C I T Y O F C H I C AG O

2024 BUDGET
FORECAST

CHICAGO
M AYO R B R A N D O N J O H N S O N
CITY OF CHICAGO

2024
BUDGET
FORECAST

MAYOR BRANDON JOHNSON

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L E T T E R F R O M T H E M AY O R

Dear Fellow Chicagoans,

It is my honor to share the City of Chicago’s 2024 Budget Forecast—a financial outlook of the City’s revenues,
expenditures, and overall fiscal stability. This forecast provides the foundation upon which we can begin building a
budget that delivers a better, stronger, safer Chicago.

The 2024 Budget Forecast also presents a significant challenge for our city, one that demands our consideration and
strategic action. We face a projected $538 million budget gap for the 2024 fiscal year that must be addressed in order
to invest in the betterment of Chicago and the lives of our residents. Additionally, the Federal Reserve’s tightening
of monetary policy to confront inflation produces headwinds for the local economy and government revenues. I am
committed to finding solutions for these challenges that prioritize the needs of our people.

My administration’s approach to addressing the budget gap will be grounded in collaboration. My time as Mayor thus far
has been marked by a dedication to open dialogue and engaging various stakeholders to tackle our shared challenges.
This collaborative spirit will continue guiding my administration as we put forth a budget that invests in people and
meets our obligations, without breaking the backs of working families.

On my inauguration day, I told the city that I wanted to re-route the rivers of prosperity to the banks of disinvestment so
that no one in the greatest city in the world goes thirsty. This effort will take time, and it will require our partnership. Let
us not be discouraged by the obstacles ahead, but hopeful about the vitality and hope we can restore across Chicago
by working together.

Sincerely,

Mayor Brandon Johnson

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TABLE OF CONTENTS

Disclaimer and Advice to Readers............................................................................. 5

Executive Summary.........................................................................................................7
Financial Forecast........................................................................................................... 9
Introduction................................................................................................................ 9
Methodology............................................................................................................. 9
General Economic Considerations...................................................................... 9
General Expense Conditions................................................................................ 11
Corporate Fund Year-End Estimates.................................................................. 12
Corporate Fund Projection................................................................................... 13
Outlook for Corporate Fund................................................................................. 16
Outlook for Special Revenue Funds.................................................................. 18
Outlook for Enterprise Funds............................................................................... 19
Pension.....................................................................................................................20
Debt...........................................................................................................................22
Appendices.....................................................................................................................25
Historical Review....................................................................................................25
Asset Lease and Concession Reserves............................................................ 41
Capital Investments............................................................................................... 42.
Tax Increment Financing...................................................................................... 43
Property Tax............................................................................................................. 44
Glossary........................................................................................................................... 47
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DISCLAIMER AND ADVICE TO READERS

The City of Chicago (“City”) is pleased to present this Budget Forecast. The purpose of this document is to provide
general information about the history and future of major components of the City’s overall finances and City budget.
Information is presented as of August 2023.

Throughout this document, specific items of revenues and/or expenditures are grouped together with other items of
revenue and/or expenditure for purposes of presentation. The manner in which such items are grouped and labeled is
consistent with the groups and labels in the City’s annual appropriation ordinance and not in the City’s audited Annual
Comprehensive Financial Report (“ACFR”). Therefore, the manner of grouping and labeling herein may not match the
manner in which such revenues and/or expenditures are grouped and labeled in the ACFR.

This discussion includes forward-looking statements based on current beliefs and expectations about future events.
Those events are uncertain and do not take into account events that may alter actual outcomes; their outcome may
differ from current expectations which may in turn significantly affect expected results.

Where information is presented that has come from sources other than the City, the City presents that information only
for convenience of the reader. Specifically, the projections set forth in the pension section rely on information produced
by the Retirement Funds’ independent actuaries (unless specifically noted) and were not prepared with a view toward
complying with the guidelines established by the American Institute of Certified Public Accountants with respect to
prospective financial information. The City does not independently verify such information.

Where the tables present aggregate information, such combined information results solely from the application
of arithmetic to the data presented from the source information and may not conform to the requirements for the
presentation of such information by the Governmental Accounting Standards Board.

Readers are cautioned not to place undue reliance on the prospective financial information. Neither the City, the City’s
independent auditors, nor any other independent accountants or actuaries have compiled, examined, or performed any
procedures with respect to the prospective financial information contained herein, nor have they expressed any opinion
or any other form of assurance on such information or its achievability, and such parties (other than the City) assume no
responsibility for, and disclaim any association with, the prospective financial information.

The discussion of City revenues and debt does not include debt and associated revenues which are not reported in the
City’s ACFR, nor in the City’s annual budget. These debt and associated revenues consist of (i) conduit debt (debt issued
by the City to finance privately owned projects and repayable solely from loan repayments from the project owners) as
well as revenues received from such project owners and used to repay the conduit debt; and (ii) special assessment
bonds and the special assessments on specified properties in the City which are the sole source of repayment for such
bonds.

This Budget Forecast has not been prepared to give information for making decisions on buying or selling securities
and should not be relied upon by investors in making investment decisions. With respect to any bonds, notes, or other
debt obligations of the City, please refer to information in the City’s ordinances and notifications of sale and the related
disclosure documents, if any, or continuing disclosure filings, if any, for such bonds, notes, or other debt obligations.

The information is provided “as is” without warranty of any kind. Neither the City nor any of its agencies nor any of its
officers or employees shall be held liable for any use of the information described and/or contained in this document.

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EXECUTIVE
SUMMARY
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EXECUTIVE SUMMARY

The Budget Forecast is required by Executive Order 2023-19 to provide the City of Chicago’s residents with an analysis
that identifies the opportunities and challenges of the upcoming budget year. This is achieved through a data-driven
review of the current and future financial health of the City’s revenues and expenditures to provide the framework for
the development of the City’s Annual Budget.

The 2024 Budget Forecast discusses the City’s 2023 year-end estimates, as well as projections for 2024 to 2026 of
three revenue and expense scenarios with a base outlook, a negative outlook, and a positive outlook. These projections
are based on historical revenue and expenditure data, current economic trends and conditions, and other known
factors that are anticipated to have an impact on the City’s finances.

National and global events continue to impact Chicago’s economy as it continues its recovery from the COVID-19
pandemic and its resulting recession. These include the Federal Reserve’s tightening of monetary policy, the anticipated
end of COVID-19 economic relief programs, and the pandemic related changes in the economy that cities, including
Chicago, will continue to experience moving forward.

The City currently projects the Corporate Fund to end 2023 with total resources exceeding expenses by $61.7 million
due to improved revenue projections and cost savings. Due to cyclical expansions in economic activity, in years with
revenue collections in excess of budget, the City works to maintain fund balance reserves to mitigate future risks
and preserve financial stability. Given the current year-end estimates for certain revenues, coupled with expected
expenditure savings, the City is assigning excess resources to the Assigned Fund Balance Reserve. Assigned Fund
Balance Reserve represents one-time resources reserved for expected one-time expenditures in future years. These
include additional pension liabilities and contracts currently under negotiation.

Based on current resource and expenditure projections of existing operations, the City estimates a 2024 Corporate
Fund gap of $538 million. This gap is driven by several factors, including rising personnel, pension, and contractual
costs, as well as the cost to care for new migrants arriving to the city. The 2024 projection for these expenses assumes
salary and wages will grow based on required and estimated contractual wage and prevailing rate increases, as well
as cost of living adjustments for City employees, and updated pension contributions based on the most up to date
actuarial reports and calculations. Personnel expenditures are expected to grow by more than $214.4 million in 2024,
totaling $3,405.2 million.

The 2024 budget will mark the fifth year for the City’s Police and Fire Pensions, and the third year for the Municipal
and Laborers Pension Funds that contributions will reflect an actuarially- calculated statutorily required contribution.
2024 will also mark the second year in which the City will pay additional payments towards each of the four pensions
to reduce the long-term collective liability. Together, these payments will total $835.1 million from the Corporate Fund.
$575.6 million of this total is the actuarially-calculated contribution amount while the City is planning to make an advance
payment of $259.5 million.

Contractual services are expected to increase by $19.8 million from the 2023 budget. This is driven by expected
inflationary impacts to contract costs, as well as planned contractual increases for new and expanded information
technology services.

The City continues to consider the long-term outlook when ensuring each budget includes structural solutions to offset
future revenue and expenditure changes.

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FINANCIAL
FORECAST
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FINANCIAL FORECAST

INTRODUCTION City at the time of its release.

This section addresses the City’s 2023 year-end estimates,
2024 preliminary revenue and expense projections, and Chicago has one of the world’s most robust and diverse
three revenue and expense scenarios for the years 2025 economies with no single industry employing more than
and 2026 – with a base outlook, a negative outlook, and a 13 percent of the city’s workforce. This diversity typically
positive outlook. These projections are based on historical provides financial stability for mature industries such as
revenue and expenditure data, contemporary economic financial services, manufacturing, education, healthcare,
and expense trends and conditions, and other known and transportation and warehousing, which enables
factors that are anticipated to have an impact on the City’s the City to provide support for growing and emerging
finances. The purpose of this analysis is to ensure that businesses in sectors like technology, tourism, biotech,
the 2024 budget is formulated within the context of the and life sciences.
City’s current financial state, and with an informed view of
future conditions and the long-term fiscal consequences The economic disruption created by the COVID-19
of today’s decisions. pandemic placed a significant strain on the City’s local
economy. The recovery from the pandemic has been
The forecast focuses primarily on the Corporate Fund, industry dependent. This is apparent in the uneven
which not only accounts for many basic services provided economic growth seen through the first half of 2023.
by the City, but also has historically experienced the largest Industries related to tourism have continued on the path
disparity between revenues and expenditures. Projections towards full recovery, while others, like the real estate
for the City’s major Special Revenue and Enterprise Funds market, lag due to unfavorable economic conditions and
are included at the end of this section. a post-pandemic shift in consumer and worker behavior.

This economic forecast, and as with any forecast, can

METHODOLOGY
never fully anticipate the impact of future events, and is
The preliminary revenue and expense projections for based on information available to the City at the time of
2024 reflect the City’s budget deficit, which is any this release. Forecast scenarios range from assuming
anticipated budget imbalance between existing revenues continued economic growth and consumer spending
and expenses for that budget year. (positive scenario) to a mild economic slowdown (baseline
scenario) to a recession with an economy that is weighed
Prior to 2019, the budget deficit methodology did not down by high interest rates and a decline in consumer
define long-term liabilities for future years as structural spending (negative scenario). These assumptions are
budget imbalances. Beginning with the 2020 Budget further discussed in the 2024 Corporate Fund projection
Forecast, the methodology for projecting the budget deficit and 2025 and 2026 Corporate Fund Outlook sections.
includes known long-term liabilities such as pensions and
debt service. The Mayor’s Budget Recommendations Economy
are presented each fall with revenues and expenditures
Inflation, as measured by the Consumer Price Index for All
balanced.
Urban Consumers (“CPI-U”), rose to a four decade high of
9.1 percent in June 2022 and remained elevated through
Future years’ budget deficits included in this document are
the end of the year. Inflation has slowed through the first
projections for the City’s Corporate Fund based on various
half of 2023 but continues to pose a risk to economic
economic scenarios founded on anticipated revenues and
growth as rising prices weaken purchasing power and
expenditures. These figures assume that no substantive
reverses wage gains seen over the past few years. The
changes are made to City operations, or revenue sources.
Federal Reserve continues to target its goal of achieving
maximum employment, and a two percent rate of inflation
GENERAL ECONOMIC CONSIDERATIONS
over the longer run by increasing interest rates twice in
National and global events continue to impact Chicago’s 2023 thus far, with another rate increase anticipated this
economy as it continues its recovery from the COVID-19 fall.
pandemic and its resulting recession. These include the
Federal Reserve’s tightening of monetary policy, the This forecast’s baseline scenario does not assume that
anticipated end of COVID-19 economic relief programs, Chicago will experience a recession through 2026, but
and the pandemic related changes in the economy that does include a slowdown in economic activity towards the
cities will continue to experience moving forward. This end of 2023 and into 2024, with a slower rate of growth
economic forecast is based on information available to the resuming in 2025 and 2026.

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FINANCIAL FORECAST

Business Tourism
Business growth in Chicago increased at a steady pace Tourism plays a critical role in Chicago’s economy. While
for nearly a decade before the pandemic. In 2020, new travel- and tourism-related industries saw unprecedented
license issuance saw a steep 30.0 percent decline from losses with the cancellation of all major conferences and
the prior year as many industries that rely on in-person a near-complete halt to leisure and business travel at the
sales such as restaurants, faced operating restrictions onset of the COVID-19 pandemic, each year since 2020
and high uncertainty. 2021 and 2022 saw a rebound in has seen growth in the number of travelers to Chicago.
business license issuances and renewals. Through the According to Choose Chicago, 49 million visitors came to
first half of 2023, new business license issuance rose 32.5 the city in 2022, representing an 80 percent recovery to
percent over the same period in 2022, while renewals pre-pandemic visitor levels.
rose 32.9 percent, indicating a continued rebound in
business activity. 2023 has been a landmark year for travel in Chicago.
Local hotel revenues reached an all-time high in the first
Labor Force half of the year, with June seeing the single best weekend
Based on revisions by the Bureau of Labor Statistics (“BLS”), on record for both hotel occupancy and revenues.
the unemployment rate at the height of the pandemic in Chicago has seen record-breaking attendance at major
2020 for the Chicago metro region soared to 18.9 percent, conventions in the past year, including ProMat 2023
with record numbers of new unemployment claims. As the and the American Society of Clinical Oncologists Annual
effects of the pandemic waned and businesses reopened, Meeting. In July, Chicago hosted its first NASCAR race, the
the unemployment rate in the region fell to 4.2 percent Grant Park 220, which was the most watched NASCAR
in December 2022, with continued gradual declines seen race in NBC’s history of broadcasting the sport.
through the first half of 2023. In June 2023 the region’s
unemployment rate stood at 4.3 percent, positioning the The City expects to continue to host signature events like
year’s unemployment rate to end near the pre-pandemic the Chicago Air and Water Show, Taste of Chicago, the
low of 3.8 percent in 2019. Baseline estimates assume the Chicago Jazz Festival, the Chicago Blues Festival, and
unemployment rate will increase slightly each year from others in 2024. Additionally, Chicago will serve as the
2024 to 2026 host city for the 2024 Democratic National Convention,
which will bring tens of thousands of delegates and other
attendees to the City. McCormick Place is scheduled to

Inflation Rate Gross Domestic Product (GDP)

8.00% Actual Actual

Projected
Actual Forecast
Projected 10% Amount Typ..
GDP Growth - Chicago Metro
% Change in Infla�on (CPI)

6.00%

4.00% 0%

2.00%
-10%
0.00%
2019 Q2
2019 Q4
2020 Q2
2020 Q4
2021 Q2
2021 Q4
2022 Q2
2022 Q4
2023 Q2
2023 Q4
2024 Q2
2024 Q4
2025 Q2
2025 Q4
2026 Q2
2026 Q4
2026 Q4
2026 Q2
2025 Q4
2025 Q2
2024 Q4
2024 Q2
2023 Q4
2023 Q2
2022 Q4
2022 Q2
2021 Q4
2021 Q2
2020 Q4
2020 Q2
2019 Q4
2019 Q2

Sources: U.S. Bureau of Labor Sta�s�cs (BLS); Moody's Analy�cs, Consumer Sources: U.S. Bureau of Economic Analysis (BEA); Moody's Analy�cs, GDP
Price Index (CPI) for Chicago Metro Area for Chicago Metro Area

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FINANCIAL FORECAST

host 32 major conventions in 2024, representing 988,000 the base outlook present what are currently viewed as the
visitors, an increase of 16 percent from 2023. most likely scenario. The positive and negative outlooks
provide insight into how changes in employment, salary
Both leisure and business travel are expected to grow and wages, benefits, and other related factors could affect
toward pre-pandemic levels in 2024 as Choose Chicago, the City’s finances over the next several years.
the City of Chicago, and other stakeholders continue to
coordinate efforts to build on the momentum generated
in 2023.

GENERAL EXPENSE CONDITIONS

Personnel-related expenditures, including salaries and
wages, pensions, healthcare, overtime pay, workers’
compensation, and unemployment compensation, account
for the majority of total Corporate Fund expenditures in
recent years and is one of the largest drivers of expense
growth.

Over the past 10 years, the City’s workforce has increased

from 33,554 budgeted Full Time Equivalents (“FTEs”) in
2013 to 35,272 budgeted FTEs in 2022. While the number
of FTEs has increased slightly, the City’s overall personnel-
related costs are significantly higher than they were
ten years ago due to contractual and prevailing wage
increases, rises in healthcare costs, and growing pension
costs.

The increase in personnel expenses is primarily due to

salary increases resulting from contractual obligations
under collective bargaining agreements (“CBA”).
Approximately 90 percent of total City employees are
covered by a CBA.

Over the last ten years, the relative proportion of union

positions has increased. The City has CBAs with more
than 40 different unions. The CBAs with most of these
unions generally include cost of living increases, as well
as step increases based on years of service, resulting in
higher personnel costs year-over-year.

While personnel-related expenses are anticipated to

have the largest impact on future expenditures within the
City’s budget, non-personnel expenses, such as fuel and
other commodities, equipment, information technology,
and professional services, may be adversely impacted
by the global economy and tariffs. As it relates to energy
procurement, the City utilizes price hedging to take
advantage of favorable market pricing without sacrificing
budget certainty.

These broader expenditure factors are accounted for in

the following projections. The year-end projections and

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FINANCIAL FORECAST

CORPORATE FUND YEAR-END ESTIMATES to the Hotel Tax and the Checkout Bag Tax. The former
The City currently estimates the Corporate Fund to end is estimated to exceed budget by 8.6 percent, or $10.3
2023 with total resources exceeding expenses by $61.7 million, due to increased tourism activity; the latter is
million due to improved revenue projections and cost estimated to exceed budget by 86.1 percent, or $7.0
savings. Of these additional resources, all are planned for million, due to increased audit and enforcement activity.
the Assigned Fund Balance Reserve, discussed further
below. Recreation taxes are expected to end the year 5.1 percent,
or $16.2 million, above budgeted amounts. This increase is
The estimates provided herein reflect the year-end primarily driven by the Amusement Tax, which is expected
revenues and expenditures as of August 2023. Note that to end the year 9.1 percent, or $21.2 million above budget.
fluctuations in economic conditions could further impact Local non-tax revenue is anticipated to end 2023 below
the City’s finances, whether positive or negative. budget by 1.8 percent, or $27.6 million. This is largely
driven by a decrease in Internal Service Earnings revenue,
YEAR-END REVENUES as well as lower than budgeted revenue in other revenue
categories.
Corporate Fund resources are estimated to end the
year approximately $19.5 million above budgeted levels, Proceeds and transfers in are expected to fall below
at $5,506.8 million. This increase is attributable to an budget by 21.8 percent, or $188.7 million, in part due to a
improving economy, as well as revenues from sources restructuring of debt service that reduced the budgeted
assumed to be one-time in nature. residual distributed to the City from the Sales Tax
Securitization Corporation.
Local tax revenues are estimated to be above budget by
0.3 percent, or $5.9 million, at $2,128.8 million. Intergovernmental revenue is expected to end the year
35.4 percent, or $229.9 million over budget due to higher-
Transaction taxes are expected to fall below budgeted than-expected growth in both the State Income Tax and
amounts by 5.2 percent or $42.2 million, driven primarily the Personal Property Replacement Tax.
by the underperformance of the Real Property Transfer
Tax. This tax is estimated to end the year at 37.1 percent, or YEAR-END EXPENDITURES
$82.1 million, under budget due to a slow down of activity
in the real estate market. The Corporate Fund expenditures are currently estimated
to end the year below budget by 0.8 percent, or $42.2
Offsetting the Transaction tax’s underperformance are million.
collections from the Personal Property Lease Tax which are
estimated to exceed budgeted amounts by 6.8 percent, These estimates are based on available data as of
or $39.8 million, driven by increased enforcement activity publication and incorporate payroll trends, market pricing
and voluntary disclosures. for commodities, and known or anticipated changes or
events for the remainder of the year.
Utility taxes are estimated to end the year 0.2 percent,
or $0.8 million, below budget as a result of lower than Personnel services are expected to end the year under
budgeted revenue from the Cable Franchise Fee. budget by $48.3 million.

Transportation taxes are expected to end the year over These estimates are driven by savings due to attrition,
budget by 2.9 percent, or $10.7 million. This is largely which is partially offset by higher-than-expected
due to Ground Transportation Tax performing better than expenditures in certain areas such as overtime.
anticipated. This source is estimated to end the year 11.2
percent, or $18.6 million above budget. Offsetting this Contractual services are expected to end the year $61.1
higher than budgeted amount is the Vehicle Fuel Tax, million below budget for the year.
which is expected to end the year 11.9 percent, or $7.9
million, below budget.

Business taxes are estimated to end the year 13.5 percent,

or $17.3 million, above budget. This increase is attributable

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FINANCIAL FORECAST

CORPORATE FUND PROJECTION As in previous years, revenue and expense adjustments

The difference between resources and expenditures to close the gap are developed by the City, in consultation
anticipated by the City in the preliminary Corporate Fund with elected officials and the general public, and will be
budget estimate is the budget deficit, commonly referred presented in the Mayor’s Budget Recommendations
to as the “gap.” submitted to the City Council.

Based on current revenue and expenditure projections of

existing operations, the City estimates a Corporate Fund
gap of $538.0 million for 2024.

The following is an outline of the City’s operating revenue

and expenditure projections. These expenditure and
revenue projections assume no substantive changes to
City operations. Cost saving initiatives are not incorporated
into these estimates as the projections reflect the gap in
the City’s operating budget related to existing expenses
and revenues.

Income Statement - Corporate Fund

2023 2023
2024
BUDGET YEAR‐END
PROJECTED
AS AMENDED ESTIMATES
Revenues
Local Tax Revenue $2,123.0M $2,128.8M $2,168.5M
Proceeds and Transfers In $865.8M $677.1M $571.7M
Intergovernmental Revenue $649.6M $879.6M $878.3M
Local Non‐Tax Revenue $1,575.8M $1,548.2M $1,516.0M
Prior Year Assigned and Unassigned Available Resources $273.1M $273.1M $324.9M
Total Resources $5,487.3M $5,506.8M $5,459.3M

Expenditures
Commodities and Materials $96.4M $89.0M $105.5M
Contingencies $0.2M $0.1M $0.2M
Contractual Services $569.8M $508.7M $589.6M
Equipment $2.2M $1.8M $2.2M
Financial Costs $623.7M $628.8M $519.7M
Pension Costs $644.9M $644.9M $835.2M
Permanent Improvements $0.0M $0.0M $0.0M
Personnel Services $3,190.7M $3,142.4M $3,405.2M
Special Event Projects $51.0M $51.0M $200.0M
Specific Items and Projects $300.4M $372.2M $331.5M
Transfers and Reimbursements $6.4M $5.4M $6.5M
Travel $1.5M $0.8M $1.9M
Total Expenses $5,487.3M $5,445.1M $5,997.4M

GAP (RESOURCES LESS EXPENDITURES) $0.0M $61.7M ($538.0M)

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FINANCIAL FORECAST

REVENUE PROJECTION the 2023 budget. Personal Property Replacement Tax is

Corporate Fund resources in 2024 are projected to projected to increase 66.1 percent or $175.8 million from
decrease from 2023 budgeted amounts by 0.5 percent, the 2023 budget.
or $27.9 million, to $5,459.3 million.
Non-tax revenues are expected to decrease by $59.8
Local tax revenue is projected to increase by 2.1 percent million from the 2023 budget, or 3.8 percent, totaling
or $45.5 million from the 2023 budget. This increase is $1,516.0 million.
driven by recreation, business, and transportation taxes.
This change is mostly due to an anticipated decrease in the
Recreation taxes, driven by the Amusement Tax, are Other Revenue and Internal Service Earnings categories.
projected to grow $28.3 million, or 12.2 percent, over the
2023 budget. Business taxes, primarily comprised of Hotel The decline in Other Revenue is partially due to one-time
Tax, are expected to grow $13.9 million, or 11.6 percent, in sweeps of aging revenue accounts, while expectations
2024 from the 2023 budget. for reimbursements from intergovernmental agencies
have been revised to note expected payments for the
Transportation taxes, which were the slowest to recover upcoming fiscal year.
in 2021 and 2022, are expected to keep near 2023 levels
with a projection of $388.9 million in 2024. Proceeds and Transfers are projected to fall from the 2023
budget by $294.1 million, or 34.0 percent, to $571.7 million.
Intergovernmental revenue is expected to increase by This decrease is due to a reduction in revenue expected
$228.7 million, or 35.2 percent from the 2023 budget from the City’s Sales Tax residual, as well as no revenue
to $878.3 million, as some of the growth in Income Tax replacement funds expected from the American Rescue
and Personal Property Replacement Tax that occurred in Plan (“ARP”) for 2024.
2022 is structural and as the City continues to right size its
budget for these revenue sources. Prior year assigned and unassigned available resources
are expected to increase $51.7 million from the 2023
Income Tax is projected to increase 14.0 percent from budget.

Projected Resources - Corporate Fund: $5,459.3 Million

Transac�on Taxes Personal Property Municipal Public Transporta�on Recrea�on

14.5% Replacement Tax U�lity Tax Taxes Taxes
8.1% 7.5% 7.1% 6.3%

State Income Tax

7.9%
Proceeds and Transfers In
10.5%
Prior Year Assigned and Business Other
Unassigned Available Taxes Revenue
Resources 2.6% 2.2%
6.0%
Charges for Services
Internal Service Earnings 7.8%
9.4% Fines, Forfeitures and
Penal�es
5.6%

Licenses, Permits, and Cer�ficates = 2.1%; Chicago Sales Tax / Home Rule Retailers' Occupa�on Tax = 1.8%; Leases, Rentals and Sales = 1.8%;
Municipal Parking = 0.1%; Municipal Auto Rental Tax = 0.1%; Interest Income = 0.1%; Reimbursements for City Services = 0.0%

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FINANCIAL FORECAST

EXPENDITURE PROJECTION advance pension payment, resulting in a $190.3 million

In 2024, Corporate Fund expenditures are projected to be increase from the previous year. This is discussed further
$5,997.4 million. This is an overall increase of 9.3 percent, in the Pension section.
or $510.1 million, from the 2023 budget.
Contractual services are expected to increase by $19.8
These projections are based on the budget and actual million, or 3.5 percent. This is driven by planned contractual
expenditures, and adjusted for anticipated growth trends, increases for elections and new and expanded information
and known changes to existing expenses such as normal technology services.
increases in contractual services, commodities and
materials costs, and contractual salary increases and cost Special event projects are expected to increase by $149.0
of living adjustments. million, or 292.2%. This is driven by services associated
with new arrivals to the City from the border.
The increase is driven by several factors, including
personnel, pension and contractual services, as described
in the sections below.

One contributor to the projected expenditure increases

are personnel costs, primarily wages and other related
expenses. The projection for these expenses assumes
salary and wages will grow based on required contractual
wage and prevailing rate increases.

Personnel services are expected to grow by approximately

$214.4 million, totaling $3,405.2 million.

The increase in pension costs reflects the statutorily

required actuarially calculated contribution, as well as an

Projected Expenditures - Corporate Fund: $5,997.4 Million

Personnel Services Pension Costs Contractual Services
56.8% 13.9% 9.8%

Financial Costs Special Event

8.7% Projects
3.3%

Specific Items and Projects

5.5%

Commodi�es and Materials = 1.8%; Transfers and Reimbursements = 0.1%; (Chart may not sum due to rounding)
Equipment = 0.0%; Travel = 0.0%; Con�ngencies = 0.0%; Permanent Improvements = 0.0%

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FINANCIAL FORECAST

OUTLOOK FOR CORPORATE FUND assumption that the number of City employees will remain
The following three scenarios project budget gaps for the stable and that the costs associated with these positions
years 2025 and 2026 for the City’s Corporate Fund based will experience growth in line with long-term, historical
on different revenue and expenditure outlooks. While the trends.
City shows an increase in the gap for 2025 and 2026,
these numbers assume that no substantive changes will In this base outlook, there would be budget shortfalls of
be made to City operations, revenue, or the cost of City $986.0 million in 2025 and $1,203.9 million in 2026.
services as part of the 2024 budget that would impact
future budgets. Forecasts for the economic contraction NEGATIVE OUTLOOK
vary and are influenced by assumptions about inflation The pessimistic outlook represents a scenario in which City
and its impact on consumer confidence and spending. finances are affected by unfavorable economic conditions.
The City incorporated assumptions of a slight economic This scenario includes projections of negative growth in
slowdown starting towards the end of 2023 and into economically sensitive revenues, with the assumption that
2024. 2025 and 2026 are expected to see slower growth. current economic uncertainties will lead to a sharp decline
in current year corporate fund revenue collections, see
The majority of the projected expenditure increases are muted growth in 2025 before noting another decline in
related to personnel and pension costs. The personnel collections in 2026.
assumptions account for required contractual salary and
prevailing rate increases for current collective bargaining Expenditures in this scenario grow at a significantly
agreements as well as certain assumed salary and wage higher rate. Under this outlook, total Corporate Fund
growth for collective bargaining agreements under expenditrues are projected to be $6,496.2 million and
negotiation. $6,785.4 million in 2025 and 2026, respectively. The
negative outlook assumes an increase in spending over
The projected revenue forecasts vary based on the the next several years. In this scenario, City spending
assumptions outlined below. All three scenarios anticipate would continue to outpace revenues. Most expenditure
varying economic growth assumptions over the period of categories are assumed to grow at historically higher
the forecast. The projected gap in each of the scenarios rates, with personnel being the most significant driver.
highlights expenditure growth relative to revenue growth.
In this negative outlook, there would be budget shortfalls
BASE OUTLOOK of $1,532.2 million in 2025 and $1,904.2 million in 2026.
The base outlook projects a decline in Corporate Fund
revenue in 2024, but an expansion starting 2025, with POSITIVE OUTLOOK
total revenues increasing by 1.6 percent over the 2024 The positive outlook assumes a more optimistic outlook,
estimates to $5,134.5 million. This scenario assumes with economic conditions improving as concerns over
growth will continue into 2026, with a 1.2 percent increase rising inflation fade and consumer spending drives
to $5,281.2 million. The baseline scenario assumes each revenue collections. The positive outlook projects slow,
year will use $66.2 and $66.8 million respectively from but continued growth over the three-year forecast period.
prior year fund balance. Total Corporate Fund revenues are expected to be
$5,347.3 million in 2025, and $5,371.3 million in 2026.
Corporate Fund expenditures are projected to outpace
revenue growth during this period, due to growth in wages In this positive scenario, the City would have greater
and other personnel-related costs, as well as increasing control over expenditures. In particular, the personnel-
pension obligations. related costs would grow at a rate lower than the base
outlook, resulting in total projected expenditures of
In 2025, the projected expenditures reach $6,269.4 $6,099.8 million in 2025 and $6,227.9 million in 2026.
million, and in 2026, expenditures are projected to
increase to $6,551.9 million. In this positive outlook, there would be budget shortfalls
of $686.3 million in 2025 and $789.8 million in 2026.
Most non-personnel expenditures are assumed to grow
at historical average rates. Salaries and wages, along
with healthcare, make up the largest portion of the City’s
operating budget. The projections are based on the

16
BACK TO TOC 2 0 2 4 B U D G E T F O R E C A S T
FINANCIAL FORECAST

Outlook for Corporate Fund

$0.0M

($200.0M)

($400.0M)

($600.0M)

($800.0M)

($1,000.0M)

($1,200.0M)

($1,400.0M)

($1,600.0M)

($1,800.0M)

($2,000.0M)

2023 Budget 2024 2025 2026

Base $0.0M ($538.0M) ($986.0M) ($1,203.9M)
Posi�ve $0.0M ($538.0M) ($686.3M) ($789.8M)
Nega�ve $0.0M ($538.0M) ($1,532.2M) ($1,904.2M)

Gap History – Corporate Fund

$0.0M

($200.0M)

($400.0M)
($538.0M)

($600.0M)

($800.0M)

($1,000.0M)

($1,200.0M)

($1,400.0M)

($1,600.0M)

($1,800.0M)

($2,000.0M)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Gap calcula�ons as of 2020 reflect the new methodology as described in this document.

Historical Projected

17
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FINANCIAL FORECAST

OUTLOOK FOR SPECIAL REVENUE FUNDS The City anticipates revenue from the sale of vehicle
The City’s current 911 surcharge of $5 per month for wireless stickers and other revenues in the Vehicle Tax Fund to end
and landline connections allows the City to fully fund the the year at 24.7 percent, or $61.7 million, below budgeted
City’s 911 operations as well as invest in a new 911 system expectations due to lower than budgeted vehicle sticker
using surcharge funds. sales and transfers into the fund. This downward adjustment
is expected to serve as a new baseline for future years.
The 2023 year-end estimate for revenues from this
surcharge is 8.2 percent, or $14.7 million, below budgeted
expectations. Revenues are expected to steadily grow from
2024 to 2026 due to increased enforcement activity.

Motor Fuel Tax Fund revenues are projected to end 2023

at budget at $122.6 million. This fund is expected to see an
increase in the State’s transfer from its motor fuel tax fund.
We expect these transfers to match our growth expectations
for the City’s vehicle fuel tax through 2026. The decline in
total resources in 2024 is due to prior year fund balance
assumed spent in 2023.

Chicago’s festivals and events continue to attract visitors to

the City. The Special Events and Municipal Hotel Operators’
Occupation Tax Fund is expected to end the year at 6.6
percent, or $2.9 million, above budget. The outlook for
growth in tourism, convention, and business travel over the
three-year forecast period reflects a return to pre-pandemic
levels and growth.

Outlook for Special Revenue Funds

Emergency Communica�ons Fund 2023 YE Est $164.2M

2024 $167.2M

2025 $170.6M

2026 $174.1M

Motor Fuel Tax Fund 2023 YE Est $122.6M

2024 $116.0M

2025 $118.8M

2026 $121.7M

Special Events and Municipal Hotel 2023 YE Est $47.1M

Operators' Occupa�on Tax Fund
2024 $51.6M

2025 $53.7M

2026 $54.7M

Vehicle Tax Fund 2023 YE Est $188.3M

2024 $192.6M

2025 $194.4M

2026 $197.9M

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FINANCIAL FORECAST

OUTLOOK FOR ENTERPRISE FUNDS

WATER AND SEWER FUNDS
The year-end estimate for Water Fund revenue is $931.5
million and $463.4 million for Sewer Fund revenue.
Revenues to the Water and Sewer Funds are expected to
end the year under budget in 2023, then increase over the
next three years. These three-year projections account for
collection loss and current trends in water usage, as well
as anticipated increases in water rates.

AVIATION FUNDS
Estimates for the O’Hare and Midway International Airport
Funds anticipate that revenue is set at a level necessary
to pay debt service and support the operations of the
airports. The year-end estimate for 2023 Midway Fund
revenue is $356.7 million and $1,588.5 million for O’Hare
Fund revenue. The City projects continued growth in its
forecast as the airports move forward with large scale
capital projects and other improvements necessary to
accommodate increased tourism and business travel.

Outlook for Enterprise Funds

Midway Airport Fund 2023 YE Est $356.7M

2024 $390.5M

2025 $401.5M

2026 $410.3M

O'Hare Airport Fund 2023 YE Est $1,588.5M

2024 $1,742.6M

2025 $1,791.4M

2026 $1,830.8M

Sewer Fund 2023 YE Est $463.4M

2024 $441.1M

2025 $400.6M

2026 $434.8M

Water Fund 2023 YE Est $931.5M

2024 $949.5M

2025 $921.2M

2026 $945.4M

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FINANCIAL FORECAST

PENSION the funding formula for the City’s MEABF and LABF was
The City’s employees are covered under four defined revised in 2017 to establish a five-year period of increasing
benefit retirement plans established by State statute and fixed contributions between 2017 and 2021, after which
administered by independent pension boards. These the City’s annual payment will be based on an actuarially
plans are the Municipal Employees’ Annuity and Benefit calculated contribution to bring the two funds to a 90
Fund (“MEABF”), the Laborers’ Annuity and Benefit Fund percent funded ratio by 2058.
(“LABF”), the Policemen’s Annuity and Benefit Fund
(“PABF”), and the Firemen’s Annuity and Benefit Fund Historically, the City’s pension contributions have been
(“FABF”). made primarily from the proceeds of an annual property
tax levy for each fund; however, State law also allows for
State statute mandates the payments to the City’s four proceeds from other legally available funds, in lieu of a
pension funds. Prior to pension reforms in 2015 and property tax levy to make contributions to a pension fund.
2017, State law required the City to contribute a statutory
multiple of the amount contributed to each pension fund The 2022 budget included the final year of increased
by the employees who were members in that fund two statutory contributions for the MEABF and LABF. A
years prior. This funding formula did not adjust for changes dedicated tax on water-sewer usage was passed by the City
in benefits or changes in the funding level of each pension Council in 2016 to pay for the increased contributions to the
fund resulting in a City contribution that did not adequately MEABF through 2021. In 2018, the City Council increased
support the pension funds. The City’s 2014 budget was the 911 surcharge to generate sufficient revenue to pay for
the final year the City’s employer contribution for all four all eligible 911 operations and emergency preparedness
pension funds was based on this statutory multiplier costs. This allowed Corporate Fund resources previously
calculation and totaled $478.3 million to all four pension appropriated for 911 operations to be dedicated to other
funds. Corporate Fund expenses, including pensions. In 2022,
both MEABF and LABF moved to actuarially calculated
In 2015, the State passed a new funding formula for the contributions.
City’s PABF and FABF, establishing five years of increasing
fixed contributions set in statute between 2015 and 2020, In 2022, the City also adopted the Pension Management
after which the City’s annual payment is based on an Policy which would ensure advance pension payments
actuarially calculated contribution designed to bring the be made in addition to the statutory contributions already
two funds to a 90 percent funded ratio by 2055. Similarly, budgeted for. This advance payment prevents further

Historic and Projected Pension Contributions

$2,788.7M
$2,763.4M
$2,748.9M

$2,741.9M
$2,610.2M
$2,275.9M
$1,815.2M
$1,679.8M
$1,308.5M
$1,187.5M
$1,029.0M
$848.5M
$798.0M
$476.3M

$479.5M

$478.3M
$457.0M

$454.9M

$458.9M

$450.5M
$421.7M
$408.2M

$398.0M
$382.9M

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
PABF FABF MEABF LABF

1) The historic contribu�ons presented in this chart differ slightly from amounts presented in previously published documents as a result of differences in the accoun�ng
documenta�on of these contributors. The 2015 and 2016 MEABF and LABF amounts reflect a revised employer contribu�on amount made by the City a�er P.A. 98-641 was declared
uncons�tu�onal by the Illinois Supreme Court in 2016. All other years, including 2022, represent the amounts found in the annual appropria�on ordinance.
2) The projected contribu�ons from 2024 through 2027 for all pension funds are based on the December 31, 2022 Actuarial Valua�on Reports. These projec�ons may shi� over �me
based on investment returns and other pension fund changes as the City gets closer to making actuarially determined contribu�ons.
3) The City established the Advance Pension Funding Policy in 2023. The Total Contribu�ons include advanced payments of $242 million in 2023, $307 million in 2024, $245 million in
2025, $212 million in 2026, and $181 million in 2027. Future year advanced payment amounts will be revised based on the most recent data available at the �me.

20
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FINANCIAL FORECAST

growth of the City’s unfunded pension liabilities. In

2023, $242 million of the City’s total $2.6 billion pension
contributions were advance payments.

In 2024, $2.7 billion in pension contributions are expected

across all funds, $306.6 million of which are advance
payments. The 2024 budget marks the fifth year of
actuarially calculated contributions from the City to the
PABF and FABF. This will increase the City’s total pension
contribution for the two funds by approximately $73.6
million from the $1.4 billion budgeted in 2023.

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FINANCIAL FORECAST

DEBT the City’s right, title, and interest in Sales Tax revenues
Long-Term Debt collected by the State.

Long-term debt is used to finance infrastructure projects in Short-Term Debt

City neighborhoods including street and alley construction
and improvements, lighting, sidewalk replacement, curb In addition to the long-term debt discussed above, the City
and gutter repairs and replacement, and transportation issues certain types of short-term debt to address various
improvements, including street resurfacing, bridge operating, liquidity, and capital needs.
rehabilitation and traffic safety improvements.
General Obligation Short-Term Borrowing Program has
General Obligation Debt is backed by the full faith and credit historically been used by the City for working capital in
of the City. The City has three types of General Obligation anticipation of receipt of other revenue to fund capital
Bonds (“G.O. Bonds”) outstanding: 1) Tax Levy Bonds for projects, debt refinancing or restructuring, and to pay
which an annual property tax levy has been established noncapital expenditures, such as settlements and
to make payments; 2) Alternate Revenue Bonds for which judgments or retroactive payment of employment salaries
an annual property tax levy has been established but is and wages. The City currently has two facilities in place
annually abated if certain other revenues are available that under the General Obligation Short-Term Borrowing
year to make payments; and 3) Pledge Bonds for which program for capital purpose. Both lines of credit have
an annual property tax levy has not been established and agreements in place up to $225 million ($450 million total).
payments are appropriated from other sources of revenue Neither line of credit currently has an outstanding balance.
other than property taxes.
Water and Sewer Systems Commercial Paper Notes and
Water and Wastewater bonds are secured by revenues Line of Credit Notes can be authorized for the purposes
of the Water and Sewer Systems, respectively, and are of financing or refinancing capital improvements to the
primarily issued to fund capital projects for such systems. Water and Sewer Systems or providing funds to meet
Additionally, the City periodically applies for and receives the cash flow needs of the respective system; there are
funding from the Illinois Environmental Protection Agency no programs currently in place and there are no notes
State Revolving Loan Funds Program. The City has also currently outstanding.
applied for and intends to receive funding from the
United States Environmental Protection Agency Water Chicago O’Hare International Airport Commercial Paper
Infrastructure Finance and Innovation Act (“WIFIA”) loan Notes and Credit Agreement Notes can be used by the
program. airport for working capital in anticipation of receipt of other
revenue, to fund capital projects, and for debt refinancing
O’Hare and Midway bonds are issued to fund capital or restructuring; There are currently two Credit Agreement
improvements and are backed by general revenues Notes facilities in place at O’Hare for capital projects: (1) a
generated at the respective facility. Additionally, the City line of credit facility for up to $500 million; and (2) a line of
has issued bonds to fund capital improvements at O’Hare credit facility for up to $100 million. Neither line of credit
secured by Passenger Facility Charges and Customer facility has any amount currently outstanding.
Facility Charges (“CFC”) collected at O’Hare. CFC revenues
are also pledged to the repayment of an outstanding TIFIA Chicago Midway Airport Commercial Paper Notes are
loan to complete the airport transit system extension at available to support cashflow needs at Midway, to fund
the new O’Hare multi-modal facility. capital projects, and for debt refinancing or restructuring.
Midway currently has a Commercial Paper Notes program
Sales Tax revenues were purchased by the Sales Tax in place for up to $100 million. There is $31 million in notes
Securitization Corporation (“STSC”) after it was organized currently outstanding.
by the City in 2017 for the limited purpose of purchasing
certain Sales Tax revenues and issuing bonds, notes, or
other obligations for the benefit of the City. Bonds issued
by the STSC beginning in 2017 were applied by the City
to refund outstanding City of Chicago Sales Tax revenue
bonds as well as certain outstanding G.O. Bonds for
debt service savings. In exchange, the STSC was given

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FINANCIAL FORECAST

Outstanding Long-Term Debt

Budget Year
2013 $21,384.7M
2014 $22,839.4M
2015 $22,603.5M
2016 $23,275.8M
2017 $23,475.3M
2018 $26,553.8M
2019 $25,793.8M
2020 $25,342.4M
2021 $25,685.6M
2022 $26,046.4M
2023 $26,999.7M
2024 $26,127.2M
2025 $25,202.3M
2026 $24,242.3M

G.O. Tax Levy Midway Revenue G.O. Alternate Revenue G.O. Pledge
O'Hare Revenue Sewer Revenue Sales Tax Revenue TIF
Water Revenue Sales Tax Securi�za�on Motor Fuel Tax Revenue

Long-Term Debt Service Payments

Budget Year
2013 $1,295.7M
2014 $1,406.3M
2015 $1,544.8M
2016 $1,567.2M
2017 $1,657.8M
2018 $1,710.8M
2019 $1,772.2M
2020 $1,752.3M
2021 $1,451.4M
2022 $1,738.1M
2023 $2,049.4M
2024 $2,149.0M
2025 $2,141.7M
2026 $2,147.0M

G.O. Tax Levy Midway Revenue G.O. Alternate Revenue G.O. Pledge
O'Hare Revenue Sewer Revenue Sales Tax Revenue TIF
Water Revenue Sales Tax Securi�za�on Motor Fuel Tax Revenue

23
BACK TO TOC

APPENDICES
BACK TO TOC 2 0 2 4 B U D G E T F O R E C A S T
APPENDICES

HISTORICAL REVIEW return, the City received the proceeds of bonds issued
This section provides a 10-year review of the revenues by the STSC as well as a residual certificate. Sales Tax
and expenditures in the City’s Local Funds, beginning with revenues received by the STSC are paid first to cover
the Corporate Fund. the STSC’s operating expenses and debt service on the
STSC’s bonds. All remaining Sales Tax revenues are then
CORPORATE FUND - HISTORICAL REVIEW paid to the City as the holder of the residual certificate.

Corporate Fund Revenue Prior year available resources are the result of savings
Corporate Fund revenues are divided into five broad and sustainable revenue growth, along with spending
categories including local tax revenue, intergovernmental controls and other efficiencies, resulting in healthy growth
tax revenue, local non-tax revenue, proceeds and of the Corporate Fund balance, referred to as prior year
transfers, and prior year available and unassigned assigned and unassigned available resources. In 2022,
available resources. the City budgeted $65.2 million of prior year available
resources.
Local tax revenue consists of taxes collected by the City,
including utility, transportation, transaction, recreation, Corporate Fund Expenditures
and business taxes. In 2022, local tax revenue made Corporate Fund expenditures are reported as a major
up approximately 39.1 percent of total Corporate Fund governmental fund within the general fund in the City’s
revenues. Beginning with the 2020 budget, the City basic financial statements. Overall, Corporate Fund
added collections from the City’s 3.0 percent excise tax as expenditures totaled $4.8 billion in 2022. This report
well as a distributive share of State cannabis tax revenues. breaks down these expenditures into the three broad
categories of personnel, non-personnel, and other.
Intergovernmental tax revenue totaled 18.0 percent of
Corporate Fund revenues in 2022 and includes the City’s Personnel expenditures represent a significant majority of
share of State Income Tax, Personal Property Replacement City expenses. These expenditures include employee pay,
Tax, and Municipal Auto Rental Tax. Prior to 2018 and benefits, workers’ compensation, and the City’s Corporate
the creation of the Sales Tax Securitization Corporation Fund pension allocation. In 2022, personnel expenditures
(“STSC”), the City’s share of state-collected Sales Tax was represented approximately 72.4 percent of the City’s
included in this revenue category. Corporate Fund expenditures.

Local non-tax revenue consists of licenses, permits, Non-personnel expenditures accounted for 18.3 percent
services, fees and fines, proceeds from land and materials, of Corporate Fund expenditures. This category includes
sales and leases, and transfers to the Corporate Fund contractual services, refunds, rebates, legal costs, utilities,
from the City’s Special Revenue and Enterprise Funds commodities, delegate agencies, employee travel, and
for services provided. Local non-tax revenue totaled 25.1 contingent expenses. This category also encompasses
percent of Corporate Fund revenues in 2022. the City’s payments for settlements and judgments. The
City has historically used a combination of Corporate Fund
Proceeds and transfers consist of amounts transferred and Enterprise Fund resources, as well as bond proceeds,
into the Corporate Fund from outside sources. In 2022, to cover these costs.
this revenue source totaled 17.9 percent of Corporate
Fund revenues. Other expenditures totaled $882.1 million in 2022, or
approximately 9.2 percent of the total. These expenses
The City’s revenue from most state and local sales taxes include operating transfers to other funds, cash match for
appears in the budget as a transfer, since the creation of grants, financing costs, and indirect costs.
the STSC, in 2017. This revenue securitization structure
was developed because of legislation passed by the Illinois The City maintains a segregated fund to support the
General Assembly, allowing all home rule municipalities to maintenance and operations of the Chicago Public Library
create a special purpose corporation organized for the (“CPL”) system. Revenue to this fund is primarily generated
sole purpose of issuing bonds paid for from revenues from a dedicated property tax levy; however, the Corporate
collected by the State. In December 2017, the City entered Fund has historically subsidized the difference between
into a sale agreement (“Agreement”) with the STSC. Under property tax revenues and library expenditures. In 2022,
the Agreement, the City sold to the STSC the City’s rights this subsidy totaled $3.3 million.
to receive Sales Tax revenues collected by the State. In

25
 Corporate Fund - Revenue
BACK TO TOC

$969.4M

$5,430.2M
$1,364.2M

$5,226.7M
25.1% 17.9%

$4,038.5M

$3,854.2M

$3,694.8M

$3,675.7M

$3,636.2M

$3,520.5M

$3,261.3M

$3,128.8M
$979.2M $2,117.3M
18.0% 39.0%
Local Tax Revenue
2 0 2 4

Local Non-Tax Revenue

Intergovernmental 2022
Proceeds and Transfers
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Budgeted Prior Years’ Surplus and Reappropria�ons

Transac�on Taxes U�lity Taxes and Internal Service Earnings Fines, Forfeitures and Proceeds and Transfers
14.8% Fees 9.0% Penal�es 17.9%

26
B U D G E T

8.0% 5.7%
APPENDICES

Charges for Services Licenses, Permits and

7.3% Cer�ficates

Other Revenue
F O R E C A S T

1.9%
Transporta�on Taxes Recrea�on Taxes Business Taxes Personal Property Replacement Tax State Income Tax
6.1% 5.8% 2.6% 10.3% 7.6%

City Sales Tax

1.7%

Leases, Rentals & Sales = 0.3%; Municipal Enterprises = 0.1%; Municipal Auto Rental Tax = 0.1%; Reimbursements for City Services = 0.0%
 Corporate Fund - Resources

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Local Tax Revenue Municipal Public U�lity Taxes and Fees Electricity Taxes $189.2M $186.6M $182.8M $190.1M $183.7M $189.4M $184.7M $180.0M $183.4M $182.7M
Natural Gas Use and Occupa�on Tax $122.1M $153.3M $119.7M $111.1M $124.7M $128.6M $128.3M $114.4M $134.3M $165.4M
Telecommunica�on Taxes $119.4M $106.1M $105.5M $103.6M $101.9M $87.4M $77.6M $73.0M $66.8M $63.1M
BACK TO TOC

Cable Television Fees $26.2M $27.5M $29.8M $29.6M $28.7M $26.7M $26.1M $24.0M $23.5M $21.6M
Total $456.9M $473.5M $437.8M $434.4M $439.0M $432.1M $416.7M $391.4M $408.0M $432.9M
City Sales Tax City Sales Tax / HROT $267.6M $285.8M $308.9M $308.1M $229.9M $57.0M $63.7M $58.7M $77.7M $93.9M
Total $267.6M $285.8M $308.9M $308.1M $229.9M $57.0M $63.7M $58.7M $77.7M $93.9M
Transac�on Taxes Real Property Transfer Tax $141.9M $157.2M $191.1M $197.1M $161.7M $175.5M $152.4M $130.3M $184.1M $196.4M
Personal Property Lease Transac�on Tax $140.2M $152.6M $192.5M $259.9M $265.7M $295.4M $328.7M $344.1M $491.1M $602.3M
Motor Vehicle Lessor Tax $6.2M $6.4M $6.7M $6.6M $6.8M $6.6M $6.7M $3.0M $4.1M $5.2M
Total $288.4M $316.2M $390.3M $463.6M $434.2M $477.5M $487.8M $477.5M $679.4M $803.9M
Transporta�on Taxes Parking Garage Tax $124.4M $126.5M $131.5M $134.5M $135.4M $134.0M $144.1M $65.4M $104.6M $133.2M
Vehicle Fuel Tax $49.1M $48.2M $49.3M $53.0M $54.2M $53.7M $54.1M $34.1M $54.9M $57.0M
Ground Transporta�on Tax $9.1M $10.4M $17.1M $59.6M $85.4M $119.4M $138.8M $94.4M $96.2M $142.9M
Total $182.5M $185.1M $197.9M $247.1M $275.0M $307.1M $337.0M $193.9M $255.7M $333.2M
Recrea�on Taxes Amusement Tax $96.7M $112.9M $145.7M $163.6M $172.6M $195.5M $196.5M $104.3M $159.1M $233.2M
Automa�c Amusement Tax $0.6M $0.6M $0.5M $0.5M $0.4M $0.4M $0.4M $0.4M $0.3M $0.3M
2 0 2 4

Boat Mooring Tax $1.3M $1.3M $1.4M $1.3M $1.3M $1.8M $1.1M $1.0M $1.5M $1.5M
Liquor Tax $32.0M $32.1M $33.7M $33.1M $32.6M $33.0M $32.0M $27.5M $29.8M $29.7M
Cigare�e Tax $16.3M $24.0M $22.8M $23.1M $21.3M $21.3M $19.8M $20.8M $17.4M $16.5M
Non-Alcoholic Beverage Tax $21.6M $22.2M $22.9M $24.4M $24.3M $27.0M $25.3M $22.2M $25.9M $27.9M
Off Track Be�ng Tax $0.6M $0.5M $0.5M $0.6M $0.6M $0.5M $0.4M $0.3M $0.3M $0.2M
Cannabis Excise Tax $1.7M $5.1M $5.6M
Total $169.1M $193.7M $227.5M $246.6M $253.1M $279.5M $275.5M $178.1M $239.4M $314.9M
Business Taxes Hotel Accomoda�ons Tax $89.9M $100.4M $109.8M $113.5M $131.6M $130.4M $133.7M $25.7M $65.5M $119.6M

27
B U D G E T

Employer Expense Tax $11.3M

Foreign Fire Insurance Tax $4.6M $4.4M $6.0M $5.4M $5.6M $4.9M $0.0M $0.0M $0.0M $0.0M
Checkout Bag Tax $5.6M $6.4M $6.4M $6.3M $7.5M $19.0M
Total $105.7M $104.8M $115.8M $118.9M $142.9M $141.7M $140.1M $31.9M $72.9M $138.6M
APPENDICES

Total $1,470.2M $1,559.1M $1,678.1M $1,818.7M $1,774.1M $1,694.8M $1,720.7M $1,331.5M $1,733.2M $2,117.3M
Proceeds and Transfers Proceeds and Transfers Proceeds of Debt $450.0M
Transfers In $21.0M $39.7M $53.9M $8.0M $180.2M $627.5M $640.9M $500.5M $1,450.9M $969.4M
Total $21.0M $39.7M $53.9M $8.0M $180.2M $627.5M $640.9M $950.5M $1,450.9M $969.4M
Total $21.0M $39.7M $53.9M $8.0M $180.2M $627.5M $640.9M $950.5M $1,450.9M $969.4M
Intergovernmental State Income Tax State Income Tax $276.0M $250.3M $286.5M $254.0M $239.9M $255.0M $284.2M $321.4M $376.7M $412.4M
Total $276.0M $250.3M $286.5M $254.0M $239.9M $255.0M $284.2M $321.4M $376.7M $412.4M
F O R E C A S T

State Sales Tax (MROT) Municipal Retailers Occupa�on Tax $316.1M $334.5M $356.9M $366.4M $270.5M
Total $316.1M $334.5M $356.9M $366.4M $270.5M
Personal Property Replacement Tax Personal Property Replacement Tax $32.9M $27.8M $50.5M $159.7M $148.3M $137.4M $185.6M $165.8M $370.7M $559.8M
Total $32.9M $27.8M $50.5M $159.7M $148.3M $137.4M $185.6M $165.8M $370.7M $559.8M
Municipal Auto Rental Tax Municipal Auto Rental Tax $4.0M $4.2M $4.2M $4.2M $4.1M $4.1M $4.4M $2.1M $3.9M $5.0M
Total $4.0M $4.2M $4.2M $4.2M $4.1M $4.1M $4.4M $2.1M $3.9M $5.0M
Reimbursements for City Services Other Reimbursements $1.9M $2.3M $1.8M $1.9M $2.5M $3.4M $1.5M $1.4M $1.8M $2.1M
Total $1.9M $2.3M $1.8M $1.9M $2.5M $3.4M $1.5M $1.4M $1.8M $2.1M
Total $630.8M $619.1M $699.9M $786.2M $665.4M $400.0M $475.8M $490.8M $753.2M $979.2M
Local Non-Tax Revenue Licenses, Permits and Cer�ficates Alcohol Dealers $12.2M $11.6M $12.5M $12.2M $12.7M $12.5M $13.3M $10.1M $14.3M $11.8M
Business Licenses $19.0M $18.1M $19.4M $18.5M $22.3M $21.4M $25.4M $21.4M $24.3M $24.5M
Building Permits $37.8M $39.3M $43.7M $43.5M $43.2M $42.5M $40.1M $33.1M $33.0M $35.3M
Other Permits/Cer�ficates
"$0.0M" indicates amounts less than $100,000
 Corporate Fund - Resources (cont.)

Building Permits 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Local Non-Tax Revenue Licenses, Permits and Cer�ficates Other Permits/Cer�ficates $48.8M $44.9M $45.0M $48.3M $49.3M $48.1M $51.6M $39.9M $39.2M $37.7M
Prior Period Fines $5.9M $6.0M $6.2M $7.9M $6.1M $4.9M $5.5M $3.3M $4.8M $4.2M
BACK TO TOC

Total $123.6M $119.9M $126.7M $130.4M $133.5M $129.3M $136.0M $107.8M $115.6M $113.5M
Fines, Forfeitures and Penal�es Fines, Forfeitures and Penal�es $313.5M $338.3M $366.3M $318.4M $344.9M $335.9M $319.2M $230.6M $316.0M $307.6M
Total $313.5M $338.3M $366.3M $318.4M $344.9M $335.9M $319.2M $230.6M $316.0M $307.6M
Charges for Services Inspec�on $10.1M $14.4M $15.0M $13.1M $12.7M $13.1M $14.6M $11.7M $12.1M $9.6M
Informa�on $0.8M $0.7M $0.7M $1.5M $0.3M $1.1M $1.2M $0.9M $1.0M $1.0M
Safety $74.6M $90.0M $61.5M $77.3M $70.0M $73.7M $80.2M $266.5M $278.0M $344.3M
Current Expense $10.1M $5.8M $13.0M $6.3M $6.3M $4.6M $7.4M $7.9M $6.7M $7.5M
Other Current Charges $24.2M $23.7M $29.4M $32.5M $28.9M $30.2M $31.0M $30.9M $31.1M $34.6M
Total $119.9M $134.6M $119.6M $130.8M $118.2M $122.7M $134.4M $317.9M $328.9M $397.0M
Municpal Enterprises Municipal Parking $6.4M $7.3M $6.5M $7.5M $7.7M $7.8M $7.7M $7.1M $7.4M $7.0M
Total $6.4M $7.3M $6.5M $7.5M $7.7M $7.8M $7.7M $7.1M $7.4M $7.0M
Leases, Rentals and Sales Rentals and Leases $12.4M $13.5M $14.0M $13.0M $13.2M $26.5M $25.5M $6.0M $10.8M $17.4M
Sale of Land $3.5M $2.9M $3.5M $9.6M $10.8M $6.2M $0.2M $1.0M $1.1M $6.7M
Vaca�on of Streets $0.4M $5.6M $6.5M $2.2M $0.9M $2.2M $15.8M $4.1M $2.6M $1.5M
2 0 2 4

Sale of Impounded Autos $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M
Sale of Materials $2.6M $2.0M $1.4M $1.3M $1.0M $0.7M $0.4M $0.2M $1.0M $0.6M
Total $19.0M $24.1M $25.5M $26.1M $25.9M $35.7M $42.0M $11.3M $15.5M $26.2M
Interest Income Interest Income $1.4M $1.6M $0.9M $8.3M $7.0M $1.9M $31.4M $24.1M ($5.0M) ($77.6M)
Total $1.4M $1.6M $0.9M $8.3M $7.0M $1.9M $31.4M $24.1M ($5.0M) ($77.6M)
Internal Service Earnings Enterprise Funds $145.0M $163.1M $137.1M $168.4M $162.6M $171.9M $173.6M $176.4M $175.2M $182.7M
Special Revenue Funds $109.6M $88.2M $138.0M $128.5M $133.5M $51.5M $62.6M $49.6M $52.2M $52.1M
Intergovernmental Funds $34.6M $34.7M $42.0M $32.9M $37.0M $35.3M $33.6M $146.7M $145.2M $244.1M

28
B U D G E T

Other Reimbursements $17.3M $19.8M $28.4M $12.9M $14.7M $11.5M $1.5M $71.9M $12.9M $7.6M
Total $306.5M $305.7M $345.4M $342.6M $347.7M $270.2M $271.3M $444.6M $385.6M $486.6M
Other Revenue Other Revenue $39.0M $66.5M $97.6M $59.3M $71.2M $69.0M $74.9M $122.3M $125.5M $103.9M
Total $39.0M $66.5M $97.6M $59.3M $71.2M $69.0M $74.9M $122.3M $125.5M $103.9M
APPENDICES

Total $929.4M $998.0M $1,088.6M $1,023.4M $1,056.1M $972.4M $1,016.8M $1,265.7M $1,289.4M $1,364.2M
Prior Year Assigned and $77.2M $45.5M
Unassigned Available Resources Total $77.2M $45.5M
Total $77.2M $45.5M
Grand Total $3,128.8M $3,261.3M $3,520.5M $3,636.2M $3,675.7M $3,694.8M $3,854.2M $4,038.5M $5,226.7M $5,430.2M
"$0.0M" indicates amounts less than $100,000
F O R E C A S T
 Corporate Fund - Expenditures

18.3%
BACK TO TOC

$4,922.3M
$4,810.9M
$882.1M

$4,111.3M
9.2%

$3,877.8M

$3,660.8M

$3,642.1M
$444.3M

$3,510.6M

$3,439.1M
72.4%

$3,235.6M

$3,113.7M
$3,484.6M

23,852
FTEs Non-Personnel
2 0 2 4

Other
Personnel
2022
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Public Safety General Financing Requirements Finance and
51.1% 31.4% Administra�on
7.5%

29
B U D G E T
APPENDICES

Infrastructure
Services
4.4%
F O R E C A S T

Regulatory = 1.2%; Legisla�ve and Elec�ons = 1.0%; City Development = 0.5%

 Corporate Fund - Expenditures by Department

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Finance and Office of The Mayor $6.9M $6.1M $6.1M $6.6M $6.9M $7.1M $7.3M $9.8M $9.6M $10.4M
Administra�on Office of Budget and Management $1.9M $2.4M $2.2M $4.8M $3.6M $2.9M $3.0M $2.9M $2.8M $2.2M
Department of Innova�on and Technology $18.9M $23.6M $25.1M $20.1M $16.0M $19.6M $21.2M $0.6M ($0.1M) ($0.1M)
BACK TO TOC

City Clerk $2.6M $2.9M $2.9M $2.9M $2.9M $3.8M $3.6M $3.3M $3.5M $3.4M
Department of Finance $56.0M $56.0M $59.2M $61.9M $60.3M $63.2M $61.8M $58.7M $57.2M $62.1M
City Treasurer $2.2M $2.2M $2.1M $1.3M $1.4M $1.4M $1.4M $1.6M $1.7M $1.9M
Department of Administra�ve Hearings $7.4M $7.4M $7.8M $7.8M $7.9M $7.8M $7.6M $6.4M $6.9M $6.8M
Department of Law $27.7M $28.1M $27.3M $26.7M $26.7M $27.7M $28.8M $28.2M $27.5M $27.1M
Department of Human Resources $5.2M $5.0M $5.3M $5.6M $5.7M $6.0M $6.3M $6.1M $5.9M $6.7M
Department of Procurement Services $5.0M $5.7M $6.1M $5.7M $6.3M $6.4M $6.1M $5.9M $5.6M $5.4M
Department of Fleet and Facility Management $161.9M $167.5M $157.1M $186.3M $179.5M $195.5M $207.0M $218.2M $218.5M $234.3M
(Department of Revenue) $0.2M ($0.1M)
(Graphics and Reproduc�on Center) $0.0M
(Department of Fleet Management) $0.0M $0.0M $0.0M
Total $296.1M $306.9M $301.3M $329.6M $317.2M $341.2M $354.0M $341.6M $339.1M $360.4M
Infrastructure Department of Streets and Sanita�on $187.0M $195.4M $199.6M $137.6M $137.2M $147.4M $155.3M $153.8M $173.6M $177.1M
2 0 2 4

Services Chicago Department of Transporta�on $52.4M $47.3M $67.1M $35.4M $50.1M $54.4M $56.6M $51.9M $55.2M $33.9M
Department of Water Management $0.0M $0.0M
Total $239.4M $242.7M $266.8M $173.0M $187.3M $201.8M $212.0M $205.6M $228.8M $211.0M
Public Safety Office of Public Safety Administra�on $12.3M $27.5M $41.8M
Police Board $0.4M $0.4M $0.4M $0.8M $0.4M $0.4M $0.4M $1.0M $0.4M $0.5M
Independent Police Review Authority $7.6M $7.8M $7.4M $7.7M $3.2M $0.1M $0.0M
Chicago Police Department $1,300.6M $1,286.0M $1,369.7M $1,463.0M $1,498.2M $1,568.5M $1,620.2M $1,532.2M $1,622.9M $1,731.7M

30
Office of Emergency Communica�on $79.4M $82.0M $78.8M $95.2M $100.1M $26.0M $25.4M $18.4M $11.0M $9.7M
B U D G E T

Chicago Fire Department $526.3M $602.3M $563.3M $583.0M $576.3M $578.1M $604.1M $606.5M $654.1M $660.9M
Civilian Office of Police Accountability $0.0M $6.6M $11.0M $11.7M $10.6M $11.9M $12.4M
Community Commission for Public Safety and Accountability $0.4M
APPENDICES

Total $1,914.2M $1,978.5M $2,019.5M $2,149.8M $2,184.8M $2,184.0M $2,261.8M $2,181.0M $2,327.9M $2,457.2M
Community Chicago Department of Health $26.6M $25.9M $26.0M $29.4M $30.1M $30.8M $33.6M $34.7M $35.0M $48.0M
Services Commission on Human Rela�ons $1.0M $1.0M $1.0M $1.0M $1.1M $1.0M $1.0M $0.9M $0.9M $1.0M
Office for People with Disabili�es $1.1M $1.1M $1.0M $1.4M $1.4M $1.5M $1.4M $1.3M $1.3M $2.1M
Department of Family and Support Services $15.8M $45.7M $58.8M $62.2M $68.1M $79.3M $82.2M $83.2M $84.8M $93.8M
Chicago Public Library $0.1M
(Department of Senior Services) $0.0M
F O R E C A S T

(Department of Children and Youth Services) $0.0M

(Department of Human Services) $0.0M $0.0M
Total $44.5M $73.8M $86.9M $94.2M $100.7M $112.6M $118.2M $120.0M $122.1M $144.9M
City Department of Housing $0.0M $0.0M $4.0M $14.7M $9.6M $9.8M
Development Department of Cultural Affairs and Special Events $0.4M
Department of Planning and Development $20.3M $22.7M $28.0M $20.5M $13.3M $13.7M $10.1M $10.2M $10.9M $12.5M
(Department of Planning and Development) $0.0M
(Department of Zoning and Land Use Planning) $0.0M
Total $20.3M $22.7M $28.0M $20.9M $13.3M $13.6M $14.0M $24.9M $20.4M $22.3M
Regulatory Office of Inspector General
Inac�ve departments shown in parenthesis.
"$0.0M" indicates amounts less than $100,000
 Corporate Fund - Expenditures by Department (cont.)

City
Development Total 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Regulatory Office of Inspector General $2.4M $2.1M $2.4M $2.9M $4.9M $5.5M $6.0M $6.1M $7.4M $9.3M
Department of Buildings $18.8M $19.9M $21.6M $24.6M $22.1M $22.9M $22.8M $22.0M $21.3M $20.6M
Department of Business Affairs & Consumer Protec�on $16.0M $16.8M $15.6M $16.1M $16.1M $16.4M $16.6M $16.9M $17.2M $18.2M
BACK TO TOC

Office of Climate and Environmental Equity $0.0M $0.0M

Commission on Animal Care and Control $4.9M $5.3M $5.2M $5.5M $6.1M $6.5M $6.7M $6.2M $6.1M $6.3M
License Appeal Commission $0.2M $0.2M $0.1M $0.2M $0.2M $0.2M $0.2M $0.2M $0.1M $0.2M
Board of Ethics $0.8M $0.8M $0.8M $0.8M $0.8M $0.8M $0.8M $0.8M $0.8M $0.8M
(Department of Construc�on and Permits) $0.0M
(Department of Business Affairs and Licensing) $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M
Total $43.1M $45.1M $45.7M $50.1M $50.2M $52.3M $53.1M $52.2M $52.9M $55.5M
Legisla�ve and City Council $24.5M $24.6M $25.0M $25.2M $25.6M $26.0M $24.9M $25.6M $26.2M $28.7M
Elec�ons Board of Elec�on Commissioner $9.0M $12.0M $28.5M $14.9M $12.3M $15.8M $31.1M $17.4M $11.4M $18.1M
Total $33.5M $36.5M $53.6M $40.0M $37.9M $41.7M $56.0M $43.0M $37.6M $46.8M
Finance Finance General $522.7M $529.5M $637.4M $653.0M $750.7M $713.5M $808.7M $1,143.0M $1,793.5M $1,512.8M
General Total $522.7M $529.5M $637.4M $653.0M $750.7M $713.5M $808.7M $1,143.0M $1,793.5M $1,512.8M
Grand Total $3,113.7M $3,235.6M $3,439.1M $3,510.6M $3,642.1M $3,660.8M $3,877.8M $4,111.3M $4,922.3M $4,810.9M
2 0 2 4

Inac�ve departments shown in parenthesis.

"$0.0M" indicates amounts less than $100,000

31
B U D G E T
APPENDICES
F O R E C A S T
 Corporate Fund - Expenditures By Type

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Personnel Employee Pay $2,220.6M $2,304.6M $2,361.1M $2,375.7M $2,458.9M $2,438.7M $2,569.1M $2,498.5M $2,859.1M $2,674.4M
Employee Benefits $393.3M $403.5M $416.3M $401.2M $341.7M $390.1M $403.5M $470.1M $395.5M $403.1M
Pension Alloca�on $71.8M $11.6M $106.3M $107.5M $79.7M $336.9M $85.5M $329.2M
BACK TO TOC

Workers' Compensa�on $64.5M $61.7M $68.0M $64.3M $58.8M $58.6M $52.8M $66.7M $72.6M $77.9M
Total $2,678.5M $2,769.8M $2,917.2M $2,852.7M $2,965.7M $2,995.0M $3,105.1M $3,372.2M $3,412.6M $3,484.6M
Non-Personnel Contractual Services $261.0M $291.6M $322.6M $315.5M $315.0M $323.6M $391.8M $408.4M $484.4M $572.7M
Refunds, Rebates & Legal Costs $65.1M $41.3M $50.9M $115.0M $66.3M $142.1M $80.7M $141.8M $153.8M $158.8M
U�li�es $52.3M $57.9M $45.1M $61.0M $45.6M $42.1M $45.5M $36.5M $32.8M $49.0M
Commodi�es $23.4M $28.6M $48.1M $15.8M $40.7M $46.0M $48.1M $52.0M $45.4M $53.9M
Delegate Agencies $13.4M $17.7M $18.9M $21.6M $26.3M $60.6M $45.3M $54.4M $37.5M $46.9M
Employee Travel Expenses $0.9M $1.3M $1.3M $1.3M $1.4M $1.6M $1.6M $0.6M $0.7M $0.7M
Con�ngencies $0.0M $0.1M $0.1M $0.1M $0.1M $0.0M $0.1M $0.0M $0.1M $0.1M
Total $416.0M $438.5M $487.1M $530.3M $495.4M $616.0M $613.1M $693.8M $754.7M $882.1M
Other Transfers Out $7.0M $5.0M $6.5M $85.6M $142.0M $15.2M $109.4M $215.2M
2 0 2 4

Cash Matching - Grants $9.6M $9.5M $12.2M $14.8M $15.9M $19.2M $18.4M $26.2M $26.3M $25.0M
Financing Costs $2.2M $12.1M $15.0M $24.5M $20.6M $13.0M $29.0M $16.6M $511.0M $416.6M
Indirect Costs $0.4M $0.7M $1.1M $2.7M $2.5M $2.4M $2.7M $2.4M $2.5M $2.7M
Total $19.2M $27.3M $34.8M $127.6M $181.0M $49.8M $159.6M $45.3M $755.0M $444.3M
Grand Total $3,113.7M $3,235.6M $3,439.1M $3,510.6M $3,642.1M $3,660.8M $3,877.8M $4,111.3M $4,922.3M $4,810.9M

32
B U D G E T
APPENDICES
F O R E C A S T
BACK TO TOC 2 0 2 4 B U D G E T F O R E C A S T
APPENDICES

SPECIAL REVENUE FUNDS - HISTORICAL REVIEW expenses specifically related to the 911 and emergency
The City’s Special Revenue Funds are used to account preparedness activities of the Office of Emergency
for revenue from specific sources that must be used to Management and Communications (“OEMC”). Revenues
finance specific operations, such as road repairs, libraries, to this fund are reported as a nonmajor governmental fund
911 services, special events and tourism promotion. The within the City’s basic financial statements.
following six budgeted Special Revenue funds were
categorized as general fund or non-major governmental Garbage Collection Fund
funds in the City’s 2022 ACFR: Consists of the monthly Garbage Fee charged by the
City on single family homes and multi-family buildings
Vehicle Tax Fund with four units or fewer. The fund covers a portion of the
Includes revenue from vehicle sticker sales, impoundment cost of providing garbage collection services to these
fees, abandoned auto sale fees, and pavement cut households. Revenues to this fund are reported within the
fees. Vehicle Tax Fund revenues are reported as a non- general fund in the City’s basic financial statements.
major Special Revenue Fund in the City’s basic financial
statements. In addition to the funds listed above, the City budget also
identifies the following funds as Special Revenue Funds:
Motor Fuel Tax Fund
CTA Real Property Transfer Tax Fund
Revenues derived from the Motor Fuel Tax (“MFT”) are
reported as a non-major Special Revenue Fund in the Revenue for this fund is derived from the proceeds from
City’s basic financial statements. The debt service portion a supplemental tax on real estate transfers, which is
of the MFT is reported in Bond, Note Redemption and then transferred to the CTA. Revenues to this fund are
Interest. MFT Fund expenses include costs associated reported as a non-major Special Revenue fund within the
with streetlight energy, salt purchases for snow removal, miscellaneous fund in the City’s basic financial statements.
street pavement, bridge maintenance, and related
personnel costs. A total of $3 million of these funds are Affordable Housing Opportunity Fund (“AHOF”)
also transferred annually to the Chicago Transit Authority The revenue in this fund is collected through the City’s
(“CTA”) to support public transportation. density bonus program and the Affordable Requirements
Ordinance. Half of the funds are used for the construction,
rehabilitation or preservation of affordable housing, or
Special Events and Municipal Hotel Operators’ other housing programs. The other half is distributed
Occupation Tax Fund to the Chicago Low Income Housing Trust Fund, which
Includes revenues from the Municipal Hotel Operator’s meets the needs of low-income residents through annual
Occupation Tax and are used to support the promotion rent subsidies. AHOF revenues are reported as Special
of tourism, cultural and recreational activities. Revenues Revenue funds in the City’s basic financial statements.
to this fund are reported as a non-major Special Revenue
fund in the City’s basic financial statements. Neighborhood Opportunity Fund (“NOF”)
Revenue to this fund is generated from the collection of
Library Fund the Neighborhood Opportunity Bonus, which consists of
Revenue to this fund comes primarily from an annual library payments received in exchange for density bonuses that
operations property tax levy and historically, an annual allow developers to exceed zoning limits for a specific
subsidy from the City’s Corporate Fund. The Library Fund development site. Eighty percent of the revenue from
supports the maintenance and operations of the Chicago the Bonus is dedicated towards the NOF for commercial
Public Library System. Library Fund revenues are reported development and job creation in neighborhoods where
as a non-major Special Revenue Fund in the City’s basic the need is the greatest; ten percent of funding goes
financial statements. toward the Landmarks Fund to improve and maintain
landmarks throughout the City. An additional ten percent
Emergency Communication Fund of funds goes toward the Local Improvement Fund for
local infrastructure improvements within one mile of the
Revenue comes through the collection of the emergency contributing development. NOF revenues are reported as
communication surcharge (“911 surcharge”) on all billed agency funds in the City’s basic financial statements.
subscribers of telecommunications services in Chicago.
The City uses revenue from the 911 surcharge for

33
BACK TO TOC 2 0 2 4 B U D G E T F O R E C A S T
APPENDICES

TIF Administration Fund Foreign Fire Insurance Tax Fund

This fund accounts for all administrative expenses incurred Foreign Fire Insurance Tax revenues are collected by the
by the City to operate and maintain its TIF program. City and distributed to the Foreign Fire Insurance Board
per State statute.
Controlled Substances Fund
The City appropriates funds to the Controlled Substances Cannabis Regulation Tax Fund
Fund pursuant to the Illinois Controlled Substances Act. Cannabis Regulation Tax Fund revenue is generated
Funds must be used in the enforcement of laws regulating through State taxes, license fees, and other revenues
controlled substances and cannabis. derived from recreational cannabis shared with local
governments based on population.
Chicago Police CTA Detail Fund
An intergovernmental agreement between the Chicago
Police Department and CTA allows sworn officers to be
paid for providing security on CTA property during off-duty
hours through the voluntary Special Employment Program.
The CTA reimburses the City for these expenditures,
which are accounted for in this fund.

Chicago Parking Meters Fund

As a result of a 2008 75- year concession agreement on
the City’s parking meters, the City is obligated to make
reconciliation payments to Chicago Parking Meters LLC
when parking meter rates are not adjusted for consumer
price index increases and when parking spaces are
removed from service. These payments are accounted for
separately in this fund.

Human Capital Innovation Fund

Revenues to the Human Capital Innovation Fund are
assigned from a $10.4 million settlement with rideshare
companies in 2018.

Houseshare Surcharge - Homeless Services Fund

Revenues to the Homeless Services Fund are dedicated
to services for homeless families. A four percent hotel tax
surcharge assessed on vacation rentals or shared housing
units are accounted for in this fund.

Houseshare Surcharge - Domestic Violence Fund

Domestic Violence Fund revenue is generated through
the two percent Hotel Tax surcharge assessed on vacation
rentals or shared housing units. These resources fund
services for victims of domestic violence.

Foreign Fire Insurance Tax Fund

Foreign Fire Insurance Tax revenues are collected by the
City and distributed to the Foreign Fire Insurance Board
per State statute.

34
 Special Revenue - Revenues

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Vehicle Tax Fund $165.1M $188.9M $182.7M $202.0M $216.2M $195.6M $202.7M $168.6M $195.7M $191.7M

Motor Fuel Tax Fund $65.1M $78.3M $55.5M $58.3M $55.7M $57.5M $78.5M $87.1M $98.4M $115.7M
BACK TO TOC

Special Events and Municipal Hotel

$39.6M $39.8M $40.8M $44.4M $44.2M $43.1M $51.8M $15.2M $21.7M $37.3M
Operators' Occupa�on Tax Fund
Library Fund $83.6M $83.6M $84.8M $99.6M $98.2M $100.9M $110.1M $115.8M $114.8M $115.7M

Emergency Communica�on Fund $68.4M $74.8M $102.7M $101.3M $100.5M $131.2M $136.8M $141.5M $144.5M $145.0M

Garbage Collec�on Fund $54.4M $64.0M $63.0M $62.0M $57.6M $62.3M $62.1M

Grand Total $421.8M $465.5M $466.5M $560.0M $578.7M $591.5M $641.9M $585.8M $637.4M $667.4M
2 0 2 4

35
B U D G E T
APPENDICES
F O R E C A S T
 Special Revenue - Expenditures

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Vehicle Tax Fund $163.2M $182.9M $196.2M $186.9M $206.8M $203.7M $227.2M $179.6M $188.5M $214.1M

Motor Fuel Tax Fund $53.0M $82.9M $70.7M $45.5M $54.8M $62.1M $67.4M $97.8M $107.6M $106.1M
BACK TO TOC

Special Events and Municipal Hotel

$36.9M $41.9M $40.5M $47.2M $44.6M $46.5M $50.6M $25.4M $25.1M $38.2M
Operators' Occupa�on Tax Fund
Library Fund $80.2M $84.4M $85.5M $97.8M $98.1M $102.6M $107.6M $108.4M $101.3M $110.0M

Emergency Communica�on Fund $68.7M $67.0M $109.6M $96.4M $94.0M $110.6M $145.4M $132.0M $138.7M $142.9M

Garbage Collec�on Fund $59.8M $61.0M $59.4M $59.1M $65.9M $58.8M $52.9M

Grand Total $402.1M $459.1M $502.6M $533.6M $559.3M $584.9M $657.4M $609.1M $620.0M $664.2M

Does not include amounts designated for debt service.

2 0 2 4

36
B U D G E T
APPENDICES
F O R E C A S T
BACK TO TOC 2 0 2 4 B U D G E T F O R E C A S T
APPENDICES

ENTERPRISE FUNDS - HISTORICAL REVIEW Sewer Fund

The City’s Enterprise Funds support the operation, Revenues from sewer service charges provide funds for
maintenance, and capital programs of the City’s water the operation and maintenance of the Sewer System and
and sewer systems, Chicago O’Hare International Airport debt service on sewer bonds and loans. The City obtains
(“O’Hare”) and Chicago Midway International Airport sewer system operating revenues only from the users of
(“Midway”). These funds are self-supporting, in that each the sewer system. The Sewer Fund receives no share of
fund derives its revenues from charges on a residual any State or local property or income taxes. The operating
ratemaking methodology and associated user fees. The revenues from users of the sewer system do not flow
cost of capital improvements for the City’s Enterprise through the State, any State agency or any other political
Funds are included in the overall budgets of these self- subdivision, but are paid directly to the City.
supporting funds. Enterprise Fund revenues are reported
as major proprietary funds in the City’s basic financial O’Hare Fund and Midway Fund
statements. O’Hare and Midway operating revenues are comprised
of landing fees, terminal area rental/use charges, other
Water Fund rentals as well as non-airline sources, such as charges for
Revenues from the sale of the City’s water provide for the parking and revenues from concessions. The City charges
operations and maintenance of the water system and debt airlines based on a projection of revenues and recognizes
service of the water bonds. The Water Fund receives no revenues from the airlines only to the extent required to
share of any State, local property, or income taxes. The fund operating costs, including debt service.
City receives water system operating revenues only from
the users of the water system. The operating revenues
from users of the water system do not flow through the
State, any State agency or any other political subdivision,
but are paid directly to the City.

37
 Enterprise Funds - Revenue

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
0200 - Water Fund Water Service $620.5M $670.6M $750.2M $735.9M $729.6M $746.5M $717.5M $714.3M $748.6M $752.2M
Non-Opera�ng Revenues $1.0M $3.3M $1.2M $13.5M $7.1M $24.5M $21.7M $3.8M ($64.5M)
Other $16.6M $22.1M $19.2M $25.5M $29.4M $27.4M $26.9M $22.3M $27.1M $27.6M
BACK TO TOC

0314 - Sewer Fund Non-Opera�ng Revenues $2.2M $3.8M $3.9M $1.1M $4.4M $7.4M $11.7M $12.1M $2.2M $5.0M
Sewer Service $291.1M $321.1M $374.8M $367.8M $356.5M $368.2M $350.1M $333.5M $365.2M $366.9M
Capital Grants $2.5M $16.6M $6.4M $2.3M $0.0M $3.3M $0.0M $0.0M
Other $1.2M $1.1M $1.1M $1.1M $1.2M $1.5M $1.0M $0.5M $1.1M $0.8M
0610 - Midway Fund Landing Fees, Terminal Area Use Charges $90.0M $83.5M $84.6M $87.4M $95.4M $106.1M $125.4M $113.5M $138.1M $137.2M
Rents, Concessions, and Other $85.2M $86.8M $91.5M $94.8M $99.6M $100.4M $102.1M $74.3M $82.8M $95.2M
Non-Opera�ng Revenues $47.1M $51.5M $53.2M $50.7M $55.2M $54.5M $55.3M $102.7M $69.7M $78.9M
Capital Grants $5.0M $4.8M $9.3M $27.9M $31.6M $6.8M $3.4M $15.2M $5.8M $6.9M
0740 - O'Hare Fund Landing Fees, Terminal Area Use Charges $442.9M $552.4M $546.1M $635.2M $651.0M $709.9M $811.3M $639.9M $816.0M $840.3M
Rents, Concessions, and Other $274.7M $292.1M $299.2M $312.6M $325.2M $352.0M $442.2M $265.8M $329.2M $419.1M
Non-Opera�ng Revenues $189.2M $233.3M $224.5M $222.2M $256.9M $258.1M $294.2M $547.8M $334.2M $322.7M
Capital Grants $203.5M $89.0M $76.7M $70.7M $82.0M $131.0M $146.7M $151.3M $81.5M $50.8M
2 0 2 4

Grand Total $2,272.8M $2,412.1M $2,537.6M $2,650.8M $2,737.8M $2,879.3M $3,112.4M $3,018.0M $3,005.1M $3,039.1M

38
B U D G E T
APPENDICES
F O R E C A S T
 Enterprise Funds – Expenditures

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
0200 - Water Fund Administra�ve & General $21.2M $22.0M $22.1M $20.3M $13.6M $13.0M $13.0M $13.9M $14.9M $14.2M
Central Services & General Fund Reimbursements $108.7M $119.2M $129.1M $126.4M $121.7M $127.0M $124.0M $139.8M $133.1M $145.2M
BACK TO TOC

Customer Accoun�ng & Collec�on $11.6M $11.9M $14.7M $15.3M $18.2M $22.1M $27.2M $27.0M $26.5M $22.9M
Non-Opera�ng Expenses $92.3M $99.7M $106.1M $209.6M $108.3M $91.3M $97.0M $95.9M $94.0M $91.0M
Pension Expense $12.7M $12.3M $24.4M $32.1M $39.8M $44.4M $50.3M $77.3M
Power & Pumping $43.2M $43.1M $41.3M $39.6M $41.4M $41.1M $42.7M $40.7M $45.2M $45.3M
Purifica�on $60.8M $58.5M $57.1M $57.5M $60.5M $62.9M $67.8M $61.8M $62.3M $73.5M
Source of supply $0.1M $0.3M $0.2M $0.1M $0.1M $0.2M $0.4M $0.2M $0.1M $0.2M
Transmission & Distribu�on $29.5M $43.7M $37.3M $39.2M $39.6M $59.7M $71.8M $71.7M $74.8M $61.8M
Total $367.4M $398.5M $420.6M $520.4M $427.9M $449.3M $483.8M $495.4M $501.3M $531.3M
0314- Sewer Fund Administra�ve & General $24.5M $14.4M $12.3M $11.8M $12.6M $13.5M $12.4M $12.3M $13.9M $14.1M
Engineering $3.3M $3.3M $3.3M $2.2M $2.5M $3.7M $3.5M $4.8M $5.3M $6.2M
General Fund Reimbursements $32.1M $36.7M $40.0M $50.8M $47.5M $51.2M $53.7M $54.5M $55.9M $55.5M
Maintenance $23.0M $24.4M $25.3M $21.9M $24.7M $24.9M $23.0M $24.4M $25.9M $14.4M
2 0 2 4

Non-Opera�ng Expenses $68.5M $69.6M $153.9M $81.7M $81.4M $77.6M $80.0M $80.3M $83.7M $83.9M
Pension Expense $4.4M $4.4M $9.5M $12.7M $15.7M $17.1M $19.9M $29.0M
Repairs $38.9M $40.4M $42.1M $36.4M $41.9M $43.7M $41.6M $47.4M $44.1M $27.5M
Total $190.3M $188.9M $281.4M $209.2M $220.0M $227.2M $229.8M $240.8M $248.7M $230.6M
0610 - Midway Non-Opera�ng Expenses $79.4M $72.5M $84.1M $89.4M $62.6M $60.8M $69.5M $58.7M $71.6M $86.4M
Airport Fund Other Opera�ng Expenses $18.4M $14.3M $14.7M $17.1M $13.7M $15.7M $15.9M $20.9M $33.4M $13.1M
Pension Expense $6.1M $6.7M $9.5M $11.5M $13.9M $17.5M $19.1M $24.2M

39
B U D G E T

Professional & Engineering Services $19.1M $23.3M $21.0M $20.9M $24.3M $24.1M $22.1M $20.8M $22.0M $23.5M
Repairs and Maintenance $39.6M $44.2M $44.1M $48.3M $44.5M $47.3M $47.0M $43.7M $48.9M $53.1M
Salaries and Wages $44.0M $47.8M $43.3M $48.5M $48.2M $51.4M $55.6M $56.0M $57.5M $60.1M
APPENDICES

Total $200.5M $202.1M $213.4M $230.8M $202.8M $210.9M $224.0M $217.6M $252.5M $260.5M
0740 - O'Hare Airport Hilton Expenses $43.0M $20.2M $24.2M $35.6M
Fund Non-Opera�ng Expenses $315.0M $321.0M $342.2M $326.8M $348.2M $326.1M $324.4M $335.6M $427.3M $555.5M
Other Opera�ng Expenses $97.3M $113.0M $92.1M $101.4M $103.4M $115.1M $149.1M $117.3M $146.7M $132.0M
Pension Expense $25.8M $27.5M $38.7M $46.7M $56.4M $71.0M $77.1M $107.4M
Professional & Engineering Services $81.1M $88.1M $83.3M $95.6M $101.8M $111.6M $134.0M $141.0M $149.4M $172.7M
F O R E C A S T

Repairs and Maintenance $85.5M $110.9M $98.9M $104.5M $95.3M $115.0M $143.2M $145.0M $170.2M $153.5M
Salaries and Wages $162.2M $183.0M $191.8M $204.1M $206.0M $222.6M $214.1M $222.9M $219.9M $232.5M
Total $741.1M $816.0M $834.1M $860.0M $893.4M $937.2M $1,064.2M $1,052.9M $1,214.9M $1,389.3M
Grand Total $1,499.3M $1,605.4M $1,749.5M $1,820.4M $1,744.1M $1,824.5M $2,001.8M $2,006.8M $2,217.4M $2,411.8M
Non-cash expenses are excluded from this chart as there is no budgetary impact. Pension Expenses for 2014 and before were included in Salaries and Wages. See the Debt sec�on for informa�on
regarding annual debt service payments.
 Outstanding Long-Term Debt
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
G.O. Tax Levy $7,658.1M $8,436.3M $8,440.4M $9,102.4M $7,473.9M $7,579.9M $6,573.4M $5,769.8M $5,748.0M $5,406.6M $5,229.4M $5,060.5M $4,901.3M $4,740.8M
O'Hare Revenue $7,476.3M $7,466.5M $7,245.3M $6,970.6M $8,531.5M $10,318.0M $10,047.6M $9,609.6M $9,414.9M $10,567.9M $10,302.5M $10,040.4M $9,731.9M $9,409.6M
Water Revenue $1,996.9M $2,381.8M $2,391.4M $2,468.4M $2,401.0M $2,457.3M $2,497.2M $2,408.8M $2,341.4M $2,194.0M $2,490.3M $2,387.3M $2,259.3M $2,134.7M
Midway Revenue $1,412.6M $1,506.3M $1,482.9M $1,755.8M $1,755.8M $1,713.5M $1,677.0M $1,628.8M $1,574.9M $1,514.8M $1,446.3M $1,375.1M $1,300.5M $1,223.5M
BACK TO TOC

Sewer Revenue $1,369.5M $1,638.9M $1,686.2M $1,692.8M $1,861.4M $1,893.6M $1,895.5M $1,953.1M $1,885.1M $1,814.3M $2,041.0M $2,032.2M $1,961.1M $1,877.3M
Sales Tax Securi�za�on $743.7M $2,036.4M $2,638.9M $3,652.6M $4,609.0M $4,459.8M $5,419.3M $5,206.9M $5,033.8M $4,847.9M
G.O. Alternate Revenue $554.9M $514.8M $472.6M $426.4M $355.0M $216.9M $148.3M $87.4M $64.9M $49.3M $31.1M $24.8M $14.3M $8.5M
Sales Tax Revenue $554.1M $541.6M $528.5M $514.7M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M
Motor Fuel Tax Revenue $181.0M $183.8M $207.4M $234.1M $249.9M $245.4M $240.3M $173.9M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M
G.O. Pledge $101.2M $99.4M $88.3M $77.2M $75.1M $72.8M $59.6M $46.3M $39.7M $39.7M $39.7M $0.0M $0.0M $0.0M
TIF $80.1M $70.0M $60.7M $33.5M $27.9M $19.9M $16.2M $12.1M $7.7M $0.0M $0.0M $0.0M $0.0M $0.0M
Grand Total $21,384.7M $22,839.4M $22,603.5M $23,275.8M $23,475.3M $26,553.8M $25,793.8M $25,342.4M $25,685.6M $26,046.4M $26,999.7M $26,127.2M $25,202.3M $24,242.3M
2 0 2 4

Long-Term Debt Service Payments

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

40
B U D G E T

G.O. Tax Levy $367.7M $382.0M $394.7M $399.1M $452.1M $488.8M $426.9M $415.9M $133.5M $358.5M $491.5M $441.6M $434.3M $431.7M
O'Hare Revenue $432.9M $521.0M $592.6M $607.8M $620.5M $625.7M $668.0M $654.4M $617.1M $524.3M $706.3M $725.6M $768.5M $782.0M
Water Revenue $158.2M $158.7M $179.2M $184.6M $206.4M $205.1M $217.3M $211.9M $213.3M $215.9M $203.8M $237.1M $228.4M $218.3M
APPENDICES

Midway Revenue $80.4M $69.0M $91.9M $102.2M $90.4M $91.9M $99.1M $122.1M $124.7M $133.8M $138.9M $138.3M $138.1M $136.9M
Sewer Revenue $100.8M $109.4M $135.0M $126.8M $138.3M $145.5M $156.0M $154.8M $158.0M $164.1M $164.2M $161.2M $160.0M $166.8M
Sales Tax Securi�za�on $0.0M $54.7M $123.3M $121.0M $156.2M $314.2M $335.4M $392.9M $405.8M $404.7M
G.O. Alternate Revenue $67.1M $67.2M $68.3M $70.3M $97.8M $71.9M $45.7M $39.8M $26.9M $18.0M $7.9M $11.8M $6.6M $6.7M
Sales Tax Revenue $38.6M $38.6M $36.9M $39.4M $24.9M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M
Motor Fuel Tax Revenue $15.6M $12.0M $14.4M $14.3M $15.1M $15.4M $15.6M $12.4M $8.6M $0.0M $0.0M $0.0M $0.0M $0.0M
F O R E C A S T

G.O. Pledge $2.4M $25.0M $16.6M $16.1M $5.2M $5.0M $15.7M $15.2M $8.1M $1.4M $1.4M $40.4M $0.0M $0.0M
TIF $32.0M $23.5M $15.2M $6.5M $7.1M $6.9M $4.6M $4.8M $4.9M $7.9M $0.0M $0.0M $0.0M $0.0M
Grand Total $1,295.7M $1,406.3M $1,544.8M $1,567.2M $1,657.8M $1,710.8M $1,772.2M $1,752.3M $1,451.4M $1,738.1M $2,049.4M $2,149.0M $2,141.7M $2,147.0M
BACK TO TOC 2 0 2 4 B U D G E T F O R E C A S T
APPENDICES

ASSET LEASE AND CONCESSION RESERVES maintain these important reserves, the City amended the
In 2005, the City entered into a 99-year lease of the ordinance in 2012 to state that only interest generated
Chicago Skyway, under which a private company was from the fund, and not principal, must be transferred for
granted the right to operate and collect tolls from the this purpose. In addition, the City began to rebuild these
Skyway. In return, the City received an upfront payment reserves in 2012, with $40 million deposited into the
of $1.83 billion. Approximately $850 million of this amount reserves from 2012 to 2014 ($20 million deposited in 2012,
was used to pay off existing debt, including $446.3 million $15 million deposited in 2013, and $5 million deposited
to refund the outstanding Skyway bonds at the time of the in 2014) and another $30 million deposited into the
transaction. operating liquidity fund from 2015 through 2019. In 2021,
$10 million was deposited into the operating liquidity fund,
In 2009, the City entered into a 75-year concession representing $5 million deposits for 2020 and 2021.
agreement for its metered parking system, under which
a private company was granted the right to operate and
collect revenue from the parking meter system and the
City received an upfront payment of $1.15 billion.

Both of these transactions resulted in the establishment of

a long-term reserve fund, a mid-term reserve fund, and a
human infrastructure fund.

The City established a $500 million long-term reserve with

a portion of the proceeds of the Chicago Skyway lease.
The principal of this fund was intended to supplement
Corporate Fund reserves, with interest earnings to be
used for City operating expenses. These funds have been
utilized as planned - the principal balance remains $500
million and the earned interest has been transferred to the
Corporate Fund each year, with the dollar amount of the
transfer reflecting variations in interest rates.

The City established a $400 million long-term reserve with

a portion of the proceeds of the parking meter concession.
This fund was created to replace revenues that would
have been generated from parking meters by transferring
interest earnings to the Corporate Fund, with the principal
remaining intact at $400 million. However, starting in 2009,
the City began utilizing these long-term reserve funds
to subsidize the City’s operating budget. Utilizing these
funds reduced the principal balance substantially below
the initial deposit and accordingly reduced the interest
earnings generated by the fund. The original ordinance
establishing the fund directed that an annual transfer of
$20 million be made from the fund into the Corporate
Fund to replace lost meter revenue. However, in order to

Asset Lease Fund Balances

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Balance $590.2M $626.0M $624.5M $640.2M $668.3M $652.5M $714.7M $753.3M $729.7M $622.8M

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APPENDICES

CAPITAL INVESTMENTS Tax Increment Financing (“TIF”)

The City’s Capital Improvement Program (“CIP”) funds TIF is used to fund neighborhood infrastructure such
the physical improvement or replacement of City-owned as roads, lighting, libraries, and bridges, and promote
infrastructure and facilities with long useful lives, such as economic development in communities.
roads, buildings, and green spaces.
State and Federal Funds
The City creates a Five-Year CIP, producing a spending State and federal funds are predominately used by
“blueprint” based upon the most current revenue the Chicago Department of Transportation (“CDOT”)
projections and project priorities. Continued investments for bridges and roadways, the Department of Water
in infrastructure and facilities are critical to support and Management (“DWM”) for water and sewer improvements,
enhance neighborhoods, stimulate the economy, and and the Chicago Department of Aviation (“CDA”) for O’Hare
improve services. The CIP is primarily funded through the and Midway Airport improvements.
following sources:
In 2023, as part of the City’s Five-Year Capital Plan, the
General Obligation Bonds City implemented the third year of the Chicago Works
These bonds are backed by property tax revenue and are Program, which is an unprecedented $3.27 billion general
used for a variety of City infrastructure and facility projects. obligation bond funding commitment through 2024 that
invests in the City’s communities through infrastructure.
Water and Sewer Revenue Bonds Chicago Works dedicates funding to repair and replace
These bonds are backed by water and sewer user fees, roads, bridges, sidewalks, Americans with Disabilities Act
respectively, and are used for the construction and repair (“ADA”) accessible crosswalks, streetlights, traffic signals,
of water and sewer lines and related facilities. and other traditional infrastructure projects. The Chicago
Works Program priorities were developed on needs-
O’Hare and Midway Revenue Bonds based condition assessments and data-driven processes
conducted by CDOT and the Department of Assets,
These bonds are backed by airport revenues and are Infrastructure and Services. The plan leverages long-term
used to fund airfield and terminal improvements and capital infrastructure improvements to build and maintain
related facilities. The City also uses other airport operating a sustainable, inclusive, and competitive Chicago that
revenues to fund capital improvements at both O’Hare meets the current and future needs of each community.
and Midway Airport.

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APPENDICES

TAX INCREMENT FINANCING the transit system; build and improve parks; increase
Tax Increment Financing (“TIF”) is a funding tool used affordable housing; and promote neighborhood economic
to improve neighborhood infrastructure and promote development.
investment in communities across the City. The program
is governed by State law, which allows municipalities to On an annual basis, the City declares a portion of the
capture property tax revenues derived from the amount of funds in an active TIF as surplus, which is then distributed
incremental equalized assessed value (“EAV”) above the on a proportionate basis to each of the overlapping taxing
base EAV that existed when an area was designated as a districts. Surplus declaration occurs during the budget
TIF district. process and is pursuant to State law which requires that
any incremental revenues not identified as designated for
There has been a total of 185 TIF designations in Chicago eligible costs be declared as surplus.
since the start of the TIF program in 1984. The number
of active TIF districts peaked in 2011 at 163 but has since Expenditure data, categorized at a high level into financing,
declined to 124 currently active in the city. Ten TIF districts public improvement, site preparation, administration,
are nominally scheduled to expire in 2023, but the Illinois development, and job training costs, can be found online
General Assembly has authorized the extension of five in the audited annual financial reports for each TIF at
of those districts. Five other districts were previously www.chicago.gov/TIF.
extended by City Council in 2022.

TIF revenues are used to fund community projects, public

improvements, and provide incentives to attract private
investment to the area. Funds are used to build and
repair neighborhood streets, alleys, bridges, and lighting;
modernize and improve schools; construct and upgrade

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APPENDICES

PROPERTY TAX and is not general purpose revenue.

The City is one of several taxing districts reflected on a
typical Chicago property tax bill. There are hundreds The City‘s property tax levy is used to pay for debt service
of units of local governments located in whole or in and pension contributions. In 2023, the City budgeted
part in Cook County with taxing power. The major local $174.4 million in property tax revenue to fund debt
government units that have taxing power over property service payments and $1,411.9 million to fund the City’s
within Chicago include the City, the Chicago Park District, contribution to pension funds. In addition, the City levy
the Chicago Board of Education (“CPS”), Community includes amounts dedicated to the payment of bonds for
Colleges of Chicago (“Community College District No. City Colleges of Chicago. In 2023, the City’s levy includes
508”), the Metropolitan Water Reclamation District of $28.8 million dedicated to the payment of bonds issued in
Greater Chicago, Cook County, and the Forest Preserve 1999 and 2007 by the City on behalf of the City Colleges
District of Cook County. of Chicago. Historically, in a limited number of years, a
portion of the revenue from the City’s property tax levy
City Property Tax Levy was used for general operating purposes. The Library
property tax levy supports operations, debt service, and
A taxing district’s levy is the fixed amount of property tax pension contributions associated with Chicago Public
revenue that the taxing district requests for the year. While Library (“CPL”).
there are multiple taxing districts and levies reflected on
a single tax bill (City levy, county levy, school district levy, Calculating Property Tax Bills
park district levy, etc.), this section only discusses property
tax expenditures directly associated with the City’s budget Cook County administers and collects property taxes on
– the City and Library levy. Authorization of the City’s behalf of all taxing districts based on the amount of each
property tax levy occurs through bond ordinances and taxing district’s levy. For many taxing districts, including
property tax levy ordinances in connection with the City’s CPS, the levy amount is limited by State legislation that
annual appropriation ordinance. places a cap on the amount that the taxing district can
request and extend; this is called the Property Tax
Revenue from the City and Library property tax levies are Extension Limitation Law (“PTELL”). The City, however, is
used to pay debt service on general obligation debt, the not subject to this state-mandated cap on the amount that
City’s pension contributions, and for library operations. it levies. Currently, approximately 25 percent of a property
Property tax-derived revenue includes tax increment taxpayer’s total bill is allocated to the City and CPL, and
financing (“TIF”) revenue; however, TIF revenue must be approximately 55 percent is allocated to CPS and the
utilized for specific types of expenses in designated areas Chicago School Building and Improvement Fund.

Property Tax Levy

$1,734.4M
$1,709.4M
$1,632.9M
$1,539.0M
$1,446.4M $1,474.2M
$1,385.6M
$1,357.8M
$1,295.8M

$837.9M $859.5M

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Pension Debt Payments Library City Colleges Corporate Fund

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APPENDICES

The County determines the amount billed to an individual Cook County Property Tax Exemptions
taxpayer on behalf of a taxing district based on the taxing The Homeowner Exemption provides tax relief by reducing
district’s final extension, the value of all property in the the EAV of an eligible residence by $10,000. First-time
taxing district, and the value of the taxpayer’s property. applicants must have been the occupants of the property
as of January 1 of the tax year in question.
The County reassesses all property values every three
years, based on three prior years of sales. The City of The Senior Citizen Exemption provides tax relief by
Chicago’s last reassessment occurred in 2021, which was reducing the EAV of an eligible residence for seniors who
first reflected on the property tax bills paid in 2022. The own and occupy their homes (in addition to savings from
assessed value of a property is adjusted using a state the homeowner exemption).
equalizer, which determines the final value of the property
for purposes of taxation. This final value is referred to as The Senior Freeze Exemption allows qualified senior
the Equalized Assessed Value (“EAV”). citizens to apply for a freeze of the EAV of their properties
for the year preceding the year in which they first apply.
The County divides the taxing district’s levy by the taxing For example, if a senior applies in 2023 for the freeze, it
district’s aggregate EAV (subtracting the value of any would be retroactive to the 2022 tax year.
property tax exemptions and incremental EAV for property
located in a TIF), in order to determine the district’s tax The Home Improvement Exemption allows homeowners
rate. to make up to $75,000 worth of property improvements
without an increase in property taxes for at least four
Taxing District’s Tax Rate = Taxing District’s Requested years. The value varies depending on the reduction of the
Levy / Aggregate EAV of Taxing District. assessed value and the tax rates. Any exemption that is
granted is reflected on the second installment tax bill.
The County determines a tax rate for each taxing district,
and the sum of these tax rates for all taxing districts is Veterans Returning from Active Duty in armed conflict are
the composite property tax rate, or the total rate that a eligible to receive a $5,000 reduction in the EAV of their
taxpayer sees on their property tax bill. property for the taxable year in which they return.
This composite tax rate is applied to the EAV of each The Disabled Veteran Homestead Exemption provides tax
taxpayer’s property, and the result is the dollar amount that relief to veterans as certified by the U.S. Department of
the taxpayer must pay in a given year. Property tax bills are Veteran Affairs as disabled. The amount of EAV reduction
sent and paid one year in arrears, so the bills received by is based on the level of disability. A disability of 70 percent
taxpayers in 2023 reflect 2022 tax extensions, tax rates, or more may qualify for an EAV reduction of $250,000 and
and valuations. very likely totally exempts the home from property taxes.
Amount of Property Taxes Owed = Composite Tax Rate * The Disabled Persons Exemption provides disabled
EAV of Taxpayer’s Property persons with an annual $2,000 reduction in the EAV of
their property.
The annual tax bill is divided into two installments. The
first installment is due in March and is equal to 55 percent
of the prior year’s total tax bill. The second installment
is usually issued after July, when the property values,
exemptions, and tax rates for the tax year are finalized.
The second installment is the total taxed amount less
the amount already billed in the first installment. Each bill
includes a list of the amount being collected on behalf of
each taxing district.

In 2023, the second installment bills are expected to be

available in November.

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GLOSSARY
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GLOSSARY

Actuarially Calculated Contribution: Asset Lease and Concession Reserves:

An amount determined sufficient to increase the funded Reserve funds are funds that the City of Chicago sets
ratio of the City of Chicago’s pension funds, including aside as an economic safety net to mitigate current and
the Municipal Employees’ Annuity and Benefit Fund, the future risks such as contingencies, emergencies, or
Laborers’ Annuity and Benefit Fund, the Policemen’s revenue shortfalls. Asset lease and concession reserves
Annuity and Benefit Fund, and the Firemen’s Annuity are reserve funds established in connection with the
and Benefit Fund, to a statutorily required amount over a long-term lease or concession of City of Chicago assets,
number of years. specifically the Skyway and parking meters.

Amusement Tax: Automatic Amusement Device Tax:

A tax imposed upon the patrons of amusement activities A tax imposed on each automatic amusement device or
within the City of Chicago including sporting events, machine used within the City of Chicago for gain or profit.
theater productions, and a variety of other entertainment The tax rate is $150 per amusement device annually.
activities. The tax does not apply to admission fees to Authorization: Municipal Code 4-156-160.
witness in-person live theatrical, live musical, or other live
cultural performances that take place in a venue whose Aviation Funds:
maximum capacity is 1,500 persons or fewer. The tax rate Funds established to account for acquisition, operation,
is 9.0 percent of the fee paid to witness in-person live and maintenance of the City of Chicago’s airports. Aviation
theatrical, live musical, or other live cultural performances funds are comprised of the O’Hare International Airport
that take place in a venue whose maximum capacity is Fund and the Midway International Airport Fund.
more than 1,500 persons. Authorization: Municipal Code
4-156-020. Benefits:
Annual Comprehensive Financial Report (“ACFR”): Includes costs such as healthcare, workers’ compensation,
life insurance, social security contributions and Medicare
Provides complete and accurate financial information contributions.
from an independent third-party auditor which complies
with the reporting requirements of the Municipal Code of Boat Mooring Tax:
Chicago.
A tax imposed on the mooring or docking of any watercraft
Appropriation: for a fee in or on a harbor, river, or other body of water
within the corporate limits or jurisdiction of the City of
An amount of money in the budget, authorized by the Chicago. The tax rate is 7.0 percent of the mooring or
City Council, for expenditures for specific purposes. docking fee. Authorization: Municipal Code 3-16-030.
Appropriations are made by account group within each
department and fund. Bonds:
Asset Lease and Concession Reserves: Long-term debt primarily used to finance infrastructure
projects including street and alley construction and
Reserve funds are funds that the City of Chicago sets improvements, lighting, sidewalk replacement, curb
aside as an economic safety net to mitigate current and and gutter repairs and replacement, and transportation
future risks such as contingencies, emergencies, or improvements, as well as Enterprise Fund related
revenue shortfalls. Asset lease and concession reserves projects. The City of Chicago has several different types
are reserve funds established in connection with the of bonds including general obligation bonds, Motor Fuel
long-term lease or concession of City of Chicago assets, Tax revenue bonds, tax increment allocation bonds, water
specifically the Skyway and parking meters. and wastewater bonds, and O’Hare and Midway Bonds.
Appropriation: Business Taxes:
An amount of money in the budget, authorized by the Consists of revenue from the City of Chicago’s tax on
City Council, for expenditures for specific purposes. hotel accommodations, the Checkout Bag Tax, and prior
Appropriations are made by account group within each to 2019, Foreign Fire Insurance.
department and fund.

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GLOSSARY

Capital Improvement Plan (“CIP”): Contractual Services:

A five-year plan that identifies capital projects, provides Comprised of costs incurred related to services provided
a planning schedule and identifies options for financing to the City of Chicago by a vendor that are dictated by a
projects. contractual agreement, such as information technology or
auditing services.
Charges for Services:
Charges levied for services provided by the City of Chicago Corporate Fund:
that are not covered by general tax revenue. Such services The City of Chicago’s general operating fund, used to
include building inspections, information requests, account for basic City operations and services such as
emergency medical services, and safety services. public safety, business and consumer services, and tree
trimming.
Checkout Bag Tax:
A tax of $0.07 per bag on the retail sale or use of paper and COVID-19:
plastic checkout bags in Chicago, of which retail merchants An infectious disease caused by severe acute respiratory
retain $0.02 and the remaining $0.05 is remitted to the syndrome coronavirus 2, known as SARS-CoV-2.
City of Chicago. Authorization: Municipal Code 3-50-030.
Debt Service Funds:
Cigarette Tax: Debt Service Funds are used to account for the
A tax of $0.059 per cigarette ($1.18 per pack of twenty) accumulation of resources for, and the payment of, long-
is imposed upon all cigarettes possessed for sale within term debt service and related costs. Revenue bonds
the City of Chicago. The tax is paid through the purchase issued for the City of Chicago’s Enterprise Funds and debt
of tax stamps from the City of Chicago’s Department of issued for special taxing districts are not included in the
Finance. In the City of Chicago’s budget, this also includes City’s general Debt Service Funds.
the liquid nicotine product tax, which is imposed on the
retail sale of liquid nicotine products in the City of Chicago Delegate Agencies:
at $1.50 per product unit and $1.20 per fluid milliliter of Organizations that provide services on behalf of the City
consumable nicotine solution. Authorization: Municipal of Chicago through a grant contract.
Code 3-42-020 (cigarette) and 3-47-030 (liquid nicotine).
Emergency Communication Surcharge:
Claims, Refunds, Judgments and Legal Fees:
A surcharge imposed on all billed subscribers of
Includes expenses incurred with claims filed against the telecommunications services within the City of Chicago for
City of Chicago, legal settlements and judgments, and the purpose of funding a portion of the maintenance and
related legal fees including attorney costs. operation of the City’s emergency 911 system. The surcharge
is $5.00 per month for each network connection and wireless
Collective Bargaining Agreement (“CBA”): number, and a 9.0 percent tax on pre-paid wireless service.
A written legal contract between an employer and union Authorization: Municipal Code 3-64-030 and 7-50-020.
representing employees.
Emergency Communication Fund:
Commercial Paper: A Special Revenue Fund that is comprised of funds
A short-term debt instrument issued by an organization, from the collection of the emergency communication
typically for the financing of short-term liabilities. surcharge, and funds 911 and emergency preparedness
activities of the Office of Emergency Management and
Commodities and Equipment: Communication.
Consists of costs for gas, electricity, and natural gas, as
well as small equipment. Enterprise Funds:
Funds established to account for acquisition, operation,
Consumer Price Index (“CPI”): and maintenance of government services such as water,
sewer, and the airports. These funds are self-supporting in
CPI is an instrument to measure inflation. CPI measures that they derive revenue from user charges.
the average change over time in the prices paid for a set
of consumer goods and services.

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GLOSSARY

Equalized Assessed Value (“EAV”): contributions to employee pension funds, and long-term
The equalized assessed value of a property is the result debt service payments.
of applying a State equalization factor to the assessed
value of a parcel of property. The State equalization factor Governmental Accounting Standards Board (“GASB”):
is used to bring all property in Illinois to a uniform level of An independent, private-sector organization that
assessment. establishes accounting and financial reporting standards
for U.S. state and local governments that follow Generally
Fines, Forfeitures, and Penalties: Accepted Accounting Principles.
Fines and any associated penalties levied for violations
of the Municipal Code. The primary source of this type Ground Transportation Tax:
of revenue is from parking tickets. Also included in this A tax imposed on the provision of hired ground
category are redlight and automated speed enforcement transportation to passengers in the City of Chicago. The
fines, moving violations, booting-related fees, sanitation tax rate is $98 per month on medallion licensees. There is
code violations, and housing court fines. a $3.50 per day charge for each non-taxicab vehicle with
a seating capacity of 10 or fewer passengers, $6 per day
Fiscal Year (“FY”): for each non-taxicab vehicle with a seating capacity of 11
The City of Chicago’s fiscal year aligns with the calendar to 24 passengers, $9 per day for each non-taxicab vehicle
year: January 1 to December 31. with a capacity of more than 24 passengers. Transportation
network provider vehicles are charged $1.13 per trip for
Full Time Equivalent (“FTE”): single ride trips that begin or end in Chicago, or $0.53 for
shared rides that begin or end in Chicago, and $0.10 per
The ratio of the total number of paid hours during a period trip Accessibly Fund payment for all trips that begin or end
by the number of working hours in that period. One FTE is in Chicago. Additionally, a $5.00 per trip surcharge on all
equivalent to one employee working full-time. transportation network provider vehicles for airport, Navy
Pier, and McCormick Place pickup and drop-off. As of
Foreign Fire Insurance Tax: 2020, the City also implemented a downtown surcharge
A tax imposed on any business not incorporated in the on weekdays from 6 am to 10 pm of $1.75 per trip for single
State of Illinois that is engaged in selling fire insurance in rides and $0.60 per trip for shared rides. Lastly, the City of
the City of Chicago. The tax is paid for the maintenance, Chicago charges $1.00 per day for pedicabs for each day
use, and benefit of the Chicago Fire Department. The in service. Authorization: Municipal Code 3-46-030.
tax rate is 2.0 percent of the gross receipts received for
premiums. Authorization: Municipal Code 4-308-020. Hotel Accommodations Tax
A 4.5 percent tax imposed on the rental or lease of hotel
Garbage Fee: accommodations in the City of Chicago. For vacation
Chicago residences receiving City-provided garbage rentals and shared housing units, a 6.0 percent surcharge
collection services are charged a $9.50 monthly fee per is added to the 4.5 percent base rate for a total City tax
dwelling unit. City-provided garbage collection services rate of 10.5 percent of the gross rental or leasing charge.
are provided to single family homes and multifamily Authorization: Municipal Code 3-24-030.
buildings with four units or fewer. Authorization: Municipal
Code 7-28-235. Income Tax:
A tax imposed by the State of Illinois on the privilege of
General Obligation Debt: earning or receiving income in Illinois. The tax rate is 7.0
Comprised of three types of general obligation bonds percent of net income for corporations and 4.95 percent
including Tax Levy Bonds, Alternate Revenue Bonds and of net income for individuals, trusts, and estates. Of the net
Pledge Bonds. income tax receipts after refund, 6.06 percent of personal
income tax receipts and 6.85 percent of corporate income
General Financing Requirements: tax receipts is placed in the Local Government Distributive
Fund, which is then distributed to municipalities based on
Comprised of the Finance General budgeting category
population. Authorization: 35 ILCS 5/201, 5/901; 30 ILCS
that represents cross-departmental expenses such as
115/1, 115/2.
information technology systems, employee benefits,

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GLOSSARY

Intergovernmental Tax Revenue: Local Tax Revenue:

Consists of the City of Chicago’s share of State Income Consists of taxes collected by the City of Chicago,
Tax, Personal Property Replacement Tax and Municipal including utility, transportation, transaction, recreation,
Auto Rental Tax received through the State of Illinois. and business taxes.

Internal Service Earnings: Long-Term Debt:

Reimbursements from other City of Chicago funds to the Used to finance infrastructure projects in City of Chicago
Corporate Fund for services that are provided to other City neighborhoods including street and alley construction
funds. Certain internal service earnings are allocated using and improvements, lighting, sidewalk replacement, curb
cost accounting methods, while others are reimbursed and gutter repairs and replacement, and transportation
using intergovernmental purchase orders. improvements, including street resurfacing, bridge
rehabilitation and traffic safety improvements, as well as
Lease of Personal Property Tax: Enterprise Fund related projects.
A tax that applies to businesses or individuals that are
either a lessor or lessee of personal property used in the Midway Airport Fund:
City of Chicago. A fund established to account for the acquisition, operation,
and maintenance of Midway International Airport.
Licenses and Permits:
Licenses and permits are required for the operation of Motor Fuel Tax:
certain construction and business activities in the City of A tax imposed by the State of Illinois on the sale of motor
Chicago. Fees for these licenses and permits vary with the fuel within the State. The tax rate is $0.454 per gallon of
type of activity authorized. gasoline and $0.529 per gallon of diesel fuel. A portion of
the revenue is distributed to municipalities and townships
Liquor Tax: based on population via a Statewide allocation formula.
A tax imposed on the retail sale of alcoholic beverages in Authorization: 35 ILCS 505/2, 505/8.
the City of Chicago. Each wholesale dealer who sells to
a retail dealer located in the City of Chicago collects the Motor Fuel Tax Fund:
tax and any such retail alcoholic beverage dealer in turn A Special Revenue Fund comprised of revenue derived
collects the tax from the retail purchaser. The tax rate is from the Motor Fuel Tax that funds expenses such as
$0.29 per gallon of beer, $0.36 per gallon for alcoholic costs associated with streetlight energy, salt purchases for
liquor containing 14.0 percent or less alcohol by volume, snow removal, street pavement, bridge maintenance, and
$0.89 per gallon for liquor containing more than 14.0 related personnel costs.
percent and less than 20.0 percent alcohol by volume,
and $2.68 per gallon for liquor containing 20.0 percent Motor Vehicle Lessor Tax:
or more alcohol by volume. Authorization: Municipal Code A tax imposed on the leasing of motor vehicles in the
3-44-030. City of Chicago to a lessee on a daily or weekly basis.
The lessor is allowed to pass this tax on to lessees as a
Local Funds: separate charge on rental bills or invoices. The tax is $2.75
All funds used by the City of Chicago for noncapital per vehicle per rental period. Authorization: Municipal
operations other than Grant Funds. Includes the Corporate Code 3-48-030.
Fund, Enterprise Funds, and Special Revenue Funds.
Municipal Hotel Operators’ Occupation Tax:
Local Non-Tax Revenue: A tax authorized by State legislation and imposed on the
Local non-tax revenue consists of fees charged for the activity of renting hotel accommodations in the City of
issuance of licenses and permits; fines, forfeitures and Chicago. The tax rate is 1.0 percent of gross receipts. The
penalties for traffic or other violations; various charges tax is administered and collected by the Illinois Department
for services; municipal parking; leases, rentals, and sales of Revenue and distributed monthly to the City of Chicago.
of City-owned property; internal service earnings; and Authorization: Municipal Code 3-40-470.
interest and other revenue.

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GLOSSARY

MPEA Airport Departure Tax: percent. Authorization: Municipal Code 3-32-030.

The MPEA Airport Departure Tax applies to businesses
engaged in providing ground transportation for hire to Personal Property Replacement Tax:
passengers departing from a commercial service airport Two categories of taxes levied by the State and distributed
in Chicago. The tax rate is $4.00 for each taxi or livery to local governments to replace personal property taxes
departure. A bus or van with capacity of 1-12 passengers no longer allowed under the Illinois Constitution: 1. An
is $18.00 per departure. A bus or van with capacity of 13- income-based tax on corporations, partnerships, and
24 passengers is $36.00 per departure. A bus or van with other business entities. The tax rate is 2.5 percent for
capacity over 24 passengers is $54.00 per departure. corporations and 1.5 percent for partnerships, trusts, and
subchapter S corporations. The tax allocation formula
Municipal Parking: for local governments in Cook County is based on the
A category of revenues that currently includes revenue 1976 distribution of the repealed personal property tax.
generated by various parking permits. Historical Authorization: 35 ILCS 5/201(c), (d); 30 ILCS 115/12. 2. A
collections in this category also include parking meter tax on invested capital imposed by the State of Illinois
revenues generated prior to the long-term lease of the on public utilities. The tax rate is 0.8 percent on invested
City of Chicago’s parking meter system in 2009. capital. The tax allocation formula for local governments
in Cook County is based on the 1976 distribution of the
O’Hare Airport Fund: repealed personal property tax. Authorization: 35 ILCS
610/2a.1, 615/2a.1, 620/2a.1, 625/2a.1; 30 ILCS 115/12.
A fund established to account for the acquisition, operation,
and maintenance of O’Hare International Airport. Prior Year Available Resources:

Parking Garage Tax: The result of savings and sustainable revenue growth,
along with spending controls and other efficiencies,
A tax imposed on the privilege of parking a motor vehicle resulting in healthy growth of the Corporate Fund balance.
in any commercial parking lot or garage in the City
of Chicago. The tax rate is currently 22.0 percent for Proceeds and Transfers In:
daily parking during the week as well as all weekly and
monthly parking and 20.0 percent for daily parking on the Consists of amounts transferred into the Corporate Fund
weekends. Authorization: Municipal Code 4-236-020. from outside sources.

Personnel Services: Proceeds of Debt:

Personnel-related costs, which include salaries and Funds generated from the sale of bonds or notes.
wages, pension contributions, healthcare, overtime pay,
and unemployment compensation. Property Tax:
A tax levied on the equalized assessed valuation of real
Pension Funds: property in the City of Chicago. Cook County collects
The City of Chicago’s employees are covered under four the tax with assistance from the Illinois Department of
defined-benefit retirement plans established by State Revenue. Authorization for the City’s property tax levy
statute and administered by independent pension boards. occurs through bond ordinances and property tax levy
These plans are the Municipal Employees’ Annuity and ordinances in connection with the annual appropriation
Benefit Fund, the Laborers’ Annuity and Benefit Fund, the ordinances.
Policemen’s Annuity and Benefit Fund, and the Firemen’s
Annuity and Benefit Fund. Each independent pension Real Property Transfer Tax:
board has authority to invest the assets of its respective A tax imposed on the transfer of title to, or beneficial
plan subject to the limitations set forth in 40 ILCS 5/1-113. interest in, real property located in the City of Chicago.
The tax rate is $3.75 per $500 of transfer price, or fraction
Personal Property Lease Transaction Tax: thereof, and is paid by the transferee. Authorization:
A tax imposed on the lease, rental or use of rented, Municipal Code 3-33-030.
personal property or nonpossessory computer leases of
software and infrastructure (referred to as cloud software
and cloud infrastructure) in the City of Chicago is 9.0

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GLOSSARY

Real Property Transfer Tax—CTA Portion: Short Term Debt:

A supplemental tax on the transfer of real property in Comprised of debt issued to address various operating,
the City of Chicago for the purpose of providing financial liquidity, and capital needs, including general obligation
assistance to the Chicago Transit Authority. The tax rate is short-term borrowing program, water and sewer systems
$1.50 per $500 of the transfer price or fraction thereof and commercial paper notes and line of credit notes, Chicago
is paid by the transferor. Authorization: Municipal Code O’Hare International Airport commercial paper notes and
3-33-030. credit agreement notes, and Chicago Midway Airport
commercial paper notes.
Recreation Taxes:
Consist of taxes on amusement activities and devices, Special Events and Municipal Hotel Operators’
the mooring of boats, liquor, cigarettes, nonalcoholic Occupation Tax Fund:
beverages, and off-track betting. Includes revenues from the Municipal Hotel Operator’s
Occupation Tax and is used to support the promotion of
Reimbursements and Financial Expenses: tourism, cultural and recreational activities.
Reimbursements consist of amounts transferred to the
Corporate Fund from other City of Chicago funds for Special Revenue Fund:
central services such as information technology, police A fund established to account for the operations of a
and fire services, street and building maintenance, and specific activity and the revenue generated for carrying out
administrative services. that activity. Special Revenue Funds are used to account
for the proceeds of specific revenue sources (other than
Reserves: special assessments, expendable trusts, or major capital
Funds that the City of Chicago sets aside as an economic projects) requiring separate accounting because of legal
safety net to mitigate current and future risks such as or regulatory provisions or administrative action.
contingencies, emergencies, or revenue shortfalls.
Structural Budget Deficit:
Sales Tax Securitization Corporation Residual Any structural budget imbalance between existing
Revenues: revenues and anticipated expenses for that budget year.
In October 2017, the City Council passed an ordinance Commonly referred to as the “gap”.
authorizing the creation of a Sales Tax Securitization
Corporation (“STSC”). This revenue securitization structure Tax Increment Financing (“TIF”):
was developed because of legislation passed by the Illinois TIF is a funding tool used to improve neighborhood
General Assembly, allowing all home rule municipalities to infrastructure and promote investment in communities
create a special purpose corporation organized for the across the City of Chicago. The program is governed by
sole purpose of issuing bonds paid for from revenues a State law allowing municipalities to capture property
collected by the State. In December 2017, the City of tax revenues derived from the amount of incremental
Chicago entered into a sale agreement (“Agreement”) with Equalized Assessed Value (“EAV”) above the base EAV
the STSC. Under the Agreement, the City sold to the STSC that existed before an area was designated as a TIF district.
the City’s rights to receive Sales Tax revenues collected
by the State. In return, the City received the proceeds of Transaction Taxes:
bonds issued by the STSC as well as a residual certificate. Consist of taxes on the transfer of real estate, the lease
Sales Tax revenues received by the STSC are paid first or rental of personal property, and the short-term lease of
to cover the STSC’s operating expenses and debt service motor vehicles within the City of Chicago.
on the STSC’s bonds. All remaining Sales Tax revenues
are then paid to the City as the holder of the residual Transportation Network Providers (“TNP”):
certificate.
Rideshare companies that provide prearranged
Sewer Fund: transportation services for compensation through an
Internet-enabled application or digital platform to connect
An Enterprise Fund that supports the operation, passengers with drivers of vehicles for hire.
maintenance, and capital programs of the City of Chicago’s
sewer systems.

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GLOSSARY

Transportation Taxes: Water and Sewer User Fees:

Consist of taxes on vehicle fuel, garage parking, and hired A fee imposed on water and sewer usage within the City
ground transportation. of Chicago. The revenue collected via water charges and
the sewer surcharges on City of Chicago utility bills. The
Transfers Out: Water and Sewer Funds are segregated funds where
water fund revenue is used to support the water system
The movement of resources from local funds to reserves and sewer fund revenue is used to support the sewer
and other non-recurring revenue sources. system. Authorization: Municipal Code 11-12-260.

Vehicle Fuel Tax: Water and Sewer Tax:

A tax imposed on the purchase of vehicle fuel purchased A utility tax assessed on water and sewer use within the
or dispensed within the City of Chicago. The tax rate is City of Chicago. As of 2021, the current rate is $2.51 per
$0.08 per gallon. Authorization: Municipal Code 3-52-020. 1,000 gallons of water and sewer use. Authorization:
Municipal Code 3-80-040.
Vehicle Tax Fund:
Includes revenue from vehicle sticker sales, impoundment Wheel Tax (referred to as the Vehicle Sticker Fee):
fees, abandoned auto sale fees, pavement cut fees, and a An annual fee imposed on the privilege of operating a
portion of the Garage Parking Tax for the maintenance of motor vehicle within the City of Chicago that is owned by
the public way. a resident of the City of Chicago. The annual fee is $95.42
for smaller passenger automobiles (less than 4,500
Water Fund: pounds) and $151.55 for larger passenger automobiles
An Enterprise Fund that supports the operation, (4,500 pounds or more). The fee varies for other vehicle
maintenance, and capital programs of the City of Chicago’s classifications. Authorization: Municipal Code 3-56-050.
water systems.

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