Budget Report #2 - Real Estate Taxes
and the City Budget
Safety Walk in Old Town Tonight
Halloween Events in the 43rd Ward
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Dear Neighbors,
This newsletter focuses on the revenue funding the significant obligations of the 2022 budget. The next newsletter will review the programs proposed in the budget.
The 2022 City budget reaches a major milestone in the long struggle to prevent the insolvency of our pension plans. And the current round of property tax assessments is limiting the extent of the impact of these increased costs on homeowners.
Pension Liabilities Finally Put on a Rational Basis
In 2012, the city held its first-ever hearings on pension funding, and disclosed that all of our pension plans were facing insolvency. The State approved a lower set of benefits for people who were hired after January 1, 2011. But the plans for current retirees and employees were dramatically underfunded.
I called for pension reform, which was adopted in 2014, only to be stricken down by the Illinois Supreme Court. As a result, in 2016, the City increased property tax rates by 12% over a four year period to attempt to stem the losses caused by long-time underfunding, benefit increases, investment losses, and optimistic assumptions.
The City also implemented water and sewer charges, as well as 911 charges, and made additional contributions from general funds to make up for the gap in funding.
In 2022, for the first time, the City will be making the full actuarily required contributions to all of its pension plans - at a cost of $2.3 Billion. This will finally put us on the path to properly fund the pensions of the currently 51,000 people (and more to come) that have been guaranteed pension benefits without reduction by the Illinois Supreme Court.
The $2.3 billion is paid for as follows:
- $1.4 Billion Property taxes
- $206 million Water/Sewer taxes
- $27.6 million 911 surcharges
- $357.6 million Charges from separately funded entities (like the airports, paying their share of their employees' expenses)
- $329.2 million Direct funding from the City
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This chart shows the dramatic increase in pension funding that has occurred in the last few years. Because so many employees are eligible to retire, the amount of contributions will continue to grow for possibly another 10 years. That is why the City is seeking to build a casino to generate additional pension contributions. (This is also why I oppose sports betting at sports venues - the fees and taxes bet there would not pay for pensions).
This is all very painful stuff for taxpayers, and challenges remain. But these steps, coupled with federal aid we received, elimination of "scoop and toss" borrowing, refinancing of our debt at lower rates, and other structural changes, mean that the City's financial condition is in a much stronger position than it has been for many years.
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The Impact on Property Tax Payers
It is expected that the increased payments discussed above will have a limited impact on homeowners. Homeowners in our Ward have received their triennial reassessments, and of course, since values in our Ward have increased, assessments have increased. According to the Assessor's office, residential properties in total increased 15% in value in the North Township (everything North of the Chicago River to Fullerton). If you'd like to see the whole analysis, click here. This is the total increase in value, not an average increase.
According to Cook County Assessor Fritz Kaegi, "an increase in a property's assessment does not lead to the same increase in an individual property’s tax bill." A property’s share of taxes depends on reassessments throughout Chicago. If the growth in assessed values elsewhere outpaces the growth of an individual property’s assessment, that individual property’s share of property taxes could shrink despite its increase in property value.
In the North Township area, for example, commercial real estate assessed value grew 60%, as opposed to 15% total for residential. The above chart shows that commercial real estate now has a much greater share of the total value of real estate in the North Township, thus effectively shifting some of the burden for taxes away from residential real estate.
This is a fair result because, according to a detailed examination by the Chicago Tribune, "the [former] assessor’s office generally undervalu[ed] expensive downtown buildings while overvaluing small businesses in poorer neighborhoods." Plus, according to another study, "residential property taxpayers paid more than their fair share of the county’s tax levy while many higher-end commercial property owners got an unauthorized break."
Assessor Kaegi pledged to reverse this state of affairs and put everyone on an even basis of valuation in this round of re-assessments.
In our next newsletter, we will discuss the investments and programming in the proposed 2022 budget.
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Long-Term Commercial Vacancies – Finally, a Solution
Our community has bemoaned the persistent vacancies in some of our commercial properties.
Past lax application of real estate assessment rules allowed these owners to pay drastically reduced property taxes while the landowner continued to build value in his land and building – a practice called “land banking.”
Neighboring landowners who had tenants thus paid more than their fair share of real estate taxes.
Our office unsuccessfully sought help from the prior assessor. Our new assessor Fritz Kaegi answered the call. Under a policy implemented last May, the vacancy rate of an entire commercial strip helps determine the values in the whole area, making assessments more fair. Commercial owners have to justify and document a claimed vacancy and then, vacancy reductions are limited to half of what they were in the past. This page explains the policy in detail.
We have already seen modest changes in our retail areas as a result. A store on Armitage and at least one on Clark that have been vacant for ten years are now partially occupied. Several stores that have been left vacant are now being marketed for sale. We are pleased that this new policy will prod landowners to put their properties to productive use.
We want to thank Assessor Kaegi for working with our office and our Lincoln Park Chamber of Commerce in revising the policy to be more fair and effective.
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Walk and Talk with Police Tonight
Come meet our new police commander and talk about safety in your neighborhood. Representative Margaret Croke, State Senator Sara Feigenholtz, and members of the Old Town Triangle Association board will also be present.
Walk and Talk Old Town
with 18th District Commander Jon Hein
Friday, October 22
6:00 - 8:00 p.m.
Meet at the Old Town Triangle Building
1763 N. North Park Ave.
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America's Sweet Tooth: Chicago's Opportunity
Lincoln Park Community Research Initiative
Wednesday, October 27, 2021
7 p.m. - 8 p.m.
The Lincoln Park Community Research Initiative will explore how Chicago became and remains a major center of the candy industry. Curtiss Candy Company, once headquartered in the Lincoln Park neighborhood, serves as an early example of the industrialization of the industry and its successful foray into mass marketing.
This program will be presented by Colleen Doody, PhD, Associate Chair for the History Department at DePaul University, and Miles Harvey, MFA a Professor in the English Department at DePaul University.
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Halloween Safety Tips
Halloween should be a day of fun for kids and families who of trick-or-treating in Chicago. Following basic safety tips can ensure a safe and enjoyable celebration!
Visible Costumes:
- Choose one that is light-colored and easily visible.
- Put some reflective tape costumes -across the back, front, and sides to ensure visibility in all directions.
Adult Company:
- Make sure kids go trick-or-treating with an adult or responsible young adult you know well.
- It’s always safer to go with a group of family and/or friends.
Location: Visit homes in your neighborhood and trick-or-treat at familiar places
- Never enter a home for a treat... stay on the porch or sidewalk..
- Warn children never to approach cars or accept treats from cars.
Daylight Trick or Treating:
- If you can only take your child in the evening, limit your visits to homes with porch or outside lighting.
Only Accept Wrapped Treats:
- Throw away fresh fruit, unwrapped candies, open candies or anything that looks suspicious.
- Consider small toys, non-toxic bubbles, or sugar-free items as treats
Walk Safely:
- Walk, don't run! Wait at the curb and look both ways, cross at the corner...do not cut in between parked cars!
- Obey all traffic lights!
- When driving on Halloween use extra caution - be alert for kids on the street.
The Chicago Police Department and our 43rd Ward Office hope Halloween is safe for all of Chicago’s children.
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Halloweek
October 23rd - 31st, 2021
Enjoy Halloween events throughout the City to allow parents, children, and all those in between to enjoy Halloween in safe and creative ways.
The amazing Arts in the Dark Parade will be on State Street moving south from Lake to Van Buren on October 30th from 6 p.m. to 8 p.m. For more information on all the Halloweek activities, please click here.
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Lincoln Common's Fall Fest
Saturday, October 23rd, 2021
10 a.m. - 5 p.m.
2345 N Lincoln Ave
Enjoy a costume contest, window painting, and other fun activities along with special offers from Lincoln Common retailers and neighboring businesses. Take home a pumpkin, and maybe even a prize!
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Spooktacular
Lincoln Park Chamber of Commerce
Sunday, October 24th, 2021
1 p.m. - 4 p.m.
Clark Street from Dickens to Diversey
Join the haunted fun as 22 participating businesses on Clark Street from Armitage to Diversey transform into trick-or-treat stops featuring candy and surprises for the whole family. Dust off your costumes and grab your cauldrons to pick up sweet treats from over 20 businesses along the street!
Be amazed by spooky specials throughout the day, creepy stilt walkers, and incredible magicians! Plus, celebrate our resilient business community and stroll along the street to take in the festive window decorations! To learn more, click here. |
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Haunted History at Lincoln Park Zoo
Tuesday, and Wednesday, October 26th & 27th, 2021
7 p.m. or 9 p.m.
Purchase tickets here.
Join Adam Selzer, author, podcaster, and host of Mysterious Chicago Tours, for spine-tingling walkabouts that dig into Chicago’s haunted history and the zoo’s cemetery roots.
These popular tours will sell out quickly, so scare up some tickets for yourself before they disappear. Tours last about 60-90 minutes, and tickets are $35.
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Carnival Grocery's Pumpkin Carving Contest
Saturday, October 30th, 2021
10 a.m. - 1 p.m.
458 W. Dickens Ave
Join Carnival Grocery for some free Halloween fun, including a pumpkin carving contest, costume party, and plenty of Halloween treats. Reservations are required for each child participating and they are offering 2-time slots: 10 a.m. - 11:30 p.m. and 11:30 p.m. - 1 p.m. on Saturday, October 30, 2021.
For more information, please click here.
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Halloween Hijinx
Super Stolie Concert and
Costume Contest
Saturday, October 30th, 2021
11 a.m. - 1 p.m.
Adams Park Playground
1919 North Seminary
Thanks to the RANCH Triangle Association and the Adams Park Advisory Council for a return performance from Super Stolie. Plus, enjoy a costume contest and games for all ages.
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13th Annual Howler at Bauler
Saturday, October 30th, 2021
3 p.m. - 5 p.m.
Bauler Park
501 W. Wisconsin
Save the date for Saturday, October 30th from 3 – 5 p.m. for Lincoln Central Association's 13th Annual Howler at Bauler, Lincoln Park's favorite neighborhood Halloween event.
Howler at Bauler will include food, candy, activities from Lake Shore Sport and Fitness, a magician, a costume parade, a DJ, and much more. Join your neighbors at the Lincoln Central Association for this event dedicated to fellowship and join their association here.
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Halloween Pumpkin Take Back Event
Saturday, November 6th, 2021
10 a.m. - 2 p.m.
Lakeview High School
4015 N. Ashland Ave.
This Halloween, don’t trash your pumpkins; smash them with the University of Illinois Extension at sites located throughout Chicago.
Illinois is a top producer of pumpkins in the U.S., but when a jack o’ lantern is past its prime, many end up in the trash. In Cook County, 37% of landfill material is food waste, a major source of the greenhouse gas methane. In Chicago alone, more than 500,000 tons of organic waste are sent to landfills annually.
To divert pumpkins from landfills, Illinois Extension in Cook County is partnering with Lakeview High School to sponsor this event.
All are welcome for this free family event--happening rain or shine. The bigger the better! Please, help us keep more than 25 tons of compostables out of the landfill.
Please wear a face mask and maintain social distancing.
Pumpkins must be free of candles, stickers, glitter, yarn, synthetic decorations. We can compost pumpkins decorated with water-based paints.
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Support Local Restaurants |
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Have a fun spooky season and enjoy our fall weather, |
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