   $     2.0   $    2.0    $       1.8    $    -       $     -       $     -       $     -
 Total Fund Resources                        $     2.0   $    2.0    $       1.8    $    -       $     -       $     -       $     -


 Library Funds: Buildings and Sites - 342,
 Maintenance and Operation - 346
  Proceeds of Debt                           $    50.8   $   33.0    $      27.9    $   70.4     $    70.4     $    70.4     $    70.4
  Corporate Fund Subsidy                          17.0       30.5           42.5        16.0          13.8          15.7          15.7
  Rental of Facilities                             0.2        0.2            0.2         0.2           0.4           0.5           0.5
  Interest                                         1.1        0.7            0.5         0.8           0.1           0.1           0.1
  Fines                                            1.3        1.5            1.6         1.8           2.6           2.9           2.9
  Skyway Proceeds                                  5.0        5.0             -           -             -             -             -
  Transfers In                                     1.1        1.1            3.3         2.8            -             -             -
  Other Revenue                                    0.0        0.0            0.1         0.0           1.0           0.0           0.0

                       Total Fund Revenue    $    76.6   $   72.1    $      76.1 $      92.0 $        88.3     $    89.6     $    89.6
  Prior Year Unreserved Fund Balance               4.7        6.1           (2.1)       (2.4)          3.5           5.2           5.7
 Total Fund Resources                        $   81.28   $   78.1    $      74.0 $      89.5 $        91.8     $    94.8     $    95.3


 Emergency Communication Fund - 353
  Telephone Surcharge                        $    31.9   $   25.1    $      29.8    $   82.8     $    75.8     $    73.1     $    71.8

                       Total Fund Revenue    $    31.9 $     25.1 $         29.8 $      82.8     $    75.8     $    73.1 $        71.8
  Prior Year Unreserved Fund Balance              (5.5)      (1.3)          (1.2)        0.3           0.2          (0.5)          -
 Total Fund Resources                        $    26.4 $     23.8 $         28.6 $      83.2     $    75.9     $    72.6 $        71.8
2011 Overview and Revenue Estimates
                                                REVENUE CONTINUED

SPECIAL REVENUE FUNDS
$ MILLIONS
TABLE 17

                                                                                                            Year-End   Budget
                                                                        Actual                              Estimate  Projection
                                                 2005        2006           2007        2008        2009         2010       2011
 Special Events and Municipal Hotel
 Operators' Occupation Tax Fund - 355
  Hotel Operator's Tax                      $    13.8   $    16.7   $      17.7    $    18.4   $    14.0    $    14.6     $    14.8
  Recreation Fees and Charges                     -           -             -            -           -            -            16.5
  Rental and Charges                                -         0.4             -            -           -          0.8           0.8
  Proceeds of Debt                                7.1         6.8           7.0          1.0         2.5          2.5           2.5
  Interest and Other                              1.4                       0.4          7.3         7.4          6.5           6.5

                       Total Fund Revenue   $    22.3   $    23.9   $      25.1    $    26.8 $      23.8    $    24.4 $        41.1
  Prior Year Unreserved Fund Balance              0.2         0.0           1.5         (0.9)       (0.4)        (1.5)         (4.5)
 Total Fund Resources                       $    22.5   $    23.9   $      26.6    $    25.8 $      23.5    $    23.0 $        36.6


 Special Events Fund - 356
  Recreation Fees and Charges               $    21.3   $    21.8   $      22.5    $    23.3   $    19.5    $    17.5     $     -
  Interest                                        0.1         0.2           0.1          0.1         0.0          0.0               -

                       Total Fund Revenue   $    21.4 $      22.0   $      22.6 $       23.4 $      19.5    $    17.5 $         -
  Prior Year Unreserved Fund Balance             (0.4)        0.4          (1.0)        (0.5)       (3.1)        (5.2)          -
 Total Fund Resources                       $    21.0 $      22.4   $      21.6 $       22.9 $      16.5    $    12.4 $         -


 City Relief Fund - 660
  Proceeds of Debt                          $    17.0   $    12.6   $       3.6    $     0.8                $     -       $     -
 Transfer in                                       -           -             -           9.2                          -             -

                       Total Fund Revenue   $    17.0 $      12.6 $          3.6 $      10.0 $       -      $     -       $     -
  Prior Year Unreserved Fund Balance             (7.3)       (4.3)          (5.6)      (10.3)                     -             -
 Total Fund Resources                       $     9.7 $       8.3 $         (2.0) $     (0.3) $      -      $     -       $     -


 CTA Real Property Transfer Tax Fund - 0B09
 Real Property Transfer Tax-CTA Portion     $     -     $     -     $       -      $    30.4   $    25.4    $    28.4     $    26.1

                       Total Fund Revenue   $     -     $     -     $       -      $    30.4   $    25.4    $    28.4 $        26.1
  Prior Year Unreserved Fund Balance              -           -             -            -          (0.0)        (0.2)          -
 Total Fund Resources                       $     -     $     -     $       -      $    30.4   $    25.4    $    28.2 $        26.1


 Tax Increment Financing Administration
 Fund - 0B21
 TIF Administrative Reimbursement           $     -     $     -     $       -      $     -     $     -      $     -       $     5.9

                       Total Fund Revenue   $     -     $     -     $       -      $     -     $     -      $     -       $     5.9
  Prior Year Unreserved Fund Balance              -           -             -            -           -            -             -
 Total Fund Resources                       $     -     $     -     $       -      $     -     $     -      $     -       $     5.9

 TOTAL SPECIAL REVENUE                      $   398.9   $   382.8   $     384.9    $   494.1   $   455.3    $   465.7     $   465.8


 TOTAL SPECIAL REVENUE RESOURCES            $   383.7   $   377.5   $     353.4    $   430.9   $   406.4    $   419.6     $   445.7
2011 Overview and Revenue Estimates
                                              REVENUE CONTINUED

PENSION FUNDS
$ MILLIONS
TABLE 18

                                                                                                              Year-End   Budget
                                                                          Actual                              Estimate  Projection
                                               2005          2006             2007         2008        2009        2010       2011

 Municipal Employees' Annuity and
 Benefit Fund - 681
  Property Tax Levy                       $   131.3     $   127.6     $     125.7     $   124.4   $   126.7   $   126.8   $   121.3
  Personal Prop Replacement Tax                22.2          22.4            22.3          21.3        30.3        36.2        34.3
  Library Property Tax Levy                                                    -             -          5.7         5.7         5.7
  Interest                                      0.4           0.8             0.5           0.4          -           -           -
  Proceeds of Debt                             10.0            -               -            2.5         0.0          -           -

                     Total Fund Revenue   $   163.9     $   150.8     $     148.5     $   148.7   $   162.7   $   168.7   $   161.3


 Laborers' and Retirement Board
 Employees' Annuity and Benefit Fund -
  Property Tax Levy                       $     -       $     -       $       -       $     0.6   $     9.5   $    13.7   $    11.8
  Personal Prop Replacement Tax                     -             -               -          -          4.0         4.5         3.9
  Proceeds of Debt                                  -             -               -        15.5          -           -           -

                     Total Fund Revenue   $     -       $     -       $       -       $    16.1   $    13.4   $    18.2   $    15.6


 Policemen's Annuity and Benefit Fund -
 683
  Property Tax Levy                       $   125.8     $   128.1     $     125.3     $   136.8   $   135.2   $   140.2   $   143.8
  Personal Prop Replacement Tax                18.6          26.5            22.1          24.9        40.9        46.3        47.4
  Interest                                       -             -              0.5           0.5         0.1          -           -
  Proceeds of Debt                             20.0            -               -           12.2          -           -           -

                     Total Fund Revenue   $   164.4     $   154.7     $     147.9     $   174.4   $   176.2   $   186.4   $   191.2


 Firemen's Annuity and Benefit Fund -
 684
  Property Tax Levy                       $    53.8     $    74.8     $      63.7     $    63.8   $    63.4   $    64.3   $    66.1
  Personal Prop Replacement Tax                 5.8          16.6            11.3          10.6        20.8        21.2        21.8
  Interest                                       -             -              0.2           0.2         0.0          -           -
  Proceeds of Debt                               -             -               -             -           -           -           -

                     Total Fund Revenue   $    59.6     $    91.5     $      75.3     $    74.6   $    84.3   $    85.5   $    87.9


 TOTAL PENSION FUNDS                      $   387.9     $   396.9     $     371.6     $   413.7   $   436.6   $   458.9   $   456.1
2011 Overview and Revenue Estimates
                                                    REVENUE CONTINUED

DEBT SERVICE FUNDS
$ MILLIONS
TABLE 19
                                                                                                                    Year-End   Budget
                                                                             Actual                                 Estimate  Projection
                                                      2005        2006           2007        2008          2009          2010       2011

 Sales Tax Bond Redemption and Interest
 Fund - 505
  Home Rule Retailers Occupation Tax            $     26.3   $    19.2   $      25.5    $    28.8     $    26.0     $    26.0     $    26.7
  Interest and Other                                    -          0.4           0.6          0.1          96.7            -             -

                           Total Fund Revenue   $     26.3   $    19.6 $        26.1 $       28.9 $       122.7     $    26.0 $        26.7
  Prior Year Unreserved Fund Balance                   -          (0.5)         (0.9)        (0.3)          -            (0.8)          -
 Total Fund Resources                           $     26.3   $    19.1 $        25.2 $       28.6 $       122.7     $    25.2 $        26.7


 Equipment Note Redemption and Interest
 Fund - 509
  Property Tax Levy                             $     11.4   $    12.4   $       -      $     -       $     -       $     -       $     -
  Transfer In                                          1.7         1.8           1.8              -             -             -             -
  Other Revenue                                         -                          -                            -

                           Total Fund Revenue   $     13.1   $    14.2   $       1.8    $     -       $     -       $     -       $     -
  Prior Year Unreserved Fund Balance                   -           1.8           -            -             -
 Total Fund Resources                           $     13.1   $    15.9   $       1.8    $     -       $     -       $     -       $     -


 General Obligation Bond Redemption and
 Interest Fund - 510
  Property Tax Levy                             $    307.2   $   311.4   $     290.9    $   338.4     $   364.1     $   368.4     $   370.5
  Transfer In                                           -          -              -            -             -           33.0            -
  Other Revenue                                        9.3         9.3           2.1         18.0          65.0          29.3          38.1

                           Total Fund Revenue   $    316.5   $   320.6   $     293.0    $   356.4     $   429.1     $   430.7     $   408.6
  Prior Year Unreserved Fund Balance                  18.5         9.0           -           13.9           -             3.0          13.0
 Total Fund Resources                           $    335.0   $   329.6   $     293.0    $   370.2     $   429.1     $   433.7     $   421.6


 Daily Tender Note Redemption and Interest
 Fund - 512
  Property Tax Levy                             $     16.2   $    12.7   $       3.9    $     -       $     -       $     -       $     -
  Transfers In & Interest                               -          -              -               -             -             -             -

                           Total Fund Revenue   $     16.2   $    12.7   $       3.9    $     -       $     -       $     -       $     -
  Prior Year Unreserved Fund Balance                   -           -             -                          -             -             -
 Total Fund Resources                           $     16.2   $    12.7   $       3.9    $     -       $     -       $     -       $     -


 Library Bond Redemption and Interest Fund -
 516
 Property Tax Levy                              $      -     $     -     $       -      $     -       $     6.0     $     4.3     $     4.3

                           Total Fund Revenue   $      -     $     -     $       -      $     -       $     6.0     $     4.3     $     4.3
  Prior Year Unreserved Fund Balance                   -           -             -            -             0.3           -             -
 Total Fund Resources                           $      -     $     -     $       -      $     -       $     6.3     $     4.3     $     4.3
2011 Overview and Revenue Estimates
                                                    REVENUE CONTINUED

DEBT SERVICE FUNDS
$ MILLIONS
TABLE 19
                                                                                                                Year-End   Budget
                                                                             Actual                             Estimate  Projection
                                                      2005        2006           2007        2008        2009        2010       2011
 Library Daily Tender Note Redemption and
 Interest Fund - 521
 Property Tax Levy                              $     53.4   $    34.7   $      31.7    $    26.1   $    70.3   $    73.4   $    73.4

                           Total Fund Revenue   $     53.4   $    34.7   $      31.7    $    26.1   $    70.3   $    73.4   $    73.4
  Prior Year Unreserved Fund Balance                               1.1           3.3          4.5         -           -           -
 Total Fund Resources                           $     53.4   $    35.8   $      35.0    $    30.7   $    70.3   $    73.4   $    73.4


 Emergency Communication Bond
 Redemption and Interest Fund - 525
 Telephone Surcharge & Interest                 $      9.1   $    22.3   $      23.3    $    22.3   $    22.1   $    22.3   $    22.3

                           Total Fund Revenue   $      9.1   $    22.3   $      23.3    $    22.3   $    22.1   $    22.3   $    22.3
  Prior Year Unreserved Fund Balance                  13.2         1.0           1.0          0.0         0.0                     -
 Total Fund Resources                           $     22.3   $    23.4   $      24.4    $    22.3   $    22.2   $    22.3   $    22.3


 City College Bond Redemption and Interest
 Fund - 549
 Property Tax Levy                              $      5.7   $     5.7   $       6.4    $    34.9   $    36.3   $    36.6   $    36.6

                           Total Fund Revenue   $      5.7   $     5.7   $       6.4    $    34.9   $    36.3   $    36.6   $    36.6
  Prior Year Unreserved Fund Balance                   -           -             0.5          -           1.9         -           -
 Total Fund Resources                           $      5.7   $     5.7   $       6.9    $    34.9   $    38.2   $    36.6   $    36.6


 TOTAL DEBT SERVICE FUND REVENUE                $    440.4   $   429.9   $     386.2    $   468.6   $   686.5   $   593.4   $   572.0


 TOTAL DEBT SERVICE FUND RESOURCES              $    472.1   $   442.3   $     390.2    $   486.8   $   688.8   $   595.6   $   585.0
2011 Overview and Revenue Estimates
                                                REVENUE CONTINUED

ENTERPRISE
$ MILLIONS
TABLE 20

                                                                                                          Year-End   Budget
                                                                   Actual                                 Estimate  Projection
                                         2005           2006           2007          2008          2009        2010       2011

 Water Fund - 200
  Water Fees                      $    333.7     $    317.2 $        317.7    $    358.1    $    397.0    $    443.0    $    443.0
  Transfer In                           16.3            28.8          35.3          42.3          38.3          28.0          28.0
  Miscellaneous and Other               10.6            26.9          23.0          25.7          21.5          21.0          21.0
  Interest Earnings                      4.9             3.0           2.7           0.5           1.0           1.1           1.1

             Total Fund Revenue   $    365.4     $    375.9    $     378.7    $    426.5    $    457.7    $    493.1    $    493.1


 Sewer Fund - 314
  Sewer Fees                      $    141.3     $    134.3 $        132.4    $    158.7    $    173.9    $    196.6    $    196.6
  Transfer-In                           14.7            12.1          11.0           8.7          14.1          10.8          10.8
  Miscellaneous & Other                                                              1.9           1.3           1.9           1.9

             Total Fund Revenue   $    156.0     $    146.4    $     143.5    $    169.3    $    189.3    $    209.3    $    209.3


 Midway Airport Fund - 610
  Rates, Charges and Other        $    152.6     $    160.5    $     183.4    $    186.8    $    176.0    $    217.5    $    220.9

             Total Fund Revenue   $    152.6     $    160.5    $     183.4    $    186.8    $    176.0    $    217.5    $    220.9


 O'Hare Airport Fund - 740
  Rates, Charges and Other        $    621.8     $    672.0    $     766.5    $    825.9    $    715.7    $    892.5    $    899.3

             Total Fund Revenue   $    621.8     $    672.0    $     766.5    $    825.9    $    715.7    $    892.5    $    899.3

 TOTAL ENTERPRISE FUNDS           $   1,295.8    $   1,354.8   $    1,472.0   $   1,608.6   $   1,538.8   $   1,812.4   $   1,822.6
2011 Overview and Revenue Estimates


APPROPRIATION BY FUNCTION AND ORGANIZATIONAL UNIT
ALL LOCAL FUNDS
$ MILLIONS
TABLE 21
                                                                                                              Appropriation                                                       2011      2011-2010
                                                                             2006                2007             2008                   2009                 2010              Proposed    % change

 Finance and Administration
 Office of the Mayor                                                    $          6.3      $          6.5      $          7.6       $          6.7      $          6.2         $     6.1        -1.7%
 Office of Budget & Management                                                     2.8                 2.7                 2.7                  2.1                 1.9               2.1        12.1%
 Department of Innovation & Technology                                            15.1                15.4                15.1                 14.1                24.3              25.4         4.6%
 City Clerk                                                                        9.4                 9.3                 9.6                  9.9                 9.2               9.1        -1.1%
 Department of Finance                                                            15.2                15.3                16.1                 15.7                14.6              14.8         1.4%
 City Treasurer                                                                    2.2                 2.3                 2.4                  2.2                 2.1               2.2         0.7%
 Department of Revenue                                                            46.4                47.8                50.0                 47.8                50.7              52.9         4.3%
 Department of Administrative Hearings                                             6.6                 7.2                 7.3                  8.2                 7.2               7.3         1.1%
 Department of Law                                                                34.6                37.0                36.7                 34.4                32.3              33.4         3.4%
 Office of Compliance                                                              -                   -                   2.5                  2.9                 3.3               3.5         4.5%
 Department of Human Resources                                                     8.5                 8.6                 6.8                  8.2                 7.3               5.9       -18.9%
 Department of Procurement Services                                                9.6                 9.8                 9.4                  8.2                 6.2               5.7        -7.6%
 Department of General Services                                                  177.0               187.6               203.5                204.3               218.4             195.9       -10.3%
 Department of Fleet Management                                                  108.0               115.1               123.7                132.7               117.1             117.5         0.3%

          Total - Finance and Administration                            $       441.8       $       464.6       $       493.3        $       497.2       $       500.8          $   481.7       -3.8%



  Legislative and Elections
 City Council                                                           $          16.9     $         17.5      $          19.7      $         20.4      $         19.6         $    19.6        0.0%
 City Council Committees                                                            5.4                5.6                  5.6                 5.8                 5.7               5.7       -0.1%
 Legislative Inspector General                                                      -                  -                    -                   -                   -                 0.1            -
 City Council Legislative Reference Bureau                                          0.4                0.4                  0.4                 0.4                 0.4               0.4        0.0%
 Board of Election Commissioners                                                   13.3               19.0                 14.1                10.5                13.1              19.2       47.3%

          Total - Legislative and Elections                             $         36.0      $         42.5      $         39.9       $        37.2       $         38.8         $    45.0       16.2%



 City Development
 Department of Planning & Development                                   $          14.4     $         19.4      $          18.2      $          -        $           -          $     -               -
 Mayor's Office of Workforce Development                                            -                  5.7                  5.4                 -                    -                -               -
 Department of Housing                                                             15.4               31.4                 32.3                 -                    -                -               -
 Department of Community Development                                                -                  -                    -                  36.8                 31.3              -        -100.0%
 Department of Housing and Economic Development *                                   -                  -                    -                   -                    -               26.1             -
 Department of Cultural Affairs                                                    12.2               14.1                 14.7                13.7                 12.5              -        -100.0%
 Department of Cultural Affairs and Special Events **                               -                  -                    -                   -                    -               32.3             -
 Mayor's Office of Special Events                                                  26.3               27.0                 28.8                28.2                 24.7              -        -100.0%

          Total - City Development                                      $         68.3      $         97.6      $         99.5       $        78.7       $         68.5         $    58.3      -14.8%



 Community Services
 Department of Public Health                                            $          36.9     $         45.9      $          45.3      $         37.8      $         33.9         $    33.8        -0.2%
 Commission on Human Relations                                                      2.2                2.2                  2.3                 2.1                 2.0               1.9        -2.4%
 Chicago Department of Senior Services                                              3.0                6.6                  7.1                 -                   -                 -            -
 Mayor's Office for People with Disabilities                                        1.6                1.8                  1.8                 1.6                 1.7               1.1       -38.4%
 Department of Family & Support Services                                            -                  -                    -                  20.3                25.2              17.4       -31.0%
 Department of Children & Youth Services                                            3.2                4.2                  4.9                 -                   -                 -            -
 Department of Human Services                                                       7.2                8.1                  8.7                 -                   -                 -            -
 Chicago Public Library                                                            50.5               53.5                 54.9                54.6                54.1              55.2         2.1%

          Total - Community Services                                    $       104.6       $       122.3       $       124.9        $       116.4       $       116.8          $   109.3       -6.4%



 * The 2011 recommended budget combines the Departments of Community Development and Zoning and Land Use Planning into the Department of Housing and Economic Development
 ** The 2011 recommended budget merges the Department of Cultural Affairs and the Mayor's Office of Special Events into the Department of Cultural Affairs and Special Events
2011 Overview and Revenue Estimates
                                                                                                            CONTINUED



APPROPRIATION BY FUNCTION AND ORGANIZATIONAL UNIT
ALL LOCAL FUNDS
$ MILLIONS
TABLE 21
                                                                                                      Appropriation                                                2011            2011-2010
                                                                       2006              2007             2008                 2009              2010            Proposed          % change




  Public Safety
 Police Board                                                      $         0.4     $         0.4      $         0.5     $         0.5      $         0.4      $         0.4          -4.6%
 Independent Police Review Authority                                         -                 -                  5.8               6.9                7.4                7.5           1.7%
 Chicago Police Department                                               1,215.3           1,248.7            1,234.6           1,236.5            1,243.0            1,316.2           5.9%
 Office of Emergency Management & Communication                             87.4              95.6               98.7              99.2               86.8               95.9          10.5%
 Chicago Fire Department                                                   454.4             474.7              489.7             487.5              499.8              509.4           1.9%

         Total - Public Safety                                     $    1,757.5      $    1,819.4       $    1,829.2       $   1,830.5       $    1,837.4       $    1,929.5            5.0%



  Regulatory
 Office of Inspector General                                       $         3.7     $         5.4      $         5.5     $          5.9     $          6.0     $            6.0         0.1%
 Department of Zoning & Land Use Planning *                                  -                 -                  -                  6.4                6.4                  -        -100.0%
 Department of Zoning                                                        2.2               2.5                2.7                -                  -                    -            -
 Department of Buildings                                                    24.6              22.3               31.6               27.3               26.0                 26.7         2.7%
 Department of Construction & Permits                                        8.9               8.9                -                  -                  -                    -            -
 Department of Business Affairs & Consumer Protection                        -                 -                  -                 16.2               15.3                 14.3        -6.8%
 Department of Consumer Services                                             9.8               9.5                9.8                -                  -                    -            -
 Department of Environment                                                   3.9               4.8                5.7                4.9                4.6                  3.5       -24.3%
 Commission on Animal Care & Control                                         4.7               4.7                4.9                4.6                4.5                  3.9       -13.4%
 Department of Business Affairs & Licensing                                  8.9               8.4                9.0                -                  -                    -            -
 License Appeal Commission                                                   0.2               0.2                0.2                0.2                0.2                  0.2         0.4%
 Board of Ethics                                                             0.8               0.8                0.8                0.6                0.6                  0.6         6.4%

         Total - Regulatory                                        $        67.7     $        67.6      $        70.2      $       66.1      $        63.6      $           55.1      -13.3%



 Infrastructure Services
 Department of Streets and Sanitation                              $       355.4     $       357.3      $       362.8     $        303.1     $       243.5      $       240.9           -1.1%
 Chicago Department of Transportation                                       98.7              98.9               99.8               89.9             133.5              126.5           -5.2%

         Total - Infrastructure Services                           $      454.0      $      456.2       $      462.6       $      393.0      $       377.1      $      367.4           -2.6%



 Public Service Enterprise
 Office of the O'Hare Modernization Program                        $         4.2     $         4.3      $         4.5     $          5.2     $         -        $         -              -
 Department of Aviation                                                    296.8             307.4              319.1              351.6             360.5              363.5           0.8%
 Department of Water Management                                            237.7             232.7              244.5              263.9             248.5              252.6           1.6%

         Total - Public Service Enterprises                        $    538.61       $     544.31       $    568.17        $    620.70       $     609.00       $     616.01            1.2%



  General Financing Requirements
 Pension Funds                                                     $       398.0     $       421.7      $       457.0     $       454.9      $       458.9      $       456.1           -0.6%
 Loss in Collection of Taxes                                                18.9              16.5               19.7              19.3               19.3               19.4            0.4%
 Finance General                                                         1,675.0           1,933.9            2,135.6           2,224.4            2,403.5            2,431.8            1.2%

         Total - General Financing Req.                            $    2,091.9      $    2,372.1       $    2,612.3       $   2,698.5       $    2,881.7       $    2,907.3            0.9%



 Total - All Functions                                             $    5,560.4      $    5,986.5       $    6,300.0       $   6,338.3       $    6,493.6       $    6,569.6            1.2%
 Deduct Reimbursements Between Funds                                      (268.2)           (285.5)            (311.3)            (302.2)           (317.0)            (344.4)
 Deduct Proceeds of Debt                                                   (45.1)            (31.7)             (70.4)             (70.4)            (70.4)             (70.4)
 Net Grand Total                                                        5,247.1           5,669.3            5,918.3           5,965.7            6,106.1            6,154.8            0.8%

 * The 2011 recommended budget combines the Departments of Community Development and Zoning and Land Use Planning into the Department of Housing and Economic Development
2011 Overview and Revenue Estimates


POSITIONS BY FUNCTION AND ORGANIZATIONAL UNIT
ALL LOCAL FUNDS
$ MILLIONS
TABLE 22                                                                                             Appropriation                                               2011            2011-2010
                                                                        2006               2007           2008                  2009            2010           Proposed           change

  Finance and Administration
  Office of the Mayor                                                           78                 78                 85               78               78                78              -
  Office of Budget & Management                                                 33                 29                 30               21               21                24              3
  Department of Innovation & Technology                                         91                 92                 90               71               80                80              -
  City Clerk                                                                   129                125                124              119              108               106             (2)
  Department of Finance                                                        214                215                212              186              180               182              2
  City Treasurer                                                                23                 23                 23               22               21                22              1
  Department of Revenue                                                        385                385                375              328              352               345             (7)
  Department of Administrative Hearings                                         50                 50                 50               46               44                43             (1)
  Department of Law                                                            408                415                405              354              346               362             16
  Office of Compliance                                                           -                  -                 31               35               36                32             (4)
  Department of Human Resources                                                121                122                108               97               89                79            (10)
  Department of Procurement Services                                           147                136                131              103               80                76             (4)
  Department of General Services                                               439                431                423              355              393               400              7
  Department of Fleet Management                                               821                817                839              747              681               673             (8)

           Total - Finance and Administration                               2,939               2,918              2,926            2,562            2,509             2,502             (7)




  Legislative and Elections
  City Council                                                                 234                234                234              233              234               234              -
  Board of Election Commissioners                                              137                137                136              124              124               124              -

           Total - Legislative and Elections                                   371                371                370              357              358               358              -




  City Development
  Department of Planning & Development                                          88                129                113                -                -                 -             -
  Mayor's Office of Workforce Development                                        -                  2                  2                -                -                 -             -
  Department of Housing                                                          4                 10                  8                -                -                 -             -
  Department of Community Development                                            -                  -                  -               56               52                 -           (52)
  Department of Housing and Economic Development *                               -                  -                  -                -                -               145           145
  Department of Cultural Affairs                                                50                 50                 46               37               37                 -           (37)
  Department of Cultural Affairs and Special Events **                           -                  -                  -                -                -                86            86
  Mayor's Office of Special Events                                              71                 71                 68               52               51                 -           (51)

           Total - City Development                                            213                262                237              145              140               231            91




  Community Services
  Department of Public Health                                                  444                443                428              296              271               266            (5)
  Commission on Human Relations                                                 32                 31                 31               25               24                24             -
  Chicago Department of Senior Services                                         26                 26                 28                -                -                 -             -
  Mayor's Office for People with Disabilities                                   15                 15                 17               16               14                12            (2)
  Department of Family & Support Services                                        -                  -                  -               33               28                28             -
  Department of Children & Youth Services                                        -                  -                  1                -                -                 -             -
  Department of Human Services                                                   5                  5                 11                -                -                 -             -
  Chicago Public Library                                                       987                985                987              825              826               839            13

           Total - Community Services                                       1,509               1,505              1,503            1,195            1,163             1,169             6


  * The 2011 recommended budget combines the Departments of Community Development and Zoning and Land Use Planning into the Department of Housing and Economic Development
  ** The 2011 recommended budget merges the Department of Cultural Affairs and the Mayor's Office of Special Events into the Department of Cultural Affairs and Special Events




Represents Full Time Positions only. Refer to Program and Budget Summary book for Full Time Equivalent (FTE) positions.
 2011 Overview and Revenue Estimates
                                                                                               CONTINUED



POSITIONS BY FUNCTION AND ORGANIZATIONAL UNIT
ALL LOCAL FUNDS
$ MILLIONS
TABLE 22                                                                                   Appropriation                                           2011           2011-2010
                                                                2006              2007          2008                2009            2010         Proposed          change


 Public Safety
Police Board                                                             2                2                 2               2              2                2                 -
Independent Police Review Authority                                      -                -                97              97             97               97                 -
Chicago Police Department                                           16,176           16,216            16,109          15,854         15,764           15,575              (189)
Office of Emergency Management & Communication                       1,083            1,093             1,116           1,001          1,005            1,001                (4)
Chicago Fire Department                                              5,154            5,194             5,193           5,184          5,176            5,175                (1)

        Total - Public Safety                                       22,415           22,505            22,517          22,138         22,044           21,850              (194)




 Regulatory
Office of Inspector General                                             51                61               65              65             71                71                -
Department of Zoning & Land Use Planning *                               -                 -                -              74             73                 -              (73)
Department of Zoning                                                    41                41               46               -              -                 -                -
Department of Buildings                                                320               278              376             271            271               258              (13)
Department of Construction & Permits                                   107               104                -               -              -                 -                -
Department of Business Affairs & Consumer Protection                     -                 -                -             193            190               187               (3)
Department of Consumer Services                                        141               137              131               -              -                 -                -
Department of Environment                                               51                51               51              36             35                33               (2)
Commission on Animal Care & Control                                     86                85               86              75             68                70                2
Department of Business Affairs & Licensing                             109               109              107               -              -                 -                -
License Appeal Commission                                                2                 2                2               1              1                 1                -
Board of Ethics                                                         11                11                9               7              7                 7                -

        Total - Regulatory                                             919               879              873             722            716               627              (89)


 Infrastructure Services
Department of Streets and Sanitation                                 2,857             2,912            2,916           2,455           2,012            1,999              (13)
Chicago Department of Transportation                                   716               683              673             563             794              769              (25)
         Total Infrastructure Services                               3,573             3,595            3,589           3,018           2,806            2,768              (38)


Public Service Enterprise
Office of the O'Hare Modernization Program                              55                55               55              54               -                -                -
Department of Aviation                                               1,366             1,343            1,282           1,222           1,285            1,282               (3)
Department of Water Management                                       2,510             2,434            2,378           2,208           2,135            2,135                -

        Total - Public Service Enterprises                           3,931             3,832            3,715           3,484           3,420            3,417               (3)




Grand Total (Local Funds)                                           35,870           35,867            35,730          33,621         33,156           32,922              (234)


* The 2011 recommended budget combines the Departments of Community Development and Zoning and Land Use Planning into the Department of Housing and Economic Development




 Represents Full Time Positions only. Refer to Program and Budget Summary book for Full Time Equivalent (FTE) positions.
2011 Overview and Revenue Estimates


GRANT FUNDS BY FUNCTION
$ MILLIONS
TABLE 23
                                                                                                                               2011       2010 - 2011
                                                           2010             2010            2011 New     Prior Year(s)       Proposed       total $
                                                       Appropriation       Actual            Grants       Carryover            Total        change

 Finance and Administration
 Office of the Mayor                                   $         -     $         -      $          -     $         -     $          -     $        -
 Office of Budget & Management                                   7.1             7.8               5.2             0.8              6.0           (1.2)
 Department of Business & Information Srvcs                    106.5            18.3              83.8            18.3            102.0           (4.5)
 City Clerk                                                      -               -                 -               -                -              -
 Department of Finance                                           1.4             1.4               1.4             -                1.4            0.0
 City Treasurer                                                  0.2             -                 -               -                -             (0.2)
 Department of Revenue                                           -               -                 -               -                -              -
 Department of Administrative Hearings                           -               -                 -               -                -              -
 Office of Compliance                                            0.3             0.3               0.2             -                0.2           (0.0)
 Department of Law                                               1.5             1.5               1.7             -                1.7            0.1
 Department of Human Resources                                   -               -                 -               -                -              -
 Department of Procurement Services                              -               -                 -               -                -              -
 Department of General Services                                 11.7             9.3               1.3             7.5              8.8           (2.9)
 Department of Fleet Management                                  -               -                 -               -                -              -
                                                                                                                                                   -
         Total - Finance and Administration            $       128.8   $        38.7    $         93.6   $        26.5   $        120.1   $       (8.7)




  Legislative and Elections
 City Council                                          $         -     $            -   $          -     $         -     $          -     $       -
 City Council Committees                                         -                  -              -               -                -             -
 City Council Legislative Reference Bureau                       -                  -              -               -                -             -
 Board of Election Commissioners                                 -                  -              -               -                -             -

         Total - Legislative and Elections             $         -     $            -   $          -     $         -     $          -     $       -




 City Development
 Department of Cultural Affairs and Special Events *   $         4.8   $         3.2    $          5.4   $         -     $          5.4   $        0.7
 Mayor's Office of Special Events                                0.2             0.1               -               -                -             (0.2)
 Department of Housing and Economic Development **             323.0           333.6              79.9           218.2            298.1          (24.9)
         Total - City Development                      $       327.9   $       337.0    $         85.4   $       218.2   $        303.5   $      (24.4)




 Community Services
 Department of Public Health                           $       157.9   $       144.2    $        138.0   $        15.6   $        153.6   $       (4.3)
 Commission on Human Relations                                   1.2             1.2               1.3             -                1.3            0.0
 Mayor's Office for People with Disabilities                     4.1             3.4               3.5             0.3              3.9           (0.2)
 Department of Family And Support Services                     467.6           456.1             323.2            94.8            418.0          (49.6)
 Chicago Public Library                                         20.4             8.9              18.1             1.0             19.2           (1.3)

         Total - Community Services                    $       651.3   $       614.0    $        484.1   $       111.8   $        595.9   $      (55.3)
2011 Overview and Revenue Estimates
                                                                                            CONTINUED



GRANT FUNDS BY FUNCTION
$ MILLIONS
TABLE 23
                                                                                                                                                   2011          2010 - 2011
                                                                    2010               2010               2011 New       Prior Year(s)           Proposed          total $
                                                                Appropriation         Actual               Grants         Carryover                Total           change


  Public Safety
 Police Board                                                   $           -     $           -       $           -      $            -      $           -       $              -
 Chicago Police Department                                                110.0             108.4                23.8                71.9               95.7                  (14.4)
 Office of Emergency Management & Communication                           216.9             168.9                54.7               127.0              181.7                  (35.2)
 Chicago Fire Department                                                    8.0              12.8                 5.3                12.1               17.4                    9.4

         Total - Public Safety                                  $         334.9   $         290.1     $          83.7    $          211.0    $         294.7     $            (40.2)




  Regulatory
 Office of Inspector General                                    $           -     $            -      $           -      $            -      $           -       $              -
 Department of Zoning and Land Use Planning **                              4.2                2.7                -                   -                  -                     (4.2)
 Department of Buildings                                                    5.7                5.7                7.7                 -                  7.7                    2.0
 Department of Construction & Permits                                       -                  -                  -                   -                  -                      -
 Department of Business Affairs and Consumer Protection                     1.4                1.1                0.8                 0.2                1.0                   (0.4)
 Department of Consumer Services                                            -                  -                  -                   -                  -                      -
 Department of Environment                                                 50.0               48.6               18.9                31.9               50.8                    0.8
 Commission on Animal Care & Control                                        0.2                0.2                0.3                 -                  0.3                    0.1
 Mayor's License Commission & Liquor Control                                -                  -                  -                   -                  -                      -
 Department of Business Affairs & Licensing                                 -                  -                  -                   -                  -                      -
 License Appeal Commission                                                  -                  -                  -                   -                  -                      -
 Board of Ethics                                                            -                  -                  -                   -                  -                      -
 Office of Cable Communications                                             -                  -                  -                   -                  -                      -

         Total - Regulatory                                     $          61.3   $           58.3    $          27.6    $           32.1    $          59.7     $             (1.6)


  Infrastructure Services
 Department of Streets & Sanitation                             $          2.00   $          2.00     $           -      $            -      $           -       $            (2.00)
 Chicago Department of Transportation                                     824.4             516.8               506.3                 5.0              511.3                 (313.1)

         Total - Infrastructure Services                        $         826.4   $         518.8     $         506.3    $            5.0    $         511.3     $           (315.1)


 Public Service Enterprise
 Office of the O'Hare Modernization Program                     $           -     $           -       $           -      $            -      $           -       $             -
 Department of Aviation                                                   204.7             113.9               167.0                68.5              235.5                  30.8
 Department of Water Management                                             0.7               0.7                 -                   0.1                0.1                  (0.6)

         Total - Public Service Enterprises                     $         205.4   $         114.6     $         167.0    $           68.7    $         235.7     $            30.2




 Total - All Functions                                          $       2,536.0   $       1,971.3     $       1,447.7    $         673.3     $       2,121.0     $           (415.1)




 ** The 2011 recommended budget combines the Departments of Community Development and Zoning and Land Use Planning into the Department of Housing and Economic Development
BUDGET 2011
 O verview and Revenue Estimates




       BUDGET GLOSSARY
2011 Overview and Revenue Estimates


Accrual Accounting: An accounting method that           Appropriation: An amount of money in the budget,
measures the performance and position of an             authorized by the Mayor and the City Council, for
organization by recognizing economic events             expenditures by departments for specific purposes.
regardless of when cash transactions happen.            Appropriations are made by account group within
                                                        each department and fund.
Amusement Tax: A tax imposed upon the patrons
of any amusement within the City of Chicago             Assessed Valuation: The product of the market
including sporting events, theater productions and      value of property within the boundaries of the City
a variety of other entertainment activities. The        of Chicago and the assessment level. Effective for
tax rate is 5% of the fee paid to witness in-person     the 2009 tax year, the assessed value of a residential
live theatrical, live musical or other live cultural    property represents 10% of its market value; the
performances that take place in a venue whose           assessed value of a commercial or industrial property
maximum capacity is more than 750 persons. For          represents 25% of market value. Authorization:
all other types of amusement, the tax rate is 9% of     Cook County 10/25 ordinance.
the fee paid for the privilege to enter, to witness,
to view or to participate in such amusement. The        Automatic Amusement Device Tax: A tax imposed
tax does not apply to the admission fees to witness     on each automatic amusement device or machine
in person live theatrical, live musical or other live   used within the City of Chicago for gain or profit.
cultural performances that take place in a venue        The tax rate is $150 per non-gambling machine
whose maximum capacity is not more than 750             and $225 per gambling machine annually.
persons. Authorization: Municipal Code 4-156-           Authorization: Municipal Code 4-156-160.
020.
                                                        Basis of Accounting: The method used to recognize
                                                        increases and decreases in financial resources.
2011 Overview and Revenue Estimates
                                                           CONTINUED



Basis of Budgeting: The method used to determine      Cigarette Tax: A tax of $.034 per cigarette ($0.68
when revenue and expenditures are recognized          per pack of twenty) is imposed upon all cigarettes
for budgetary purposes.                               possessed for sale within the City of Chicago. The
                                                      tax is paid by the purchase of tax stamps from
Boat Mooring Tax: A tax imposed on the mooring        the City of Chicago Department of Revenue.
or docking of any watercraft for a fee in or on a     Wholesale cigarette dealers are responsible for
harbor, river or other body of water within the       purchasing and affixing tax stamps to each package
corporate limits or jurisdiction of the City. The     of cigarettes prior to delivery to the retail cigarette
tax rate is 7% of the mooring or docking fee.         dealer. Retail cigarette dealers pass the tax on to
Authorization: 3-16-030.                              the ultimate consumers. Authorization: Municipal
                                                      Code 3-42-020.
Bottled Water Tax: A tax imposed on the retail sale
of bottled water in the city of Chicago. The tax      CIP: Capital Improvement Program
rate is $0.05 per bottle. Authorization: Municipal
Code 3-43-030.                                        Commercial Paper: Short-term, unsecured,
                                                      discounted, and negotiable notes sold by one
Cable Franchise Fee: A franchise fee imposed on       company to another in order to satisfy immediate
the privilege of operating cable television systems   cash needs.
within the public ways of the City of Chicago. The
fee is 5% of annual gross revenues. Authorization:    Corporate Fund (General Fund): A fund used to
Municipal Code 4-280-170.                             account for resources other than those accounted
                                                      for in other funds. The Corporate Fund finances
Capital Budget: The current year spending for         many diverse activities such as police and fire
capital projects.                                     protection, trash collection and disposal, and
                                                      health programs.
Capital Improvement Plan: A multi-year projection
of the government’s capital needs. The City’s         Debt Policies: A financial management tool for
capital improvement plan is produced yearly, and      government entities authorized to issue debt
outlines capital projects for five years.             (bonds, leases or short-term notes).

Cash Accounting: The opposite of accrual              Debt Service Funds: Debt Service Funds are used to
accounting, cash accounting recognizes transactions   account for the accumulation of resources for, and
only when cash is received or paid out.               the payment of, long-term debt and related costs.
                                                      Revenue bonds issued for enterprise funds and
Charges for Service: Charges levied for services
                                                      debt for special taxing districts are not included
provided by the City of Chicago that are not
                                                      in debt service funds.
covered by general tax revenue. Such services
include building inspections, information and         Doubtful Account: An account balance that has
safety services.                                      been delinquent for a period of at least ninety (90)
                                                      days, and where collection is unlikely.
2011 Overview and Revenue Estimates
                                                               CONTINUED



Electricity Infrastructure Maintenance Fee (IMF):         Fines, Forfeitures, and Penalties: Fines and any
A fee authorized by state legislation as part of          associated penalties levied for violations of the
the electricity deregulation that is imposed on           Municipal Code. The primary source of this type
electricity deliverers to compensate the City of          of revenue is from parking tickets. Also included in
Chicago for the privilege of using the public rights-     this category are red light fines, moving violations,
of-way. The IMF rate varies based on the number           sanitation code violations, and housing court
of kilowatt-hours delivered to each purchaser.            fines.
Authorization: Municipal Code 3-54-030.
                                                          Foreign Fire Insurance Tax: A tax imposed on any
Electricity Use Tax: A tax imposed on the privilege       business not incorporated in the State of Illinois
of using or consuming electricity acquired in a           that is engaged in selling fire insurance in the City
purchase at retail and used or consumed within the        of Chicago. The tax is paid for the maintenance,
corporate limits of the City. The tax rate varies based   use, and benefit of the Chicago Fire Department.
on the number of kilowatt-hours used or consumed.         The tax rate is 2% of the gross receipts received for
Authorization: Municipal Code 3-53-020.                   premiums. Authorization: Municipal Code 4-308-
                                                          020.
Emergency Telephone System Surcharge: A
surcharge imposed on all billed subscribers of            FY: Fiscal Year.
telecommunications services within the corporate
limits of the City for the purpose of funding a           GAAP: Generally Accepted Accounting Principles.
portion of the maintenance and operation of the
                                                          General Fund: See Corporate Fund.
City’s emergency 9-1-1 systems. The surcharge
rate is $2.50 per network connection and wireless         GO Bonds: General Obligation bonds.
telephone number per month. Authorization:
Municipal Code 3-64-030 and 7-50-020.                     Ground Transportation Tax: A tax imposed on the
                                                          occupation of providing ground transportation
Employers’ Expense Tax: A tax imposed on                  to passengers for hire in the City of Chicago.
employers who employ 50 or more full-time                 The tax rate is $78 per month for each taxicab,
employees who perform 50% or more of their work           $3.50 per day for each non-taxicab vehicle with a
within the City of Chicago. The tax rate is $4 per        seating capacity of 10 or fewer passengers, $6 per
employee per month. Authorization: Municipal              day for each non-taxicab vehicle with a seating
Code 3-20-030.                                            capacity of 11 to 24 passengers, and $9 per day for
                                                          each non-taxicab vehicle with a capacity of more
Encumbrances: Contractual commitments to be
                                                          than 24 passengers. Authorization: Municipal Code
performed by a third party.
                                                          3-46-030.
Enterprise Funds: Funds established by a
                                                          Home Rule Municipal Retailers’ Occupation Tax: A
government to account for acquisition, operation,
                                                          tax imposed on the occupation of selling tangible
and maintenance of government services such
                                                          personal property, other than property titled
as water, sewers and the airports. These funds
                                                          or registered with the State of Illinois, which is
are typically self-supporting in that they derive
                                                          sold at retail in the City of Chicago. The tax rate
revenue from user charges.
                                                          is 1.25% of the gross receipts from such sales.
                                                          Grocery food and prescription and nonprescription
2011 Overview and Revenue Estimates
                                                              CONTINUED



medicines are generally exempt from the tax. The         others are reimbursed using intergovernmental
tax is administered and collected by the Illinois        purchase orders.
Department of Revenue and disbursed monthly
to the City. Authorization: Municipal Code               Lease Transaction Tax: See Personal Property Lease
3-40-030.                                                Transaction Tax

Hotel Accommodations Tax: A tax imposed on the           Licenses and Permits: Licenses and permits are
rental or lease of hotel accommodations in the City      required for the operation of business activity
of Chicago. The tax rate is 3.5% of the gross rental     in the City of Chicago. Authorization: Municipal
or leasing charge. Authorization: Municipal Code         Code Chapter 4-4.
3-24-030.
                                                         Liquor Tax: A tax imposed on the retail sale of
Illinois Retailers’ Occupation Tax: A tax imposed on     alcoholic beverages in the City of Chicago. Each
the occupation of selling tangible personal property     wholesale dealer who sells to a retail dealer
at retail in Illinois. The tax rate is 6.25% of the      located in the City of Chicago collects the tax and
selling price. The tax is administered and collected     any such retail alcoholic beverage dealer in turn
by the Illinois Department of Revenue. Sixteen           collects the tax from the retail purchaser. The tax
percent of the tax (1% of the 6.25%) is distributed      rate is $0.29 per gallon of beer, $0.36 per gallon for
to municipalities monthly. Authorization: 35 Illinois    alcoholic liquor containing 14% or less of alcohol
Compiled Statutes (ILCS) 120/2-10.                       by volume, $0.89 per gallon for liquor containing
                                                         more than 14% and less than 20% of alcohol by
Illinois Use Tax: A tax imposed on the use of            volume, and $2.68 per gallon for liquor containing
tangible personal property purchased outside             20% or more of alcohol by volume. Authorization:
Illinois but used in the State. The tax rate is          Municipal Code 3-44-030.
6.25% of the selling price. The tax is administered
and collected by the Illinois Department of              Modified Accrual Basis of Accounting: Under the
Revenue. Sixteen percent of the tax (1% of the           modified accrual basis of accounting, revenues are
6.25%) is distributed to municipalities. The City        recognized when they become measurable and
receives 20% of the 1% portion allocated to              available. Expenditures are recognized when the
municipalities. Authorization: 35 ILCS 105/1.            liability is incurred.

Income Tax: A tax imposed by the State of Illinois       Motor Fuel Tax: A tax imposed by the State of Illinois
on the privilege of earning or receiving income          on the sale of motor fuel within the state. The
in Illinois. The tax rate is 4.8% of net income          tax rate is $0.19 per gallon of gasoline. A portion
for corporations and 3% of net income for                of the revenue is distributed to municipalities
individuals, trusts and estates. Of the net income tax   and townships based on a statewide allocation
receipts after refund, 1/10 is diverted to the Local     formula and population. Authorization: 35 ILCS
Government Distributive Fund that is distributed to      505/2, 505/8.
municipalities based on population. Authorization:
                                                         Motor Vehicle Lessor Tax: A tax imposed on the
35 ILCS 5/201; 30 ILCS 115/1, 115/2.
                                                         privilege of leasing motor vehicles in the City of
Internal Service Earning: A reimbursement to the         Chicago to a lessee on a daily or weekly basis. The
Corporate Fund for services that are to be paid from     lessor is allowed to pass this tax along to his lessees
other City Funds. Certain internal service earnings      as a separate charge on his rental bills or invoices.
are allocated using cost accounting methods;             The tax is $2.75 per vehicle per rental period.
                                                         Authorization: Municipal Code 3-48-030.
2011 Overview and Revenue Estimates
                                                              CONTINUED



Municipal Automobile Renting Occupation Tax: A           Natural Gas Utility Tax: A tax imposed on the
tax imposed on occupation of renting automobiles         occupation of distributing, supplying, furnishing,
in the City of Chicago. The tax rate is 1% of the        or selling gas for use or consumption within the
rental price. The tax is administered and collected by   City of Chicago. The tax rate is 8% of gross receipts.
the Illinois Department of Revenue and distributed       Authorization: Municipal Code 3-40-040.
to the City monthly. Authorization: Municipal Code
3-40-490, -500.                                          Off-Track Betting Tax and Admission Fee: A tax
                                                         imposed on the pari-mutuel handle (total amount
Municipal Automobile Renting Use Tax: A tax              wagered) generated by off-track betting parlors
imposed on the privilege of using, in the City           within the City of Chicago. The tax rate is 1%
of Chicago, automobiles which are rented from            of the total pari-mutuel handle. In addition, an
companies outside of Illinois, and which are             admission charge of $1 is levied on the patrons.
titled or registered with the State of Illinois.         Authorization: 230 ILCS 5/26(h)(10.1), 5/27(f);
The tax rate is 1% of the rental price. The tax          Municipal Code 4-156-125.
is administered and collected by the Illinois
Department of Revenue and distributed to the             Parking Tax: A tax imposed on the privilege of
City monthly. Authorization: Municipal Code              parking a motor vehicle in any parking lot or
3-60-030, -040.                                          garage in the City of Chicago. The tax rate varies
                                                         based on the payment frequency and parking
Municipal Hotel Operators’ Occupation Tax: A tax         charge. The tax imposed on a daily parker is $1 if
authorized by state legislation and imposed on           the charge is greater than $2 but less than $5; $1.75
the occupation of renting hotel accommodations           if the charge is $5 or more but less than $12; and $3
in the City of Chicago. The tax rate is 1% of gross      if the charge is $12 or more. The tax imposed on
receipts. The tax is administered and collected by       weekly parkers is $5 if the charge is greater than
the Illinois Department of Revenue and distributed       $10 but less than $25; $8.75 if the charge is $25 or
monthly to the City for the purpose of promoting         more but less than $60; and $15, if the charge or
tourism and conventions. Authorization: Municipal        fee is $60 or more. The tax imposed on monthly
Code 3-40-470.                                           parkers is $20 if the charge is greater than $40 but
                                                         less than $100; $35 if the charge is $100 or more
Municipal Parking: A category of revenues that           but less than $240; and $60 if the charge is $240
currently includes revenue generated by various          or more. There is no tax for parking charges that
parking permits. Historical collections reflected in     do not exceed $2 for daily parkers, $10 for weekly
this category also include parking meter revenues        parkers, or $40 for monthly parkers. Authorization:
generated prior to the long term lease of the City’s     Municipal Code 4-236-020.
parking meter operation in 2009.
                                                         Pension Trust Funds: The City’s employees are
Natural Gas Use Tax: A tax imposed on the privilege      covered under four contributory defined benefit
of using or consuming in the City of Chicago gas         retirement plans established by state statute and
that is purchased in a sale at retail from sellers       administered by independent pension boards.
not subject to the Natural Gas Utility Tax. The tax      These plans are the Municipal Employees’ Annuity
rate is $0.063 per therm. Authorization: Municipal       and Benefit Fund, the Laborers’ and Retirement
Code 3-41-030.                                           Board Employees’ Annuity and Benefit Fund,
                                                         the Policemen’s Annuity and Benefit Fund, and
                                                         the Firemen’s Annuity and Benefit Fund. Each
2011 Overview and Revenue Estimates
                                                               CONTINUED



independent pension board has authority to               Corporate Fund and the two library funds.
invest the assets of its respective plan subject to
the limitations set forth in 40 ILCS 5/1-113. The        Property Tax: A tax levied on the equalized assessed
City makes payments to the Pension Trust Fund            valuation of real property in the City of Chicago.
from its property tax collections as required by         Cook County collects the tax with assistance from
state statute.                                           the Illinois Department of Revenue. Authorization
                                                         for the City’s property tax levy occurs through
Per capita: A concept that incorporates ability-to-      bond ordinances and property tax levy ordinances
pay per community resident. Typically, a wealthier       in connection with the annual appropriation
community with a high per capita income level can        ordinances.
manage a larger debt burden than an impoverished
community with a low per capita income level.            Real Property Transfer Tax: A tax imposed on
                                                         privilege of transferring title to, or beneficial
Personal Property Lease Transaction Tax: A tax           interest in, real property located in the City of Chicago.
imposed on the lease, rental or use of rented            The tax rate is $3.75 per $500 of transfer price, or
personal property in the City of Chicago. The tax rate   fraction thereof, of the real property or the
is 8% of the lease or rental price. Authorization:       beneficial interest in real property and is paid by
Municipal Code 3-32-030.                                 the transferee. Authorization: Municipal Code
                                                         3-33-030.
Personal Property Replacement Tax—Income
Taxes: A state income tax on corporations and            Real Property Transfer Tax - CTA Portion: A
partnerships, trusts and subchapter S corporations       supplemental tax on the transfer of real property
that was created to replace the personal property        in the City of Chicago for the purpose of providing
tax. The tax rate is 2.5% for corporations and           financial assistance to the Chicago Transit
1.5% for partnerships, trusts and subchapter S           Authority. The transfer rate is $1.50 per $500 of
corporations. The tax allocation formula is based        the transfer price or fraction thereof and is paid
on the 1976 distribution of the repealed personal        by the transferor. Authorization: Municipal Code
property tax. Authorization: 35 ILCS 5/201(c), (d);      3-33-030.
30 ILCS 115/12.
                                                         Restaurant and Other Places for Eating Tax: A tax
Personal Property Replacement Tax—Invested               imposed on each place for eating located in the
Capital Taxes: State invested capital taxes imposed      City of Chicago. The tax rate is 0.25% of the selling
on public utilities were created to replace the          price of all food and beverages sold at retail by the
personal property tax. The tax rate is 0.8%.             place for eating. Authorization: Municipal Code
The tax allocation formula is based on the 1976          3-30-030.
distribution of the repealed personal property tax.
Authorization: 35 ILCS 610/2a.1, 615/2a.1, 620/2a.1,     Simplified Telecommunications Tax: A tax imposed
625/2a.1; 30 ILCS 115/12.                                on the privilege of originating or receiving
                                                         intrastate or interstate telecommunications within
Proceeds of Debt: Proceeds of debt are generated         the City of Chicago. The tax rate is 7% of the gross
from the sale of bonds or notes. Tender notes are        charge for telecommunications purchased at retail.
issued in anticipation of property tax collections.      Authorization: Municipal Code 3-73-030.
The proceeds from tender notes, which are equal
                                                         Soft Drink Taxes: A tax imposed on the occupation
to the net property tax levy, are distributed to the
                                                         of selling retail soft drinks other than fountain
2011 Overview and Revenue Estimates


soft drinks in the City of Chicago. The rate of tax is                Use Tax for Titled Personal Property: A tax imposed
3% of gross receipts. The tax is administered and                     on the privilege of using in the City of Chicago
collected by the Illinois Department of Revenue                       titled personal property that is purchased at
and distributed to the City monthly. In addition,                     retail from a retailer located outside the City
a tax is imposed on the occupation of selling                         and titled or registered in the City. The tax rate
fountain soft drinks at retail in the City. The tax                   is 1.25% of the property’s selling price. The
rate is 9% of the cost price of the soft drink syrup                  Illinois Department of Revenue administers and
or concentrate. Authorization: Municipal Code                         collects the tax on behalf of the City when titled
3-45-040, -060.                                                       personal property is purchased from a retailer
                                                                      in Cook, DuPage, Lake, Kane, McHenry or Will
Special Revenue Fund: A fund established by a
                                                                      counties. Authorization: Municipal Code 3-28-
government to account for the operations of a
                                                                      030.
specific activity and revenue generated from
carrying out this activity. Special Revenue Funds
                                                                      Vacation of Streets and Alleys: The transfer of
are used to account for the proceeds of specific
                                                                      ownership of City of Chicago owned streets and
revenue sources other than special assessments,
                                                                      alleys to private parties. The price is determined
expendable trusts, or major capital projects
                                                                      by fair market value.
requiring separate accounting because of legal or
regulatory provisions or administrative action.                       Vehicle Fuel Tax: A tax imposed on the privilege
                                                                      of using vehicle fuel purchased or used within the
Transfers-in: The residual funding available to
                                                                      Chicago City limits. The tax rate is $0.05 per gallon.
transfer into the Corporate Fund once obligations
                                                                      Authorization: Municipal Code 3-52-020.
have been met within other fund sources.
                                                                      Vehicle Sticker Fee: See Wheel Tax License
Te l e c o m m u n i c a t i o n s Ta x : S e e S i m p l i f i e d
Telecommunications Tax                                                Wheel Tax License: An annual fee imposed on
                                                                      the privilege of operating a motor vehicle within
Use Tax for Nontitled Personal Property: A tax
                                                                      the City of Chicago that is owned by a resident
imposed on the privilege of using in the City of
                                                                      of the City of Chicago. The fee is $75 for smaller
Chicago nontitled tangible personal property
                                                                      passenger automobiles and $120 for larger
which is purchased at retail from a retailer located
                                                                      passenger automobiles. The fee varies for other
outside the City. The tax rate is 1% of the property’s
                                                                      classifications.
selling price. Authorization: Municipal Code 3-27-
030.
          City of Chicago
         R I C H ARD M . DALEY, M AYOR



Office of Budget and Management
    E UGE N E L. M UNI N , BUDGET DI RECTOR

								
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