MAYOR RAHM EMANUEL 2018 BUDGET OVERVIEW CHICAGO CITY OF 2 0 1 8 B u d g e t O v e r v i e w Letter from the Mayor Dear Fellow Chicagoans, This year’s budget builds on the strong foundation of the progress we have made together while funding important investments in Chicago’s bright future. The City of Chicago is on firmer financial footing this year than we have been in many years. We have come together to address the fiscal challenges of the past so we can invest in Chicago’s future with confidence. Together, we have taken meaningful steps to balance our books, fund our four pension funds, and end the bad financial practices of the past. With this budget, we will have reduced the structural deficit of the City of Chicago by 82 percent since 2012. Creating stability and certainty in our fiscal outlook is essential in and of itself, but it is also a means to a greater end. Our work to stabilize our financial picture has always been in service of growing the economy of Chicago, creating jobs for Chicago residents, and investing in Chicago’s future. Our budget is not only balanced fiscally, it is in balance with those values and priorities. The single biggest net increase in this year’s budget is for public safety; in fact, this budget is supporting $103.5 million worth of new investments in police and first responders. With this budget we will fund the second contingent of nearly 1,000 new police officers. The budget infuses the Chicago Police Department with the manpower, technology and training to confront public safety challenges head-on. We are investing in best practice training for officers and supervisors, enhanced community policing, officer wellness, and the management infrastructure to ensure reforms are implemented and sustained. In addition, we are making strategic investments to modernize the City’s 9-1-1 operations. Public safety is not the responsibility of the police and first responders alone, which is why this budget also includes an additional $5.2 million in neighborhood economic development and investments in Chicago’s children, from after school activities, to summer jobs, to mentors, to more Safe Passage routes. Additionally, this budget supports $80 million of Chicago Public Schools safety investments including school security guards, Safe Haven and after school programming. This budget also supports the investments that make Chicago’s neighborhoods great places to live, work and raise a family. It strengthens City services from rodent abatement, to maintenance and repair of roads and the water pipes underneath our roads. And this budget continues our record of, year after year, increasing our investment in Chicago’s children. Since 2011, the City has more than tripled its investment in youth. The 2018 budget supports academic, athletic and artistic programs at Chicago’s incredible parks and playgrounds, and increases investments in early childhood education so all Chicago's children can grow up to reach their full potential. In 2018, and for the seventh consecutive year, the City will increase our investments in children by expanding afterschool programming, summer jobs, and mentoring programs and by building five new early childhood education centers with high-quality spaces for kids to learn and play. Chicagoans have always come together to make bold change happen, and we continue to make remarkable progress whether measured by a stronger fiscal outlook, more businesses and jobs moving into the City, or a record number of high school graduates. As our children make clear every day, Chicago’s best days are ahead of us. This budget strengthens investments to continue building a brighter future for every part of the city we are proud to call home. Mayor Rahm Emanuel 2 0 1 8 B u d g e t O v e r v i e w Table of Contents This Budget Overview is a companion to the other documents that together comprise the City’s annual proposed operating budget, consisting of the 2018 Budget Recommendations, which contain the City’s proposed line-item budget, the 2018 Anticipated Grants Budget, and 2018 Draft Action Plan, which relates to federal entitlement grant funding. These documents are all available on the City’s website. Letter from the Mayor Proposed 2018 Budget: Key Reforms, Savings and Investments Discussion of Proposed  Budget Overview Revenue Discussion • Corporate Fund • Special Revenue Funds • Enterprise Funds • Debt Service Funds • Property Tax Levy • Grant Funds Expenditure and Workforce Discussion • Personnel Costs • Non-Personnel Costs • Pension Funds Capital Improvement Program • Introduction and Relationship to Operating Budget • 2018 Capital Improvement Program • 2018 Tax Increment Financing Program Financial and Budgetary Policies 1 21 2 2 29 30 31 32 33 33 34 36 38 38 38 40 42 How Chicago Budgets • • • • Budget Process Budget Documents Budget Calendar Basis of Budgeting 47 48 49 50 Program and Budget Summaries by Department • City of Chicago Organizational Chart Finance and Administration • • • • • • • • Office of the Mayor Office of Budget and Management Department of Innovation and Technology Office of the City Clerk Department of Finance City Treasurer Department of Administrative Hearings Department of Law 53 57 59 61 63 65 67 71 73 75 2 0 1 8 B u d g e t O v e r v i e w Table of Contents (continued) • Department of Human Resources • Department of Procurement Services • Department of Fleet and Facility Management Infrastructure Services • Department of Streets and Sanitation • Department of Transportation • Department of Aviation • Department of Water Management Public Safety • Chicago Police Board • Civilian Office of Police Accountability • Chicago Police Department • Office of Emergency Management and Communications • Chicago Fire Department Community Services • Department of Public Health • Commission on Human Relations • Mayor’s Office for People with Disabilities • Department of Family and Support Services • Chicago Public Library City Development • Department of Cultural Affairs and Special Events • Department of Planning and Development Regulatory • Office of the Inspector General • Department of Buildings • Department of Business Affairs and Consumer Protection • Chicago Animal Care and Control • License Appeal Commission • Board of Ethics Legislative and Elections • City Council • Board of Election Commissioners General Financing Requirements 80 82 87 88 93 100 103 109 110 112 116 118 120 121 124 126 128 132 135 137 141 144 147 150 152 153 15 15 Budget Detail • • • • • How to Read Budget Detail Revenue Expenditures Personnel Grants Glossary 167 168 17 175 177 1 Appendices A & B • Chicago Facts and Demographics • Employee Salary and Benefits summary by Department 189 199 2018 BUDGET OVERVIEW PROPOSED 2018 BUDGET: KEY REFORMS, SAVINGS AND INVESTMENTS 2 0 1 8 B u d g e t O v e r v i e w Proposed 2018 Budget Mayor Emanuel has worked consistently to contain healthcare costs over the long-term and improve the overall health and The City’s 2018 budget continues to make critical investments well-being of the City’s workforce. 8PSLJOH JO in support of Chicago’s families, neighborhoods, youth, and DPOKVODUJPO XJUI UIF $JUZhT QBSUOFST JO MBCPS BOE Uhrough public safety, while building on Mayor Rahm Emanuel’s various reforms and programmatic improvements TVDI BT efforts to improve the City’s long-term financial stability. In UIF QIBTF PVU PG SFUJSFF IFBMUIDBSF DPWFSBHF GPS DFSUBJO DJUZ 2012, the City of Chicago was facing an operating budget SFUJSFFT UIF $JUZhT healthcare costs have remained relatively shortfall of $635.7 million. Through efficiencies, reforms, flat under Mayor Emanuel, compared to national trends. tighter spending controls, and strong fiscal management, According to the 2016 Annual Survey by UIF Kaiser Family that shortfall is reduced by 82 percent and is closed in the Foundation and Health Research & Education Trust on 2018 budget proposal. Employer Health Benefits, average annual health insurance premiums and worker contributions have increased by 58.0 Savings, Reforms, Efficiencies percent over the past ten years. In 2018, the City’s budgeted healthcare costs are $1.5 million lower than With every budget and again in the 2018 budget, Mayor initially projected due to ongoing cost-control measures. Emanuel seeks to identify all available opportunities to reform Further, the City is saving $4.0 million in workers’ government operations, achieve savings and eliminate waste. compensation costs in 2018 relative to initial projections. A significant amount of cost cutting and reforms have been This cost savings is driven by reducing healthcare costs, BT achieved in previous years "T B SFTVMU UIF TFFO JO the Department of Fleet and Facility Management’s CVEHFU TIPSUGBMM JT TJHOJGJDBOUMZ TNBMMFS BOE the City work to improve health and safety training thereby continues UIBU XPSL CZ JNQMFNFOUJOH strategic expense reducing injuries along with improved benefit management cuts and reforms no savings PS reform NFBTVSF JT too by the Committee on Finance. small. *O UIF CVEHFU Uhe City JEFOUJGJFT an additional $19.35 million in corporate fund savings and As part of the City’s investments in police reform, reforms JO QFSTPOOFM BOE OPO QFSTPOOFM FYQFOTFT. In total, community policing and public safety, the Administration Mayor Emanuel has achieved over $650 million in savings, right sized certain civilian vacancies within the Chicago Police Department (“CPD”) and reprioritized these reforms and effJciencies since taking office. existing vacancies to support reform efforts and community policing. In total, the City was able to repurpose $3.4 million of civilian vacancies, saving taxpayer dollars while Introduction 9 2 0 1 8 B u d g e t O v e r v i e w Summary of Proposed Budget (continued) still expanding critical community services and supporting investments in CPD. Since 2016, the City has made corporate revenue available to make debt service payments, and because the refunding bonds are expected to achieve real debt service savings, the proposed 2018 budget includes $94 million in corporate fund debt service savings. "OZ CVEHFUFE DPSQPSBUF GVOE SFWFOVF OPU OFFEFE GPS HFOFSBM PCMJHBUJPO EFCU TFSWJDF XJMM CF BQQMJFE UP GVUVSF ZFBSTh EFCU TFSWJDF Through non-personnel expense management efforts, the City is saving $10.27 million in 2018. Most notably, the City is saving in energy costs through the first year of the Chicago Smart Lighting Project. The citywide project will take place over four years, converting the City’s outdated and inefficient High Pressure Sodium (HPS) lamps to the TIF Surplus higher quality, more reliable energy-efficient LED lights. Through this conversion, the City is expecting $2.3 million Since 2011, the City has taken a comprehensive approach in electricity savings in 2018, which is helping to support to improving transparency and reforming the use of Tax Increment Financing ("TIF") to focus on neighborhood street lighting capital upgrades as part of this program. infrastructure investments and economic development. Consistent with the Mayor’s ongoing work to eliminate In addition, the City began terminating TIF districts that duplicative operations, the Department of Fleet and Facility were no longer needed – closing 18 TIFs since 2011, with Management continued to consolidate graphics bureaus an additional three due to sunset in 2018 – posted data in departments citywide into one centralized graphic online, and developed a formal TIF surplus policy. The management and printing team. This consolidation began City instituted a policy of reviewing each TIF on an annual in 2012 and continues into 2018. For 2018, the City expects basis and declaring unneeded funds as surplus. Along with to save an additional $360,000, while this an annual TIF surplus, the Mayor froze new spending in consolidation has saved the $ity nearly $8 million seven downtown TIFs in July 2015 and will sunset these since it began. TIFs when the current and committed projects are paid off. Additionally, as a result of recent property tax levy increases FINANCIAL AND BUDGETARY REFORMS for police, fire and teachers’ pensions in Chicago, the Over the past six budgets and continuing with the 2018 composite tax rate is increasing, and therefore, additional budget, the Mayor has made fundamental changes to the TIF revenue is generated in TIFs from these higher tax rates. way the City manages its finances, eliminating unsustainable The Mayor has committed to declaring these excess T IF practices of the past and improving the City’s long-term revenues as surplus annually as part of the budget process. financial health. As a result, the declared TIF surplus for 2018 of $166.9 Achieving Debt Service Savings million provides $40 million to the City of Chicago and In October 2017, Mayor Emanuel and the Chicago City $88 million to $IJDBHP 1VCMJD 4DIPPMT CPS . The most Council approved an ordinance to create a securitization recent CPS's budget already included $22 million in TIF structure for the City of Chicago, which is expected to surplus for the 2017-18 school year; therefore, the achieve higher credit ratings and reduce debt service costs additional $66 million in TIF surplus above the amount for taxpayers. The revenue securitization creates a separate currently budgeted is supporting a portion of the $80 corporation for the sole purpose of issuing debt. The City million in public safety costs the City of Chicago is intends to pledge sales tax revenue that is collected by the providing in local resources to balance UIF CPS budget. State on the City’s behalf to the new Corporation to repay The remaining $14 million will be provided to CPS by the City of Chicago through the City’s operating revenue. debt issued by the Corporation for the benefit of the City. Beginning in late 2017 and continued over multiple transactions, the Corporation FYQFDUT UP refund $2.3 billion of general obligation debt and $500 million of existing sales tax bonds for overall present value savings. These refunding bonds are expected to be structured to achieve accelerated savings providing budgetary benefit for 2018, while also keeping overall debt service level over the life of the bonds, mitigating future negative impacts on the City’s corporate GVOE Since 2010 and including the 2018 proposed TIF surplus, the City will have returned TIF surplus to local taxing bodies every year for a total of $1,021.9 million returned – with half of that going to CPS. 10 2 0 1 8 B u d g e t O v e r v i e w Proposed 2018 Budget (continued) Ensuring Long-Term Financial Stability Revenue Mayor Emanuel has added to the City’s reserves each year and established additional measures to stabilize the City’s budget. Since 2012, the City has added $40 million into its asset lease and concession reserves along with another $15 million to its operating liquidity fund. These sources along with the prior year’s unassigned fund balance, comprise the City’s unrestricted budgetary fund balance, also referred to as the “budget stabilization fund”. In 2018, the City will deposit another $5 million in its operating liquidity fund. For more information on the City’s budget stabilization fund policy, please see the Financial and Budgetary Policies section of this document. Over the previous six budgets, the City worked to increase sustainable revenue sources, match expenditures to revenue, and take advantage of economic growth. Because the City relies on a diverse set of revenue sources, no one revenue source is critical to the City’s financial stability. Overall the 2018 corporate fund budget shortfall, including critical investments, is supported by approximately $100 million in sustainable revenue growth, tax loophole closing, revenue enhancements and expanded enforcement measures. Moving Operating Expenses off Long-Term Borrowing The City imposed greater fiscal discipline through the phasing-out of using bonds to pay for certain working capital expenses. Previously, the City used long-term debt to pay for certain working capital expenses such as retroactive salary payments, trees, library books, garbage carts and other similar expenses. In 2018, the City will move another $5.3 million in working capital off long-term debt onto the City’s operating budget. Through strategic budget planning since 2012, the City has paid for more than $161 million in retroactive salary payments and $58.2 million in working capital from the operating budget, instead of resorting to long-term borrowing. Revenue growth in 2018 is primarily due to increases in economically-sensitive revenues and other revenues due to changing consumer behavior and improving economic conditions in Chicago and nationwide. Ground transportation tax is estimated to grow by $41 million over initial projections. This growth is attributable to the expanding rideshare industry. Other economically sensitive revenues, including hotel tax, vehicle fuel tax and telecommunication tax, are expected to perform strongly in 2018 relative to initial projections this summer. In total, the City is budgeting $50.3 million in additional revenue from economically-sensitive revenue and other revenue growth. Additionally, the City plans to move forward with reducing the boundaries of Enterprise Zone 4 in the West Loop neighborhood. This neighborhood has seen significant economic growth in recent years, and certain tax exemptions 11 2 0 1 8 B u d g e t O v e r v i e w Proposed 2018 Budget (continued) designed to spur development are no longer needed as the area has seen tremendous development in recent years. By reducing the size of this zone, the City expects to receive an additional $4 million in real property transfer tax in 2018. The 2018 budget will also see increased revenue from improved enforcement and collection measures on businesses and individuals with outstanding debt. Further, the City plans to improve debt collection efforts related to public employees, especially employees within Chicago’s sister agencies, as city employees are currently subject to regular debt checks. These reforms taken together represent an additional $10.8 million in revenue. As part of the 2018 budget, the City is also proposing to amend the current Amusement Tax rate structure to close an existing loophole and better align the tax structure with the City’s cultural, theatrical and musical performance goals. The proposed tax structure will help to improve access to neighborhood music and theater performances and expand cultural opportunities by eliminating a tax on live cultural performances in venues with a capacity of 1,500 or less, while also leveling the playing field for mainstream amusements by applying the same tax rate across the board. This tax equalization effort is expected to increase Amusement Tax revenue by $15.8 million. The City’s current 911 surcharge of $3.90 per wireless and landline connection does not cover all eligible 911 expenses, requiring a subsidy from the corporate fund in order to supplement the City’s 911 operations. With this budget, the City is proposing to increase the 911 surcharge to $5.00 per wireless and landline connection, allowing the City to fully fund the City’s 911 operations using surcharge funds as well as invest in a new 911 system, Next Generation 911. Because the corporate fund is no long subsidizing 911 operations, the City estimates this increase will free up approximately $19 million in existing corporate fund revenue to support other public safety expenses. Investments Investments in the 2018 budget reflect the Mayor’s comprehensive plan to strengthen law enforcement tools, provide economic opportunity for all Chicagoans, improve critical city services and expand early childhood, student and family programming in all neighborhoods. Strengthening Law Enforcement Tools - Chicago Police Department Year Two Hiring and a Down Payment on Police Reform In 2017, the Chicago Police Department ("CPD") began a two-year plan to hire an additional 970 sworn officers as part of the Mayor’s plan to improve safety and security in every neighborhood. Mayor Emanuel’s plan included 12 2 0 1 8 B u d g e t O v e r v i e w Proposed 2018 Budget (continued) IJSJOH additional police officers, GJFME USBJOJOH PGGJDFST, detectives TFSHFBOUT and lieutenants. The hiring initiative included an additional 500 Police Officers, 92 Field Training Officers, 200 Detectives, 112 Sergeants and 50 Lieutenants. The 2017 budget included the hiring of 250 Police Officers, 92 Field Training Officers, 100 Detectives, 37 Sergeants and 50 Lieutenants. The 2018 budget includes an additional investment of over $60 million to support the hiring of 250 Police Officers, 100 Detectives and 75 Sergeants. By the end of 2018, the number of sworn officers in the Department will grow from 13,110 to 13,531. In addition to the two year hire plan, as part of CPD’s reform efforts, CPD will also add an additional 100 Field Training Officers bringing the total sworn count to 13,631 by the end of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i1SF ,w UIF .BZPS XJMM DPOUJOVF JOWFTUJOH JO FBSMZ DIJMEIPPE DFOUFST UP DSFBUF TQBDF GPS NPSF GPVS ZFBS PMET JO IJHI RVBMJUZ GVMM EBZ QSFTDIPPM TFSWJDFT BDSPTT UIF $JUZ CZ TMPUT CSJOHJOH UIF UPUBM UP NPSF UIBO ZPVUI JO GVMM EBZ QSPHSBNNJOH NPSF UIBO BO JODSFBTF TJODF 5P DPOUJOVF QSPWJEJOH BDDFTT UP FTTFOUJBM TFSWJDFT GPS $14 TUVEFOUT UIFTF GVOET XJMM BMTP QSPWJEF GSFF FZF DBSF UP OFBSMZ $14 TUVEFOUT BOE GSFF EFOUBM DBSF UP NPSF UIBO $14 TUVEFOUT The 2018 budget includes a $27.4 million investment in police reform initiatives such as enhanced training, reform implementation, officer we llness and community policing. As part of a commitment to training, the 2018 budget will support CPD in implementing its new 16-hour inservice training requirement that will expand to 40 hours of mandatory training by 2021. Critical investments in QPMJDF reforms are also supported with the proposed 2018 budget, including the DSFBUJPO PG UIF Office of Reform Management and the modernization of CPD’s systemT. There will also be investments in officer well-being to help support officers’ ability to be successful at their jobs. Lastly the proposed 2018 budget includes $3 million – triple last year’s budget – to enhance community policing efforts, including growing the dedicated community policing staff by 30 additional community relations coordinators, organizers and advocates, expanding community policing training, and FOIBODing District Advisory Councils and Youth District Advisory Councils. 5IFTF JOWFTUNFOUT CVJME PO UIF .BZPS T PWFSBMM HPBMT UP IFMQ $IJDBHP T TUVEFOUT TVDDFFE OPU POMZ BDBEFNJDBMMZ CVU UP BDIJFWF JNQPSUBOU NJMFTUPOFT BOE HPBMT GPS UIFJS GVUVSF *OWFTUJOH JO $IJDBHP 1VCMJD -JCSBSJFT $JUZXJEF "EEJUJPOBMMZ UIF CVEHFU DPOUJOVFT POHPJOH JOWFTUNFOUT JO UIF F QBOTJPO PG UIF #PEZ 8PSO $BNFSB QSPHSBN "MM QBUSPM PGGJDFST JO FWFSZ EJTUSJDU XJMM IBWF CPEZ XPSO DBNFSBT CZ UIF FOE PG BOE JO CPEZ XPSOcamera deployment will expand to specialized units and area teams to further the $1%hT ability to fairly resolve complaints and improve transparency. &YQBOEJOH /FJHICPSIPPE &BSMZ -FBSOJOH $FOUFST BOE :PVUI 1SPHSBNNJOH BOE *OWFTUNFOUT .BZPS &NBOVFM CFMJFWFT UIBU B CVEHFU JT B SFGMFDUJPO PG WBMVFT BOE VOEFS IJT "ENJOJTUSBUJPO UIF $JUZ IBT JODSFBTFE JOWFTUNFOUT PG MPDBM GVOET JO ZPVUI QSPHSBNT NPSF UIBO 13 As part of the 2018 budget, Mayor Emanuel and the Chicago Public Library (“CPL”) will significantly renovate or construct new CPL locations in eight neighborhoods citywide. These new and renovated library locations will include a built-out early childhood active learning space. School-aged children will have access to the Library’s Teacher in the Library program which offers free one-on-one homework assistance. Teens will have access to technology, resources, and classes that inspire exploration, creativity and learning through the YOUmedia program. CPL is also working to increase technology and workforce programs for adults. These new branches will offer computer classes and one-on-one coaching to build digital literacy and technology skills for adults and seniors. Traditional library programs, such as book clubs for seniors and intergenerational educational and cultural programming will also be available to these communities. 2 0 1 8 B u d g e t O v e r v i e w Proposed 2018 Budget (continued) The investment is a combination of TIF funding, public and private partnerships with the Chicago Housing Authority (“CHA”) and Sterling Bay Partners, and NJMMJPO JO CPL funds to support the capital investments, additional personnel, and other costs. The eight locations are expected to open in 2018 PS early Workforce Development for Opportunity Youth According to a UIC Great Cities Institute report, there are approximately 60,000 “Opportunity Youth” in Chicago, or youth ages 16 to 24 who are out of work and out of school. In Chicago, an estimated 34 percent, or 20,400, have been arrested with half of those arrests for involvement in violent crime. To address this challenge, the 2018 budget includes a public-private partnership with Thrive Chicago for $500,000 that builds off the City’s existing successful youth investments made by Mayor Emanuel including programs like One Summer Chicago, Mentoring, and Strong Futures. This program will supplement the Mayor’s previous investments with two year-round, neighborhood-based strategies targeting Opportunity Youth and include five community-based hiring events and a new “Neighborhood Reconnection Hub” where youth get connected to job training and educational opportunities. Modernizing the City’s 911 Operations In 2018, the City is making strategic investments in citywide safety through the Office of Emergency Management and Communications (“OEMC”) by replacing the City’s twenty year old 911 system, which includes the City’s Computer Automated Dispatch (“CAD”) system. The new system will drastically upgrade and modernize the technology base of the City’s 911 system through dynamic improvements to the operating technology and outreach systems between callers, operators, and first responders. These upgrades will also help to ensure the City is compliant with the State of Illinois Next Generation 9-1-1 network XIJDI JT required UP CF JNQMFNFOUFE by 2020. To cover the cost of these upgrades, funds generated from the proposed increase in the 911 Surcharge will be used to pay for the new 911 system modernization. Improving Rodent Abatement Strategies As part of the 2018 budget, and building on the other key investments Mayor Emanuel has JNQMFNFOUFE in recent years to combat rodents, the City will add five crews to the Department of Streets and Sanitation’s (“DSS”) Bureau of Rodent Control dedicated solely to rodent baiting, bringing the total number of crews working through Chicago to 30. The proposed budget also includes an increase of $500,000 to purchase an additional 10,000 garbage carts, bringing the total cart purchase investment to $1,500,000 for 2018. Establishing a Legal Protection Fund for Chicagoans .BZPS &NBOVFM BOE UIF $JUZ $PVODJM FTUBCMJTIFE UIF $IJDBHP -FHBM 1SPUFDUJPO 'VOE UIF i'VOEw JO %FDFNCFS JO SFTQPOTF UP B DSJUJDBM OFFE UP JODSFBTF MFHBM TFSWJDFT for immigrant communities across Chicago amidst increased federal Immigration and Customs Enforcement (“ICE”) raids. Using $1.3 million in unspent property tax rebate funds, the Fund has served more than 20,000 immigrants through communitybased outreach, education, legal consultations, and legal representation, including courtroom representation. In 2018 through the Department of Family and Support Services, the City of Chicago will invest another $1.3 million to continue this initiative between the Heartland Alliance’s National Immigrant Justice Center and the Resurrection Project, among others to provide services for residents in neighborhoods citywide. Conclusion The 2018 budget proposal continues the deficit re duction and fiscal reforms of the last six years, as well as strengthening investments in neighborhoods, children and families, public safety, and neighborhood services. This budget reinforces Chicago’s position as a world-class city with a diverse and growing business sector and vibrant communities. Most critically, this budget proposal continues to invest in Chicago, while still ensuring fiscal and economic stability for all residents now and in the generations to come. 14 2 0 1 8 B u d g e t O v e r v i e w Proposed 2018 Budget (continued) CLOSING THE $114.2 MILLION CORPORATE FUND GAP PROVIDING $123.8 MILLION ADDITIONAL INVESTMENTS Cutting Spending and Reforming Government $19.35 Million • Repurposing existing vacancies, managing healthcare costs, and other personnel savings • ‘Zero Based Budgeting’, professional services savings and departmental savings • Energy reduction and lease savings • Graphics consolidation and printer savings Improved Fiscal Management $119 Million • Debt Service Savings • TIF Surplus Reform, Downtown Freeze, and Value Capture Data-Driven Enforcement and Improved Debt Collection $10.8 Million • Data analytics based parking enforcement • Driveway billing enforcement Growth in Economically Sensitive & Other Revenues $50.3 Million • Ground transportation tax growth • Telecommunication, vehicle fuel, and hotel taxes and other revenue growth Revenue Enhancements & Loophole Closing $38.8 Million • 911 Surcharge - freeing up corporate fund revenue • Amusement tax equalization • Enterprise Zone reform TOTAL $238 MILLION DEPOSIT INTO RAINY DAY FUND $5 MILLION 15 2018 BUDGET OVERVIEW DISCUSSION OF PROPOSED BUDGET 2 0 1 8 B u d g e t O v e r v i e w Discussion of Proposed Budget Overview The 2018 proposed City budget for all local funds is $8.58 billion, $3.77 billion of which makes up the City’s corporate fund budget. The 2018 proposed budget also includes an anticipated $1.43 billion in grant funding, bringing the total proposed budget for 2018 to $10.01 billion. 2018 PROPOSED REVENUE  ALL FUNDS Chart 1 Grants 13% Aviation 14% Sewer & Water 11% Property Tax 19% Other Local Taxes 11% Fines, Forfeitures and Penalties 3% Income Taxes 4% Other Resources 8% Utility Taxes 4% Other Non-Tax Revenue 7% Sales Taxes 6% 2018 PROPOSED REVENUE  CORPORATE FUND Chart 2 Non-Tax Revenue 17% Sales Taxes 17% Reimbursements 13% Utility Taxes 12% Other Local Taxes 30% Income Taxes 10% Proceeds & Transfers 1% 19 2 0 1 8 B u d g e t O v e r v i e w Discussion of Proposed Budget (continued) 2018 PROPOSED EXPENDITURES  ALL FUNDS Chart 3 Public Safety 23% General Financing Requirements 45% Infrastructure Service 17% Legislative and Elections 0% Community Services 6% Regulatory 1% City Development 2% Finance and Administration 5% 2018 PROPOSED EXPENDITURES  CORPORATE FUND Chart 4 Finance General 23% Police 40% Fire 15% Emergency Management and Communication 1% Transportation 1% Streets and Sanitation 4% Fleet and Facility Management 5% All Other Departments 11% It should be noted that a portion of the City’s capital resources are accounted for outside of the City’s operating budget and thus not presented in Charts 1 - 4. The City’s capital resources and planned projects are discussed in the Capital Improvement Program section of this document. 20 2 0 1 8 B u d g e t O v e r v i e w Revenue Discussion Introduction to Revenues The 2018 revenue projections for each of the City’s funds are discussed in the pages that follow. Additional detail regarding the City’s revenue sources by fund is provided in the Budget Detail pages at the end of this document. Historical information and a more detailed discussion of 2017 year-end estimates for each of the City’s sources of revenue can be found in this year’s Annual Financial Analysis. For definitions of the taxes, other revenue sources, and fund types discussed in this document, please refer to the Glossary. Economic Overview The 2018 budget assumes modest growth in business and leisure activity among City residents and tourists alike. City revenues continue to benefit from the City’s diverse economic base. No single industry in the city employs more than 14.0 percent of the workforce, making Chicago one of the most diverse economies in the country and a key player in sectors from financial services to technology UP healthcare. Consumer sharing technologies, such as home and rideshare services, have positively impacted certain revenue sources in the City and this growth is expected to continue into 2018. But, while the City does have a diverse set of revenue sources with no single tax or non-tax revenue source supporting more than 18 percent of the corporate fund budget, certain economically-sensitive and consumer-driven revenues have been impacted by shifting consumer preferences. With ongoing investments in City services and infrastructure coupled with a diverse employment base, this budget projects ongoing economic competitiveness and modest economic growth. Corporate Fund The corporate fund is the City’s general operating fund, supporting basic City operations and services, such as public safety, public health, and tree trimming. The proposed 2018 budget forecasts that corporate fund resources will total $3.77 billion, an increase of $23.6 million or 0.6% percent over the current 2017 year-end estimate of $3.75 billion. While there is growth in revenue sources for 2018 compared to 2017 year-end estimates, the overall operating budget revenue only increases by $23.6 million relative to the 2017 year-end estimate due to a variety of factors. This reflects the shift of a significant portion of the Office of Emergency Management (“OEMC”) costs to a dedicated special revenue fund, providing a clear delineation of emergency preparedness and 911 operation costs from other expenses. This shift removes over $100 million of expenses and the corresponding revenue transfer UP the operating budget GSPN the emergency communications SFWFOVF fund. Additionally, other revenue sources show declines due to reductions in revenues from the State of Illinois and shifting revenue sources for debt service costs. The following is a discussion of the noteworthy elements impacting the 2018 revenue projections for the corporate fund. Tax Revenue Corporate fund tax revenue consists of local tax revenue and intergovernmental tax revenue. Local tax revenue includes utility, transaction, transportation, recreation and business taxes. Intergovernmental tax revenue includes the City’s share of the Illinois sales and use tax, income tax, personal property replacement tax (“PPRT”), and municipal auto rental tax. The 2018 proposed budget anticipates that local tax revenues will increase by $22.6 million or 1.2 percent over 2017 year-end estimates to $1.8 billion, and that intergovernmental tax revenues will decline by $20.1 million or 2.6 percent from the revised 2017 year-end estimate of $786.9 million. Utility Taxes and Fees Utility taxes and fees include taxes on electricity, natural gas, and telecommunications, as well as fees received from cable companies for the right to operate within the City of Chicago. Utility taxes and fees, which account for 11.5 percent of total projected corporate fund resources, are expected to total $435.7 million in 2018, $13.9 million higher than the 2017 year-end estimate of $421.8 million. Numerous factors impact utility tax revenues including weather, natural gas prices, rate changes, and evolving technologies that affect consumer behavior and energy use. The 2017 year-end estimate for electricity tax revenue is $175.9 million, which is $12.6 million under budgeted amounts. The 2018 estimate of $188.2 million anticipates summer will be warmer than 2017. Natural gas tax revenues are expected to end this year $5.9 million below budgeted expectations of $121.0 million. The 2018 budget forecast assumes an increase in natural gas tax revenues of $3.9 million from the 2017 year-end estimate as winter weather 21 2 0 1 8 B u d g e t O v e r v i e w Revenue Discussion – Corporate Fund is not expected to be as mild in 2018 as it was in early 2017. Cable franchise fees for 2018 are projected to generate $29.5 million, generally in line with 2017 estimates. Telecommunications tax revenue is forecasted at $99.0 million for 2018, which marks a modest increase over the 2017 budgeted amount of $98.0 million. The growth is helped in part by business expansion in the City. Transaction Taxes Transaction taxes include taxes on the transfer of real estate, the lease or rental of personal property, and the lease of motor vehicles in the city. The 2017 year-end estimate is 7.4 percent above the 2017 budgeted amount of $ million helped by strength in the real estate market, business growth, and greater compliance with the City’s business tax ordinances. Transaction taxes are expected to generate $422.6 million in 2018, which accounts for 11.2 percent of projected corporate fund resources in 2018. Personal property lease tax revenue is expected to finish 2017 above budgeted expectations at $247.2 million due to business growth and greater compliance from businesses subject to this tax. As part of the 2016 budget, the City implemented a lower tax rate of 5.25 percent on non-possessory leases for certain types of computer software, while maintaining the existing 9.0 percent rate for computer database leasing. With this change, the City incentivized compliance by offering amnesty to companies that owed prior years’ taxes on cloud software and infrastructure services by waiving taxes, penalties and interest for years prior to 2015 as long as companies came into compliance for 2015 taxes and going forward. These efforts resulted in more businesses remitting the tax in 2016, and that trend continued in 2017. Personal property lease tax revenue in 2018 is estimated to be $246.3 million, representing a slight reduction from 2017 due to less one-time revenue from penalties and interest from prior non-compliance. Real property transfer tax is expected to end 2017 above budgeted levels at $170.5 million. Despite the prospect of slightly higher lending rates in 2018, residential sales volume and prices are expected to grow. Commercial transactions are also expected to remain strong. As a result, 2018 real property transfer tax revenues are projected at $170.1 million generally in line with the 2017 year end estimate. The 2018 real property transfer tax revenue also reflects an enterprise zone change covering areas of the West Loop. Revenue from the motor vehicle lessor tax is expected to decline slightly to $6.3 million. 2018 PROPOSED BUDGET SUMMARY $ Millions (Columns may not sum due to rounding) Table 1 2017 Budget 2018 Proposed Budget $3,735.4 $3,774.2 728.1 780.0 1,086.0 1,245.7 864.0 821.3 Enterprise Funds 2,651.3 2,672.5 Grant Funds 1,629.2 1,430.0 $10,693.9 $10,723.7 Less Proceeds of Debt (77.2) (83.6) Less Internal Transfers (697.0) (630.7) $9,919.8 $10,009.4 Corporate Fund Special Revenue Funds Pension Funds Debt Service Funds Total Resources Net Appropriations Proceeds of debt issuances transferred between funds and reimbursements or internal transfers between funds are deducted from the total resources to more accurately reflect the City appropriation. Total resources include revenues generated during the year and prior year savings and available resources. 22 2 0 1 8 B u d g e t O v e r v i e w Revenue Discussion – Corporate Fund (continued) Transportation Taxes Transportation taxes include taxes on parking, vehicle fuel purchases, and the provision of ground transportation for hire. Transportation taxes account for 7.8 percent of total projected corporate fund resources in 2018, and are expected to generate $293.5 million in 2018, which is 8.9 percent more than the 2017 year-end estimate of $269.5 million. By way of background, the City’s 2016 budget included a number of revisions to ground transportation tax rates and other fees on rides provided by the taxi and rideshare industries. Among the changes for the rideshare industry was a $5 surcharge on all rideshare trips to and from Chicago airports, Navy Pier, and McCormick Place. In addition, the per trip tax rate for rideshare trips that begin or end in Chicago doubled from $0.20 per trip to $0.40 per trip. A $0.10 per trip Accessibility Fund payment was also added. Changes for the taxi industry included raising the monthly ground transportation tax rate on medallion licensees to $98 per month from $78 per month. In addition, the Accessibility Fund payment on medallion licensees changed from a $200 fee payable every two years to $22 per month. As the use of rideshare transportation in the City continues to expand, ground transportation tax revenue has increased steadily. Ground transportation tax in 2018 is expected to total $109.0 million, which is a $41.0 million increase CORPORATE FUND RESOURCES $ Millions (Columns may not sum due to rounding) Table 2 2016 Actual 2017 Budget 2017 Year-End Estimate 2018 Proposed Budget $434.4 $437.9 $421.8 $435.7 Transaction Taxes 463.6 394.9 424.3 422.6 Transportation Taxes 247.1 241.4 269.5 293.5 Recreation Taxes 246.6 221.6 249.2 268.9 Business Taxes 118.9 123.9 137.0 128.5 Sales and Use Taxes 674.5 698.8 674.7 653.4 Income Tax & PPRT 413.7 399.6 410.5 386.7 6.1 6.2 6.1 6.0 $2,604.9 $2,523.5 $2,592.9 $2,595.4 $130.4 $128.0 $128.2 131.1 Fines, Forfeitures and Penalties 318.4 358.8 326.7 326.2 Charges for Services 130.8 114.9 119.0 122.0 7.5 21.8 7.6 8.0 26.1 36.0 28.8 36.6 410.2 461.9 468.4 492.5 $1,023.4 $1,121.4 $1,078.7 1,116.4 8.0 37.0 26.0 25.5 $3,636.2 $3,682.0 $3,697.6 $3,737.2 0.0 .0 53.0 37.0 $3,636.2 $3,7 . $3,750.6 $3,774.2 Tax Revenue Utility Taxes and Fees Other Intergovernmental Total Tax Revenue Non-Tax Revenue Licenses and Permits Municipal Parking Leases, Rentals and Sales Reimbursement, Interest & Other Total Non-Tax Revenue Proceeds and Transfers In Total Revenue to the Corporate Fund Additional Savings/Unassigned Balance Total Corporate Fund Resources 23 2 0 1 8 B u d g e t O v e r v i e w Revenue Discussion – Corporate Fund (continued) -JRVPS UBY SFWFOVF JT BOUJDJQBUFE UP SFNBJO TUFBEZ JO BU $32.5 million compared to 2017, while revenue from non- alcoholic beverages is expected to rise slightly to $25 million in 2018. Cigarette tax revenue, including revenue from the sale of electronic cigarettes, is expected to decline in 201 to While ground transportation tax is growing in 2018, $20.1 million from $21.4 million in 2017. Part of the parking garage tax revenues are FYQFDUed to decline slightly anticipated decline in revenue reGMects the City’s ongoing to $132.5 million from UIF ZFBS FOE FTUJNBUF PG eGGorts to reduce youth smoking by, among other things, $133. NJMMJPO. raising the age to purchase cigarettes from 18 to 21 Vehicle fuel tax revenues are expected to increase slightly in 2018 to $52.0 million. Lower fuel prices combined with Business Taxes increased travel and tourism have helped sales of automobile Business taxes include taxes on hotel accommodations, the and aviation fuel within the City and slowed a longer term sale of GJSF insurance in the city by companies outside of trend of declining vehicle fuel tax revenues. Illinois, and paper and plastic disposable shopping bags. In total, the City’s business taxes are expected to generate Recreation Taxes $128.5 million in 2018, which represents for 3.4 percent of Recreation taxes include taxes on amusements, automatic total projected corporate fund resources. amusement devices, the mooring of boats in the City’s harbors, liquor purchases, cigarette and e-cigarette purchases, As part of the 2017 budget, the City implemented a $0.07 purchases of non-alcoholic beverages, and off-track betting. per bag tax on plastic and paper disposable bags not offered Recreation taxes are expected to generate $268.9 million in for sale as general merchandise used to carry merchandise 2018, an increase of $19.7 million from the 2017 year-end away from a retailer. The r etailer i s a llowed t o k eep $ 0.02 estimate of $249.2 million. Recreation tax revenue represents per bag while remitting the remaining $0.05 to the City. A 7.1 percent of total projected 2018 corporate fund resources. major goal of the tax was to reduce the amount of disposable bags that end up in landfills. The total anticipated revenue Amusement tax revenue is forecasted to total $189 million generated from the tax in 2017 was $12.9 million with $9.2 in 2018, up from a projected $168.7 million in 2017, due million remitted to the City. Revenues from the tax have been to changes in the structure of the City’s amusement tax. The below anticipated levels as more consumers chose to bring 2018 budget recommendations includes a proposal to amend their own bags when shopping. Checkout bag tax revenue the current amusement tax rate structure. The City currently is expected to end 2017 at $5.0 million and is expected to has two different amusement tax rates depending on the type remain flat for 2018. above initial projections this summer with approximately 90 percent of this revenue from the rideshare industry. The 2017 year-end estimate is $8 . 2 million, which is a $ . 2 million increase over 2017 budgeted GJgures. of amusement and multiple tax exemptions depending on the organization's not-for-profit status and venue size. For live theatrical, musical or other cultural performances in a venue with a capacity PG greater than 750 people, a 5.0 percent amusement tax is charged on the ticket price. For all other types of amusements – sporting events, movies, bowling — regardless of venue size a 9.0 percent amusement tax is charged on the ticket price. In 2018, the City is proposing to eliminate the 5.0 percent amusement tax rate entirely and apply the 9.0 percent amusement tax rate to live cultural events in venues with a capacity PG more than 1,500 people. This is the same amusement tax rate applied to sporting events, movie theaters and other amusements today. Live cultural events in venues with a capacity of 1,500 or less will not pay any amusement tax. The proposed changes to the amusement tax structure expected to increase amusement tax revenue by $15.8 million. Hotel accommodations tax revenues are expected to end 2017 well above budgeted levels at $127.6 million. This i s due to the resolution of a decade-long litigation related to remittance of the City’s hotel accommodations tax by hotel booking websites. In May 2017, the City received a net settlement payment of $12 million. Without this one-time settlement payment, 2017 hotel tax revenue would be $5.3 million above 2017 budgeted levels. Hotel accommodations tax revenue is projected to be $119.0 million in 2018. This fi gure re flects the imp act of a 4 .0 per cent sur charge implemented in 2016, which applies to room rentals in private residences arranged by internet-based intermediaries. The 2 018 e stimate a lso reflects an in crease in bu siness an d leisure travel to the City. Foreign fire insurance tax revenue is expected to remain relatively flat for 2018 at $4.5 million. 24 2 0 1 8 B u d g e t O v e r v i e w Revenue Discussion – Corporate Fund (continued) Sales and Use Taxes The City receives sales tax revenue from two sources: the Chicago Home Rule Occupation Tax (“HROT”), which is 1.25 percent and the Illinois Municipal Retailers’ Occupation and Use Tax (“MROT”), which is 1.0 percent. The remaining 8 .0 percent goes to the State, County, and Regional Transportation Authority. The City imposes the HROT on the retail sale of tangible personal property except food, medicine, and medical appliances. The MROT tax base differs in that the tax applies to qualifying food and drug sales. Sales and use tax revenue from the HROT and MROT to the City’s corporate fund is expected to total $653.4 million in 2018, accounting for 17. percent of total corporate fund resources. While the City’s share of MROT is expected to increase over 2017 to $374. million, the City’s HROT revenue will be lower in 2018 due to a new administrative fee imposed by the State of Illinois on taxes it administers for local governments and the refunding for savings of long-term debt for which the City has pledged an additional $24 million of sales tax revenue as a source of payment. Income Taxes of 14 LGDF payments instead of 12. Individual income tax receipts are expected to grow modestly helped by low unemployment and wage growth while corporate income tax receipts are expected to remain flat. The City’s 2017 budget originally anticipated $132.3 million in PPRT revenue, but the City now estimates that PPRT revenue for 2017 will be $160.4 million. The 2017 budget anticipated that the State of Illinois would continue efforts to recover funds that were mistakenly distributed to local units of government between April 2014 and March 2016. Efforts to recover those funds largely impacted the City’s 2016 revenues. The State’s FY 2018 budget includes 10.0 percent cut to community colleges, which is subsequently made up through the diversion of PPRT revenue from municipalities to community colleges. Due to diversions of PPRT to community college districts, forecasted revenues for 2018 are significantly lower at $134.2 million compared to 2017. Non-Tax Revenues The 2018 proposed budget forecasts that non-tax revenues will increase by $37.7 million over 2017 year-end estimates of $1.1 billion, accounting for 29.6 percent of total projected corporate resources. Non-tax revenue consists of fees charged for the issuance of licenses and permits; fines, forfeitures and penalties for traffic or other violations; various charges for services; municipal parking; leases, rentals and sales of City-owned property; internal service earnings; and interest and other revenue. Income taxes include a distributive share of the State of Illinois income tax and Personal Property Replacement Tax (“PPRT”), both of which are distributed to the City by the State based on defined formulas. IOcome tax and PPRT revenues to the corporate fund are expected to total $386.7 million in 2018, accounting for 10. percent of total projected corporate fund reTPVSDFT. Income tax revenue is expected to end 2017 below budget at $250.1 million and increase slightly in 2018 to $252.5 million. As part of the Licenses and Permits State of Illinois FY 2018 budget, the individual income tax Total revenue from licenses and permits is projected to rate increased to 4.95 percent and the corporate income tax be $131.1 million in 2018, accounting for 3.5 percent rate increased to 7.0 percent in July 2017. The percentage of corporate fund resources. These revenues include fees of income tax revenue distributed to the Local Government charged for the issuance of business licenses, alcohol dealer Distributive Fund (“LGDF”) was reduced to 6.06 percent licenses, building and demolition permits, and various other for individual income tax receipts and 6.85 percent for permits. Business permits and alcohol dealer license revenue corporate income tax receipts in conjunction with the are expected to decrease slightly due to a two-year renewal income tax rate increases. In addition, the State reduced cycle for these licenses. The two-year business license cycle the total amount of income tax revenue deposited into the results in fluctuations in revenue from year-to-year. LGDF by another 10.0 percent for its FY 2018. The 10.0 percent decrease to LGDF is to account for a change in Fines, Forfeitures, and Penalties how income tax disbursements will be paid to municipalities. The State will deposit income tax revenue Fines, forfeitures, and penalties include fines from parking directly into the LGDF instead of the revenue first passing tickets, tickets for traffic violations, and other penalties through the State’s general revenue fund with a subsequent assessed in administrative hearings or the courts. Revenue transfer to the LGDF. This will result in municipalities from fines, forfeitures, and penalties in 2018 is estimated to receiving two accelerated income tax payments during the be $326.2 million. This figure accounts for 8.6 percent of State’s fiscal year 2018 for a total 25 2 0 1 8 B u d g e t O v e r v i e w Revenue Discussion – Corporate Fund (continued) Prior Year Available Resources 2018 corporate fund resources and represents a 0.1 percent decrease compared 2017 year-end projected revenues of $326.7 million. In 2018, the Department of Finance plans to expand their use of data analytics for parking enforcement and employ additional debt check measures on business, individual and $ity employees along with other enforcement measures to improve compliance and increase collections of outstanding debt. The City anticipates collecting $6.5 million in revenue from these improved enforcement measures. Prior years’ savings and sustainable revenue growth along with spending controls and other efficiencies resulted in a modest growth in the corporate fund balance over the past three years. This funding source will provide $37.0 million in 2018 funding or less than 1.0 percent of the overall corporate budget. For additional discussion on the City’s prior year available resources, see the City’s fund stabilization policy in the Budget and Financial Policy section of this book. Charges for Services Special Revenue Funds Revenues from charges for services are expected to increase in 2018 to $122.0 million, accounting for 3.2 percent of total corporate fund resources. Charges for services include fees charged for inspections, public information requests, police and other safety services. The 2017 year-end estimate for these revenues is $119.0 million. Special revenue funds are used to account for revenue from specific taxes and other sources that by law are designed to finance particular functions. Vehicle Tax Fund Vehicle tax fund expenditures are dependent on the amount, type, and cost of performing street repair and maintenance activities in a given year. The primary source of revenue to this fund is the sale of vehicle stickers. The City anticipates that revenue from the sale of vehicle stickers will finish 2017 TMJHIUMZ CFMPX budget at $126.0 million. Vehicle sticker revenue in 2018 is estimated to be $127.6 million, reflecting expected fee increases effective January 2018, which are based on B 1.3 percent increase in the Consumer Price Index $1* since July 2015. The current vehicle sticker rate for a passenger vehicle is $86.69. Despite the CPI adjustment, vehicle sticker revenue is lower from prior years as revenue from penalties has declined BT residents IBWF CFDPNF accustomFE to the process of year-round sales as well as the option of a 24 month vehicle sticker. Leases, Rentals, and Sales Revenue generated from the lease or sale of City-owned land and other property accounts for 1.0 percent of overall corporate fund revenue each year. Total revenues from such leases and sales are expected to increase to $36.6 million in 2018 from $28.8 million in 2017, due largely to contractual increases related to the City’s municipal marketing efforts. Reimbursements, Interest, and Other Revenue The 2018 projection for reimbursements, interest, and other revenues is $492.5 million. Investment returns on the corporate fund are budgeted at $8.0 million in 2018. Reimbursements consist of amounts transferred to the corporate fund from other City funds for central services such as information technology, police and fire services, street and building maintenance, and administrative services. A list of the anticipated inter-fund reimbursements to the corporate fund is set forth in Appendix A of the 2018 Budget Recommendations. The vehicle tax fund also receives revenue from impoundment fees and abandoned auto towing fees, which are expected to remain level between 2017 and 2018. Pavement cut fees are expected to decrease GSPN ZFBS FOE FTUJNBUFT by $2.0 million in 2018. Revenue from these fees had been higher in recent years due to an increase in the replacement and upgrade of utility lines in the public way. On an annual basis, the City declares a portion of the funds in active Tax Increment Financing ( TIF ) districts as surplus revenue, BOE returnT the proportionate share of the funds to the City’s operating budget. For the 2018 budget, the City expects to receive $40.0 million in surplus TIF revenue. Motor Fuel Tax Fund Motor fuel tax (“MFT”) revenues are generated primarily through a $0.19 per gallon tax on gasoline and $0.215 per gallon tax on diesel imposed by the State, of which the City Transfers-In Transfers-in are resources that are moved from other funds into the corporate fund. In 2018, transfers-in are projected to be $25.5 million, including a combined $18.0 million of investment income from the asset lease and concession reserves. 26 2 0 1 8 B u d g e t O v e r v i e w Revenue Discussion – Special Revenue Funds receives a population-based distributive share. Similar to the vehicle tax fund, the MFT fund revenue supports bridge maintenance, street lighting, energy, BOE road salt costs. Debt service payments on MFT backed debt and loans are in a separate fund to clearly show the debt service obligation for debt issued against MFT revenue. Library Fund The library fund supports the maintenance and operations of the Chicago Public Library system. Revenue to this fund includes proceeds from the Chicago Public Library’s portion of the City’s property tax levy, corporate fund revenue, interest income, facility rental revenue, and library fines. Property tax revenue for the library fund will increase by approximately $6 million to $83.6 million, reflecting growth due to TIF expirations and new construction. Revenue from facility rentals, interest, fines and other revenue are projected to generate $2.3 million. The corporate fund subsidy to this fund will decrease from $19.0 million UP NJMMJPOin 2018. Additional information on the Chicago Public Library’s budget and programming for 2018 can be found in its departmental summary in the following section of this document. Emergency Communications Funds The emergency telephone system surcharge is authorized by State law and the allowable rate for the surcharge is set by State law, which was recently increased to maximum allowable charge of $5.00 per line per month. The emergency telephone system surcharge or 911 surcharge is billed to subscribers of telecommunications services within the $ity. As part of the 2018 budget, the City is proposing to increase the 911 surcharge from $3.90 to $5.00 per line per month, which will increase total 911 surcharge revenue to $143. million from $117. million. With this increase, the City is also moving all eligible 911 operation and emergency preparedness expenses into a dedicated fund solely supported by the 911 surcharge. In prior years, the 911 surcharge was not sufficient to fully fund this expense; therefore, these costs were budgeted in the corporate fund and 911 surcharge revenues were transferred from a segregated revenue fund to the corporate fund to pay for eligible expenses and the remaining costs were paid with corporate fund revenue. SPECIAL REVENUE FUND RESOURCES1 $ Millions (Columns may not sum due to rounding) Table 3 2016 Actual 2017 Budget 2017 Year-End Estimate 2018 Proposed Budget $216.7 $222.4 $227.7 $214.1 62.2 63.0 71.7 67.1 Library Fund 107.2 102.5 107.9 109.5 Emergency Communication Fund 102.5 95.4 95.4 121.5 Special Events and Hotel Tax Fund 55.3 45.9 51.3 49.2 Affordable Housing Fund 16.7 35.3 35.3 39.9 CTA Real Estate Transfer Tax Fund 79.3 66.4 68.2 68.0 TIF Administration Fund 8.7 10.5 10.2 10.7 Garbage Collection Fund 54.4 61.2 61.2 61.2 9.7 9.7 23.3 $712.4 $ 738.7 $ 764.5 Vehicle Tax Fund Motor Fuel Tax Fund Neighborhood Opportunity Fund Total Resources 1 $703.0 The number presented in the table is net of debt service, as debt service is accounted for in a separate City fund. 2 Pursuant to State law, providers of pre-paid wireless services are not required to collect the 911 surcharge; instead, a fee of 9 percent of the amount charged for pre-paid wireless services is assessed, collected, and distributed to the City by the State. 27 2 0 1 8 B u d g e t O v e r v i e w Revenue Discussion – Special Revenue Funds With the 911 surcharge fully supporting eligible 911 operational costs, the corporate fund subsidy is no longer required and is being applied to other existing expenses. The City will continue to maintain a segregated fund to pay debt service issued to fund the previous construction of the City’s 911 call center. The 2018 debt service payment is $22.3 million. Affordable Housing Fund The City first included the affordable housing fund in the 2016 budget. Revenue in this fund for 2018 is anticipated to CF $39.9 million and is deriv ed from revenue collected through the City’s density bonus program and the Affordable Requirement Ordinance. The revenue is utilized to meet permanent housing needs of Chicago’s low-income residents. Special Events and Hotel Tax Fund Neighborhood Opportunity Fund The special events and hotel tax fund supports the promotion of tourism and cultural and recreational activities in Chicago. Revenue to this fund comes primarily from the State’s municipal hotel occupation tax and special eventrelated revenues. The Neighborhood Opportunity Fund ( NOF ) derives revenue from fees made by downtown development projects. The payments are in exchange for density bonuses that allow developers to exceed zoning limits for a specific development site. NOF reforms the City’s zoning system to allow larger buildings to be built downtown and thereby generates resources to support economic development activity in City neighborhoods most in need. Specifically, NOF fees are paid when projects obtain permits for construction. In 2018, these fees are expected to generate $23.3 million, which represents a significant increase from 2017 year-end estimates at $9.7 million. Growth in this fund is driven by Chicago’s thriving tourism industry. The 2018 forecast for hotel tax revenue is $24.0 million. Revenues from food, beverages, ticket sales, vendor fees, and corporate sponsorship at City special events are projected to generate $11.8 million. CTA Real Estate Transfer Tax Fund The Chicago Transit Authority (“CTA”) real estate transfer tax fund accounts for revenue from the supplemental real estate transfer tax to support public transportation in the city. The City collects and distributes the tax to the CTA each year. Like the City’s real property transfer tax, these revenues have benefited from the housing recovery and a strong commercial real estate market. Revenue to this fund is projected at $68.0 million, which is in line with 2017 year end estimates. Garbage Fee Fund Starting in 2016, Chicago residences receiving City- provided garbage collection services pay a $9.50 monthly fee per dwelling unit. City garbage collection crews collect refuse from single family homes and multi-family buildings with four units or fewer. The garbage collection fee is included as a separate line on the City’s water, sewer, and garbage utility bill. The City estimates it will collect $61.2 million in garbage fee revenue in 2017 and B similar amount in 2018. The growth in garbage fee revenue over the 2016 actual of $54.4 million reflects i m proving c o llection r a tes and implementation of late payment penalties on delinquent garbage fee charges beginning in 2017. TIF Administration Fund The TIF administration fund accounts for all administrative expenses incurred by the City to operate and maintain its Tax Increment Financing program. In 2018, $10.7 million of such expenses will be reimbursed to this fund from the City’s TIF funds, which is a slight increase form 2017 yearend levels but is in line with program costs. TIF revenues and projects are discussed in the Capital Improvement Program section of this document, and the annual TIF surplus process is discussed in the Key Reforms, Savings and Investments TFDUJPO of this document. 28 2 0 1 8 B u d g e t O v e r v i e w Revenue Discussion – Enterprise Funds Enterprise Funds Sewer Fund Enterprise funds support the operation, maintenance, and capital costs of the City’s water and sewer systems and O’Hare and Midway International Airports. These selfsupporting funds operate like commercial enterprises, in that each pays expenses with revenue derived from charges and user fees for the services it supports. When a resident pays their water/sewer bill, water service charges go to the water fund, and the sewer charge, which is 100 percent of water charges, goes to the sewer fund. The sewer fund is projected to have $370.4 million in total available resources in 2018, of which sewer fees are projected to generate $364.8 million with the remaining funding from transfers from other funds. Water Fund O’Hare and Midway Airport Funds Effective June 1, 2017, water rates increased by consumer price index (CPI) or 1.83 percent. The impact of this CPI increase is approximately $0.07 per 1,000 gallons of water, making the rate per 1,000 gallons of water $3.88. Sewer charges increased by the same amount, as sewer charges are billed at 100 percent of water charges. O’Hare and Midway airport operations are funded through landing fees, terminal rent, and other fees paid by airlines, as well as non-airline sources, such as charges for parking and revenues from concessions in the terminals. The amount that the airlines pay each year is established at each airport on a residual basis – the airlines are charged the amount that is needed to pay for operating expenses and debt service after taking into account non-airline revenues. The water fund is projected to have $768.0 million in total available resources in 2018, of which water fees are projected to generate $729.5 million, or 95 percent of total revenue. This reduction is due to current water conservation trends and ongoing installation of water meters. An additional $20.0 million will come from transfers from other funds for work performed by the Department of Water Management, and $18.5 million from other miscellaneous resources. In 2018, total revenues from airport operations, including concessions, rental fees, and airline rates and charges, are projected to be $1.25 billion for O’Hare and $283.2 million for Midway, up from the 2017 year-end estimates of $1.16 billion and $278.2 million, respectively. ENTERPRISE FUND RESOURCES $ Millions (Columns may not add due to rounding) Table 4 2016 Actual 2017 Budget 2017 Year-End Estimate 2018 Proposed Budget Water Fund $777.4 $782.7 $767.7 $768.0 Sewer Fund 368.2 368.2 371.9 370.4 Midway Airport Fund 237.7 290.1 278.2 283.2 O’Hare Airport Fund 1,047.4 1,210.3 1,158.8 1,250.9 $2,430.7 $2,651.3 $2,576.5 $2,672.5 Total Resources 29 2 0 1 8 B u d g e t O v e r v i e w Revenue Discussion – Pension and Debt Service Funds to the securitization $orporation, which will use the funds to pay debt service on $orporation bonds. As in the prior year, the proposed 2018 budget includes $38.9 million, the required debt service payment on the City’s outstanding Sales Tax Revenue bonds, budgeted in the sales tax bond redemption and interest fund. It is expected these funds will be used in combination with an estimated $24 million in additional sales tax revenues to pay the debt service for the Corporation debt. Debt Service Funds Debt service funds account for the payment of principal and interest of general obligation bond issues. Long-term debt is used to finance infrastructure projects in City neighborhoods including street and alley construction and improvements, lighting, sidewalk and replacement, curb and gutter repairs and replacement and transportation improvements, including street resurfacing, bridge rehabilitation and traffic safety improvements. In so doing, the City recognizes that future taxpayers will benefit from the investment and should pay a share of its cost. In 2017, $681.4 million was budgeted to service general obligation debt, $398 million of which was funded with revenue from the City’s property tax levy and $123 million was funded with corporate fund revenues. The2 0 18 proposed budget provides a total appropriation of $632.0 million to service general obligation debt, of which $415.0 million will be funded with revenue from the City’s property tax levy. While it is expected that the refunding of a portion of the City’s general obligation debt, which will be executed by the newly authorized Corporation discussed earlier in this document, will achieve present value savings, the City budgeted $118 million in corporate fund revenue for general obligation debt service payments. If a portion of this corporate fund contribution for debt service is OPU needed in 2018 as a result of savings received from the refunding, it will be applied to GVUVSF years’ debt service. Funding for debt service payments for the library capital program will remain at $4.3 million in 2018, which will be paid with revenue from the library’s portion of the property tax levy. The City also maintains debt service funds that are not funded by property tax revenue. The emergency communication bond fund is funded through 911 surcharge on telecommunications services in the City, and $21.5 million of these funds will pay debt service related to the City’s emergency communications and 911 center in 2017. The motor fuel tax debt service fund is funded through the City’s distributive share of motor fuel tax revenues from the state, of which $15.5 million will be used to pay debt service on the motor fuel tax bonds. Debt service for capital projects funded through special revenue and enterprise funds are budgeted within those respective funds. Additionally, as discussed earlier in this document, the City will assign its sales tax revenue collected by the State directly 30 2 0 1 8 B u d g e t O v e r v i e w Revenue Discussion – Pension and Debt Service Funds Property Tax Levy According to the most recent report released by the Cook County Clerk, the 2016 total property tax extension across all taxing districts in Chicago is $5.29 billion, of which approximately 25 percent is allocated to the City, one of several taxing districts reflected on Chicago residents’ property tax bills. Revenue from the City’s property tax levy is used to pay the City’s contributions to employee pension funds, debt service obligations, and library-related expenses. The 2018 budget proposal increases the City’s base property tax levy to $1.41 billion, which includes $900 million for required pension payments by the City. This iOcludes tIF final year of the four-year property tax increase committed to funding the City’s police and fire pension obligations codified in Public Act 99-0506. "T QBTTFE JO UIF GBMM PG Uhe 2018 property tax levy increase for police and fire pension contributions is $63 NJMMJPO debt service. The total 2018 debt service payment from the property tax levy is $415 million. Property tax revenues are not the sole source of funding for the City’s pension contributions and debt payments; other funding sources are also utilized to meet these obligations. Of the total City levy, $95.5 million is dedicated to fund the Chicago Public Library system with $5.3 million of that dedicated to pension contributions. The City is capturing as part of its 2018 levy new property growth from TIF expirations and new construction as well as the expected impact of the 2018 triennial reassessment on new property growth. The 2018 levy captures $26 million fSPN new property growth, which is applied in the 2018 levy to debt service payments, pension obligations, and Chicago Public Libraries. Debt service-related payments will account for 29 percent of the City’s property tax levy, not including library-related 2018 PROPOSED PROPERTY TAX LEVY4 $1.41 Billion Chart 5 Long Term Debt % Policeman's Annuity and Benefit Fund 3 % Fireman's Annuity and Benefit Fund 16% Laborers' and Retirement Board Employees' Annuity and Benefit Fund 1% Chicago Public Library % 4 Municipal Employees' Annuity and Benefit Fund % An additional portion of the City’s levy is dedicated to the payment of bonds issued in 1999 and 2007 by the City on behalf of the City Colleges of Chicago. This amount is sometimes discussed as a part of the overall City property tax levy. However, because the City Colleges function as a separate governmental unit, this portion of the City’s levy is not discussed in detail here. The proposed 2018 levy includes $35.7 million for the payment of City Colleges bonds. 31 2 0 1 8 B u d g e t O v e r v i e w Revenue Discussion – Grant Funds Grant Funds The City receives grant funds from federal and state agencies, private foundations, and other entities. These funds are designated by grantors for specific purposes and support City services, programs and capital improvements. Grant funds are received throughout the year, and many grants awarded to the City are for multiple years. Funds from a previous year that are available for the coming year are referred to as carryover funds. When the 2017 budget was passed in November 2016, the City estimated it would receive $1.63 billion in grant funding to support 2017 operations. The City’s 2017 yearend estimates of $1.44 billion include a significant reduction of nearly $200 million, primarily due to the lack of matching/ supplemental capital funding from the State of Illinois. This is impacting the City’s ability to fund capital infrastructure projects that were traditionally funded through the State as matching funding for federally-funded capital projects. The 2018 grants budget is impacted by the fiscal year 2018 Budget passed by the State of Illinois in July 2017. While the budget maintains grant funding for most areas, there were ongoing reductions in state capital match funding. The City has been able to adjust spending and funding sources to mitigate the impact on capital projects. proposals to reduce the Department of Justice’s Byrne Grant for public safety due to the City’s status as a welcoming city. While there is ongoing litigation and discussions with the Department of Justice, the City is budgeting to receive $3.2 million in new Byrne Grant funding in 2018 for a total of $24.5 million in Department of Justice funding for 2018, which includes carryover funds. The City continues to monitor the Administration’s proposals, but as Congress is still reviewing the proposed fiscal year 2018 budget, no additional reductions are expected at this point to impact the City’s 2018 budget proposal. The 2018 grants funding is in line with 2017 year-end figures at $1.43 billion as the City continues to anticipate delays in State capital matching funding, ultimately reducing support received through the State of Illinois. Of the $1.43 billion in funding for 2018, $402.5 million is carryover funding, primarily in aviation, public safety and city development grants. Additional budget detail for grant funds is set forth in the 2018 anticipated grants budget, available on the City’s website. Information regarding the City’s Community Development Block Grant (“CDBG”) program, which represents $81.2 million in 2018 grant funding, can be found in the 2015-2019 Consolidated Plan and 2018 Draft Action Plan, also available on the City’s website. The fiscal year 2018 federal budget was initially introduced in late spring 2017. In its initial form, the federal budget proposed significant cuts to many social service programs and community development grants as well as separate GRANT FUNDING $ Millions Table Grantor/Type Federal Funding State Government Funding Other Public and Private Funding Grant Program Income Total Funding 32 2017 Budget 2017 Year-End Estimate 2018 Anticipated $1,373.5 $1,242.7 $1,279.9 229.6 168.9 121.0 20.9 22.2 25.8 5.1 4.6 3.2 $1,629.2 $1,438.3 $1,430.0 2 0 1 8 B u d g e t O v e r v i e w Expenditures and Workforce Discussion Approximately 91 percent of the City’s total positions are union members covered by collective bargaining agreements. These collective bargaining agreements set forth benefits plans and scheduled salary increases for covered employees, and the City is contractually obligated to adhere to these benefits and salary schedules. Detailed information on union salary schedules can be found in the 2018 Budget Recommendations. Introduction to Expenditures The 2018 budget proposes expenditures totaling $8.58 billion for all local funds and expenditures of $10.01 billion when grant funds are included. 5IF Qroposed UPUBM expenditures for the City’s corporate fund is $3.77 billion. This section discusses the 2018 proposed budget both in terms of the types of expenditures - such as salaries and wages, employee benefits, commodities and materials, and contractual services - and in terms of the functional categories of expenditures - such as public safety, finance and administration, and community services. It also provides information on the City’s workforce. Historical information on the City’s expenditures and workforce can be found in the 2017 Annual Financial Analysis. Salaries and wages, which make up the largest portion of personnel expenses, are $3.26 billion, or 50 percent, of proposed 2018 local fund operating expenditures, excluding debt service, and $2.45 billion, or 67 percent, of proposed corporate fund expenditures. Employee benefits (not including pension contributions) represent $476.6 million, or 6 percent, of proposed 2018 local fund operating expenditures, and $390.3 million, or 10 percent, of proposed corporate fund expenditures. Proposed Expenditures By Type Personnel Costs and Workforce 5IF QFOTJPO BQQSPQSJBUJPOT JODSFBTFE UP CJMMJPO PS QFSDFOU PG UIF QSPQPTFE MPDBM GVOE PQFSBUJOH CVEHFU JO Pension contributions from the corporate fund are $101 million, or 3 percent of proposed operating budget expenditures. This is discussed further in the Pension Fund section of this document. Personnel costs consistently represent the largest portion of the City’s local fund budget. Under the 2018 proposed budget, 76 percent of local fund operating expenses, excluding debt service, and 81 percent of corporate fund expenses are for personnel-related costs, which include salaries and wages, pension contributions, healthcare, overtime pay, and unemployment compensation. The numbers in the City Workforce table below show the number of full-time equivalent (FTE) positions by function. In the 2018 local fund budget, the City’s budgeted FTEs PROPOSED BUDGET BY EXPENDITURE TYPE $ Millions Table All Local Funds 2017 Personnel Expenses (other than Benefits and Pension) Corporate Fund 2018 2017-2018 Budget Proposed Change 2018 2017-2018 Budget Proposed 2017 Change $3,204.6 3,266.3 61.7 $2,467.7 2,451.5 (16.1) 438.1 476.6 38.5 354.1 390.3 36.2 1,086.0 1,245.7 159.7 105.5 101.0 (4.4) Contractual Services 818.1 931.5 113.4 348.7 377.8 29.1 Commodities and Materials 273.3 269.6 (3.7) 80.2 77.8 (2.4) Debt Service 2,067.3 2,010.1 (57.2) 143.8 129.4 (14.4) Other 1,177.4 1,094.0 (83.4) 235.4 246.3 10.9 (697.0) (630.7) 66.3 - - - (77.2) (83.6) (6.4) - - - $8,290.6 8,579.4 288.9 $3,735.4 $3,774.2 $38.9 Employee Benefits PensionT Deduct Reimbursements Between Funds Deduct Proceeds of Debt Total 33 2 0 1 8 B u d g e t O v e r v i e w Expenditures and Workforce Discussion (continued) increased by 2 percent due almost exclusively to investments in public safety. Fund, resulting in a decrease in FTEs in the Corporate Fund. Non-Personnel Costs In September 2016, Mayor Emanuel announced a comprehensive public safety strategy that includes an over 1,000 FTE increase in the number of sworn personnel in the Chicago Police Department by the end of 2018. The City will complete implementation of this strategy in 2018, hiring an additional 425 sworn members to bolster public safety; these additional public safety personnel include: 250 police officers, 100 detectives, and 75 sergeants – taking the Department’s sworn force from 13,110 today to 13,531 by the end of 2018. These positions will be filled on top of filling existing vacancies. In addition to the two year hire plan, as part of CPD’s reform efforts, CPD will also be adding an additional 100 Field Training Officers bringing the total sworn count to 13,631 by the end of 2018.2 As part of the 2018 budget, the City is proposing to increase the 911 surcharge from $3.90 to $5.00 per line per month. With this increase, the City will also be moving all eligible 911 operation and emergency preparedness expenses into a dedicated fund solely supported by the 911 surcharge. As part of this change, 734 FTEs were moved from the Corporate Fund to this dedicated fund. Similarly, Department of Streets and Sanitation moved FTEs from the Corporate Fund to the dedicated Garbage Collection After personnel-related costs, debt service payments make up the next largest portion of the 2018 proposed local fund budget. These expenses are discussed separately, in the Debt Service Fund section of this document. Contractual services make up approximately 11 percent, or $931.5 million, of total proposed local fund operating expenses, and approximately 10 percent, or $377.8 million, of proposed corporate fund expenses, $29.1 million more than 2017 budgeted amounts for these expenses. Contractual services expenditures include the cost of information technology systems, maintenance, and licensing; tipping fees for waste disposal; property rental; custodial services for City facilities; and landscaping, engineering, and other professional service contracts. The increase is attributable to information technology investments and related costs for software, licenses, and maintenance, increased costs for waste disposal services, and vendor increases for custodial and security services. The 2018 budget also moves the remaining information technology expenses from long term borrowing into the operating budget. Approximately 3 percent, or $269.6 million, of total proposed local fund expenses, and 2 percent, or $77.8 million, of proposed corporate fund expenses are allocated CITY WORKFORCE UNDER PROPOSED BUDGET Full-Time Equivalent Positions Table All Local Funds 2017 2018 2017-2018 Budget Proposed 2017 2,756 2,766 10 Legislative and Elections 357 357 - City Development 252 253 1 58 1,129 1,186 57 21,682 22,092 Public Safety Regulatory Infrastructure Services Total 2018 Change Budget Proposed Finance and Administration Community Services 2 Grant Funds 59 50 Corporate Fund 2017-2018 Change 2017 2018 2017-2018 Budget Proposed Change (9) 2,273 2,287 14 - 357 357 - 57 (1) 115 115 - 875 889 14 259 279 20 410 109 147 38 20,850 20,516 (334) 612 619 7 58 53 (5) 532 539 7 7,704 7,761 57 3 3 - 1,536 1,472 (64) 34,492 35,034 542 1,162 1,199 37 25,922 25,565 (357) As part of the Chicago Police Department’s hiring plan, CPD eliminated four existing vacancies from on outdated sworn title. 34 2 0 1 8 B u d g e t O v e r v i e w Expenditures and Workforce Discussion (continued) to commodities and materials. These expenses include items such as office supplies, small tools and equipment, and repair parts for City vehicles, as well as the cost of utilities and motor fuel. Elections, City Development, Community Services, Public Safety, Regulatory, and Infrastructure Services. Each of these categories is further described in the following section. Public Safety represents the largest functional category of expenses, at $2.29 billion, or 27 percent, of the proposed local fund budget. Infrastructure Services and Finance and Administration represent 14 percent and 6 percent of proposed 2018 local fund costs, respectively. City Development and Community Services together represent 3 percent of the 2018 proposed local fund budget, with programs and services in these categories funded primarily by grants and receiving only a small portion of funding from corporate and other local sources. The proposed budget in 2018 allocates $98.6 million for utility expenses, including electricity and natural gas, and $25.6 million for vehicle fuel costs, including diesel. The proposed corporate fund budget allocates $19.1 million and $15.6 million for these expenses, respectively. Each year, the City uses both corporate fund and enterprise fund resources, as well as bond proceeds, to pay for expenses incurred in connection with claims and judgments against the City. Expenses in excess of the amount paid from the local funds are paid with bond proceeds. The proposed 2018 corporate budget maintains the settlements and judgments budget at $40.1 million. For all local funds, including the corporate fund, the proposed 2018 budget for settlements and judgments is $46.8 million. Citywide expenditures such as pension contributions, debt service, and employee healthcare are budgeted separately from City departments and accounted for under the Finance General category. These expenses represent 57 percent, or $4.85 billion, of the proposed local fund budget for 2018. Proposed Expenditures By Function The following section sets forth the proposed 2018 budget, including both local and grant funding, for each City department and program, organized by functional category. City departments are organized into the following functional groups - Finance and Administration, Legislative and PROPOSED BUDGET BY FUNCTION $ Millions Table All Local Funds 2018 2017-2018 Budget Proposed Change 2017 Finance and Administration Grant Funds 2018 2017-2018 Budget Proposed 2017 Change $535.0 546.7 $11.7 $20.9 $17.1 Legislative and Elections 38.9 43.0 4.1 - - City Development 93.5 111.8 18.3 115.9 107.4 (8.6) 167.7 175.2 7.5 471.5 467.3 (4.2) 2,210.0 2,289.4 79.4 174.6 204.1 29.5 66.4 65.9 (0.5) 7.9 8.2 0.3 Infrastructure Services 1,187.0 1,213.3 26.3 838.4 625.8 (212.6) General Financing Requirements 4,766.3 4,848.4 82.1 - - - (697.0) (630.7) 66.3 - - - (77.2) (83.6) (6.4) - - - $8,290.6 $8,579.4 $288.9 $1,629.2 $1,430.0 $(199.3) Community Services Public Safety Regulatory Deduct Reimbursements Between Funds Deduct Proceeds of Debt Total 35 $(3.8) 2 0 1 8 B u d g e t O v e r v i e w Expenditures and Workforce Discussion (continued) Pension Funds The City maintains separate funds to account for its contributions to four pension funds - the Municipal Employees’ Annuity and Benefit Fund (“MEABF”), the Laborers’ and Retirement Board Employees’ Annuity and Benefit Fund (“LABF”), the Policemen’s Annuity and Benefit Fund (“PABF”), and the Firemen’s Annuity and Benefit Fund (“FABF”) - that provide retirement, death, and disability benefits to covered employees. These pension funds and the contributions to each fund are regulated by State law. The statutory framework, recent legal decisions on pension reform, and the impact of the increasing net pension liability on the City’s finances and the retirement security of City employees is discussed in greater detail in this year’s Annual Financial Analysis. The 2018 proposed budget includes a total of $1.19 billion contribution to the four funds, an increase of $157.5 million over the total contribution budgeted in 2017, due to increased employer contributions across all four funds. The 2018 contribution will be funded with $905.5 million in revenue from property tax collections, $101.0 million from the corporate fund, $64.1 million from the watersewer tax, and $116.8 million from the City’s enterprise and special revenue funds. Municipal and Laborers’ Pension Funds In 2016, the City and labor leaders representing the employees who participate in MEABF and LABF reached agreements in principal to address the net pension liability of the funds in a manner that secures the retirements of employees and retirees, while protecting Chicago taxpayers from bearing the full amount of future pension costs. P.A. 100-0023 was codified in July 2017 and provides that MEABF and LABF employees hired on or after July 6, 2017, will contribute 11.5 percent of their annual salary and are eligible for full pension benefits at age 65. Current employees hired after January 1, 2011, may choose to start receiving full pension benefits at age 67 and maintain an 8.5 percent employee contribution or to start receiving pension benefits at age 65 with an 11.5 percent employee contribution. This increase to employee contributions will help decrease future employer contributions to MEABF and LABF. Additionally, as part of the agreement, the City’s employer contributions will increase at fixed amounts over five years and switch to actuarially required contributions (“ARC”) no later than 2022. To reach ARC funding for both funds in 2022, the City adopted dedicated revenue streams to support the growing contributions to each fund along with utilizing current revenue and the enterprise funds’ proportionate share. As a result of these reforms, MEABF and LABF are expected to reach 90 percent funded by 2057. Municipal Employees’ Pension Fund – Water and Sewer Utility Tax To stabilize and fund the MEABF through the five year ramp, Mayor Emanuel and the City Council passed a tax on water-sewer usage in September 2016. In 2017, residents and businesses began paying a rate of $0.59 per 1,000 gallons based on their water and sewer usage. The tax will be phased in over five years, ending with a tax rate of $2.51 per 1,000 gallons of water and sewer usage in 2020 and 2021. The 2018 budget reflects a total contribution of $344.0 million including $124.7 million in revenue from property taxes, $81.3 million from the corporate fund, $73.9 million funded through revenue from the City’s enterprise and special revenue funds, and $64.1 million from the water and sewer usage tax. The water-sewer usage tax is projected to generate revenue totaling $122.3 million. The remaining $58.2 million not used to make the FY2018 pension contribution will be set aside in escrow in order to help make future years’ contributions. Laborers’ Pension Fund – 911 Surcharge In 2014, the City adopted a 911 surcharge increase (from $2.50 to $3.90), and the 2018 budget proposes an additional increase of $1.10. The 911 surcharge at $3.90 is insufficient to pay for the full cost of the City’s 911 and emergency response preparedness activities. Therefore, with the proposed 2018 increase in the 911 surcharge, this revenue will be sufficient to pay for all eligible 911 operations costs and emergency preparedness operations. This will allow corporate fund resources previously appropriated for 911 operations to be dedicated to other corporate fund expenses, including pensions. The 2018 budget proposes a total contribution of $48.0 million to LABF. The 2018 contribution will be funded with $11.1 million in revenue from property taxes and $36.9 million from other sources, including $19.8 million funded through corporate fund revenue. 36 2 0 1 8 B u d g e t O v e r v i e w Expenditures and Workforce Discussion (continued) Police and Fire Pension Funds On October 28, 2015, the Chicago City Council approved a four-year property tax increase of $543 million solely to fund increasing contributions to the Police and Fire pension funds. In 2015, the City’s property tax levy increased by $318 million to fund the City’s increased contributions to PABF and FABF as required by P.A. 99-0506. From 2016 through 2018, the City’s levy will increase to fund required contributions to Police and Fire pensions by an additional $109 million in 2016, $53 million in 2017 and $63 million in 2018. Along with increasing the property tax levy, the enterprise funds continue to pay their share of the increase. The 201 budget includes payments to PABF and FABF of $795.5 million with $769.7 million funded from the property tax levy and $25.8 million from the enterprise funds. CITY PENSION CONTRIBUTIONS $ Millions Table Municipal Employees’ Annuity and Benefit Fund Laborers’ and Retirement Board Employees’ Annuity and Benefit Fund 2017 Budget 2018 Proposed Budget $267.0 $344.0 36.0 48.0 Policemen’s Annuity and Benefit Fund 500.0 557.0 Firemen’s Annuity and Benefit Fund 227.0 238.5 1,030.0 $1,187.5 Total Contributions 37 2 0 1 8 B u d g e t O v e r v i e w Capital Improvement Program Introduction and Relationship to Annual Operating Budget 2018 CAPITAL FUNDING USES Chart 6 The City’s Capital Improvement Program (“CIP”) funds the physical improvement or replacement of City-owned infrastructure and facilities with long useful lives, such as roads, buildings, and sidewalks. Continued investment in these assets is critical to support and enhance neighborhoods, stimulate the economy, and improve services. Planning for capital improvements is an ongoing and forward-looking process. New construction may be necessary to accommodate increased demand or replace aging facilities. Existing infrastructure requires periodic rehabilitation, replacement, and improvement to protect the City’s investment. The City consistently reviews its capital priorities and evaluates whether to repair and improve existing assets or construct and acquire new assets based on the relative cost effectiveness and service implications of each option. City Infrastructure 39% City Facilities 1% Aldermanic Funds 7% Greening and Streetscapes 1% Water and Sewer Projects 52% Capital Funding The proposed uses of non-aviation capital funding in 2018 are presented in the following categories: Funding for the City’s capital improvement program comes from local funding, general obligation bond issuances, motor fuel tax and revenue bond issuances (largely for water, sewer, and aviation improvements), state and federal grant funding, operating revenue and tax increment financing. Payment of debt service associated with capital project bonds is authorized as part of the City’s operating budget. In recent years, decreased funding from the State of Illinois has reduced the City’s ability to match funds and has affected timelines for impacted projects. • City Facilities, such as the improvement and construction of police and fire stations, senior centers, and libraries. • Infrastructure, such as the construction and maintenance of streets, viaducts, alleys, lighting, ramps, sidewalks, bridge improvements, traffic signals, bike lanes, , and shoreline reconstruction work. • Greening & Streetscapes, such as Cityspace, Greenstreets, Median & Boulevard Preservation and streetscaping projects • Aldermanic menu projects, which consist of projects funded through local capital funding provided to aldermen each year to be spent at their discretion on a specific menu of capital improvements in their respective wards. • Water and sewer projects, which consist of construction and repairs to the City’s water and sewer lines and related facilities. 2018 Capital Improvement Program The City’s CIP outlines planned capital improvements on a five-year schedule. It is updated annually and lists the planned and proposed projects with identified funding sources and construction schedule for citywide capital improvement programs including water, sewer, transportation, neighborhood infrastructure and aviation capital projects. 38 2 0 1 8 B u d g e t O v e r v i e w Capital Improvement Program (continued) SFBMJHO 8FOUXPSUI CFUXFFO "SDIFS BOE $FSNBL UP CSJOH UIJT QPSUJPO PG 8FOUXPSUI JOMJOF XJUI 8FOUXPSUI TPVUI PG $FSNBL 5IJT XJMM HSFBUMZ JNQSPWF TBGFUZ GPS NPUPSJTUT BOE QFEFTUSJBOT $POTUSVDUJPO JT PDDVSSJOH JO UISFF TFDUJPOT PO UIJT NJMMJPO QSPKFDU 4FDUJPO POF UI 4USFFU UP UI 4USFFU XBT TVCTUBOUJBMMZ DPNQMFUFE JO .BZ Section two is scheduled to start in the spring 2018, and will continue the new roadway from 19th street through the Cermak and Wentworth intersection. Section three is planned begin in summer 2018 and will construct a new road north of the 17th Street to Roosevelt Road. The following provides an overview of expected projects and funding sources for capital projects based on Uhe City’s 2017–2021 Capital Improvement Program. The five-year CIP is adjusted annually to reflect the changing needs of the City; the capital plans form an outline of planned expenditures given available resources and are not intended to be a final or all-inclusive inventory of the City’s capital needs and projects. The CIP is available on the City’s website. The Capital Improvement Program for 2018-2022 will be released in summer 2018. 2018 CAPITAL FUNDING SOURCES Chart 7 Other 16% • The City will continue work on the $160 million Chicago Smart Lighting Project to improve safety and quality-of-life in neighborhoods across Chicago. This major, citywide initiative XJMM upgrade more than 270,000 of the City’s outdated and inefficient High Pressure Sodium (HPS) lamps on streets and in alleys with modern, higher quality, more reliable energy-efficient LED lights. The project includes a wireless lighting management system that will provide real time outage updates, thus greatly reducing outage response times. The project will be one of the largest municipal lighting modernization programs in the country. Through this conversion to more energy efficient street lighting, the City is expecting $2.3 million savings in electricity energy costs in 2018, which is helping to support street lighting capital upgrades as part of this program. Federal Funding 14% Water and Sewer 52% Local Funds 10% State Funding 1% Tax Increment Financing 7% Major capital projects FYQFDUFE UP be funded in 2018 include: • The Riverview Bridge will be a multi-use path and bridge to connect existing trail segments from Clark Park to the south and California Park, and onward to Horner Park, to the north; providing more than one mile of continuous trail along the North Branch of the Chicago River. The new trail segment will provide an underbridge crossing under Addison Street, enhancing user safety by eliminating the need to cross Addison on foot or bike. This new trail segment closes a gap in the existing North Branch Riverfront Trail continuing progress towards the City’s goal to develop a continuous river trail system. Construction on this $14.9 million project will begin construction in fall 2017, and will continue through 2018. 2018 Aviation Capital Funding The chart PO UIF GPMMPXJOH QBHF presentT the anticipated sources of capital funding in 2018 for O’Hare and Midway International Airports Total aviation capital funding in 2018 is budgeted at $731 million. Aviation capital funding is used exclusively for projects at the City’s two airports, and is funded through general airport revenue bonds, passenger facility charges (a set amount charged to each passenger flying to or from the airports) and customer facility charges (a charge on rental car customers at O’Hare Airport). • Wells-Wentworth Connector – This is a multiphased project that will create a new road between the Loop and Chinatown. The project will also 39 2 0 1 8 B u d g e t O v e r v i e w Capital Improvement Program (continued) 2018 Tax Increment Financing Program Notable projects under construction in 2018 include the terminal modernization project at Midway, which is an expansion of the concessions facility, terminal parking garage and security checkpoint, and the expansion of Terminal 5 at O’Hare, which will add gates to allow for additional capacity for international and domestic flights. 2018 AVIATION CAPITAL FUNDING Chart 8 Midway Airport 23% O'Hare Airport 77% Capital projects funded through the City’s Tax Increment Financing (“TIF”) program are accounted for within the City’s overall capital improvement plan, as described above. The following includes additional details regarding the TIF program and the manner in which TIF funds will be utilized by the City in 2018. The TIF program is governed by a state law allowing municipalities to capture property tax revenues derived from the incremental equalized assessed value (EAV) above the base EAV that existed when the area was designated as a TIF district and to use that money for community projects, public improvements, and incentives to attract private investment to the area. The intention is that the effective use of tax increment funds helps expand the tax base, thus increasing the amount of tax increment generated in the district for reinvestment within the district and ultimately increasing the property tax base for overlapping taxing districts. In 2018, the City anticipates collecting between $520 and $540 million in tax increment revenue from 144 active TIF districts. The chart presents the proposed TIF-funded programming for 2018 in the following categories: 40 • Neighborhood economic development, which includes the construction of affordable housing, the rehabilitation of existing homes and buildings, reimbursements to private developers for expenses on approved redevelopment projects, employment training programs, and TIF site preparation such as property assembly, demolition, relocation, and environmental work. • City infrastructure, which includes the construction of and improvements to streets, sidewalks, and lighting, as well as City facilities like libraries, police stations, and fire stations • Parks, which includes City-funded open space projects as well as improvements to Chicago Park District facilities such as parks, playgrounds, and field houses. • Schools, which includes the cost of rehabilitating existing schools, constructing new schools, and financing costs associated with those school construction projects. • Transit projects, which include construction of new stations and improvements to existing Chicago 2 0 1 8 B u d g e t O v e r v i e w Capital Improvement Program (continued) • Transit Authority facilities as well as improvements to CTA infrastructure. • • Downtown economic development, which includes reimbursements to companies for job training and leasehold improvements of commercial office space intended to reduce commercial vacancy rates and increase employment downtown. Program administration includes staff costs as well as auditing and reporting costs related to implementing the TIF program. Links to TIF redevelopment plans, maps, 2016 financial audit reports, redevelopment agreements, projection data and reports for each district can be found at www. cityofchicago.org/TIF. Other City uses, which includes debt service and program administration costs. Financing consists of funds allocated to pay principal and interest on bonds and notes, the proceeds of which are used to fund redevelopment and public improvement projects. 2018 TIF PROGRAMMING Chart 9 City Infrastructure % Neighborhood Ecomonic Development 3 % Schools 20% Downtown Economic Development % Transit % Other City Use 4% Parks 4% 41 2 0 1 8 B u d g e t O v e r v i e w Financial and Budgetary Policies Financial and Budgetary Policies The City’s financial policies provide a framework for the City’s overall fiscal management and outline standards for consistent and transparent budgetary practices. These fiscal policies are intended to protect the City’s fiscal integrity and health, encourage equitable allocation of costs and resources, and allow sufficient flexibility to consider new fiscal and budgetary strategies. The City consistently evaluates these policies to determine if they should be modified to accommodate changing circumstances and conditions. more than one percent of the value of the annual corporate budget from the prior year’s audited unassigned fund balance in the current year’s budget. Balanced and Comprehensive Budgeting Fund Stabilization • The City bases its annual budget on a reliable assessment of the available resources for that year and a meaningful understanding of the City’s service priorities, and adopts a balanced budget in accordance with the Illinois Municipal Code (65 ILCS 5/8-2-6). • Members of the public are provided with an opportunity to submit comments on the annual budget through City Council hearings, community forums, written or electronic submissions, or other appropriate means, and at any public hearings required by the Illinois Municipal Code (65 ILCS 5/8-2-6). • Annually, the City evaluates each department’s direct costs, as well as any indirect costs that are necessary to conduct that department’s function. Accurately assessing these costs across City government will provide a useful measure of the full cost of City services. • Enterprise funds are charged the full cost of services provided by other City funds. The City maintains sufficient unrestricted fund balances to mitigate current and future risks, emergencies, or unanticipated budget shortfalls. As part of the City’s financial practices, the City established and maintains three sources of unrestricted budgetary fund balance, referred to collectively as budget stabilization funds or fund balance: • Asset Lease and Concession Reserves: Revenues from the long-term lease of the Chicago Skyway and the concession agreement for the metered parking system comprise the City’s Asset Lease and Concession Reserves. • Operating Liquidity Fund: The City created this fund in 2016 and each year a determined amount of the unassigned fund balance will be assigned to it. This fund will provide reoccurring short-term funding for City operations, allowing the City to manage liquidity issues associated with timing of revenue collection. For example, the Operating Liquidity Fund could be used to replace the shortterm borrowing needed for library operations while the City awaits property tax receipts. • Unassigned Fund Balance: Surplus resources identified through the annual financial audit process make up the unassigned fund balance. The City’s unassigned fund balance has grown due in part to the improving economy, enhancements in revenue, including debt collection and investment strategies, and ongoing savings and efficiencies. As part of its budget stabilization policy, the City adheres to the Government Finance Officers Association (“GFOA”) recommendation and maintains an unrestricted budgetary fund balance in the general fund of no less than two months of operating expenses. Further, the City does not appropriate Financial Report and Long Term Financial Planning Pursuant to Executive Order No. 2011-7, the Office of Budget and Management issues by July 31 of each year a long-term budget and financial analysis – the Annual Financial Analysis – which includes a historical expense and revenue trend analysis and a long-term financial forecast. Grants Management Anticipated grants are appropriated annually as part of the Appropriation Ordinance passed by the City Council. Before applying for or accepting any grant, the City evaluates whether the grant is consistent with the City’s mission and priorities and assesses the costs, responsibilities, and risks associated with the grant. Capital Investments and Maintenance The City consistently maintains capital assets and prioritizes capital projects in a manner that minimizes future 42 2 0 1 8 B u d g e t O v e r v i e w Financial and Budgetary Policies (continued) maintenance and replacement costs, and meets Chicago’s infrastructure needs. On an annual basis, the City issues a multi-year Capital Improvement Plan (CIP). The CIP contains an outline of the sources of funds, timing of capital projects, and the CIP’s financial impact on the applicable tax levy or revenue source. support teacher’s pensions. As a result of these levy increases, the composite tax rate is increasing, and therefore, additional TIF revenue is generated in TIFs from these higher tax rates. The City will declare these excess TIF revenues as surplus annually as part of the budget process. Debt Management Policy Diverse Revenue System and Evaluation of Costs • The City maintains a diversified and stable revenue system that is responsive to the changing economy and is designed to protect the City from short-term fluctuations in any individual revenue source. • The City does not use revenue from volatile sources in an amount that exceeds normal growth rates for ongoing operating costs. • User fees are regularly evaluated and set at levels designed to support the cost of the service. • Tax and fee reductions and waivers are also critically evaluated to determine their value and impact on City services and finances. • Where appropriate, the cost of City services are benchmarked against similar providers of such services so that the City can accurately evaluate opportunities to improve efficiency and reduce costs associated with service delivery. Pursuant to Section 2-32-031(d) of the Municipal Code of Chicago, the Chief Financial Officer must adopt the City of Chicago Debt Management Policy which establishes guidelines for the issuance and management of all Cityissued debt and any new financing types related to existing City debt. The Chief Financial Officer has the day-to-day responsibility and authority for structuring, implementing, and managing the City’s debt program in accordance with authorization by the Chicago City Council. The City’s Debt Management Policy is available on the City of Chicago’s Investor Relations website. Declaring a TIF Surplus Pursuant to Executive Order No. 2013-3, the City must declare a surplus in those TIF districts that are older than three years, were not created for single redevelopment projects, are not transferring funds to other TIF districts to pay debt service costs, and have a balance of at least $1 million. The amount of the surplus is at least 25.0 percent of the available cash balance in the TIF, after accounting for current and future project commitments and contingencies, revenue volatilities, tax collection losses, and tax liabilities. In July 2015, the City froze new spending in seven downtown TIF districts and will sunset these districts when the current and committed projects are paid off. Excess TIF funds in these districts is declared as surplus annually as part of the budget process. Beginning with the 2015 property tax levy, the City of Chicago passed a four year property tax levy increase to fund police and fire pensions. Recently, the Chicago Board of Education passed additional property tax levy increases to 43 2018 BUDGET OVERVIEW HOW CHICAGO BUDGETS 2 0 1 8 B u d g e t O v e r v i e w How Chicago Budgets Budget Process Budget Process Each year, the City prepares an annual budget that accounts for revenue from taxes and other sources and sets forth a plan for how the City intends to utilize those resources over the course of the following calendar year. In accordance with the State of Illinois Municipal Code, the City produces a balanced budget, meaning that its appropriated expenditures do not exceed the amount of resources it estimates will be available for that year. The budget process begins each summer when City departments inform the Office of Budget and Management (OBM) of their personnel and non-personnel needs for the upcoming year. Departments use the budget process of zero-based budgeting, which encourages strategic thinking to provide top-quality services while cutting extraneous costs. OBM then prepares a preliminary budget based on the requests submitted by the departments and the resources OBM estimates will be available to fund those expenditures. The preliminary budget informs the Annual Financial Analysis (AFA), which by Executive Order is issued on or before July 31st of each year. Throughout the remainder of the summer, OBM continues the process of developing detailed departmental budgets through reviewing each department’s operating and programmatic needs. OBM also evaluates anticipated Citywide expenses such as pension contributions and employee health care, while estimating the amount of revenue that the City will collect in the following year. In the fall, the Mayor’s Office and OBM work with departments to develop one final budget. Per Executive Order, the Mayor’s proposed 2018 budget is introduced to the City Council on or before October 18th, 2017. The proposed budget, referred to as the Budget Recommendations, is available for public review on the City’s website. The City Council then holds committee and public hearings on the Mayor’s proposed budget and may propose amendments. Once the proposed budget, as amended, is approved by the City Council, it becomes the Annual Appropriation Ordinance. The Annual Appropriation Ordinance is implemented on January 1st and represents the City’s operating budget for the year. The AFA presents an overview of the City’s financial condition and serves as the starting point for preparing the upcoming year’s budget. The document includes a historical analysis of the City’s revenue and expenditures, financial forecasts for the City’s major funds, and detailed analyses of the City’s capital program, debt, and pensions. 47 2 0 1 8 B u d g e t O v e r v i e w How Chicago Budgets (continued) Budget Documents Budget Documents Consolidated Plan & Action Plan The City produces budget documents that accurately and transparently reflect the City’s revenues, expenditures, and overall financial plan for the coming year. This year’s budget documents include: The Consolidated Plan is developed every five years and sets forth priorities for the City’s housing and non-housing community needs. As part of the process, the City conducts an assessment of housing and community development needs, an analysis of housing and economic market conditions, and an inventory of available resources that support the City’s Community Development Block Grant, Emergency Shelter Grant, HOME Investment Partnership Grant, and Housing Opportunities for Persons with AIDS Grant programs. Annual Financial Analysis The Annual Financial Analysis (AFA) provides a review of the City’s revenues and expenditures over the past ten years, a forecast of the City’s finances for the next three years, and analyses of the City’s pension contributions, debt obligations, and capital improvement program. The goal of the AFA is to provide a framework for the development of the City’s annual operating and capital budgets with an emphasis on planning for future years and to provide indepth information on City finances in a format that is approachable for the public. Budget Overview The Budget Overview provides a summary of the proposed budget and detailed information on the City’s anticipated revenues and expenditures. It also provides a statement of the goals and purposes of each City department, a summary of the programs and services provided by each department, and information regarding the cost of and the funding sources supporting each City department. Budget Recommendations By Executive Order, the Mayor must submit the administration’s proposed 2018 budget to the City Council on or before October 18th. In accordance with Illinois state law, the Budget Recommendations contain line item detail for all local funds and an outline of the City’s anticipated grant funding for the coming year. At the same time, line item budgets for the anticipated grants are posted online. Once approved by the City Council, the Budget Recommendations, along with any amendments, become the Annual Appropriation Ordinance. The Consolidated Plan is carried out through annual Action Plans, which provide a concise summary of the actions, activities, and the specific federal and other resources that will be used each year to address the needs and specific goals identified by the Consolidated Plan. The Action Plan includes a proposed comprehensive annual budget for the City’s Community Development Block Grant, Emergency Shelter Grant, HOME Investment Partnership Grant, and Housing Opportunities for Persons with AIDS Grant programs. The Draft Consolidated Plan and Draft Action Plan are presented to City Council together with the Budget Recommendations. The final approved Plans are then submitted to the U.S. Department of Housing and Urban Development for funding consideration. Annual Appropriation Ordinance The Annual Appropriation Ordinance is the City’s line item budget, as passed by the City Council. Capital Improvement Program The Capital Improvement Program is a comprehensive list of capital improvements scheduled to occur in the city over the next five years. It is updated annually and made available on the City’s website. 48 2 0 1 8 B u d g e t O v e r v i e w How Chicago Budgets (continued) Budget Calendar Budget Calendar November/December Each year, the budget is developed over several months with input from City departments, elected officials, and the public. The general budget calendar is presented below. Additions or changes to the proposed budget are considered. City Council must approve a balanced budget by December 31st, at which point the Budget Recommendations becomes the Annual Appropriation Ordinance. The Final Action Plan and Final Consolidated Plan are submitted to the U.S. Department of Housing and Urban Development for funding consideration. June Departments submit preliminary revenue and expenditure estimates to the OBM. January July The City’s Annual Appropriation Ordinance goes into effect on January 1st. In accordance with Executive Order No. 2013-1, the City presents the AFA to the City Council and the general public. Throughout The Year OBM manages the resources allocated through the Annual Appropriation Ordinance. OBM regularly reviews revenues, expenditures, and any trends or events that may affect City finances. On an ongoing basis, City departments provide information about the performance of programs to ensure that City resources are used in a manner that maximizes taxpayer value and provides the highest quality services. July/August/September OBM receives detailed budget requests from City departments and holds a series of meetings with each department regarding the department’s needs for the coming year. OBM works with the Mayor’s Office to match expenses with available resources and balance the next year’s budget. October On or before October 18th, the Mayor submits the 2018 proposed budget to City Council. The City Council conducts hearings on the budget, including at least one public hearing to gather comments on the proposed budget. 49 2 0 1 8 B u d g e t O v e r v i e w How Chicago Budgets (continued) Basis of Budgeting Basis of Budgeting The City prepares and presents its annual budget on a modified accrual basis of accounting, with the exception of property taxes. The modified accrual basis of accounting is an accounting method that measures the performance and position of a company, or in this case a government agency, by recognizing revenue when earned, as long as the revenue is collectible within the current account period or soon enough to be used to pay liabilities from the current account period. The City accounts for revenues as soon as the revenues are both measurable and available. Such revenues are used to pay liabilities from the current accounting period. The City’s budgetary basis of accounting described above differs from the City’s GAAP basis reporting, which is used in the City’s Comprehensive Annual Financial Report (CAFR). The key differences are: The City records revenues from fees for licenses and permits, charges for services, and other revenues when received in cash at the time of the issuance of the license or permit or the provision of the service. For budgeting purposes, property taxes are considered revenue for the year in which the taxes are levied. Appropriations are made at the line item and/or account level and presented by fund and by City department. The City’s expenditures include both cash payments and encumbrances (funds that are committed pursuant to a contract) that are related to the current fiscal year. Expenditures are generally recorded when an event or transaction occurs. All annual appropriations lapse at year end if they remain unspent and unencumbered. 50 • The City budgets encumbrances as expenditures, whereas the GAAP reflects encumbrances as reservations of fund balances. • The City’s budget classifies both long-term debt proceeds and operating transfers-in as revenues, whereas GAAP classifies these as other financial sources. • The City does not budget doubtful accounts, which are accounts that have been delinquent for a period of at least 90 days and for which collection is unlikely; however, doubtful accounts are reported under GAAP. • The City budget classifies the prior year’s surplus as an available resource, whereas GAAP records it as a portion of the City’s fund balance. 2018 BUDGET OVERVIEW PROGRAMS AND BUDGET SUMMARIES BY DEPARTMENT 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department City of Chicago Organizational Chart Chicago Residents Finance and Administration Legislative and Elections City Council Mayor Council Committees Office of the Mayor City Development Community Services City Clerk Public Safety City Treasurer Regulatory Infrastructure Services Public Service Enterprise Department of Planning and Development Department of Public Health Police Board Office of the Inspector General Department of Streets and Sanitation Department of Water Management Department of Cultural Affairs and Special Events Commission on Human Relations Civilian Office of Police Accountability Department of Buildings Chicago Department of Transportation Department of Aviation Department of Finance Mayor’s Office for People with Disabilities Police Department Department of Business Affairs and Consumer Protection Department of Administrative Hearings Department of Family and Support Services Office of Emergency Management and Communications Chicago Animal Care and Control Department of Law Chicago Public Library Fire Department License Appeal Commission Office of Budget and Management Department of Innovation and Technology Board of Election Commissioners Department of Human Resources Board of Ethics Department of Procurement Services Department of Fleet and Facility Management 53 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration The Finance and Administration departments coordinate the City’s overall government operations, managing city finances, human resources, technology, and legal functions. This support allows operational, public safety and human services departments to focus on their core missions and ensures that the City serves its residents in an efficient and cost-effective manner. The Finance and Administration departments include: • Office of the Mayor • Office of Budget and Management • Department of Innovation and Technology • Office of the City Clerk • Department of Finance • Office of the City Treasurer • Department of Administrative Hearings • Department of Law • Department of Human Resources • Department of Procurement Services • Department of Fleet and Facility Management Infrastructure Services The Infrastructure Services departments are central to keeping Chicago on the move. These departments collect residential recycling and garbage; remove graffiti; build, repair and maintain Chicago’s streets, sidewalks and bridges; coordinate and repair street lights; maintain the City’s water and sewer system; purify and deliver the city’s water; operate the City’s two international airports; and strategically plan for the future of the City’s essential infrastructure. The Infrastructure Service departments include: • Department of Streets and Sanitation • Department of Transportation • Department of Aviation • Department of Water Management The Department of Water Management and Department of Aviation are both Public Service Enterprises, which means they function like commercial enterprises in that they pay expenses with revenue derived from charges and user fees for the services they provide. 54 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Public Safety The Public Safety departments work together to keep Chicago’s neighborhoods, families, and property safe. The critical services that these departments provide save lives and protect homes, businesses, and the rights of all Chicagoans through law enforcement, fire suppression and prevention, and emergency response operations. The Public Safety agencies and departments include: • Police Board • Civilian Office of Police Accountability • Chicago Police Department • Office of Emergency Management and Communications • Chicago Fire Department Community Services The Community Services departments provide services needed by Chicago’s families and neighborhoods. These departments support those most in need by providing and coordinating care at health clinics; immunizations; home-delivered meals for seniors; information and referral services for people with disabilities; after-school and job-readiness programs for Chicago’s youth; emergency shelters for the homeless and displaced; crisis intervention assistance; and learning and recreational opportunities through public libraries citywide. The Community Services agencies and departments include: • Department of Public Health • Commission on Human Relations • Mayor’s Office for People with Disabilities • Department of Family and Support Services • Chicago Public Library City Development The City Development departments work throughout Chicago to promote economic, cultural, and community development. These departments develop and implement citywide and neighborhood-specific plans that preserve the character of Chicago’s communities, create open spaces and affordable housing options, and coordinate sustainable growth. They also stage special events and festivals that enhance the city’s economy and tourism industry, and support local artists and nonprofit organizations that develop and implement public art programs. The City Development departments include: • Department of Cultural Affairs and Special Events • Department of Planning and Development 55 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Regulatory The Regulatory departments protect public health and safety, and the interests of consumers through the enforcement of City ordinances and compliance with local, state and federal laws. The enforcement activity includes regular inspections and responses to resident and business complaints. The Regulatory departments and agencies include: • Office of the Inspector General • Department of Buildings • Department of Business Affairs and Consumer Protection • Chicago Animal Care and Control • License Appeal Commission • Board of Ethics Legislative and Elections The Legislative and Elections departments manage the City legislative and elections functions, while also maintaining and promoting the efficient and accurate administration of all local, state, and federal elections. This category includes: • City Council and its staff, committees and legislative offices • Board of Election Commissioners General Financing Requirements The Finance General category represents cross-departmental expenses such as IT systems, employee benefits, contributions to employee pension funds, and long-term debt service payments. 56 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration 2017 Appropriation FUNCTIONAL CATEGORY 2018 Recommendation 553,439,911 563,835,071 Infrastructure Services 1,836,063,542 1,839,069,718 Public Safety 2,379,804,434 2,493,549,322 Community Services 640,493,185 642,525,936 City Development 214,037,334 219,120,694 Regulatory 74,019,021 74,114,132 Legislative And Elections 38,887,307 43,033,492 4,766,298,266 4,848,438,635 $10,503,043,000 $10,723,687,000 774,154,000 714,292,000 1,438,319,000 1,429,960,000 $8,290,570,000 $8,579,435,000 Finance and Administration General Financing Requirements Grand Total Deduct: Proceeds Grant Funds NET TOTAL 57 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration Finance and Administration FUNDING COMPARISON BY DEPARTMENT 2017 Department 2018 Office of the Mayor 7,512,969 7,704,181 Office of Budget and Management 9,587,278 9,561,828 Department of Innovation and Technology 29,074,967 30,815,532 City Clerk 10,021,699 10,696,620 Department of Finance City Comptroller Accounting and Financial Reporting Financial Strategy and Operations Revenue Services and Operations Dept Total 2,899,239 10,301,645 8,343,385 63,387,286 84,931,555 2,910,230 10,219,144 8,529,739 64,023,011 85,682,124 City Treasurer 4,071,831 4,144,574 Department of Administrative Hearings 8,591,069 8,532,654 38,139,519 38,716,977 Department of Human Resources 7,258,896 7,403,234 Department of Procurement Services 8,748,219 8,908,659 3,652,313 74,790,249 156,667,441 110,391,906 345,501,909 3,691,234 81,378,048 156,110,458 110,488,948 351,668,688 $553,439,911 $563,835,071 Department of Law Department of Fleet and Facility Management Bureau of Finance and Administration Bureau of Facility Management Bureau of Asset Management Bureau of Fleet Operations Dept Total Total - Finance and Administration 58 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration Office of the Mayor The Office of the Mayor directs policy, sets administration priorities, coordinates activities among City departments and sister agencies, and liaises with county, state, and federal governments as well as other cities. The Office of the Mayor also ensures that departments and City employees deliver effective and efficient services. The Office of the Mayor is comprised of the Chief of Staff, the Scheduling Office, the Office of Legislative Counsel and Government Affairs, the Office of Neighborhood Development and Public Engagement, and the Press Office. • Chief of Staff – Manages Mayor’s Office staff, leads and coordinates the day-to-day responsibilities through a team which serves as the liaison to departments, constituents, community service organizations, and private sector entities. • Scheduling Office – Manages Mayoral schedule, responds to all Mayoral constituent letters and speaking requests, and coordinates official visits and meetings. • Office of Legislative Counsel and Government Affairs – Promotes the City’s policy agenda at the federal, state, and local levels of government and works closely with a wide variety of public and private organizations and individuals to identify, prioritize, and implement City initiatives through legislation. • Office of Neighborhood Development and Public Engagement – Works collaboratively with City departments, agencies and community stakeholders to ensure that impactful, sustainable investments are made in neighborhoods across Chicago and that resident are aware of and connected to City opportunities and initiatives. • Press Office – Disseminates information to the media and the public regarding the City’s programs and services. communities. Central to the campaign is the website, www. onechi.org, which works to facilitate access to resources like legal protection, Know Your Rights Training, and mental health services. The website also features real Chicagoans sharing their personal stories on how they came to call Chicago. These stories aim to take the negative rhetoric out of the current immigration story and remind Chicagoans that the immigrant story is everyone’s story. Defending Chicagoans – In December 2016, Mayor Emanuel established the Legal Protection Fund in partnership with Heartland Alliance’s National Immigrant Justice Center (NIJC) and The Resurrection Project (TRP) to assist thousands of immigrants and refugees threatened with deportation. Using $1.3 million in available city of Chicago property tax rebate funds, the Legal Protection Fund has reached more than 16,000 immigrants through community-based outreach, education, legal screenings, and legal representation. This has included training over 300 Community Navigators, hosting more than 500 Know Your Rights training and facilitating nearly 30 Deferred Action for Childhood Arrival (DACA) clinics. Updating the City of Chicago’s Website – In 2017, the City of Chicago launched a redesigned, mobile-friendly website aimed to provide greater access to City services and resources. With nearly 50% of web traffic coming from mobile sources, the City's website is now fully mobileresponsive, adjusting to any screen size. The website presents key services and transactions such as applying for licenses front-and-center. Led by the Department of Innovation and Technology (“DoIT”), the City also updated the lookand-feel of the website for the 21st century with a brighter design and greater emphasis on visuals while striving to reduce load time. These improvements will create a better user experience for visitors and residents of Chicago to help them find information easier and faster. The website is also ADA-accessible, and will continue to be improved based on feedback through 2018. Explore the City's website at http:// cityofchicago.org. 2017 Highlights and 2018 Updates Launching the One Chicago Initiative – Launched in May 2017, the One Chicago campaign is the visual representation of the City’s value promise that everyone is welcome in Chicago no matter their race, religion, color or background. The Chicago is With You task force was established to funnel resources to help support the City’s immigrant and refugee 59 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration OFFICE OF THE MAYOR The Mayor is the chief executive officer of the City of Chicago. Illinois statute provides that the Mayor "shall perform all the duties which are prescribed by law, including the City ordinances, and shall take care that the laws and ordinances are faithfully executed." 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 69 6,566,913 71 6,815,378 Special Events and Municipal Hotel Operators' Occupation 5 382,056 5 410,803 Tax Fund Other Grant Funds 3 564,000 3 478,000 Total Full-time Equivalent Positions and Amounts 77 $7,512,969 79 $7,704,181 ALLOCATION Personnel Services Non-Personnel Services 6,864,377 648,592 Program Summary and Description 7,318,851 385,330 FTEs EXECUTIVE 2018 Funding 4 471,602 ADMINISTRATION 43 4,585,574 PRESS OFFICE Coordinates the exchange of information between the administration, the media, and the public. 14 1,267,646 LEGISLATIVE COUNSEL & GOVERNMENT AFFAIRS Represents the City at local, state, and federal levels to secure funding, legislation, and public support. 15 1,466,125 INTERNATIONAL RELATIONS Connects Chicago with cities around the world to promote mutually beneficial activities that will enhance the City's global position. 3 231,151 TURNOVER (317,917) 60 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration and/or collaborates on policy decisions in order to provide the highest quality services in the most efficient and cost effective manner possible. Office of Budget and Management The Office of Budget and Management ("OBM") prepares and supervises the City’s annual operating budget, oversees the City’s Capital Improvement Program ("CIP"), and manages the City’s state and federal grants programs. OBM also facilitates organizational change citywide to improve the City’s fiscal condition and to help departments deliver services more efficiently. Throughout the year, OBM monitors revenues and expenditures, analyzes economic factors that affect City government, and makes adjustments to the City’s operations or finances accordingly. • City Budget – Each July, OBM issues the City’s Annual Financial Analysis (“AFA”), pursuant to Executive Order 2011-7, that provides a clear fiscal foundation for the following year’s budget proposal. The AFA examines the City’s revenues and expenditures over the past ten years, forecasts the City’s financial position for the coming three years, and provides analyses of key elements of City finances such as pensions, debt obligations, and TIF programming. • Capital Improvement Program – OBM updates the funding projections and status of all projects that are part of the City’s CIP. Capital Improvements are the building or upgrading of city infrastructure such as streets and alleys, water mains, and police stations. These investments are essential elements of providing quality government service, and they create the conditions for a safe and economically vibrant city. • • Grants Administration – OBM oversees applications for federal and state grants, monitors expenditures and performance, and ensures compliance by all departments receiving grants. Major federal grants include the Community Development Block Grant ("CDBG"), HOME Investment Partnership, Housing Opportunities for People with AIDS, and Emergency Solutions Grants. Management Initiatives & Performance Management– OBM functions as an internal consultant to City departments, assessing operations, efficiencies, and quality of services, and assisting departments as they implement various performance improvement initiatives. OBM works with the Mayor’s Office and departmental staff to review programs and performance. OBM makes resource adjustments, enables process changes, 2017 Highlights and 2018 Initiatives Managing Absenteeism in the City Workforce – In late 2015, the City Council and Mayor Emanuel approved a resolution establishing an Absenteeism Task Force (“Task Force”) to study and address employee absenteeism. The report called for specific changes to the City’s time and attendance policies and approach to recordkeeping. It also called for the formation of a Workforce Management Group with representatives from various departments who are charged with implementing the recommendations and driving reform. As a result of multiple reforms since spring 2016, the City reduced the number of work hours lost by over 15 percent, with the City tracking approximately 150,000 hours lost due to overt employee absenteeism in 2016. The City expects further reductions in work hours lost to overt absenteeism in 2017, as a result of continued proactive management, policy clarifications, increased compliance with properly coding time, and further use of progressive discipline to address chronic absenteeism. The City posts updated absenteeism data on a quarterly basis for public and Aldermanic review. Enhancing Budget Reporting with the Online Annual Financial Analysis – Since 2012, OBM has prepared the AFA, a document that details the City’s commitment to long-term financial stability. The AFA takes an informed and long-term approach to financial planning, evaluating the City’s past revenues, expenditures, policies, and programs in light of conditions driving the broader economy and other factors impacting the City’s future finances. The 2016 and 2017 AFAs were published online to continue providing a transparent look at the City’s financial history and future in detail throughout the website, with graphics and tables that allow the user to interact with revenue and expenditure figures. Improving Grants Management and Launching eProcurement – Launched in October, 2017, eProcurement is an online purchasing system for all agencies that do business with the City of Chicago. The OBM Grants Management team will use eProcurement to increase efficiencies and integrate with Citywide processes for grant funds by allowing agencies to view all solicitations for bids, Requests for Proposals, and partnership opportunities available through all City departments. eProcurement will also support Grants Management by centrally retaining critical documents for procurements and payments citywide, eliminating duplicative processes across departments. 61 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration OFFICE OF BUDGET AND MANAGEMENT The Office of Budget and Management (OBM) is responsible for the preparation, execution and management of the City's annual operating budget and a Capital Improvement Program (CIP). OBM manages city requests for local, state and federal funds for budgetary and program impacts. OBM coordinates the allocation of funds and monitors expenditures related to the Community Development Block Grant (CDBG) funds and other state and federal grants. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 32 2,976,298 33 3,029,848 Water Fund 1 124,080 1 124,080 Tax Increment Financing Administration Fund 1 96,720 1 96,720 Community Development Block Grant 3 3,684,180 3 3,684,180 Other Grant Funds 13 2,706,000 13 2,627,000 Total Full-time Equivalent Positions and Amounts 50 $9,587,278 51 $9,561,828 ALLOCATION Personnel Services Non-Personnel Services 4,960,035 4,627,243 5,072,165 4,489,663 Program Summary and Description FTEs ADMINISTRATION 2018 Funding 3 431,432 REVENUE AND EXPENDITURE ANALYSIS Prepares annual budget recommendations, and monitors revenue and spending throughout the year. Projects revenue for annual appropriation ordinances. Analyzes revenue impact of new initiatives. Monitors grant expenditures and performance. Works with departments to comply with audit requirements. 14 1,326,346 MANAGEMENT INITIATIVES Evaluates current City programs and helps departments implement new initiatives to increase the efficiency and effectiveness of City government. 5 459,331 COMPENSATION CONTROL Monitors citywide personnel and compensation approvals as they relate to the annual appropriation. 3 290,892 CAPITAL AND INFRASTRUCTURE MANAGEMENT Monitors Capital and Infrastructure funds and project spending throughout the year. 4 342,419 DATA ANALYTICS Create, design, and deliver summary reporting based on data collection and analysis, as well as management reports, personnel tracking, and property tax projections. Develop, maintain, and support citywide operating and capital budget applications. 5 439,267 TIF PROGRAM MANAGEMENT Monitors Tax Increment Financing (TIF) funds and project spending throughout the year. 1 96,720 CENTRAL GRANTS MANAGEMENT Prepares annual grant budget recommendations, and monitors grant expenditures and performance. Works with departments to comply with audit requirements. 16 6,373,852 U G N Program Summary and Description N G N FTEs TURNOVER 2018 Funding (198,431) 62 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration Department of Innovation and Technology The Department of Innovation and Technology (“DoIT”) enhances delivery of City services through access to information, and promotes Chicago’s advancement through technology. DoIT is the central information technology organization for the City and provides technology services to City departments, City Council, sister agencies, residents, businesses, and visitors. 2017 Highlights and 2018 Initiatives Many projects are underway to help City departments leverage data to improve service delivery, implement processes and policies to protect data and information, and create innovative services and procedures. Establishing a Short Term Residential Rental Portal – In partnership with the Department of Business Affairs and Consumer Protection (“BACP”), DoIT designed and implemented a system to manage and enforce the terms governing the Shared Housing Ordinance. The new system includes: a mechanism that prohibits enrollment for a building on the Prohibited Building List; communication systems with short term residential rental intermediaries; evaluations on Chicago listings for eligibility to operate; contact information for local hosts; and a system for BACP to administer and enforce the program. Based on significant community input, the City Council enacted an ordinance that allows the City to obtain detailed information about the local operators of shared housing units. Nearly 7,000 house share applications have been received with close to 4,000 registered and the remaining 3,000 either in progress or denied. Enhancing Open311 – The Open311 system will transform resident experiences with government services through enhanced transparency into City operations, access to realtime data, and a web portal designed around a resident’s needs and perspectives. Open311 will enable residents to participate in problem-solving and improved service delivery— submitting their ideas, questions, requests, suggestions, and feedback through mobile, phone, text, tweet or web selfservice and email. The system will also track work requests, labor, planning, and scheduling for work performed on assets to improve City services through continuous monitoring and performance analysis. The Open311 project will continue into 2018 providing service improvement, transparency, and greater engagement for residents and departments. The first phase of the project will create a resident-facing portal and an updated system used by call takers. The second phase of implementation will include work order management capabilities for departments. The Open311 project is projected to be complete in 2019. Protecting Communities from Lead Poisoning – In 2017, DoIT will finish a project that aims to predict when Chicago kids are most likely to be impacted by lead-poisoning caused by lead paint in their home. The project is being implemented in partnership with the Department of Public Health and the University of Chicago’s Center for Data Science and Public Policy. Local hospitals and clinics, starting with the Alliance of Chicago, will integrate their electronic medical records with City of Chicago preventative predictions to identify at-risk children under 4. The analytical modeling was completed in 2017 and integrations with local health clinics and hospitals will be finished in late 2017 through 2018. 63 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration DEPARTMENT OF INNOVATION AND TECHNOLOGY The Department of Innovation and Technology (DoIT) coordinates citywide development and analysis of business processes and technology solutions. DoIT is responsible for ensuring that the City's technology infrastructure is robust and works with City departments to design and implement technology improvements. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 94 20,118,136 94 22,815,293 Water Fund 6,337,313 6,377,378 Library Fund 13 1,142,765 13 1,163,861 Other Grant Funds 12 1,476,753 3 459,000 Total Full-time Equivalent Positions and Amounts 119 $29,074,967 110 $30,815,532 ALLOCATION Personnel Services Non-Personnel Services 11,579,508 17,495,459 Program Summary and Description 10,586,339 20,229,193 FTEs 2018 Funding ADMINISTRATION 13 1,906,711 ENTERPRISE ARCHITECTURE Designs and manages complex components of the City's enterprise network, including application, database, network, reporting, server, and storage needs. Mitigates information security risks. 22 4,378,921 ENTERPRISE APPLICATIONS Maintains citywide financial management systems, including purchasing and human resource systems. Designs, develops, and manages citywide regulatory systems that ensures compliance standards. Designs, develops, and manages service systems, such as the Customer Service Request System. 19 17,346,915 TECHNICAL OPERATIONS AND SUPPORT Maintains the computing infrastructure of the City, including support for all hardware and software initiatives. Streamlines City technology and unifies innovation goals by coordinating with citywide IT staff from other departments. 28 4,005,518 DATA ANALYTICS AND MANAGEMENT Stores, analyzes, researches, visualizes, publishes, and makes available data for City users and the public. 18 2,182,963 SOFTWARE DEVELOPMENT Designs, develops, and maintains custom software to address City needs, including: online payment processing and 311 service request routing. Maintains the City of Chicago website, Explore Chicago, and the City's Intranet. 10 1,608,038 TURNOVER (613,534) 64 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration Office of the City Clerk The Office of the City Clerk (“OCC”) connects Chicago residents to their local government. Through its role as both the City’s official record keeper and the administrator of many of the City’s services, including the Municipal ID and the City’s Vehicle Sticker program, the City Clerk is often the first and only interaction residents have with their City government. The OCC has two primary functions as listed below. • • City Services – Nearly 1.3 million Chicago Vehicle Stickers are sold each year generating approximately $130 million in revenue which is used, in part, to maintain and repair the City’s 4,000 miles of streets. In addition to City Vehicle Stickers, the OCC is responsible for providing residential parking permits, dog registrations, amusement licenses and administering the Municipal ID program. Public Access to Legislation – The City Clerk is responsible for record keeping and creating public access to legislation by overseeing and tracking the legislative process, from the introduction of proposed legislation, to committee referral to the final approval and publication in the official City Council Journal of Proceedings. The OCC also provides online live streaming video, including captions, for each meeting of the City Council. 2017 Highlights and 2018 Initiatives Launching the Municipal ID Program – The Municipal ID program will give all Chicagoans, regardless of housing status, criminal record, immigration status, or gender identification, access to a government-issued ID. The OCC is developing the Municipal ID program, with a pilot program starting at the end of 2017. The Municipal ID cards will store minimal data, efficiently integrate the card with existing City services, and allow for fraud prevention and data security. Additionally, the OCC announced that the Municipal ID card will be able to function as one’s transit card and library card through an innovative intergovernmental agreement with the Chicago Transit Authority and the Chicago Public Libraries. Increasing Digital Access to City Clerk Services – In 2018, the OCC is looking to explore several options to increase access to its many products and services. The OCC is developing ways to improve the customer experience around purchasing permits, such as resident parking passes, and dog licenses. Additionally, the OCC is in the initial stages of implementing improvements to digital streaming of City Council meetings to make them available on a variety of platforms and devices to allow for increased access to view public meetings in City Hall. Expanding Neighborhood Outreach Through “Clerk in the Community”– After 40 roundtables this year, City Clerk Anna Valencia heard about the need to increase City services into communities. To that end, the OCC is exploring opportunities for vendors to administer OCC services across Chicago communities. This past year, the office expanded its City Sticker community sales, also known as “Ward Sales”, through May and June 2017. The OCC is also looking to bring the community into City Hall by creating a civic engagement program. Collaboration with Chicago Public Schools will bring high school students to City Hall to learn about their local government, meet with elected officials, explore careers in government and make their voices heard on issues that impact their communities. 65 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration CITY CLERK The City Clerk collects, records and stores the City's official records as well as City Council legislation. The City Clerk is responsible for providing public access to legislation, laws, records and reports; selling City Vehicle Stickers; Residential Zone Parking Permits; issuing automatic amusement device licenses; administering Municipal ID, KIDS ID and Medical ID programs; and administering the City's dog registration program. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 33 3,149,155 35 4,199,549 Vehicle Tax Fund 63 6,872,544 63 6,497,071 Total Full-time Equivalent Positions and Amounts 96 $10,021,699 98 $10,696,620 ALLOCATION Personnel Services Non-Personnel Services 6,777,465 3,244,234 Program Summary and Description 6,745,193 3,951,427 FTEs ADMINISTRATION 2018 Funding 6 644,863 CITY COUNCIL SUPPORT Conducts and records all official meetings of the City Council. 27 2,519,868 LICENSE MANAGEMENT Administers the City's vehicle sticker program and distributes all general City licenses. 63 6,721,920 2 1,085,836 MUNICIPAL ID Administers the City's Municipal ID program, which enables Chicagoans to obtain a valid government-issued ID for use in accessing a range of services. TURNOVER (275,867) 66 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration Department of Finance The Department of Finance ("DOF") collects revenue and manages the City’s financial resources. DOF safeguards the City’s fiscal position by maximizing revenues, monitoring expenditures, managing employee benefits and risk exposure, overseeing the City’s debt portfolio, supervising the collection of City-administered taxes and debts owed to the City, and issuing and reporting audited financial information. DOF also pays City vendors, issues bonds, handles accounts for City payroll, and administers the benefits program. 2017 Highlights and 2018 Initiatives Launching eProcurement – In 2017, DOF implemented a new eProcurement system to centralize and streamline procurement processes citywide. eProcurement incorporates electronic workflow, notifications, tracking, and reporting of key information, and functionality which was expanded to include delegate agencies in Gall 2017. The newest function of the system, the iSupplier Portal will fully integrate invoicing and payments and will allow vendors to submit invoices electronically to the City for payment. The public facing website will allow suppliers to have real-time access to their information from procurement through the entire payment processes. Delegate agencies also have access to the iSupplier Portal, and DOF anticipates the system will help keep them in compliance with grant agreements and reduce cycle time for voucher payments. Expanding Weekend Parking Enforcement – In addition to regular parking enforcement schedules, DOF began testing piloting additional enforcement teams in high-traffic neighborhoods during the weekends in 2017. By analyzing historic enforcement data, DOF targeted neighborhoods with the most need for parking turnover to provide businesses and residents greater access to their services and communities. Parking Enforcement Aides ("PEAs") focused primarily in the Central Business District and the surrounding area, in addition to various neighborhoods in need of increased enforcement of parking meters, residential permit parking, and other violations. Through Gall 2017, DOF issued over 37,400 tickets through weekend enforcement, netting projected revenue of $2.6 million, surpassing the 2017 estimated net revenue of $1.5 million. 67 Closing Tax Loopholes & Enforcement – Beginning July 1, 2017, the Ground Transportation Tax (“GTT”) was collected for non-Chicago public vehicles once for each day the vehicle departs from a City airport with a passenger through the use of license plate recognition technology. This activity was always subject to the tax, but enforcement was challenging because the vehicles were not licensed by the City. To close this loophole, DOF worked with a third party to install enforcement technology at the City’s airports that provides registration and account information on suburban taxi companies. The system then automates payments of the GTT per day for each suburban taxi vehicle that departs from O’Hare or Midway Airport with a passenger. As a result of the initiative, DOF expects GTT collections to increase by approximately $1 million dollars per year. DOF also determined through tax discovery enforcement efforts that many business subscribers to satellite television were unaware of their obligations to pay the Amusement Tax for the service. By launching a voluntary disclosure program without penalties or interest, DOF educated businesses on their requirements to pay and allowed them to retroactively remit owed Amusement Tax revenue. Participants remitted over $1.1 million dollars as of September, 2017 in additional Amusement Tax revenue. Improving Business Tax Collections – DOF’s Tax Division identified a high rate of non-compliance within the construction industry regarding the City’s Use Tax. While most large contractors are registered and remitting the Use Tax, a significant number of small to mid-size contractors are not because they are unaware of their obligations to pay. Therefore, DOF will offer a limited-time voluntary disclosure program to increase compliance within the industry in 2018. By posting information on DOF’s website and working with trade associations and working in partnership with the Department of Buildings, DOF aims to give contractors information and an opportunity to comply. Alternatively, DOF has identified a high rate of non-compliance in the valet parking industry, specifically regarding the parking garage tax, through intentional and deliberate failures to remit their collected taxes. DOF is exploring technologybased solutions to ensure a greater level of compliance in 2018. 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration DEPARTMENT OF FINANCE City Comptroller The Department of Finance (DOF) provides effective and efficient management of the City's financial resources. DOF is responsible for the collection and disbursement of City revenues, and all funds required to be in the custody of the City Treasurer. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 31 2,870,483 31 2,881,474 Water Fund 6,552 6,552 Sewer Fund 9,100 9,100 Chicago Midway Airport Fund 6,552 6,552 Chicago O'Hare Airport Fund 6,552 6,552 Total Full-time Equivalent Positions and Amounts 31 $2,899,239 31 $2,910,230 ALLOCATION Personnel Services Non-Personnel Services 2,801,459 97,780 Program Summary and Description 2,813,836 96,394 2018 FTEs ADMINISTRATION 31 Funding 3,042,946 TURNOVER (132,716) DEPARTMENT OF FINANCE Accounting and Financial Reporting FUND SOURCE(S) Corporate Fund Water Fund Chicago Midway Airport Fund Chicago O'Hare Airport Fund Tax Increment Financing Administration Fund Community Development Block Grant Other Grant Funds Total Full-time Equivalent Positions and Amounts FTEs 56 3 2 24 6 6 3 100 ALLOCATION Personnel Services Non-Personnel Services 2017 Appropriation 5,475,364 258,609 165,081 2,122,254 747,636 1,229,158 303,543 $10,301,645 FTEs 55 3 2 24 6 6 3 99 2018 Recommendation 5,342,465 269,350 164,399 2,113,738 788,488 1,229,158 311,546 $10,219,144 8,631,213 1,670,432 Program Summary and Description 8,600,408 1,618,736 FTEs ADMINISTRATION ACCOUNTING AND FINANCIAL REPORTING Provides accounting, auditing, and financial reporting for all components of the City. TURNOVER 2018 Funding 2 350,954 97 10,163,951 (295,761) 68 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration DEPARTMENT OF FINANCE Financial Strategy and Operations FUND SOURCE(S) Corporate Fund Water Fund Vehicle Tax Fund Sewer Fund Chicago Midway Airport Fund Chicago O'Hare Airport Fund Total Full-time Equivalent Positions and Amounts FTEs 68 4 4 2 2 80 ALLOCATION Personnel Services Non-Personnel Services 2017 Appropriation 6,917,778 310,168 427,552 79,140 254,997 353,750 $8,343,385 2018 Recommendation 7,126,564 333,997 399,509 70,231 277,707 321,731 $8,529,739 FTEs 70 4 4 2 2 82 6,700,441 1,642,944 Program Summary and Description 6,917,035 1,612,704 2018 FTEs ADMINISTRATION FINANCIAL STRATEGY AND OPERATIONS Develops financial policy recommendations. Manages the City's debt portfolio and cash position. Audits, processes, and schedules all City vendor payments. Manages the distribution and audit of all City payrolls and maintains payroll systems. Manages all personal property and casualty risks and employee benefits programs. Funding 1 134,316 81 8,740,941 TURNOVER (345,518) DEPARTMENT OF FINANCE Revenue Services and Operations FUND SOURCE(S) Corporate Fund Water Fund Vehicle Tax Fund Total Full-time Equivalent Positions and Amounts FTEs 415 34 7 456 ALLOCATION Personnel Services Non-Personnel Services 2017 Appropriation 53,290,086 8,441,540 1,655,660 $63,387,286 2018 FTEs Recommendation 414 53,534,572 35 8,646,052 7 1,842,387 456 $64,023,011 26,965,666 36,421,620 Program Summary and Description 26,844,611 37,178,400 FTEs ADMINISTRATION PAYMENT PROCESSING Provides and oversees cashiering and reporting of payments made to the City. Manages and operates payment centers throughout the City. 69 2018 Funding 2 822,745 62 6,507,575 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration TAX POLICY AND ADMINISTRATION Provides and oversees City tax administration, enforcement, policy formation, and customer service. 69 6,699,796 STREET OPERATIONS Provides and oversees parking enforcement and booting operations, and manages the residential disabled permit program. 238 18,450,119 ACCOUNTS RECEIVABLE Oversees and performs billing and citation notices. Manages collection and cost recovery of various debts owed to the City. 85 32,578,988 TURNOVER (1,036,212) 70 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration collaboration, and City Treasurer’s Office The City Treasurer’s Office (“CTO”) manages the City’s investment portfolio, ensuring the safety of principal, maintaining adequate liquidity, and maximizing investment returns. The Treasurer’s Office is composed of three divisions: • Portfolio Management Division – Manages the City’s $7.4 billion investment portfolio. This portfolio includes the City’s operating and bond trust funds, the City’s long term reserves, shortterm investments for City and pension funds, and funds belonging to the Chicago Teacher’s Pension Fund. • Financial Reporting Division – Maintains investment-related records and accounts associated with the City’s operating funds, as well as the escrow accounts held with various trustee banks. In this regard, the CTO functions as the City’s banker. • Economic Development Division – Implements programs that promote economic growth and financial literacy throughout the City, focusing on three major areas: asset building, financial education, and small business support. Asset building enables individuals to increase their savings, which contributes to the prevention of bankruptcy, eviction, and unemployment. Financial education teaches individuals how to manage accumulated assets. Small business support assists small and local businesses through multiple programs, including the Small Business Development Loan Program, the Small Business Expo, monitoring workshops and numerous events concerned with small business development and growth. 2017 Highlights and 2018 Initiatives Launching Aggregate Pricing – The Aggregate Pricing initiative is designed to create significant savings on annual investment fees for Chicago’s public employee pension funds. This initiative provides an opportunity for local and regional pension funds to reduce fees paid to investment managers through information sharing and renegotiation. The CTO has made significant progress on this initiative through: • Commitments from eight regional plans to participate • An operational clearinghouse of data through • A tool to compare and identify savings opportunities is in place. The CTO is working with the Chief Investment Officers (CIOs) of local and regional pension funds where Treasurer Summers is a trustee. The CTO has met with CIOs from the Laborers’ and Retirement Board Employees’ Annuity and Benefit Fund of Chicago, the Municipal Employees' Annuity and Benefit Fund of Chicago, and the Policemen's Annuity and Benefit Fund of Chicago. The CTO has also met with the consultants for these pension boards, including NEPC and Marquette Associates, to put in place working schematics and to continuously gather data from the funds. Investing in the Chicago Community Catalyst Fund – The Community Catalyst Fund initiative aims to create an infusion of capital in low-income and middle-income neighborhoods throughout the City. Governed by a sevenperson board with substantial financial and investment experience, the Fund will spur economic development in these neighborhoods while generating market returns for taxpayers. ESG (“Environmental, Social, Governance”) Investing – The CTO will take an investment approach that aims to incorporate ESG factors into its decision making to better manage risk and generate sustainable, long-term returns. Modeling other local government investment policies, the CTO will launch a task force aimed at researching the opportunity for ESG investing as part of the annual assessment of the office’s investment policy. Operation Hope – In April 2017, Treasurer Kurt Summers announced the launch of Chicago Uplift 2020, a new partnership with Operation HOPE to provide financial empowerment tools to Chicagoans that helps residents raise credit scores, start small businesses, and assist with home ownership. As of Gall 2017, the CTO engaged with potential partners to launch Operation HOPE sites in underserved communities. The CTO and Operation HOPE aim to launch the first site in Tpring of 2018. 71 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration CITY TREASURER The Office of the City Treasurer is the custodian and manager of all cash and investments for the City of Chicago, the four City employee pension funds, and the Chicago Teacher's Pension Fund. Additionally, the Treasurer's Office manages outreach programs that promote economic development in Chicago's neighborhoods. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 8 1,556,713 8 1,697,910 Water Fund 4 452,128 4 452,128 Sewer Fund 3 269,400 2 223,212 Chicago Midway Airport Fund 3 332,924 3 341,948 Chicago O'Hare Airport Fund 9 1,026,660 9 1,022,214 Tax Increment Financing Administration Fund 4 434,006 4 407,162 Total Full-time Equivalent Positions and Amounts 31 $4,071,831 30 $4,144,574 ALLOCATION Personnel Services Non-Personnel Services 2,725,279 1,346,552 Program Summary and Description 2,654,948 1,489,626 FTEs 2018 Funding ADMINISTRATION 7 949,797 PORTFOLIO MANAGEMENT Manages the City's investment portfolio. 9 1,469,942 FINANCIAL REPORTING Performs accounting and financial reporting duties for the City's revenue and disbursement accounts. Serves as liaison with outside auditors and City departments. 11 1,185,669 ECONOMIC DEVELOPMENT Develops and implements economic development programs, coordinates program marketing and public affairs, and works with financial institutions and other governmental offices. 3 539,166 72 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration Department of Administrative Hearings The Department of Administrative Hearings (“DOAH”) is an independent entity that provides fair and impartial hearings and issues rulings on administrative matters related to public health, safety, and certain administrative violations on the public. DOAH appoints outside attorneys as administrative law judges to conduct hearings and adjudicate cases. • Customer Services – Files motions to set aside defaults for all divisions and answers public inquiries at the Central Hearing Facility. Oversees the community service program, attends community meetings and aldermanic service fairs, and monitors the processing of FOIA requests. • Buildings Hearings – Conducts hearings involving violations of the Building, Fire, and Zoning Codes. • Consumer and Environmental Hearings Conducts hearings involving public vehicles, unlicensed businesses, deceptive or fraudulent business practices, unstamped cigarette sales, overweight trucks, and towed vehicles. Also, hears cases regarding violations of the Health, Sanitation, Environmental, and Transportation Codes. • Municipal Hearings – Conducts hearings for police issued citations, vehicle impoundments, vacant and unsecured property, unpaid taxes, debts owed to the City, and appeals from the denial of parade permits. • Vehicle Hearings – Conducts hearings for parking, red light, automated speed camera, and booted vehicle violations. 2017 Highlights and 2018 Initiatives Court Professionalism Training – In 2017, DOAH department members, Administrative Law Judges, courthouse security personnel, City prosecutors, and representatives from various enforcement departments and outside counsel attended a training session entitled: “Walk in their shoes; Courthouse Professionalism Training”. With a presentation from the Illinois Supreme Court’s Commission on Professionalism, attendees were shown a user survey on how to develop better listening skills. DOAH participated in this training to ensure continued quality customer service and build better relationships with the public. Nearlt 150 participants were challenged to consider the administration of justice from the perspective of the patron/customer/respondents who appear at DOAH. E-Filing Upgrades and Expansion – In partnership with other City departments including Law, Innovation and Technology, and Streets and Sanitation, DOAH is working to expand the e-filing system to other departments. This expansion will allow departments such as Transportation and Police to include their violations in a centralized system, which allows cases to be submitted via a case management interface. This process eliminates the need for paper files from enforcing departments and allows them to be directly transferred to DOAH. Since 2010, the Department of Streets and Sanitation has utilized the e-filing system to increase efficiency by requiring that submitted documents are legible and all required fields are completed by the issuer before submission to DOAH. Full rollout of the program is anticipated in 2018. 73 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration DEPARTMENT OF ADMINISTRATIVE HEARINGS The Department of Administrative Hearings (DOAH) is an independent entity that provides fair and impartial administrative hearings for violations of the Municipal Code of Chicago, the Chicago Park District Code, and the Chicago Transit Authority Code. DOAH does not hear cases where incarceration is sought. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 42 8,591,069 42 8,532,654 ALLOCATION Personnel Services Non-Personnel Services 3,180,187 5,410,882 Program Summary and Description 3,116,527 5,416,127 FTEs ADMINISTRATION 2018 Funding 13 1,151,978 CUSTOMER SERVICES Files motions to set aside defaults for all divisions and answers public inquiries at the Central Hearing Facility. Oversees the community service program, attends community meetings and aldermanic service fairs, and monitors the processing of FOIA requests. 5 1,513,564 BUILDING HEARINGS Conducts hearings that involve violations of the Building, Fire, and Zoning Codes. 5 609,628 CONSUMER AND ENVIRONMENTAL HEARINGS Conducts hearings involving public vehicles, unlicensed businesses, deceptive or fraudulent business practices, unstamped cigarette sales, overweight trucks, and towed vehicles. Also, conducts hearings related to violations of the Health, Sanitation, Environmental, and Transportation Codes. 5 935,082 MUNICIPAL HEARINGS Conducts hearings for police issued citations, vehicle impoundments, vacant and unsecured property, unpaid taxes, debts owed to the City, and appeals from the denial of parade permits. 7 1,379,249 VEHICLE HEARINGS Conducts hearings for parking, red light, automated speed camera, and booted vehicle violations. 7 3,094,144 TURNOVER (150,991) 74 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration Department of Law The Department of Law (“DOL”) has ten legal divisions and employs approximately 270 lawyers that handle litigation, transactional, and legislative projects covering a wide range of practice areas such as public finance, economic development, contracts, personal injury, civil rights, appeals, real estate and land use, and labor relations. Apart from transactional and litigation work, DOL attorneys are actively engaged in drafting, reviewing, and advising the City on proposed federal, state, and local legislation, and also ensuring that the City’s policies and operations comply with applicable legal requirements. DOL attorneys are involved in housing, nuisance abatement, environmental, and anticrime initiatives that significantly improve public safety and the quality of life in neighborhoods throughout Chicago. 2017 Highlights and 2018 Initiatives Updating Streets and Sanitation Violation’s Notice and Expanding Violations Eligible for Pre-Payment: In Gall of 2016 DOL, in collaboration with the Department of Administrative Hearings (“DOAH”), expanded the list of Department of Streets and Sanitation (“DSS”) code violations eligible for prepayment. DOL, DOAH, and DSS expanded the list from 11 to 16 violations where a respondent may choose to pay a minimum fine in lieu of attending a hearing at DOAH. DOL then revised the Administrative Notice of Violation for greater clarity. DOL anticipates the pre-payment option to decrease the number of hearings held at DOAH on DSS matters. Closing Nuisance Businesses and Eliminating Drug Sale and Crime Hot Spots: DOL continues to work with the Chicago Police Department (“CPD”) and the Department of Buildings (“DOB”) to rapidly and effectively reduce narcotic trafficking by criminal street gangs through its Drug and Gang House Enforcement section and its License Enforcement Unit. The Department of Law, CPD and DOB each target problem businesses concealing criminal activity. As a result, any once-concealed drug business ends immediately, and financial pressure can be applied on the licensee to ensure that the criminal activity within the business is permanently eliminated. Green Dolphin/Rio Chicago Nightclub, and helped craft strong nuisance abatement plans that have proven effective in addressing chronic problems. Preserving and Redeveloping Abandoned Buildings and Demolishing Dangerous Vacant Buildings: DOL works with various City departments, the aldermen, developers, community organizations and the Cook County Land Bank Authority to identify vacant buildings before they cause blight, attract crime, or deteriorate to the point of requiring demolition. DOL also works with DOB to identify vacant buildings on which the City has already obtained demolition authority that may be appropriate for redevelopment and forfeited to qualified home owners and developers, which saves the City’s limited resources and spares the taxpayers the costs of demolition. DOL was able to broker an agreement with the Federal National Mortgage Association (“Fannie Mae”) in which Fannie Mae seeks responsible buyers/developers, vetted by the City, on all Fannie Mae properties on the Vacant Building Call. To date, 12 of these properties are being rehabbed, and the City has collected $117,500.00 in favorable settlements. If property owners fail or are unable to take responsibility for their vacant building, the City will seek receivership or forfeit the properties to qualified home owners and developers. Through three quarters of 2017, DOL has filed just over 300 new vacant building cases, and has continued its aggressive prosecution of vacant buildings to help minimize the negative impact these properties have on neighborhood stability. DOL's efforts to stem the tide of vacant, abandoned and unsafe buildings will continue in 2018 and beyond. DOL routinely assists CPD in determining when use of the Summary Closure Ordinance is appropriate with respect to these businesses. During the first three quarters of 2017, DOL assisted in three summary closures, successfully defended a challenge to the closure decision regarding the 75 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration DEPARTMENT OF LAW The Law Department (DOL) is the legal advisor to the Mayor, city departments, commissions, and the City Council as they establish and administer policies and programs to benefit Chicago residents. DOL assists with preparation and enforcement of effective ordinances, and represents the City's interest in litigation. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 340 28,622,788 347 29,427,808 Water Fund 16 1,588,359 16 1,643,924 Vehicle Tax Fund 23 1,430,263 23 1,477,254 Sewer Fund 7 805,030 7 827,997 Chicago Midway Airport Fund 4 466,037 3 442,567 Chicago O'Hare Airport Fund 22 2,226,809 19 1,983,171 Tax Increment Financing Administration Fund 12 1,215,348 12 1,225,387 Community Development Block Grant 18 1,784,885 18 1,688,869 Total Full-time Equivalent Positions and Amounts 442 $38,139,519 445 $38,716,977 ALLOCATION Personnel Services Non-Personnel Services 34,478,268 3,661,251 Program Summary and Description 34,987,296 3,729,681 FTEs ADMINISTRATION 2018 Funding 21 5,874,516 LITIGATION Represents the City and City officials in a broad range of litigation, in both federal and state court, and also provides pre-litigation counseling to many departments. 159 13,522,302 PROSECUTIONS Prosecutes violations of the Municipal Code of Chicago relating to transportation, police citations, and traffic matters in the Circuit Court of Cook County. Enforces the Building and Zoning Codes by prosecuting code violations in both Housing Court and Administrative Hearings. 111 7,642,435 AERC The Aviation, Environmental, Regulatory, and Contracts Division (AERC) handles litigation and transactional matters in the areas of aviation, the environment, finance and bankruptcy, general regulatory, intellectual property, public utilities, and telecommunications. Represents City departments in matters involving the acquisition or sale of services, personal, and intellectual property. Licenses City space for revenuegenerating purposes. 30 2,767,112 7 585,222 13 1,259,529 LEGAL INFORMATION Provides legal advice concerning the Freedom of Information Act (FOIA). APPEALS Responsible for state and federal appellate work in the four appellate courts that handle Illinois cases. 76 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration DEPARTMENT OF LAW Program Summary and Description FTEs 2018 Funding LABOR Represents the City in grievances and arbitrations arising under the City's collective bargaining agreements and assists in contract negotiations. Provides counsel to departments on labor, personnel, and employment matters. 25 2,211,709 LEGAL COUNSEL Drafts legislation and provides legal advice and opinions to the Mayor, City Council and City departments and agencies. 6 595,707 FINANCE AND ECONOMIC DEVELOPMENT Assists in implementing financing to stimulate economic development, with the goal of improving public infrastructure, revitalizing blighted areas, providing affordable housing, and creating and retaining jobs for City residents. 21 2,211,771 REAL ESTATE Represents the City in land acquisitions and dispositions, City leases, affordable housing programs, and condemnations, zoning, right of way and environmental matters. Serves as legal counsel to the Community Development Commission, Commission on Chicago Landmarks, and the Transportation Committee. 11 1,058,872 COLLECTION, OWNERSHIP & ADMIN LITIGATION Handles in-house collections of Circuit Court and administrative judgments, including demolition and mortgage foreclosures, and supervises outside collection matters. Determines ownership of properties with Municipal Code violations. 41 2,650,718 TURNOVER (1,662,916) 77 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration Department of Human Resources The Department of Human Resources ("DHR") recruits, develops, and works to retain a professional and diverse workforce for the City. DHR ensures that the City is in compliance with the City’s hiring plan and federal requirements, and that the City’s application and hiring processes are open, competitive, and transparent. DHR maintains employee records, oversees compliance with employment laws, and manages programs concerning equal employment opportunity, sexual harassment, and violence in the workplace. DHR also provides training to City employees to enhance and develop their job skills, and establishes, updates, and enforces the City’s human resources policies and personnel rules. Since federal oversight of the City’s hiring practices came to an end in 2014, DHR continues to demonstrate the City’s commitment to open and transparent hiring practices. 2017 Highlights 2018 Initiatives Assisting in Hiring for Public Safety Departments – In 2017, the City launched a two-year public safety plan that includes hiring 970 sworn Chicago Police Department ("CPD") officers by the end of 2018. Through this hiring plan, DHR is assisting CPD with testing and hiring across multiple positions, both civilian and sworn positions. Launching the eLearning Platform – DHR, in conjunction with the Department of Innovation and Technology, completed a pilot rollout of a new eLearning platform for the City of Chicago. The eLearning System supports the delivery of online required training and education courses, such as the new digital communication policy, and was migrated from a CPDonly resource to a citywide resource in 2017. DHR expects to rollout the eLearning platform to all City departments by December 2017. Updating and Modernizing DHR Policies – In 2018, DHR expects to release updated policies for the City of Chicago around pregnancy accommodation and military leave. DHR and the Department of Law are developing a Pregnancy Accommodation Policy to lay out the steps employees can follow when they are in need of an accommodation due to pregnancy, childbirth, and related conditions. The new policy will provide a consistent citywide approach for accommodations and ensure compliance with state and federal laws in 2018. Additionally, DHR and the Department of Law are working to clarify the protections and benefits that employees are entitled to when called into active duty service in the armed forces. This Military Leave Policy will provide employees clear and definitive guidelines on their benefits as both City employees and members of the military during active duty service. DHR successfully administered the Police Officer entry level exam in April 2017 to over 8,000 candidates of which 75% of applicants were minorities. The administration of the exam followed a successful recruiting campaign, starting in the fall, to increase participation of minority candidates so that the CPD will better reflect the community it serves. DHR works to post these and other positions with colleges and universities, trade and business groups, minority focused organizations, and attends job fairs sponsored by aldermen and neighborhood organizations. The Department also provides application assistance for Spanish speakers. DHR will again administer entry-level Police Officer exams in December 2017 and early 2018. 78 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration DEPARTMENT OF HUMAN RESOURCES The Department of Human Resources (DHR) facilitates the effective delivery of city services through the establishment of a professional human resource management program. This includes attracting, developing, and retaining quality personnel and fostering equal employment opportunities for all the citizens of Chicago. The Human Resources Board (HRB) conducts hearings of charges brought against career service employees. HRB is responsible for providing advice and counsel to the Mayor and to the Commissioner of Human Resources in all aspects of public sector human resource administration including manpower utilization, manpower training, employee grievances and employee salaries. DHR also provides administrative support to the HRB. FUND SOURCE(S) Corporate Fund Water Fund Chicago Midway Airport Fund Chicago O'Hare Airport Fund Total Full-time Equivalent Positions and Amounts FTEs 77 3 1 3 84 ALLOCATION Personnel Services Non-Personnel Services 2017 Appropriation 6,618,363 267,992 87,492 285,049 $7,258,896 FTEs 79 3 1 3 86 2018 Recommendation 6,723,807 289,470 95,929 294,028 $7,403,234 6,514,782 744,114 Program Summary and Description 6,433,973 969,261 FTEs 2018 Funding ADMINISTRATION 11 1,554,600 EMPLOYMENT SERVICES Manages and monitors the hiring and promotion process for all City departments, as well as classification and compensation. Ensures compliance with the City's Hiring Plan and federal requirements, including fingerprinting and background checks. 38 3,207,634 INFORMATION SERVICES Controls the creation and maintenance of all employee records. Manages all web and technical programming, including the TALEO and CAREERS online application programs. 11 790,574 STRATEGIC SERVICES Manages all programs related to testing services, including test development and test administration. 6 441,172 WORKFORCE COMPLIANCE Manages employee performance evaluations, as well as the Reasonable Accommodations and Employee Assistance programs. This section also includes Equal Employment Opportunity and Violence in the Workplace programs. 20 1,772,556 TURNOVER (363,302) 79 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration Department of Procurement Services The Department of Procurement Services (“DPS”) is the contracting authority for the procurement of goods and services for the City of Chicago. DPS works with all City departments and its customers to guarantee an open, fair, and timely process by establishing, communicating, and enforcing business practices. DPS also monitors contract compliance to ensure that vendors are meeting their obligations to Chicago’s taxpayers and manages the certification of small, local minority, women-owned, veteran, and disadvantaged businesses. 2017 Highlights and 2018 Initiatives Improving Intergovernmental Cooperation – Procurement Reform Task Force, City Accelerator Cohort – The City of Chicago was one of five cities selected to participate in the City Accelerator program from Living Cities and the Citi Foundation. The national program helps selected cities to refine their procurement approach to increase the diversity of municipal vendors. DPS was selected because of the innovative solutions developed to help support the business community of Chicago like the Procurement Reform Task Force (“PRTF”). The PRTF was convened to develop recommendations for procurement and contract management at the City and its Sister Agencies in order to make the process more uniform, efficient, and cost effective, while increasing accountability. The PRTF was co-chaired by Inspector General Joe Ferguson and Chief Procurement Officer Jamie L. Rhee. DPS will work with Chicago Anchors for a Strong Economy (“CASE”), a unit within World Business Chicago, to facilitate an implementation plan for the long-term recommendations of the PRTF. Establishing a Veteran Business Enterprise Certification – The City established a certification program for veteran-owned business enterprises (“VBE”) to recognize the contributions of veterans in our community. By establishing a certification program, DPS can ensure that businesses seeking to take advantage of incentives and programs in the City for veterans are legitimately owned, operated, and controlled by veterans. The certification program will mirror the rigorous application process in place for minority-owned business enterprises and women-owned business enterprises (“M/WBEs”). The establishment of the VBE certification program will also allow the City to obtain important information on our small, local, veteran-owned business community and their specialties. Expanding the Diversity Credit Program – The City’s Diversity Credit program rewards prime contractors who utilize M/ WBEs in private sector contracts by creating eligibility for credit toward M/ WBE goals on City contracts. DPS will work with the vendor community to explore and develop potential enhancements to the program to increase prime contractors’ use of M/WBEs on projects not involving government funding. This program provides opportunities for M/WBE subcontractors to gain experience in the private sector, which helps the firms diversify their contacting portfolio and build capacity, thereby helping them become more profitable and self-sufficient. Implementing eProcurement – DPS’ complete transition to the modernized eProcurement system will streamline the City’s procurement processes by tracking all contract-related activities through the new eProcurement Portal. Through eProcurement, solicitations for the City’s diverse needs for goods and services will be advertised, posted, and responded to online, while allowing for vendors to submit invoices for payment in a centralized location. These changes will increase City efficiency, transparency and vendor participation while decreasing procurement cycle times and paper utilization. In 2017, all departments went “live” with eProcurement, utilizing the system for all contract amendments, receipts, non-contract payments and specific types of contract bids. Solicitations are being rolled out in a phased approach by contract category. Several commodities contracts have been awarded and additional solicitations, including a Request for Proposals and a construction bid, are in the pipeline as various contract categories are advertised. The eProcurement Team is also making strides to improve importing vendor data and digital signatures and approvals, and will soon award the first contract ratified using digital signatures. The e Procurement m odernization p roject w ill b e o stensibly complete with the “bid-to-award” of all remaining contract categories in 2018, including Architecture and Engineering, Vehicles and Heavy Equipment. By Xinter of 2018 all new requirements will be bid electronically. Vendors will receive ongoing training from workshops, YouTube tutorials and online instruction videos. Once registered, vendors are able to use the DPS iSupplier Portal self-service website to update contact, geographic, financial and shipping information, and, can track the progress of purchase orders and payments within the eProcurement system. 80 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration DEPARTMENT OF PROCUREMENT SERVICES The Department of Procurement Services (DPS) is the contracting authority for the procurement of goods and services for the City of Chicago. DPS works with all city departments and its customers to guarantee an open, fair and timely process by establishing, communicating and enforcing superior business practices. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 77 6,708,188 78 6,841,179 Water Fund 3 185,646 3 176,905 Chicago Midway Airport Fund 0 5 355,311 Chicago O'Hare Airport Fund 22 1,804,385 17 1,485,264 Other Grant Funds 50,000 50,000 Total Full-time Equivalent Positions and Amounts 102 $8,748,219 103 $8,908,659 ALLOCATION Personnel Services Non-Personnel Services 7,860,676 887,543 Program Summary and Description 8,052,314 856,345 FTEs 2018 Funding ADMINISTRATION 15 1,622,527 CONTRACT MANAGEMENT Facilitates the procurement process to secure high-quality goods and services in a timely and cost-effective manner. 62 5,297,424 CERTIFICATION AND COMPLIANCE Manages Certification Program for disadvantaged, minority and women owned businesses, including: MBE, WBE, BEPD, DBE, and ACDBE certifications. Monitors vendor compliance with contract commitments and applicable laws and regulations. 26 2,329,956 TURNOVER (341,248) 81 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration Department of Fleet and Facility Management The Department of Fleet and Facility Management ("2FM") maintains and manages the City’s buildings, vehicles, and other physical assets. Through the Fleet Operations, Facility Management, and Asset Management bureaus, 2FM increases life expectancy of City assets, reduces fuel and energy use, and promotes higher standards for safety and environmental performance in City operations. 2017 Highlights and 2018 Initiatives Reducing Energy Costs – In recent years, 2FM has implemented a number of initiatives to reduce energy use across the City’s fleet and facilities and continues to leverage favorable market conditions in order to reduce energy costs. Through these actions, the City was able to reduce energy spend by over $7 million in 2017. These energy saving measures and strategic purchasing have reduced the City’s annual energy budget by over $8.5 million since 2011. Selling North & Throop Facility – In 2017, the City will complete the sale of the 2FM’s current 18-acre headquarters facility at 1685 N. Throop Street (North & Th roop) in the North Branch Industrial Corridor. The City plans to sell the location to a private developer for $105 million, and a portion of the proceeds will be used to construct a new, $37 million maintenance headquarters at 6800 S. Wentworth Ave, the former site of Kennedy King College in the city’s Englewood neighborhood. In coordination with the Chicago Infrastructure Trust, 2FM released a Request for Proposals (RFP) in February 2017 for a new Fleet and Facility Management headquarters for of their employees. The new 200,000-square-foot replacement building will maintain and repair city vehicles such as fire engines, garbage trucks, and snowplows as a portion of the Department’s overall operations. • Bureau of Fleet Operations – Repairs and maintains City vehicles, as well as those owned by the Chicago Park District, the Chicago Housing Authority, the City Colleges of Chicago, the Chicago Public Schools, and the non-revenue fleet of the Chicago Transit Authority. Fleet Operations also coordinates the rental and disposition of all vehicle and construction equipment and dispenses and monitors fuel for motorized equipment owned by the City’s sister agencies. • Bureau of Facility Management – Operates and maintains City facilities, manages security services at those facilities, and provides architectural and engineering services for City projects. Facility Management maintains heating, ventilation, air conditioning, plumbing, and electrical systems, and coordinates custodial, landscaping, carpentry, Revenue from the sale of the North & Throop facility is also painting, and other professional services. expected to pay a portion of the construction costs related Bureau of Asset Management – Charged with to the City’s new, state-of-the-art Public Safety Training procurement and long-term planning for City Academy located at 4301 W. Chicago Avenue in West assets, with a focus on energy efficiency. The Bureau Garfield Park. A dditionally, revenue from the sale of the procures energy for City facilities and fuel for the North & Throop f acility w ill f und u pgrades t o t he C ity’s City’s fleet of vehicles. The Bureau also manages 311 service. • energy efficiency programs and the franchise agreement with City’s electricity provider. It is also tasked with managing leased space, negotiating lease agreements, and completing long-term capital planning for both facilities and equipment. This includes maintaining, managing, and marketing the Riverwalk, which generates and supports tourism. The Bureau’s responsibilities also include citywide environmental risk management, brownfield redevelopment, and National Environmental Policy Act reviews. Managing the Chicago Riverwalk – The 2FM manages and oversees the Chicago Riverwalk operations and solicits businesses to operate on the Riverwalk. As the Riverwalk continues to grow in popularity and use, the City has experienced strong revenue growth from the Chicago Riverwalk with revenues GSPN WFOEPST BOE UPVS CPBU PQFSBUPST increasing from $ million in 2014 to $ million in 2016. In 2017, the City estimates that the Riverwalk vendors’ gross revenue will million. Pursuant to the terms of the reach $1 loan agreement, a portion of the revenue generated from the Riverwalk has been pledged to repay the Transportation Infrastucture Finance and Innovation Act ("TIFIA") loan. 82 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration In 2017, 2FM issued an RFP for the operation of the Riverwalk and businesses that operate out of the newly constructed space along the Chicago River. An Evaluation Committee has reviewed written proposals submitted by qualified organizations to manage the Operations of Riverwalk Concessions, has recommended oral presentations from six qualified respondents, and later will begin negotiations with four respondents. 2FM expects contracts to be awarded by the end of 2017. Implementing a Health & Safety Plan – In January 2017, the 2FM began implementing of the Citywide Environmental Health and Safety (EHS) Plan for the infrastructure departments. As part of this implementation, 2FM is working to complete the rollout of two new OSHA Programs for each infrastructure department, which will improve the accuracy and timeliness of incident reporting with both internal and external partners like Illinois OSHA. 83 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration DEPARTMENT OF FLEET AND FACILITY MANAGEMENT Bureau of Finance and Administration The Department of Fleet and Facility Management (FFM) is responsible for maintaining and repairing the inventory of City owned vehicles and the operation, maintenance and repair of City buildings and properties. FFM is also responsible for custodial services, security coverage, graphic services, mail service, relocation services, and document storage and management. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 35 3,652,313 35 3,691,234 ALLOCATION Personnel Services Non-Personnel Services 2,955,090 697,223 Program Summary and Description 2,997,851 693,383 FTEs ADMINISTRATION 2018 35 Funding 3,835,626 TURNOVER (144,392) DEPARTMENT OF FLEET AND FACILITY MANAGEMENT Bureau of Facility Management FUND SOURCE(S) Corporate Fund Water Fund Vehicle Tax Fund Library Fund Other Grant Funds Total Full-time Equivalent Positions and Amounts FTEs 399 399 ALLOCATION Personnel Services Non-Personnel Services 2017 Appropriation 64,072,498 138,159 939,051 7,540,541 2,100,000 $74,790,249 2018 FTEs Recommendation 399 68,360,391 166,599 1,330,253 9,520,805 2,000,000 399 $81,378,048 33,540,371 41,249,878 Program Summary and Description 33,561,447 47,816,601 FTEs SUPPORT SERVICES Provides central mailing and document retention services citywide. FACILITY MANAGEMENT Mantains properties, and manages custodial, security, and landscaping services at all City-owned and leased facilities. ENVIRONMENTAL HEALTH AND SAFETY Develops and manages the City's comprehensive Environmental, Health, and Safety Compliance program. 84 2018 Funding 92,500 195 61,432,364 2,122,420 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration CAPITAL IMPROVEMENTS Provides architectural, engineering, and construction services for City facilities. Plans, programs, designs, and builds new facilities and improvements at all City facilities. Oversees joint venture projects with the Public Building Commission. 204 19,232,180 TURNOVER (1,501,416) DEPARTMENT OF FLEET AND FACILITY MANAGEMENT Bureau of Asset Management FUND SOURCE(S) Corporate Fund Water Fund Vehicle Tax Fund Motor Fuel Tax Fund Sewer Fund Library Fund Chicago Midway Airport Fund Chicago O'Hare Airport Fund Community Development Block Grant Other Grant Funds Total Full-time Equivalent Positions and Amounts FTEs 50 1 51 ALLOCATION Personnel Services Non-Personnel Services 2017 Appropriation 56,960,487 23,719,068 13,480,890 15,592,576 1,360,598 5,357,897 6,641,871 28,992,125 156,929 4,405,000 $156,667,441 2018 FTEs Recommendation 50 54,424,411 23,084,929 13,910,308 15,175,066 1,185,410 5,080,629 7,441,124 31,206,587 1 155,994 4,446,000 51 $156,110,458 3,824,389 152,843,052 Program Summary and Description 3,925,697 152,184,761 FTEs SUPPORT SERVICES Provides central mailing and document retention services citywide. 3 FACILITY MANAGEMENT Mantains properties, and manages custodial, security, and landscaping services at all City-owned and leased facilities. 2018 Funding 878,560 2,900,000 LEASE & REAL ESTATE PORTFOLIO MANAGEMENT Develops standard procedures for the terms, enforcement, and negotiation of leases; evaluates space needs, lease consolidations, and build-out designs. 4 17,892,379 ENERGY SERVICES Develops and executes energy procurement strategies, oversees energy contract management, researches the energy market to ensure rate optimization, and applies for energy-related grants. 6 127,073,919 ENVIRONMENTAL HEALTH AND SAFETY Develops and manages the City's comprehensive Environmental, Health, and Safety Compliance program. 13 2,362,912 CAPITAL IMPROVEMENTS Provides architectural, engineering, and construction services for City facilities. Plans, programs, designs, and builds new facilities and improvements at all City facilities. Oversees joint venture projects with the Public Building Commission. 85 2,320,000 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Finance and Administration GRAPHICS SERVICES Provides in-house photographic and digital imaging services to City departments. Provides fast and economical printing, photocopying, and bindery services to City departments. Develops and creates strategic marketing for City campaigns, including flyers, brochures, annual reports, banners, and all other printed materials. 25 2,841,851 DEPARTMENT OF FLEET AND FACILITY MANAGEMENT Bureau of Asset Management Program Summary and Description FTEs 2018 TURNOVER Funding (159,163) DEPARTMENT OF FLEET AND FACILITY MANAGEMENT Bureau of Fleet Operations FUND SOURCE(S) Corporate Fund Water Fund Vehicle Tax Fund Sewer Fund Library Fund Chicago Midway Airport Fund Chicago O'Hare Airport Fund Total Full-time Equivalent Positions and Amounts FTEs 447 49 26 16 82 620 ALLOCATION Personnel Services Non-Personnel Services 2017 Appropriation 73,069,527 6,629,315 3,434,944 4,009,901 52,485 2,893,682 20,302,052 $110,391,906 FTEs 446 49 26 16 82 619 2018 Recommendation 72,902,520 6,577,210 3,623,876 3,982,317 52,485 2,905,680 20,444,860 $110,488,948 52,890,179 57,501,727 Program Summary and Description 52,513,904 57,975,044 FTEs FLEET OPERATIONS Maintains and repairs vehicles utilized by the City, Chicago Park District, Chicago Housing Authority, and Chicago Transit Authority. Manages quality control and equipment and parts inventories, and coordinates and dispatches field technicians. TURNOVER 619 2018 Funding 112,716,276 (2,227,328) 86 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Infrastructure Services Infrastructure Services FUNDING COMPARISON BY DEPARTMENT 2017 Department 2018 Department of Streets and Sanitation Commissioner's Office Administrative Services Division Bureau of Sanitation Bureau of Rodent Control Bureau of Street Operations Bureau of Forestry Bureau of Traffic Services Dept Total 2,620,549 1,811,816 157,923,262 10,235,745 41,567,032 18,921,690 23,870,873 256,950,967 2,334,838 1,871,671 161,528,500 11,342,392 44,455,792 17,539,313 24,345,909 263,418,415 Chicago Department of Transportation Office of the Commissioner Division of Administration Division of Engineering Division of Traffic Safety Division of Infrastructure Management Division of Sign Management Division of Project Development Division of Electrical Operations Division of In-House Construction Dept Total 3,775,800 5,473,913 281,834,592 18,402,319 23,699,034 4,263,782 105,994,924 32,703,965 78,237,550 554,385,879 4,290,440 5,034,606 172,804,641 15,549,641 10,429,533 4,427,736 142,605,288 31,846,002 72,141,271 459,129,158 Chicago Department of Aviation Chicago Midway Airport Chicago-O'Hare International Airport Dept Total 192,257,026 539,395,636 731,652,662 215,004,026 608,119,188 823,123,214 Department of Water Management Commissioner's Office Bureau of Administrative Support Bureau of Engineering Services Bureau of Water Supply Bureau of Operations and Distribution Bureau of Meter Services Dept Total 10,525,338 5,294,717 23,170,003 86,111,005 156,299,854 11,673,117 293,074,034 10,780,747 5,196,606 19,805,783 82,349,945 163,817,643 11,448,207 293,398,931 $1,836,063,542 $1,839,069,718 Total - Infrastructure Services 87 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Infrastructure Services Department of Streets and Sanitation The Department of Streets and Sanitation (“DSS”) ensures a safe and healthy environment on the streets and alleys of the City, and responds to the service needs of communities across Chicago through its neighborhood services office, field offices, aldermanic offices, and the 311 system. The Department is organized into multiple operational bureaus that perform critical citywide services. The bureaus include: • Bureau of Sanitation – The Bureau of Sanitation is primarily responsible for citywide garbage and recycling collection from single family homes up to four unit residential buildings along with collection from garbage baskets on the public way. The Bureau is responsible for street sweeping Chicago streets each year. • Bureau of Rodent Control – Rodent Control, established as a separate bureau in the 2017 budget, performs citywide rodent abatement, dead animal removal, and cart management. • Bureau of Street Operations – The Bureau’s primary responsibility is citywide snow plowing and removal operations. The Bureau also coordinates field crews to enhance neighborhoods through graffiti removal and vacant lot, parkway, and public way cleaning activities. • Bureau of Forestry – Oversees the trimming, removal, and maintenance of the City’s urban canopy on the public way, which is comprised of over 500,000 trees. • Bureau of Traffic Services –Traffic Services provides traffic support for special events throughout the City, and tows illegally parked vehicles and hazardous vehicles from the public way and vacant property. 2017 Highlights and 2018 Initiatives Enhancing Graffiti Removal through Prompt Service and an Updated Fleet – DSS continues to improve on graffiti removal operations to increase efficiency and provide the most cost-effective service to taxpayers. In 2017, graffiti reports declined 18 percent from the previous year, indicating that the prompt removal deters future graffiti, and increases the efficiency in service time. In 2017, crews were able to complete graffiti requests in five days or less reflecting a 50 percent improvement compared to previous 10-day response times. In May 2017, DSS modernized and environmentally improved its fleet by adding eight new graffiti blasters to its fleet of 22. Expanding Blue Cart Recycling Public Service Announcements and Outreach – On January 1, 2017, the City updated the recycling ordinance, mandating that property owners of businesses and multi-dwelling buildings of five units or more provide recycling for their occupants, or face penalties for non-compliance. In the summer of 2017, DSS launched the “It’s All You” recycling campaign that included the placement of everyday lifestyle recycling images on various media citywide. Through additional social media outreach and a recycling pledge on the DSS website, “It’s All You” aims to educate residents about the common mistakes that residents make in the Blue Cart Recycling Program in order to lower contamination and increase waste diversion away from landfills. DSS aims to educate residents on changes they can make to efficiently recycle through recruiting new and more informed recyclers on the importance and impact of individual participation. In 2016, DSS diverted over 85,000 tons of waste in the Blue Cart Program, saving over $4 million in waste disposal costs. Excessive Refuse Cart Inventory Pilot Program – In 2017, DSS performed an Excessive Refuse Cart Inventory Pilot in two Xards in Chicago to assess whether residents had excessive carts, and if so, whether they would be amenable to returning the cart(s) to put back into their respective ward's inventory. The pilot program results indicate that there are many unused or underused refuse carts throughout the city that may be returned and deployed. In 2018, DSS will conduct a similar citywide cart assessment, in an effort to recoup excessive carts. Expanding the Bureau of Rodent Control – As part of the 2017 Budget, DSS established the Bureau of Rodent Control to increase services provJded to residents. As of Gall 2017, the Bureau responded to over 39,000 requests for rodent abatement and response time for all rodent abatement requests decreased to five days. To improve effectiveness, DSS tested fertility-bait products on rodents and piloted the application of dry ice in green spaces. In 2018, an additional $1 million investment will be made to the Bureau to deploy a total of 30 rodent abatement crews and provide more resources towards refuse carts. 88 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Infrastructure Services DEPARTMENT OF STREETS AND SANITATION Commissioner's Office The Department of Streets and Sanitation (DSS) provides a clean, safe, and healthy environment on the streets and alleys of Chicago through the effective management of the collection and disposal of residential refuse; the sweeping and plowing of streets; managing a citywide residential recycling program; the timely removal of graffiti; the cleaning of vacant lots; the demolition of condemned garages; the efficient towing of illegally parked or abandoned vehicles; the mitigation and abatement of rodents; as well as the planting, trimming and removal of trees. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 19 2,620,549 19 2,334,838 ALLOCATION Personnel Services Non-Personnel Services 1,640,506 980,043 Program Summary and Description 1,597,259 737,579 FTEs ADMINISTRATION 2018 19 Funding 2,429,774 TURNOVER (94,936) DEPARTMENT OF STREETS AND SANITATION Administrative Services Division FUND SOURCE(S) Corporate Fund FTEs 22 ALLOCATION Personnel Services Non-Personnel Services 2017 Appropriation 1,811,816 2018 FTEs Recommendation 23 1,871,671 1,771,308 40,508 Program Summary and Description 1,831,863 39,808 FTEs ADMINISTRATION OPERATIONAL SUPPORT Supervises personnel, property administration, facility maintenance, employee safety, training, inventory control, and warehouse operations. TURNOVER 2018 Funding 18 1,498,907 5 449,724 (76,960) 89 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Infrastructure Services DEPARTMENT OF STREETS AND SANITATION Bureau of Sanitation FUND SOURCE(S) Corporate Fund Vehicle Tax Fund Garbage Collection Fund Total Full-time Equivalent Positions and Amounts FTEs 506 84 868 1,458 2017 Appropriation 90,312,724 7,182,698 60,427,840 $157,923,262 ALLOCATION Personnel Services Non-Personnel Services 2018 Recommendation 93,878,237 7,519,926 60,130,337 $161,528,500 FTEs 466 88 869 1,423 104,258,490 53,664,772 Program Summary and Description 101,282,667 60,245,833 FTEs ADMINISTRATION 2018 Funding 7 719,086 SOLID WASTE COLLECTION Collects refuse, bulk items, recycling, and yard waste citywide. Identifies violations of and enforces the City's sanitation code. 1,295 110,648,005 SOLID WASTE DISPOSAL Manages the disposal of waste and bulk material. Maintains records pertaining to solid waste disposal and recycling. 7 44,274,513 STREET OPERATIONS Maintains the cleanliness and safety of the public way through manual sweeping, special events support, and litter basket waste collection. Manages and implements the City's snow removal operations. 26 1,553,299 STREET SWEEPING Maintains the cleanliness of the public way through mechanical sweeping of dirt, debris, and other wastes. Removes debris blocking and/or entering the City sewer system. 88 7,656,783 TURNOVER (3,323,186) DEPARTMENT OF STREETS AND SANITATION Bureau of Rodent Control FUND SOURCE(S) Corporate Fund FTEs 120 ALLOCATION Personnel Services Non-Personnel Services 2017 Appropriation 10,235,745 2018 FTEs Recommendation 130 11,342,392 8,657,255 1,578,490 Program Summary and Description 9,527,859 1,814,533 FTEs RODENT CONTROL Identifies areas of rodent infestation; controls or eliminates rodent problems through inspections and baiting of alleys, sewers, and identified premises. Collects and removes deceased rodents and other animals from the public way. Manages the city's refuse cart inventory. TURNOVER 130 2018 Funding 11,724,565 (382,173) 90 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Infrastructure Services DEPARTMENT OF STREETS AND SANITATION Bureau of Street Operations FUND SOURCE(S) Corporate Fund Vehicle Tax Fund Motor Fuel Tax Fund Total Full-time Equivalent Positions and Amounts FTEs 208 39 247 2017 Appropriation 22,695,176 6,150,656 12,721,200 $41,567,032 ALLOCATION Personnel Services Non-Personnel Services 2018 FTEs Recommendation 199 22,637,155 80 9,161,437 12,657,200 279 $44,455,792 23,451,182 18,115,850 Program Summary and Description 26,087,796 18,367,996 2018 FTEs ADMINISTRATION Funding 11 980,152 190 19,454,682 EQUIPMENT SUPPORT SERVICES Allocates hoisting engineers to operate heavy equipment for a variety of City needs. 32 3,990,544 GRAFFITI BLASTERS Removes graffiti in Chicago neighborhoods. 46 4,719,423 COMMUNITY ENHANCEMENTS Provides supervision and field crews for projects that clean and enhance neighborhoods. STREET OPERATIONS Maintains the cleanliness and safety of the public way through manual sweeping, special events support, and litter basket waste collection. Manages and implements the City's snow removal operations. 16,134,235 TURNOVER (823,244) DEPARTMENT OF STREETS AND SANITATION Bureau of Forestry FUND SOURCE(S) Corporate Fund FTEs 243 ALLOCATION Personnel Services Non-Personnel Services 2017 Appropriation 18,921,690 2018 FTEs Recommendation 216 17,539,313 16,256,114 2,665,576 Program Summary and Description 14,823,897 2,715,416 FTEs ADMINISTRATION 5 91 2018 Funding 434,885 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Infrastructure Services OPERATIONAL SUPPORT Supervises personnel, property administration, facility maintenance, employee safety, training, inventory control, and warehouse operations. 59 4,422,756 FORESTRY OPERATIONS Removes dead and hazardous trees, trims live trees on the City parkways, removes tree stumps, and processes non-parkway landscape debris. 152 13,233,641 TURNOVER (551,969) DEPARTMENT OF STREETS AND SANITATION Bureau of Traffic Services FUND SOURCE(S) Vehicle Tax Fund FTEs 188 ALLOCATION Personnel Services Non-Personnel Services 2017 Appropriation 23,870,873 2018 FTEs Recommendation 187 24,345,909 14,103,098 9,767,775 Program Summary and Description 13,886,421 10,459,488 FTEs ADMINISTRATION 2018 Funding 9 834,968 SPECIAL TRAFFIC SERVICES Provides traffic support for parades, marathons, filming locations, and other special events. 36 2,972,034 TOWING / RELOCATION SERVICES Tows vehicles illegally parked on the public way and provides towing and relocation support to other City departments and agencies. 71 14,739,817 CONTRACTUAL TOWING Identifies and removes hazardous and abandoned vehicles from City streets and vacant lots through a contractual towing program. 13 1,152,554 AUTO POUNDS Operates and supervises the City's auto pounds and provides notice to owners of impounded vehicles. 58 5,216,998 TURNOVER (570,462) 92 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Infrastructure Services Department of Transportation The Chicago Department of Transportation (“CDOT”) oversees and ensures the proper working conditions and environmental sustainability of the City’s surface transportation networks and public way. CDOT maintains and rehabilitates more than 4,800 miles of streets, 2,100 miles of alleys, 300 bridge structures, 250 miles of on-street bikeways, and 3,000 signalized intersections citywide. Each year, CDOT invests millions of dollars in the City’s infrastructure and assists in the administration of the Aldermanic Menu Program, which funds community infrastructure improvements in each ward. CDOT’s primary areas of focus are: • Transportation Infrastructure – CDOT plans, designs, constructs, maintains, and manages surface transportation infrastructure such as streets, alleys, sidewalks, curbs, gutters, bridges, and viaducts to ensure safe and efficient travel in the City. The Department also installs, maintains, and replaces traffic signals, street signs, street and alley lights, and pavement markings to improve public safety. • Regulation and Permitting – CDOT regulates the public way by overseeing the permitting of oversized vehicle passage, utility construction, newspaper stands, construction scaffolding, and driveways. The department processes approximately 100,000 public way use permits annually, issued to private contractors, commercial utility companies, and other City departments. • Sustainable Transportation – CDOT encourages alternatives to driving through its public transit, bicycling, and pedestrian programs. These programs are designed to invest in inter-related infrastructure improvements and promote safety through education and awareness. and allow for the remote control of lighting levels. The ability to know exactly what street lights are underperforming will speed up the Division of Electrical Operations' service response time. The modernized system will reduce the City’s street light electricity consumption by more than 50 percent. In addition, the new lighting will improve safety and quality-of-life in neighborhoods across the City by improving nighttime visibility and reliability of the system. The first of the 270,000 installations began in September 2017. Launching Vision Zero Chicago – CDOT spearheaded the launch of Vision Zero Chicago, a citywide initiative to reduce traffic fatalities and serious injuries. Vision Zero is a data-driven, multi-agency approach that views severe crashes as a public health challenge. Each year, 2,000 people are killed or seriously injured in traffic crashes on Chicago streets. Severe crashes can be reduced through improvements in technology, engineering, enforcement, and education. The Action Plan, released in June 2017, kicked off the plan for the first three years of the ten-year Vision Zero goal. To achieve this goal, the City will invest in infrastructure improvements that increase traffic safety for all roadway users citywide with a strong focus in communities that are most affected by severe traffic crashes. CDOT anticipates implementing proven pedestrian safety countermeasures like pedestrian refuge islands, pedestrian countdown timers, and bump-outs at 100 intersections citywide by the end of 2017. Projects planned to begin in 2018 include pedestrian safety improvements at over 150 intersections in neighborhoods across Chicago. City departments and sister agencies will also implement policies, training, and technologies that create safer vehicles and safer professional drivers. Reconstructed two dangerous intersections on the northwest side • The Reconstruction of the 5-legged Intersection of Belmont, Western and Clybourn: In July 2017 CDOT marked the completion of removing an outdated and severely deteriorated Western Avenue viaduct over Belmont Avenue. Western Avenue now features modern, new lighting, three lanes of traffic in each direction during rush hours, and a curbside lane available for parking in some areas of the corridor during non-rush hours. • Reconstruction of Damen, Elston and Fullerton: Completed in August 2017, the Damen Avenue, Elston Avenue and Fullerton Avenue intersection reconstruction eliminated one of the City’s highest incident of collision intersections. By realigning Elston Avenue and creating separate intersections for both Fullerton and Elston, and Damen and Elston, the 2017 Highlights and 2018 Initiatives Managing Chicago’s Smart Lighting Project – CDOT, in partnership with the Chicago Infrastructure Trust and the Department of Innovation and Technology, completed the procurement process in the first half of 2017. The Chicago Smart Lighting Project is a four phase undertaking for one of the largest municipal outdoor lighting modernization programs in the country. The project will replace Chicago’s outdated lamps with modern, longer-lasting LED fixtures complimented with a management system that will give the City real-time feedback of the lighting grid’s performance 93 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Infrastructure Services new traffic pattern is improving safety, relieving congestion creating new opportunities for development in a prime location on the near North Side. Completing the Albany Park Stormwater Diversion Tunnel – The 1.4-mile long tunnel is more than 100 feet under Foster Avenue and is scheduled for completion in spring 2018 to relieve the threat of catastrophic flooding on the far North Side. The 18-foot diameter tunnel will have an intake shaft at a bend in the North Branch of the Chicago River in Eugene Field Park just east of Pulaski Road. The tunnel will operate when the water level threatens to reach flood stage, the tunnel will divert a flow of 2,300 cubic feet of water per second, bypassing the Albany Park neighborhood and emptying at an outlet shaft at River Park just south of Foster Avenue into the North Shore Channel which has the capacity to handle the excess water. 94 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Infrastructure Services CHICAGO DEPARTMENT OF TRANSPORTATION Office of the Commissioner The Chicago Department of Transportation (CDOT) is responsible for planning, designing, programming and constructing infrastructure as part of the City's Capital Improvement Program (CIP). CDOT projects include bridges, select subway and elevated transit stations, arterial streets, and viaducts. CDOT operates, repairs and maintains all movable bridges, streets, street signs, pavement markings, street and alley lights, and traffic signals. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 24 3,775,800 29 4,290,440 ALLOCATION Personnel Services Non-Personnel Services 2,363,946 1,411,854 Program Summary and Description 2,771,985 1,518,455 FTEs 2018 Funding ADMINISTRATION 9 1,201,855 PUBLIC INFORMATION Provides timely information to the press and the public on department projects and transportation issues. 3 296,700 PERFORMANCE MANAGEMENT Administers department process improvement through analysis of citywide service requests (CSR) data and related metrics. Identifies trends and benchmarks to improve delivery of services across department divisions. 8 776,256 INTERGOVERNMENTAL RELATIONS Coordinates information provided to businesses, communities, and governmental agencies. Works with aldermen and the City Council to coordinate neighborhood infrastructure projects. 9 2,162,672 TURNOVER (147,043) CHICAGO DEPARTMENT OF TRANSPORTATION Division of Administration FUND SOURCE(S) Corporate Fund FTEs 67 ALLOCATION Personnel Services Non-Personnel Services 2017 Appropriation 5,473,913 2018 FTEs Recommendation 62 5,034,606 5,263,687 210,226 Program Summary and Description 4,852,581 182,025 FTEs ADMINISTRATION 62 TURNOVER 2018 Funding 5,237,953 (203,347) 95 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Infrastructure Services CHICAGO DEPARTMENT OF TRANSPORTATION Division of Engineering FUND SOURCE(S) FTEs Corporate Fund Vehicle Tax Fund Motor Fuel Tax Fund Other Grant Funds Total Full-time Equivalent Positions and Amounts 81 81 ALLOCATION Personnel Services Non-Personnel Services 2017 Appropriation 0 12,597,592 0 269,237,000 $281,834,592 2018 Recommendation 1,791,330 80 11,053,311 3,000,000 156,960,000 80 $172,804,641 FTEs 7,687,137 274,147,455 Program Summary and Description 7,340,875 165,463,766 FTEs DESIGN / CONSTRUCTION MANAGEMENT Develops, designs and manages construction of bridges, streetscapes, and transit station projects. Coordinates the use of freight tunnel system. Issues public way permits, performs inspections of the public way, and reviews construction projects for quality assurance. TURNOVER 80 2018 Funding 173,243,866 (439,225) 96 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Infrastructure Services CHICAGO DEPARTMENT OF TRANSPORTATION Division of Infrastructure Management FUND SOURCE(S) Vehicle Tax Fund Other Grant Funds Total Full-time Equivalent Positions and Amounts FTEs 75 75 ALLOCATION Personnel Services Non-Personnel Services 2017 Appropriation 10,047,034 13,652,000 $23,699,034 2018 FTEs Recommendation 74 10,429,533 0 74 $10,429,533 5,129,590 18,569,444 Program Summary and Description 5,191,314 5,238,219 FTEs 2018 Funding PUBLIC WAY MANAGEMENT - UNDERGROUND Coordinates the use of the public way and manages and operates the Office of Underground Coordination, the City Utility Alert Network, and One Call. 22 6,326,622 DESIGN / CONSTRUCTION MANAGEMENT Develops, designs and manages construction of bridges, streetscapes, and transit station projects. Coordinates the use of freight tunnel system. Issues public way permits, performs inspections of the public way, and reviews construction projects for quality assurance. 52 4,486,168 TURNOVER (383,257) CHICAGO DEPARTMENT OF TRANSPORTATION Division of Sign Management FUND SOURCE(S) Corporate Fund FTEs 48 ALLOCATION Personnel Services Non-Personnel Services 2017 Appropriation 4,263,782 2018 FTEs Recommendation 50 4,427,736 3,310,842 952,940 Program Summary and Description 3,399,982 1,027,754 FTEs SIGN MANAGEMENT Manufactures and installs street signs, traffic signs, and various other signs used by the City. Handles the repair and replacement of existing signs based on citywide service requests. TURNOVER 50 2018 Funding 4,596,710 (168,974) 97 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Infrastructure Services CHICAGO DEPARTMENT OF TRANSPORTATION Division of Project Development FUND SOURCE(S) Corporate Fund Other Grant Funds Total Full-time Equivalent Positions and Amounts FTEs 37 3 40 ALLOCATION Personnel Services Non-Personnel Services 2017 Appropriation 4,312,924 101,682,000 $105,994,924 2018 FTEs Recommendation 38 4,270,288 3 138,335,000 41 $142,605,288 3,562,732 102,432,192 Program Summary and Description 3,501,403 139,103,885 FTEs 2018 Funding PROJECT DEVELOPMENT Prepares surface transportation plans, studies, and policy recommendations to enhance mobility, economic vitality, and quality of life in Chicago. 38 76,327,926 DESIGN / CONSTRUCTION MANAGEMENT Develops, designs and manages construction of bridges, streetscapes, and transit station projects. Coordinates the use of freight tunnel system. Issues public way permits, performs inspections of the public way, and reviews construction projects for quality assurance. 3 66,520,002 TURNOVER (242,640) CHICAGO DEPARTMENT OF TRANSPORTATION Division of Electrical Operations FUND SOURCE(S) Corporate Fund Vehicle Tax Fund Motor Fuel Tax Fund Total Full-time Equivalent Positions and Amounts FTEs 90 61 127 278 ALLOCATION Personnel Services Non-Personnel Services 2017 Appropriation 9,302,873 8,179,609 15,221,483 $32,703,965 2018 FTEs Recommendation 90 8,923,546 2,921,925 188 20,000,531 278 $31,846,002 26,437,720 6,266,245 Program Summary and Description 25,809,104 6,036,898 FTEs ELECTRICAL OPERATIONS AND MANAGEMENT Maintains, repairs, and designs the street light, alley light, traffic signal, and fire alarm systems in the city. Repairs circuits, relamps street lights and traffic signals, and replaces broken or obsolete equipment. Provides design and drafting of electrical engineering services, and supervises electrical system improvement projects. TURNOVER 278 2018 Funding 33,297,190 (1,451,188) 98 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Infrastructure Services CHICAGO DEPARTMENT OF TRANSPORTATION Division of In-House Construction FUND SOURCE(S) Corporate Fund Vehicle Tax Fund Motor Fuel Tax Fund Other Grant Funds Total Full-time Equivalent Positions and Amounts FTEs 143 525 72 740 ALLOCATION Personnel Services Non-Personnel Services 2017 Appropriation 13,513,910 47,987,715 15,735,925 1,000,000 $78,237,550 2018 FTEs Recommendation 140 13,112,331 525 47,254,304 85 11,774,636 0 750 $72,141,271 64,458,062 13,779,488 Program Summary and Description 63,719,020 8,422,251 FTEs 2018 Funding CONSTRUCTION SUPPORT Provides program support for capital projects, repair and operation and for asphalt and concrete repair and replacement. Coordinates capital improvements requested through the aldermanic menu program. 9 2,477,077 BRIDGE MANAGEMENT Performs routine repairs to bridges throughout the city, and provides staff at bridge houses with roving patrols for timely bridge openings over commercial and public water way transportation. 193 21,914,762 ASPHALT MAINTENANCE Responsible for residential street and alley resurfacing, pothole patching, pavement markings, and street and alley speed bump installation and maintenance. 191 19,221,093 CONCRETE MAINTENANCE Responsible for the repair and replacement of sidewalks, curbs, and gutters. Ensures proper drainage and manages erosion prevention activities. 357 31,292,566 TURNOVER (2,764,227) 99 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Infrastructure Services Department of Aviation The Chicago Department of Aviation (“CDA”) manages the operations of O’Hare International Airport and Midway International Airport, which are owned by the City of Chicago. The CDA works to ensure safe and efficient travel by its 75 passenger and cargo airlines. Chicago’s airports generate more than $45 billion in annual economic activity and roughly half a million jobs for the region. Airport operations are funded by revenue generated from airline landing and user fees, terminal rents, parking, and concessions. Capital funding comes from sources such as airport revenue bonds, passenger facility charges, federal airport improvement program funds, and private investment. All capital projects are financed without the use of city and/ or state tax revenues. 2017 Highlights and 2018 Initiatives Modernizing and Expanding O’Hare and Midway Airports There are multiple modernization and infrastructure projects currently underway at O’Hare and Midway. These projects include: O’Hare Modernization Program – In 2017, construction continued on Runway 9C/27C and other work to finalize the O’Hare Modernization Program ( OMP ). Runway 9C/27C is scheduled to be commissioned in 2020 and creates more than 4,900 jobs during construction. The new runway will add capacity and provide increased flexibility for east and west flow operations, helping to balance noise exposure among communities east and west of O’Hare. When OMP is completed, O’Hare will have the most modern and efficient airfield in the country. Construction progressed on the eastern portion of the runway and the airlines have proceeded to relocate airline support facilities to make way for further runway construction. Constructing a New Joint Use Facility and Extension of the Airport Transit System at O’Hare – Construction of the new $786 million Joint Use Facility ( JUF ), also known as the Multimodal Facility, and Airport Transit System ( ATS ) extension is on schedule to be completed in 2018. This project creates nearly 3,000 jobs during construction. The JUF development and ATS extension will serve as a major access point to O'Hare and significantly enhance multimodal transit connectivity between rental cars, public parking, public roadways, shuttle busses, CTA and Metra. The JUF project will move rental car companies out of dispersed locations and into the new multi-level facility. The JUF will provide over 4,400 rental car company parking spaces on the first three floors, a customer lobby on the first floor, with remaining floors designed for over 2, 00 public parking spaces. The ATS is being extended and will connect to a new terminal within the JUF facility. Developing the O’Hare Capital Program – Work continues on the development of a multi-billion dollar O’Hare 21 capital program that will give terminals their first capital update in decades. The program aims to modernize terminals, increase connection opportunities for both travelers and residents, and elevate Chicago’s profile as a global hub for travel and commerce. Upgrades will address long-term gate area and gate expansion needs, accomplished through a new centralized global terminal. O’Hare 21 will create tens of thousands of new construction jobs over the next decade. Expanding O’Hare’s International Terminal – Construction will begin in 2018 on the expansion of O’Hare’s International Terminal 5 to add nine new wide-body gates and provide for a second A380 capable gate by 2020. The e xpansion addresses near-term demand and capacity of International Terminal gates and facilities and provides additional capacity for domestic flights. The Terminal 5 expansion will support approximately 1,400 jobs. Hotel Construction and Renovation – The C DA p lans t o build two new hotels and renovate another at O’Hare to support continued growth and increased capacity delivered by O’Hare 21. The projects include a new mixed hotel/office development near the JUF; a new full service hotel near Terminal 5; and renovation and modernization of O’Hare Hilton near the terminal core. The h otel d evelopment projects will be completed in 2021 and will improve direct access accommodations for business and leisure travelers and provide new conference facilities for business traffic. Midway Terminal Modernization – In Gall 2017, CDA began construction on the first n ew c apital p rogram i n m ore t han a decade to modernize and expand key passenger amenities at Midway. The OFBSMZ million project includes an expansion of the concession facilities, the terminal parking garage, and security checkpoint. Midway Modernization will improve customer experience while helping to grow Midway’s competitive edge, creating more than 1,700 construction and concessions jobs for residents. The checkpoint and parking garage projects are expected to be completed by winter of 2019 and the concessions renovation will be completed in summer of 2020. 100 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Infrastructure Services CHICAGO DEPARTMENT OF AVIATION Chicago Midway Airport The Chicago Department of Aviation (CDA) manages all aspects of Midway and O'Hare International airports including operations, maintenance, and capital improvements. CDA is also responsible for the design, construction, and implementation of modernization programs at both airports. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Chicago Midway Airport Fund 238 103,425,026 240 102,821,026 Other Grant Funds 88,832,000 112,183,000 Total Full-time Equivalent Positions and Amounts 238 $192,257,026 240 $215,004,026 ALLOCATION Personnel Services Non-Personnel Services 20,882,876 171,374,150 Program Summary and Description 21,139,426 193,864,600 FTEs ADMINISTRATION 12 FINANCIAL MANAGEMENT Directs financial matters concerning the airport system. 2018 Funding 5,788,089 2,449,485 LEGAL AND CONTRACT MANAGEMENT Provides direction on legal issues, contract processing, and review of all airport contracts. 10,000 COMMERCIAL DEVELOPMENT AND CONCESSIONS Manages all airport tenants and concession services. 591,700 CAPITAL DEVELOPMENT Provides engineering and architectural services for airport development projects. Manages noise abatement program. AIRFIELD OPERATIONS Provides for the safe operation of airplane ground movements, airfield coordination, vehicle operations, snow and ice removal services, and emergency response coordination. 113,367,100 128 14,819,398 LANDSIDE OPERATIONS Manages ground transportation services at parking facilities. 21 21,038,895 SECURITY AND SAFETY MANAGEMENT Provides airport safety and security services for the traveling public, airport employees, and property. 64 13,180,634 FACILITY MANAGEMENT Operates and maintains terminal and airfield facilities and equipment. 15 44,272,146 TURNOVER (513,421) 101 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Infrastructure Services CHICAGO DEPARTMENT OF AVIATION Chicago-O'Hare International Airport FUND SOURCE(S) Chicago O'Hare Airport Fund Other Grant Funds Total Full-time Equivalent Positions and Amounts FTEs 1,526 1,526 ALLOCATION Personnel Services Non-Personnel Services 2017 Appropriation 380,650,636 158,745,000 $539,395,636 2018 FTEs Recommendation 1,537 402,777,188 205,342,000 1,537 $608,119,188 131,231,336 408,164,300 Program Summary and Description 131,881,788 476,237,400 FTEs 2018 Funding ADMINISTRATION 43 25,853,153 FINANCIAL MANAGEMENT Directs financial matters concerning the airport system. 44 18,218,904 LEGAL AND CONTRACT MANAGEMENT Provides direction on legal issues, contract processing, and review of all airport contracts. 12 1,249,488 COMMERCIAL DEVELOPMENT AND CONCESSIONS Manages all airport tenants and concession services. 17 14,026,088 CAPITAL DEVELOPMENT Provides engineering and architectural services for airport development projects. Manages noise abatement program. 67 218,448,922 AIRFIELD OPERATIONS Provides for the safe operation of airplane ground movements, airfield coordination, vehicle operations, snow and ice removal services, and emergency response coordination. 463 56,595,547 LANDSIDE OPERATIONS Manages ground transportation services at parking facilities. 223 110,376,176 SECURITY AND SAFETY MANAGEMENT Provides airport safety and security services for the traveling public, airport employees, and property. 323 47,774,258 FACILITY MANAGEMENT Operates and maintains terminal and airfield facilities and equipment. 345 120,911,098 TURNOVER (5,334,446) 102 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Infrastructure Services Department of Water Management The Department of Water Management ("DWM") is responsible for delivering fresh, pure water to the residents of Chicago and 125 suburban communities every day. DWM continually monitors water quality and performs testing 24 hours a day, seven days a week. All of this is accomplished through a network of purification plants, tunnels, pumping stations, water mains, valves and structures that require constant upkeep and maintenance. Additionally, DWM removes waste water and storm runoff from the streets of Chicago through the sewer system, and delivers the effluent for treatment to the Metropolitan Water Reclamation District of Greater Chicago. DWM plans, designs, and supervises capital improvements to the sewer and water systems, including the replacement of the City’s aging infrastructure and prioritizing environmentally-sound and cost effective measures to help conserve Lake Michigan’s water while protecting water quality. The accelerated water main replacement program began in 2012 and involves the installation of hundreds of miles of new water and sewer mains as well as the lining and renewal of thousands of other structures. In addition, DWM is upgrading its facilities including the conversion of three pumping stations from steam to electric power. 2017 Highlights and 2018 Initiatives Creating efficiencies within the Department- The Bureau of Performance Management was created to develop, review and revise policies, procedures and directives to improve the level of service provided by DWM employees. In 2017, the Bureau established an overtime management process to streamline requirements and allow for efficient reporting and tracking for employees. In 2018, the Bureau will review and revise the current Central Dispatch Standard Operating Procedures to improve employee accountability, increase communication, enhance recordkeeping and to provide better customer service. The Jardine Water Purification Plant continues to see investment in the operating systems. Replacement and upgrades to support a new power generator will begin construction in the 4th quarter of 2017, and is budgeted at $50 million. Installing Residential Meters –Through the MeterSave program, Chicago homeowners volunteer to have a water meter installed in their home to help them save both water and money. Since its inception in 2009, DWM has installed 116,551meters in residences throughout the City through September 15, 2017. Homeowners participating in MeterSave receive a 7-year guarantee that their homehT water bill will be no higher than it would have if the meter was not installed. Through MeterSave, DWM is then able to understand water consumption patterns for residents and to respond to work orders with greater efficiency and understanding. In 2017, DWM coordinated with the Department of Finance to create new bill inserts to promote the program to 66,000 eligible homeowners. In 2018, DWM will continue to focus on outreach and promoting enrollment for seniors and two-flat non-metered homeowners. Replacing and Repairing the City’s Aging Water and Sewer System – Through the City’s 10-year Capital Improvement Plan, which began in 2012, DWM is renewing and replacing aging water and sewer infrastructure at an accelerated pace. Through September 29, 2017, the department has completed 537 miles of water main installation, 425 miles of sewer rehab, 76,000 sewer structure linings and more than 117,000 water meter installations. DWM’s 2018 plans to replace and install 90 miles of new water mains, replace and install 22 miles of new sewer mains, line and renew 42 miles of old sewer mains, and line and renew 5,000 sewer structures. Upgrading and Modernizing the City’s Purification Plants and Pumping Stations – The Springfield Avenue Pumping Station was fully converted from steam to electricity in 2017. The more energy efficient station has reduced its carbon footprint and will save an estimated $4 million annually with improved reliability and efficiency. The Central Park Pumping Station will undergo a similar conversion in 2018 to modernize. The Department estimates an annual savings of $4.5 million in energy, maintenance and personnel costs once the conversion is complete. 103 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Infrastructure Services DEPARTMENT OF WATER MANAGEMENT Commissioner's Office The Department of Water Management (DWM) is responsible for the delivery of fresh, pure water to Chicago residents and suburban communities. DWM also transmits waste water from homes and businesses along with storm water runoff from streets to the Water Reclamation system. Operations rely on a network of purification plants, tunnels, pumping stations, structures, and water and sewer mains; all of which are built and maintained by DWM. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Water Fund 75 10,525,338 75 10,780,747 ALLOCATION Personnel Services Non-Personnel Services 4,735,905 5,789,433 Program Summary and Description 4,724,114 6,056,633 FTEs 2018 Funding ADMINISTRATION 17 3,654,751 SAFETY AND SECURITY Coordinates employee safety measures and provides site security at water and sewer system facilities. 58 7,295,749 TURNOVER (169,753) DEPARTMENT OF WATER MANAGEMENT Bureau of Administrative Support FUND SOURCE(S) Water Fund FTEs 54 ALLOCATION Personnel Services Non-Personnel Services 2017 Appropriation 5,294,717 2018 FTEs Recommendation 53 5,196,606 4,658,360 636,357 Program Summary and Description 4,527,340 669,266 FTEs ADMINISTRATION 53 TURNOVER 2018 Funding 5,513,771 (317,165) 104 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Infrastructure Services DEPARTMENT OF WATER MANAGEMENT Bureau of Engineering Services FUND SOURCE(S) Water Fund Sewer Fund Other Grant Funds Total Full-time Equivalent Positions and Amounts FTEs 46 25 71 2017 Appropriation 7,930,405 2,289,598 12,950,000 $23,170,003 ALLOCATION Personnel Services Non-Personnel Services 2018 FTEs Recommendation 46 4,522,134 26 2,333,649 12,950,000 72 $19,805,783 6,773,453 16,396,550 Program Summary and Description 6,715,733 13,090,050 FTEs ADMINISTRATION 2018 Funding 2 234,991 36 3,471,953 ENGINEERING SERVICES Provides the planning, analysis, and investigation necessary to maintain and expand the water distribution and sewer systems. Prepares system atlases and updates permanent records. 7 755,930 INSPECTION SERVICES Protects public health and welfare by inspecting consumer plumbing to ensure compliance with the City code. Inspects and evaluates the condition of valves throughout the water system, and protects the water and sewer systems from damage by private contractors. 27 2,785,240 CAPITAL DESIGN AND CONSTRUCTION SERVICES Plans, designs, and supervises capital improvements to the sewer and water systems. SYSTEM INSTALLATION Provides for the replacement of sewers, water mains, water valves, and fire hydrants. Monitors the cleaning of large sewers by private contractors. 12,950,000 TURNOVER (392,331) DEPARTMENT OF WATER MANAGEMENT Bureau of Water Supply FUND SOURCE(S) Water Fund FTEs 619 ALLOCATION Personnel Services Non-Personnel Services 2017 Appropriation 86,111,005 2018 FTEs Recommendation 618 82,349,945 57,091,658 29,019,347 Program Summary and Description 57,314,599 25,035,346 FTEs ADMINISTRATION 11 105 2018 Funding 1,351,425 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Infrastructure Services WATER QUALITY Conducts comprehensive water quality monitoring to ensure sanitary quality is maintained throughout the water system. 45 5,642,097 WATER PUMPING Operates and maintains 12 pumping stations to provide sufficient water for domestic, industrial, and firefighting needs. 218 29,356,672 WATER TREATMENT Operates and maintains the City's two water purification plants. 344 49,158,556 TURNOVER (3,158,805) DEPARTMENT OF WATER MANAGEMENT Bureau of Operations and Distribution FUND SOURCE(S) Water Fund Sewer Fund Total Full-time Equivalent Positions and Amounts FTEs 742 587 1,329 ALLOCATION Personnel Services Non-Personnel Services 2017 Appropriation 83,055,111 73,244,743 $156,299,854 2018 FTEs Recommendation 774 87,298,065 608 76,519,578 1,382 $163,817,643 111,957,793 44,342,061 Program Summary and Description 119,383,085 44,434,558 FTEs 2018 Funding ADMINISTRATION 18 2,228,407 ENGINEERING SERVICES Provides the planning, analysis, and investigation necessary to maintain and expand the water distribution and sewer systems. Prepares system atlases and updates permanent records. 14 1,171,633 INSPECTION SERVICES Protects public health and welfare by inspecting consumer plumbing to ensure compliance with the City code. Inspects and evaluates the condition of valves throughout the water system, and protects the water and sewer systems from damage by private contractors. 24 2,523,564 SYSTEM INSTALLATION Provides for the replacement of sewers, water mains, water valves, and fire hydrants. Monitors the cleaning of large sewers by private contractors. 55 49,681,804 SYSTEM MAINTENANCE Maintains and repairs sewer mains, catch basins, and manholes to ensure the free flow of storm and sanitary sewage and to prevent hazards to the public. Performs normal and emergency repair and maintenance of water distribution appurtenances. 1,245 110,890,770 COMMUNICATIONS AND COORDINATION Coordinates, schedules, dispatches, and issues work repair orders with proper notices and permits via the 311 system. Coordinates with utility companies and other City departments on the DIGGER Program and other CDOT permitting and construction. 26 2,112,023 TURNOVER (4,790,558) 106 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Infrastructure Services DEPARTMENT OF WATER MANAGEMENT Bureau of Meter Services FUND SOURCE(S) Water Fund FTEs 136 ALLOCATION Personnel Services Non-Personnel Services 2017 Appropriation 11,673,117 2018 FTEs Recommendation 136 11,448,207 11,384,392 288,725 Program Summary and Description 11,165,107 283,100 FTEs ADMINISTRATION 2018 Funding 3 300,692 METER OPERATIONS SUPPORT Supports the City's water meter installation and repair programs. 45 3,772,165 WATER METER INSTALLATIONS AND REPAIRS Provides water meters to customers. Repairs and installs meters, including remote meters with read-out devices in the field. Reconditions and tests newly designed meters, fire detector meters, and existing meters. Ensures the accuracy and efficiency of meter readings, semi-annual assessments, and new account examinations. Manages the processing of delinquent accounts. 88 8,016,755 TURNOVER (641,405) 107 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Public Safety Public Safety FUNDING COMPARISON BY DEPARTMENT 2017 Department Police Board 2018 473,644 473,519 2,896,323 0 1,490,129,777 1,552,346,776 Office of Emergency Management and Communications 243,631,348 294,224,019 Chicago Fire Department 635,356,110 633,215,615 7,317,232 13,289,393 $2,379,804,434 $2,493,549,322 Independent Police Review Authority Chicago Police Department Civilian Office of Police Accountability Total - Public Safety 108 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Public Safety Chicago Police Board 2017 Highlights and 2018 Initiatives The Police Board provides a fair and open process for deciding disciplinary cases in which a police officer is accused of serious misconduct. The Police Board’s role is to undertake a thorough review of each case and render a fair, unbiased decision. The Police Board provides due process of law and decides each case based on the evidence presented at the disciplinary hearing. Its primary powers and responsibilities per the City’s Municipal Code and State are: The City continues to promote transparency of the process for handling allegations of police misconduct. The following initiatives ensure that the Police Board is accountable to all stakeholders: • Deciding disciplinary cases when the Superintendent of Police files charges to discharge a police officer or to suspend a police officer for more than thirty days; • Reviewing, upon request of police officers, disciplinary suspensions of six through thirty days; • Deciding matters in which the Civilian Office of Police Accountability and the Superintendent of Police do not concur regarding discipline of a police officer; • Adopting the rules and regulations governing the Chicago Police Department; • Holding monthly meetings that provide an opportunity for all members of the public to present questions and comments directly to the Police Board. • A list of cases currently before the Board appears on the Board’s website, which includes charges filed by the Superintendent and when the case is scheduled for hearing. • All of the Board’s disciplinary hearings are open to the public. After the Board decides a case, a written decision is issued. Detailed explanations of the Board’s findings are then posted on the website. These transparency initiatives are an important step in promoting public awareness and confidence in the disciplinary process and is an on-going process. As of September 30, 2017, 112 decisions are posted on the Board’s website. The Board also closely monitors the amount of time needed to bring disciplinary cases to hearing and a decision. A fair and efficient disposition of each case is an important component of due process and reducing any delay is a priority. Since the inception of this initiative, the Board has reduced the average amount of time to bring cases to hearing and decision by several months. The median amount of time from the filing of charges until a final decision is 7.5 months, down from 9 months. POLICE BOARD The Police Board is an independent civilian body that oversees various activities of the Chicago Police Department. The Board's powers and responsibilities include deciding cases involving allegations of serious misconduct by police officers and other Police Department personnel. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 2 473,644 2 473,519 ALLOCATION Personnel Services Non-Personnel Services 283,272 190,372 Program Summary and Description 283,272 190,247 FTEs POLICE DISCIPLINE Decides disciplinary cases involving allegations of misconduct made against members of the Chicago Police Department. Conducts the search for a new Superintendent of Police. Adopts the rules and regulations governing the Chicago Police Department. 109 2 2018 Funding 473,519 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Public Safety Civilian office of police accountability The Civilian Office of Police Accountability’s ("COPA") mission is to: • Provide a just and efficient means to fairly and timely conduct investigations within its jurisdiction; • Determine whether allegations of police misconduct are well-founded; • Identify and address patterns of police misconduct; and • Make policy recommendations to the Chicago Police Department ("CPD"), thereby reducing incidents of police misconduct. Under the direction of the Chief Administrator, COPA has the power and authority to conduct investigations into: • Complaints against CPD members alleging domestic violence, excessive force, coercion, or verbal abuse; • All incidents, including those in which no allegation of misconduct is made, in which a CPD member discharges: (i) a firearm in a manner that potentially could strike another individual, (ii) a stun gun or taser in a manner that results in death or serious bodily injury, or (iii) in the Chief Administrator’s discretion, other weapons discharges and other use of CPD-issued equipment as a weapon that results in death or serious bodily injury; • Incidents, including those in which no allegation of misconduct is made, where a person dies or sustains a serious bodily injury while detained or in CPD’s custody, or as a result of police actions, such as during attempts to apprehend a suspect; • Incidents of an “officer-involved death,” as that term is defined in 50 ILCS 727/1-5; and • Complaints against CPD members alleging improper search or seizure of either individuals or property, or unlawful denial of access to counsel. 2018 Initiatives In its first full year of operations as the civilian oversight agency of CPD, the leadership team of COPA will focus on the following main initiatives: 110 • Building a new case management system that is independent of, yet integrated with, CPD’s data and software platforms, allowing for more timely investigations and data transparency. • Building a new records management facility for the storage of COPA’s investigative files and the development of a new records management process to facilitate easy access to investigative files. • Opening fully functioning satellite offices in neighborhoods where there is a high volume of police interactions in order to facilitate the making of police misconduct complaints. • Expanding COPA’s mediation program through the hiring of a Director of Mediation who will oversee the coordination of mediations between CPD officers and complainants. • Continuing the professional development of COPA’s staff through the continued refinement of curriculum for COPA Academy (COPA’s 6-8 week onboarding academy for new investigative and legal staff) and the development of an annual in-service training calendar focused on teaching up-to-date core investigative and legal concepts to the staff. • Managing and addressing the backlog of investigations transferred from Independent Police Review Authority ("IRPA") to COPA in 2017 by engaging outside counsel to assist in the review and disposition of cases and establishing additional avenues for case closure (including a robust mediation program). • Engaging city residents through a robust community outreach plan that includes educating the public on COPA’s mission and the work of the agency, creating new and innovative avenues for the public to submit complaints to COPA, and building strategic partnerships with public sector agencies and not-for-profits to develop programming aimed at communities most impacted by police misconduct. 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Public Safety INDEPENDENT POLICE REVIEW AUTHORITY The Independent Police Review Authority (IPRA) was eliminated and its functions were transferred to the Civilian Office of Police Accountability (COPA). 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 62 2,896,323 0 ALLOCATION Personnel Services 2,896,323 Program Summary and Description 0 FTEs 2018 Funding CIVILIAN OFFICE OF POLICE ACCOUNTABILITY The mission of the Civilian Office of Police Accountability (COPA) is to provide a just and efficient means to fairly and timely conduct investigations within its jurisdiction, including investigations of alleged police misconduct and to determine whether those allegations are well-founded, applying a preponderance of the evidence standard; to identify and address patterns of police misconduct; and, based on information obtained through such investigations, to make policy recommendations to improve the Chicago Police Department (CPD) and reduce incidents of police misconduct. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 142 7,317,232 145 13,289,393 ALLOCATION Personnel Services Non-Personnel Services 5,916,810 1,400,422 Program Summary and Description 10,208,036 3,081,357 FTEs ADMINISTRATION 2018 Funding 14 2,304,433 INVESTIGATIONS Conducts investigations into allegations of misconduct against members of the Chicago Police Department including incidents involving excessive force, domestic violence, coercion and verbal abuse, as well as incidents involving death or serious injury to a member of the public. 105 9,152,460 LEGAL Within the Administration Section, the legal department will provide advice and counsel to the investigative staff as well as oversee legal matters in which the agency is involved. 20 2,101,100 PUBLIC AFFAIRS Responsible for all outreach and communications with the public including the implementation of transparency policies and public reporting. 6 441,548 TURNOVER (710,148) 111 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Public Safety Chicago Police Department The Chicago Police Department (“CPD”) protects the lives, property and rights of all people in Chicago, and maintains order while enforcing the laws fairly and impartially. CPD is organized into five distinct bureaus which include: • Bureau of Detectives: The Bureau of Detectives is responsible for investigating felonies; investigating missing, unidentified, and deceased persons; processing juvenile offenders and the care of juveniles in need of protective services; responding and investigating bomb and arson incidents; and collecting and processing of forensic evidence. • Bureau of Organized Crime: The Bureau of Organized Crime focuses on the dissolution of illegal narcotic, gang and vice activities through street-level enforcement efforts and criminal investigations. • Bureau of Organizational Development: The Bureau of Organizational Development is responsible for implementing recommendations from the Mayor’s Police Accountability Task Force and the Department of Justice pattern or practice investigation of the Chicago Police Department. Coordinates and directs activities which specifically relate to data collection, criminal justice research and analysis and reporting. Evaluates compliance with federal, state and local laws in department directives, addresses training needs of the department and manages budget and personnel administration. • Bureau of Patrol: The Bureau of Patrol is responsible for general field operations, the protection of life and property, the apprehension of criminals, and the enforcement of state and municipal traffic laws. • Bureau of Technical Services: Responsible for coordinating services and activities related to information systems, technology, and program development; receiving, storing, and disposing of inventoried property; and management of Department records and police reports. Additionally, responsible for coordinating and directing Department activities which specifically relate to facilities management; and various general support services. In 2018, CPD will also create a new Office of Reform Management which will be responsible for managing the various reform projects and initiative within the Department. This office will also coordinate and liaise with the independent monitor (once selected) in accordance with the upcoming Consent Decree with the Illinois Attorney General. 2017 Highlights and 2018 Initiatives Police Hiring Update – In 2017, the Chicago Police Department began a two-year plan to hire an additional 970 sworn officers. This included an additional 500 Police Officers, 92 Field Training Officers, 200 Detectives, 112 Sergeants and 50 Lieutenants. By the end of 2018, the number of sworn officers in the Department will grow from 13,110 to 13,531. In addition to the two year hire plan, as part of CPD’s reform efforts, CPD will also be adding an additional 100 Field Training Officers bringing the total sworn count to 13,631 by the end of 2018. Body Worn Cameras Expansion and Maintenance – In 2015, CPD began a pilot of body worn cameras which was expanded in 2016 to a total of seven police districts through the use of grant funds. In 2017, CPD continued the rollout of body worn cameras to the remaining fifteen districts with the goal that patrol officers in all 22 districts will be equipped with a camera by December 2017. In 2018, the City will continue to maintain body worn camera technology in all 22 districts while also expanding the program to specialized units and area teams to further the ability to fairly resolve complaints and improve transparency. Strategic Decision Support Center Expansion – In 2017, as part of CPD’s crime fighting strategy, the Department created Strategic Decision Support Centers (“SDSC”) in six police districts which include Districts 006, 007, 009, 010, 011 and 015. These strategic “nerve centers” in the six districts were equipped with predictive technology and analytical tools which include ShotSpotter gunshot detection system, additional POD cameras and mobile technology and software to aide CPD in their efforts to provide real-time, analysis based information using data trends to assist deployment and crime fighting strategies within the respective districts. In 2018, CPD will expand the number of “nerve centers” in the City to six additional districts which include Districts 002, 003, 004, 005, 008 and 025, 112 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Public Safety Reform Management - The 2018 CPD budget will include investments devoted to police reform. Initiatives include enhanced training, reform implementation, officer wellness and community policing. Commitment to training and investments will support CPD in implementing a new 16-hour in-service training requirement that will expand to 40 hours of mandatory training by 2021. Investments in management reforms will ensure the continuous review and assessment of reform and accountability efforts. By incorporating national best practices, investments in officer well-being will support officers’ ability to be successful at their jobs. Additional funds will also be allocated directly to enhancing community policing efforts. Electronic Timekeeping – In 2017, CPD began working to transition from a paper-based timekeeping system to the City’s electronic timekeeping system. As of fall 2017, the Department is on track to completely enroll all CPD personnel at headquarters and in half the districts by mid2018 with the remaining districts transitioned by the end of 2019, if not sooner. 113 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Public Safety CHICAGO POLICE DEPARTMENT The Chicago Police Department (CPD) protects the lives, property, and rights of all people, maintains order, and enforces the law impartially. CPD provides quality police service in partnership with other members of the community and strives to attain the highest degree of ethical behavior and professional conduct at all times. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 13,970 1,435,341,100 14,432 1,492,916,072 Chicago Midway Airport Fund 59 6,588,837 59 5,991,229 Chicago O'Hare Airport Fund 176 18,621,840 176 17,490,475 Other Grant Funds 70 29,578,000 103 35,949,000 Total Full-time Equivalent Positions and Amounts 14,275 $1,490,129,777 14,770 $1,552,346,776 ALLOCATION Personnel Services Non-Personnel Services 1,399,382,636 90,747,141 Program Summary and Description 1,464,755,405 87,591,371 FTEs 2018 Funding OFFICE OF THE SUPERINTENDENT Administers legal and legislative matters and various labor agreements, improves the Department's response to domestic violence, and works with residents through community policing, and disseminates information to the public through the news media. 348 32,749,694 OFFICE OF THE FIRST DEPUTY Coordinates and unifies the efforts of all bureaus to maximize the use of departmental resources, personnel, and technology. 163 13,594,118 BUREAU OF ORGANIZATIONAL DEVELOPMENT Coordinates and directs activities which specifically relate to data collection; criminal justice research and analysis and reporting; evaluates compliance with federal, state, and local laws in department directives; provides for training needs; and managees budget and personnel adminstration. 481 88,345,137 BUREAU OF PATROL Responsible for general field operations, including the protection of life and property, apprehension of criminals, problem-solving to address chronic crime and disorder problems, and enforcing traffic laws and City ordinances. 11,138 1,183,199,088 BUREAU OF DETECTIVES Directs the efforts of personnel trained in apprehending offenders and completing thorough and unified investigations. Serves as a liaison in matters of criminal and juvenile-related offenses, providing district law enforcement officers with investigative and arrest information, and developing and presenting criminal cases. 1,627 153,778,391 BUREAU OF ORGANIZED CRIME Coordinates the identification, investigation, and prosecution of individuals, street gangs, and other organizations engaged in criminal or terrorist activity. 733 67,694,996 114 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Public Safety CHICAGO POLICE DEPARTMENT Program Summary and Description FTEs 2018 Funding BUREAU OF TECHNICAL SERVICES Responsible for coordinating services and activities related to information systems, technology, and program development; receiving, storing, and disposing of inventoried property; and the management of Department records and police reports. Additionally, responsible for coordinating and directing Department activities which specifically relate to facilities management; and various general support functions. 248 43,011,745 REFORM MANAGEMENT Responsible for managing reform projects and track reform implementation progress to ensure that initiatives are completed correctly and efficiently. Coordinates with the independent monitor so that CPD is able to respond to requests for information in accordance with the upcoming Consent Decree with the Illinois Attorney General. 32 9,506,471 TURNOVER (39,532,864) 115 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Public Safety Office of Emergency Management and Communications assist deployment and crime fighting strategies within the respective districts. The Office of Emergency Management and Communications (“OEMC”) was established in 1995 to coordinate the City’s delivery of police, fire, and emergency medical service resources to 911 calls. Following the events of September 11, 2001, OEMC also became the primary City agency responsible for coordinating the City’s plans, response and communications for homeland security and large scale emergencies and disasters. OEMC closely partners with local, regional, state, and federal partners to enhance the safety and security of all of the City's residents and visitors. Improving the City’s Response to Residents in Mental Health Crisis – In 2017, OEMC continued to work with our public safety partners, Chicago Department of Public Health and the National Alliance on Mental Illness (“NAMI”) to provide new and enhanced mental health training to Fire, Police and Aviation staff. The training supports employees’ ability to obtain appropriate information from both callers and first responders, ensuring the appropriate services are delivered to any individuals in crisis. To date, OEMC has completed training for all Police Communications Officers, developed mental health training curriculum for Fire Communications Operators and have already begun to provide training to Aviation supervisors and dispatchers. The basic functions of OEMC are carried out 24 hours a day, seven days a week at OEMC’s 911 and 311 dispatch centers and its Operations Center. The 911 center serves as the critical conduit between Chicago’s residents and its first responders, while the 311 center receives requests for non-emergency City services or information and forwards these requests to the proper agencies. The Operations Center coordinates City services, including dispatch operations, emergency management, and traffic management functions. 2017 Accomplishments and 2018 Initiatives: Ensuring Statewide Resiliency Exercise with Utility Companies – In May 2017, OEMC served as a key partner in the Commonwealth Edison Statewide Emergency Preparedness Exercise that included a total of 16 local, state, federal, private sector and nonprofit partners. All scenarios were based in Chicago, including massive flooding, a manmade disaster threat with a suspicious package at a power transfer station located within the city, and an oil spill from a transition line leaking into the Chicago River. The exercise provided the Department’s Emergency Management division with an opportunity to field test a real-time damage assessment tool that can be utilized during emergencies to assist the City and residents to recover from serious incidents. Enhancing the Delivery of City Services and Increasing Resident Satisfaction – In 2018, OEMC will begin implementation of the Customer Relationship Management (“CRM”) modernization project as part of the 311 modernization across all applicable City Departments and sister agencies. OEMC will start planning to replace existing systems with a modern Interactive Voice Response ("IVR") system to support the new CRM, including self-service capabilities and proposed virtual hold/call-back options. Full implementation is anticipated within 12 months of the project start date. Modernizing the City’s 911 System -- In 2018, the OEMC will begin replacing the City’s twenty year old 911 system, which includes the City’s Computer Automated Dispatch ("CAD") system. The new system will drastically upgrade and modernize the technology base of the City’s 911 system while also helping to ensure the City is compliant with the State of Illinois Next Generation 9-1-1 network for statewide required implementation by 2020. Funds generated from the 911 Surcharge will be used to purchase the new 911 system. Supporting the City’s Crime Reduction Efforts – In 2017, OEMC’s Public Safety Information Technology (“PSIT”) section worked with the Chicago Police Department ("CPD") and the University of Chicago CrimeLab to establish Strategic Decision Support Centers in six police districts, including 006, 007, 009, 010, 011 and 015. The PSIT team implemented critical fiber, equipment and software to aide CPD in their efforts to provide realtime, analysis based information using data trends to 116 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Public Safety OFFICE OF EMERGENCY MANAGEMENT AND COMMUNICATIONS The Office of Emergency Management and Communications (OEMC) manages incidents, coordinates events, operates communications systems, and provides public safety technology to City departments and agencies to strengthen their respective missions and protect lives and property in the City of Chicago. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 1,825 102,405,688 1,091 26,570,409 Emergency Communication Fund 0 738 101,305,015 Chicago Midway Airport Fund 173 7,984,571 176 8,322,667 Chicago O'Hare Airport Fund 112 6,436,089 115 6,688,928 Other Grant Funds 27 126,805,000 32 151,337,000 Total Full-time Equivalent Positions and Amounts 2,137 $243,631,348 2,152 $294,224,019 ALLOCATION Personnel Services Non-Personnel Services 103,189,751 140,441,597 Program Summary and Description 106,483,257 187,740,762 FTEs ADMINISTRATION 2018 Funding 48 4,685,394 POLICE AND FIRE OPERATIONS Responsible for the dispatch of all Police, Fire, and Emergency Medical Services through the City's 911 Center and Alternative Response Center (ARS), operating 24 hours a day, 7 days a week, 365 days a year. 664 55,600,895 EMERGENCY MANAGEMENT Prepares Chicago for significant planned events and unplanned emergencies, provides disaster recovery assistance to people and institutions, mitigates the effects of catastrophic events, and provides operational coordination through a 24/7/365 operations center. 38 151,610,916 TECHNOLOGY Provides the enterprise services, radio communication capabilities, network services, and other technologies to support public safety departments and City services, which protects lives and property citywide. Provides on-going technical support to Police, Fire and Emergency Medical Service dispatch operations. 97 50,016,512 311 CITY SERVICES Serves as the point of entry for residents, business owners, and visitors requesting nonemergency City services and information 24/7/365. 73 4,766,159 CITY OPERATIONS Provides traffic management and performs traffic control functions to ensure the safe and effective movement of traffic throughout Chicago. 1,232 31,447,080 TURNOVER (3,902,937) 117 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Public Safety Chicago Fire Department 2017 Highlights and 2018 Initiatives The Chicago Fire Department (“CFD”) is the second largest fire department in the nation, covering more than 228 square miles with 96 neighborhood firehouses. In addition to serving Chicago, CFD is a member of the Mutual Aid Box Alarm System, through which CFD responds to fire and rescue emergencies across the state and nation when additional resources are needed. Improving Timekeeping Accountability – The City implemented a citywide "swiping policy” in 2017 – requiring all CFD employees to move to an electronic timekeeping system which includes swiping every day at a timekeeping clock. As of Tummer 2017, CFD has fully transitioned from a paper-based system with all personnel enrolled in the City's automated timekeeping system. Through t he a utomated system, the CFD is able to better track and manage personnel, including improvements to overtime management. CFD is organized into four bureaus: Fire Suppression and Rescue Operations, Emergency Medical Services (“EMS”), Fire Prevention, and Administrative and Support Services. The Fire Suppression and Rescue Operations and EMS bureaus comprise the operations function of the Department. There are approximately 4,900 uniformed firefighters and paramedics within the operational functions of the department, with many cross-trained in the use of nearly 250 pieces of equipment, including fire engines, fire trucks, ambulances, squads, helicopters, and marine equipment. These first responders suppress fires and respond to medical emergencies, hazardous material incidents, and other emergency situations to ensure the safety and wellbeing of all of the City's residents and visitors. The Fire Prevention Bureau is a critical component of the Chicago Fire Department’s mandate to protect the residents of Chicago against the loss of life and property through its enforcement of the Municipal Code. The Fire Prevention Bureau conducts general inspections of businesses, schools, hotels, public places of assembly, and high-rise occupancies within the City. Inspections are done on an annual basis to ensure that each entity complies with all required fire codes. Additionally, CFD, in partnership with major contributors and federal grantors, provides smoke detectors to families who could not otherwise afford them and distributes these detectors at firehouses and aldermanic offices throughout the City. CFD also provides information on the proper placement and maintenance of detectors and other fire safety education materials through its Public Education Section. Enhancing Emergency Preparedness – CFD teams conduct various preparedness drills throughout the year to enhance skills and develop emergency strategies. These drills include preventative and preparedness measures in large public spaces, evacuation plans, and tactical development. The Fire Department, Emergency Medical Teams (“EMTs”), and the Chicago Police Department (“CPD”) train together for rescue operations and recovery efforts in team focused preparedness drills each year to continue their tactical training. Adding to the Fire-Boat Fleet – In 2017, CFD added a new fire-boat for fast response rescue on Lake Michigan and the Chicago River System. The new craft is specially designed for use on the Lake, with previous units in the fleet best used in the River System. This new addition enhances water response to all types of water emergencies along the shorelines of the Lake and the Chicago River and Sanitary Canal. Adding Electric Ambulance Cots – Beginning in late 2017 and into 2018, the CFD will replace all ambulance cots with motor elevated electric units. This will eliminate the need to manually load patients and cots into ambulances. Electric cots greatly reduce duty injuries for CFD first responders and reduce lost work time from injury and lay-up while also providing more rapid treatment to residents in need. The new electric cots are grant funded and will be available in all 75 of CFD’s front-line ambulances. 118 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Public Safety CHICAGO FIRE DEPARTMENT The Chicago Fire Department (CFD) is responsible for the safety of residents and property by providing emergency services, including extinguishing fires, investigating causes of fires, enforcing the Fire Prevention Code, and administering emergency medical care. CFD utilizes the latest training methods and drills to keep Chicago safe from natural and man-made emergencies. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 4,849 584,228,559 4,846 578,794,455 Chicago Midway Airport Fund 68 8,033,240 68 7,852,779 Chicago O'Hare Airport Fund 244 29,644,311 244 29,705,381 Other Grant Funds 12 13,450,000 12 16,863,000 Total Full-time Equivalent Positions and Amounts 5,173 $635,356,110 5,170 $633,215,615 ALLOCATION Personnel Services Non-Personnel Services 601,078,796 34,277,314 Program Summary and Description 604,049,551 29,166,064 FTEs ADMINISTRATION 2018 Funding 128 27,998,342 FIRE SUPPRESSION AND RESCUE OPERATIONS Conducts fire fighting and rescue operations. Encompasses the Department's Special Operations and Fire Investigation divisions. 4,106 513,595,277 EMERGENCY MEDICAL SERVICES (EMS) Provides emergency medical care and hospital transport utilizing advanced life support (ALS) ambulances, as well as engine companies and fire trucks equipped with advanced life support equipment. 789 87,744,653 SUPPORT SERVICES Provides logistical support, including managing the storage, distribution, and maintenance of supplies, equipment, and departmental technology. 54 12,134,654 FIRE PREVENTION Inspects schools, institutions, and places of public assembly for compliance with the City of Chicago Fire Code. 93 10,632,206 TURNOVER (18,889,517) 119 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Community Services Community Services FUNDING COMPARISON BY DEPARTMENT 2017 Department Department of Public Health 2018 160,914,450 158,907,978 Commission on Human Relations 2,434,265 2,438,623 Mayor's Office for People with Disabilities 5,330,697 5,407,274 397,776,963 398,318,084 74,036,810 77,453,977 $640,493,185 $642,525,936 Department of Family and Support Services Chicago Public Library Total - Community Services 120 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Community Services Chicago Department of Public Health The Chicago Department of Public Health ("CDPH") provides guidance, services, and strategies that make Chicago a healthier and safer city. By working with community partners to promote health, prevent disease, reduce environmental hazards, and ensure access to care, CDPH addresses the needs of the City’s residents while working to develop creative and innovative solutions to emerging public health matters. CDPH’s focus and duties include: identifying, analyzing and tracking ongoing health related issues and guiding public health action; inspecting food establishments; establishing a public health presence in city neighborhoods; delivering services directly or through delegate agencies; and promoting healthy living among residents through policy and public education campaigns. 2017 Highlights and 2018 Initiatives Improving access and services for HIV and STI treatment – In 2017, CDPH provided vital services to 3,600 Chicagoans living with HIV in the first year of partnership with the University of Chicago and Howard Brown Health which marks a 400% increase in services provided by HIV Primary Care clinics in Englewood and Uptown. Through this partnership, the City is able to reinvest resources into additional HIV services including oral health and case management services in critical areas. CDPH is also providing screening services at the Austin Neighborhood Health Clinic five days per week in 2017, expanding the previous three days per week window through an ongoing partnership with Erie Family Health Center. Erie Family Health Center’s partnership with CDPH has expanded primary care health services and opened a Teen Health Center in the West Town Neighborhood Health Center. Pharmaceutical Representative Licenses and Opioid Response – In response to the national opioid epidemic and to provide additional access to treatment for addictions, CDPH launched a new licensing requirement for pharmaceutical representatives in July, 2017. For the first time in Chicago, prescription drug representatives must now secure an annual $750 licensure from the CDPH and Business Affairs and Consumer Protection websites, complete an initial training, and follow disclosure requirements on their interactions with health care professionals. With this license fee, the CDPH is able to free up additional available resources to fund community-based delegate agencies servicing neighborhoods hit the hardest by heroin and opioid abuse. By increasing direct treatment options and hiring community health workers to link users to care, CDPH aims to help those in need of care. As of October 2017, CDPH issued 1,169 Pharmaceutical Representative Licenses. Reducing Teen Birth Rates – Following eight years of decline, in 2017 Chicago's teen birth rate hit a historic milestone by dropping 20 percent faster than national rates. The biggest declines have impacted African American teens, who have historically faced the greatest health disparities. CDPH launched a comprehensive effort to reduce teen birth rates including partnering with CPS to institute comprehensive sexual health education, offering training, screening, and linkage to care in CPS schools and City Colleges, and community organizers. Expanding Mental Health Services – CDPH entered into a new agreement with the Cook County Health and Hospital System (CCHHS) to expand mental health services citywide. In early 2017, CCHHS assumed management of CDPH’s mental health clinic in Roseland, expanding services for residents onsite. This move freed up CDPH clinicians to be redeployed at the Department of Family Support Services Community Service Centers to provide mental health services at the North Area and Garfield Park Service Centers, and accomodated a total of 161 additional visits through July of 2017. Expanding Environmental Inspections – With less federal oversight in environmental enforcement and inspection measures, CDPH proposed raising fines, updating fees and expanding the inspection team to ensure more effective enforcements on pollution and environmental hazards. In 2018, CDPH will expand and develop a self-sustaining inspection program adding 10 new inspectors to the team to perform more proactive inspections and targeting repeat environmental protection offenders. Increasing Food Protections – In order to meet state law and federal standards in 2018, CDPH aims to update City’s current food inspection fee structure to match that of peer cities. These improvements will provide the revenue necessary for CDPH to hire 11 additional sanitarians, and will ensure adequate inspections of all food establishments across Chicago. These efforts aim to further ensure safety in the City’s restaurants and overall food supply. 121 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Community Services DEPARTMENT OF PUBLIC HEALTH The Chicago Department of Public Health (CDPH) provides guidance, services, and strategies that make Chicago a healthier and safer city. By working with community partners to promote health, prevent disease, reduce environmental hazards, and ensure access to care, CDPH addresses the needs of the City's residents while working to develop innovative solutions to emerging public health matters. CDPH's focus and duties include: identifying, analyzing and tracking ongoing health related issues and guiding public health actions; inspecting food establishments; delivering services directly of through delegate agencies; establishing a public health presence in city neighborhoods; and promoting health living amoung residents through plicy and public education campaigns. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 183 31,990,357 203 32,916,359 Community Development Block Grant 73 11,731,412 73 11,575,619 Other Grant Funds 350 117,192,681 326 114,416,000 Total Full-time Equivalent Positions and Amounts 606 $160,914,450 602 $158,907,978 ALLOCATION Personnel Services Non-Personnel Services 49,516,454 111,397,996 Program Summary and Description 60,549,795 98,358,183 FTEs ADMINISTRATION 2018 Funding 53 8,143,987 HIV / AIDS / STI SERVICES Provides comprehensive services that promote the prevention, testing, and treatment of HIV/AIDS and other sexually transmitted infections. Services are provided by CDPH in clinical and community settings through funding to delegate agencies. Collects data on HIV/AIDS in STI cases. 123 63,515,428 FOOD PROTECTION Promotes food safety and sanitation through the inspection of food establishments and by providing education on food safety to businesses and the public. Conducts inspections and enforcement actions related to summer festivals. 54 4,889,436 COMMUNICABLE DISEASE Maintains citywide surveillance of over 50 reportable communicable diseases. Conducts epidemiological analysis to identify trends and implement prevention intervention. Investigates outbreaks of diseases and makes recommendations on control and treatment. Educates the public and organizations on communicable diseases and prevention. 30 4,348,341 TUBERCULOSIS CONTROL Maintains citywide surveillance of TB cases by ensuring the provision of specialized treatment, directly observed therapy, and case management through a partnership with Cook County Hospitals. Investigates the status of TB cases and conducts TB screening and prevention activities targeted at high-risk populations. 16 2,962,781 122 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Community Services DEPARTMENT OF PUBLIC HEALTH Program Summary and Description FTEs 2018 Funding IMMUNIZATION Provides vaccines to more than 600 providers serving those at high risk for underimmunization. Assures delivery of immunization through direct services at clinics or other sites, coordinates healthcare provider education and manages activities among community-based organizations to identify and immunize high-risk children and adults. Maintains citywide surveillance of vaccine-preventable diseases. 33 7,313,843 MENTAL HEALTH SERVICES Provides outpatient mental health services for adults, including case management, assertive community treatment, psychosocial rehabilitation, crisis intervention through mental health assessments, and group and individual therapy to help clients increase functional capacity and achieve individualized treatment plan objectives. 67 10,735,185 SUBSTANCE ABUSE Provides a full continuum of substance abuse treatment services, including outpatient, intensive outpatient, residential, and detoxification. Also provides recovery housing for adult men and women and residential treatment for adolescent girls through contracts with community based organizations. 6 4,096,101 VIOLENCE PREVENTION Works with national and local community partners to reduce and prevent children's exposure to violence, teen dating violence, and bullying. Implements community outreach, public awareness, and social networking violence prevention strategies. 10 2,793,850 LEAD POISONING PREVENTION Works to combat lead poisoning by ensuring children are tested for lead, educating parents and property owners on the dangers of lead, and enforcing City and State laws to ensure lead hazards in homes are properly eliminated. Conducts surveillance of lead poisoning and ensures lead-poisoned children receive needed services. 29 9,347,901 WOMEN'S AND CHILDREN'S HEALTH Provides direct health and supportive services to children, adolescents, and women who are pregnant or of reproductive age. 79 14,346,167 EMERGENCY PREPAREDNESS Implements preparedness response programs for bioterrorism, infectious disease outbreaks, and other public health threats. Establishes plans, trains staff, and conducts exercises and drills to improve public health readiness. Administers federal funds for hospital preparedness. 43 19,812,225 EPIDEMIOLOGY Analyzes and maps health data to inform policy, planning, and interventions. 21 5,235,147 ENVIRONMENTAL HEALTH AND PERMITTING Performs routine and complaint-generated inspections to ensure environmental protection and laws are enforced to keep residents healthy and safe. Environmental permits are also administered. 38 4,285,151 TURNOVER (2,917,565) 123 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Community Services Commission on Human Relations The Chicago Commission on Human Relations (“CCHR”) is charged with enforcing the Chicago Human Rights Ordinance and the Chicago Fair Housing Ordinance. The Commission investigates complaints to determine whether discrimination may have occurred, and uses its enforcement power to punish acts of discrimination. Under the City’s Hate Crimes Law, the agency aids hate crime victims. CCHR also employs proactive programs of education, intervention, and constituency building to discourage bigotry and bring people from different groups together. • Adjudication Unit: Enforces the Chicago Human Rights and Fair Housing Ordinances to fight discrimination in employment, housing, public accommodations, credit, and bonding. Through its Adjudication Unit, CCHR investigates complaints filed by members of the public, conducts administrative hearings, and enforces findings of acts of discrimination by ordering monetary and injunctive relief. • Inter-Group Relations Unit (IGR): Addresses discrimination and tensions that may arise between groups based on racial, religious, economic, or other forms of cultural or personal differences. The IGR works in communities to prevent tensions from escalating into hate crimes and other acts of violence. 2017 Highlights and 2018 Initiatives Chicago Human Rights & Fair Housing Ordinances –Three new amendments to the Chicago Human Rights and Fair Housing Ordinances were approved by City Council and were instituted over 2017. The amendments included a protected class for military status that prohibits discrimination of veterans, active duty military, and members of the reserves in housing, employment, public accommodations, and credit. Another protection was added to make a retaliatory action against a person who filed a fair housing complaint illegal. Finally, a protection was added for residents to access private facilities without the fear of discrimination on the basis of gender identity. *mproving Accessibility for the Disabled – CCHR and the Mayor’s Office for People with Disabilities (“MOPD”) worked together to create new regulations to provide greater clarity and information to businesses regarding accessibility requirements, helping them to better comply with their responsibilities for accommodations. This helps to provide more accessible stores, restaurants, and other businesses for people with disabilities to visit. The new disability rights regulations in public accommodations are effective as of July, 2017. In 2018, CCHR will continue to reach out to the businesses community through presentations at chambers of commerce, bar associations, and aldermanic community meetings. In partnership with the Department of Business Affairs and Consumer Protection’s Small Business Center, CCHR staff provides multiple opportunities for updates on the regulations and will publish information in their weekly programs. In addition, information will be translated into Spanish and Mandarin. CCHR will also film a video with MOPD on disability access which will be distributed in 2018. Hate Crime Summit – On October 25, 2017, CCHR and other collaborating organizations will host the second Hate Crime Summit at the University of Illinois, Chicago Campus. The event, first held in 2014, was created in commemoration of the anniversary of the Matthew Shepard & James Byrd, Jr. Hate Crimes Prevention Act that President Obama signed into law in October, 2009. Through the Hate Crime Summit, CCHR and its partners seek to raise awareness regarding hate crimes, address the barriers to reporting hate crimes, and provide opportunities for networking and collaboration. Summit participants included educators, law enforcement, researchers, service providers, and community members. 124 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Community Services COMMISSION ON HUMAN RELATIONS The Chicago Commission on Human Relations (CCHR) promotes appreciation of Chicago's diversity and works to eliminate prejudice and discrimination. Commissioners, advisory councils, and staff conduct proactive programs of education, intervention, and constituency building to discourage bigotry and bring people together. CCHR enforces the Chicago Human Rights Ordinance and Chicago Fair Housing Ordinance. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 12 1,165,519 12 1,231,493 Community Development Block Grant 8 1,268,746 8 1,207,130 Total Full-time Equivalent Positions and Amounts 20 $2,434,265 20 $2,438,623 ALLOCATION Personnel Services Non-Personnel Services 2,068,911 365,354 Program Summary and Description 1,990,995 447,628 FTEs ADMINISTRATION 2018 Funding 2 401,323 HUMAN RIGHTS COMPLIANCE Investigates and adjudicates complaints of discrimination in housing, employment, public accommodations, and credit and bonding. 13 1,627,497 COMMUNITY RELATIONS Uses mediation and other conflict resolution techniques to respond to intergroup tensions. Provides workshops to schools, community organizations, and other groups to prevent or respond to discrimination, conflict and hate crimes. 5 505,702 TURNOVER (95,899) 125 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Community Services 2017 Highlights and 2018 Initiatives Mayor’s Office for People with Disabilities The Mayor’s Office for People with Disabilities (“MOPD”) promotes total access, full participation and equal opportunity in all aspects of life for people with disabilities through education and training, accessibility compliance, public policy and direct services. For two decades, MOPD has advocated for people with disabilities who live in, work in, and visit Chicago, and supported the efforts of other City departments, sister agencies, and the private sector to ensure accessibility and inclusion. MOPD addresses the rights and needs of people with disabilities in education, employment, housing, transportation, recreation, accessibility, and emergency preparedness and response. MOPD’s key services and programs include: • • Accessibility Compliance – Provides technical assistance, architectural plan review, site surveys, and trainings to ensure that the City is fully accessible and compliant with federal, state, and local disability laws. Disability Policy – Ensures that City programs and services are responsive and inclusive of the needs of people with disabilities. • Information and Referral – Assists people with disabilities and their families in making effective use of the health, economic, and social resources that promote independence, including public transportation, housing, employment, in-home services, and landlord and consumer issues. • Youth Employment – Coordinates mentoring programs that provide paid summer internships to students with disabilities. • Independent Living Program – Provides case management, assistive technology, and personal services to assist people with disabilities to gain or maintain their independence. • Home Modification Program – Renovates homes that need structural alterations to increase accessibility. • Options to Work Program – Provides counseling regarding the impact of disability benefits to individuals with disabilities receiving social security disability income, and provides job readiness and placement assistance, with an emphasis on reaching underserved communities. Developing All Stations Accessibility Program – MOPD worked closely with the Chicago Transit Authority (CTA) to complete the development of the All Stations Accessibility Program (“ASAP”). The goal of ASAP is to create a blueprint to make the entire CTA rail system 100 percent accessible in the next 20 years. By increasing the accessibility of the CTA’s rail stations, the City will provide more transportation options and remove barriers for people with disabilities who want to use public transportation to travel across Chicago. ASAP modifications include new Americans with Disabilities Act (“ADA”) compliant elevators, power assisted doors, ADA compliant fare collection, signage, customer agent kiosks and staff restrooms. Increased platform clearances, adjacent crosswalks and streets are also within the scope of the program. In 2017, 45 of 145 CTA stations were inaccessible. Two stations – Quincy and Wilson – are currently under construction to accommodate new riders, and the Washington and Wabash station completed full renovations, including accessibility upgrades, and opened to the public in September 2017. Once ASAP is approved by CTA leadership, ASAP will enter a strategic planning process to secure funding and community partnerships through 2018. Improving Transportation Network Provider Vehicle Accessibility – MOPD continues to work with the Department of Business Affairs and Consumer Protection to increase the accessibility of the Transportation Network Provider (TNP) vehicles. MOPD helped develop requirements for TNPs to start providing service to customers with mobility disabilities. TNP companies have submitted their accessibility plans, received the City’s approval, and are now in the process to implement their plans by the October 2017 deadline. There are now 305 accessible taxis on the road, and 86 accessible vehicles now available from the ride sharing services. Since the Mayor took office in 2011, 214 wheelchair accessible vehicles have been added in Chicago. Emergency Operation Plans – Starting in fall of 2017 through 2019, the Department of Aviation is helping to coordinate and implement revised Emergency Operation Plans (“EOPs”) with MOPD for emergency situations in both O’Hare and Midway airports. Through these EOPs, MOPD will ensure that people with disabilities are included in both the emergency preparedness and the response. MOPD will also participate in drills and tabletop exercise to ensure that all plans are accessible and inclusive of people with disabilities. 126 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Community Services MAYOR'S OFFICE FOR PEOPLE WITH DISABILITIES The Mayor's Office for People with Disabilities (MOPD) promotes total access, full participation, and equal opportunity in all aspects of life for people with disabilities through education and training, advocacy, and direct services. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 13 1,414,445 13 1,627,801 Community Development Block Grant 12 2,974,252 12 2,997,473 Other Grant Funds 4 942,000 4 782,000 Total Full-time Equivalent Positions and Amounts 29 $5,330,697 29 $5,407,274 ALLOCATION Personnel Services Non-Personnel Services 2,894,523 2,436,174 Program Summary and Description 2,902,915 2,504,359 FTEs 2018 Funding ADMINISTRATION 7 1,106,486 EMPLOYMENT SERVICES Provide intensive one-on-one and in group settings, Social Security WIPA services to SSA beneficiaries seriously considering transitioning from dependence on public benefits to paid employment and greater economic self-sufficiency, in an effort to disseminate accurate information to beneficiaries with disabilities and transition-aged youth about work incentives program issues and ultimately connect them with community service providers as needed, for the provision of job training/placement 4 422,273 ACCESSIBILITY COMPLIANCE Responsible for making public and private entities in the City more compliant with local, state, and federal disability rights and accessibility laws. 4 380,080 PREVENTION PROGRAMS Provides educational and referral services for substance abuse prevention,focusing on underage drinking and marijuana use by youth who are deaf and hard of hearing. Programs also implement other strategies for increasing self-esteem, and encouraging positive lifestyles. 2 336,152 DISABILITY RESOURCES Enrolls clients in appropriate programs for services and assistance. Advocate on behalf of clients when appropriate, enabling them to live independently. 10 1,106,121 INDEPENDENT LIVING PROGRAM Supports services designed to enhance independent living and quality of life for people with disabilities, including home accessibility modifications, individualized needs assessment, in-home assistive devices, and personal assistance or homemaker services. 2 1,886,466 ACCESS CHICAGO A one-day comprehensive fair displaying the newest and best products and services for people with disabilities and their families, offering demonstrations of adaptable sports, recreational, and entertainment opportunities. TURNOVER 214,250 (44,554) 127 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Community Services 2017 Highlights and 2018 Initiatives Department of Family and Support Services The Chicago Department of Family and Support Services (“DFSS”) connects Chicago residents and families to resources that build stability, support their well-being, and empower them to thrive. DFSS provides direct assistance and administers resources to more than 300,000 Chicagoans each year via a citywide network of more than 360 communitybased delegate agencies. • Early Childhood Education and Youth Programs – The Children Services Division operates programs that ensure high-quality early childhood programs are available to meet the needs of all communities. The DFSS Youth Division provides programs that use evidence-based strategies to build youth skills for success in three distinct program portfolios: enrichment, prevention and intervention programs, and youth employment. • • • • • Emergency and Specialized Assistance – DFSS assists over 30,000 residents per year at six Community Service Centers that offer residents access to shelters, food pantry referrals, clothing, job training and placement, assistance with public benefits applications, and more. Response to Domestic Violence – DFSS provides services for more than 12,000 victims of domestic violence and their children through 36 communitybased programs which provide numerous services including case management, court advocacy, legal representation, and individual and group counseling. Employment Skills Training – DFSS provides job training and placement services to high-need populations including formerly-incarcerated individuals, homeless individuals, and persons with limited English proficiency. Homeless Services – DFSS administers and manages programs for homeless individuals and families, including 3,287 beds of overnight shelter and interim housing. DFSS provides support services including homelessness prevention, communitybased case management, and permanent supportive housing. Services for Senior Residents – DFSS is a resource for more than 160,000 seniors, including programs at 21 Senior Centers and in-home services that allow them to live independently in their homes. Expanding Early Childhood and Youth Programs – DFSS worked with the Mayor’s Office and Chicago Public Schools ("CPS") to launch the City’s first online preschool application to improve access for parents. On July 1, 2017, DFSS received a $58 million grant from CPS to manage the birth-to-five community-based early learning programs to create a single city-wide program. Since 2011, DFSS has more than doubled enrollment in the City’s One Summer Chicago program, providing summer jobs and internships to over 31,000 of Chicago’s youth. In 2017, work opportunities were offered at nearly 3,000 jobs sites, with new private sector partnerships including Rush University Medical Center and Potbelly’s Sandwich Shop. In September 2016, DFSS launched an initiative to expand mentoring programs like Becoming a Man (“BAM”) and Working on Womanhood (“WOW”) in conjunction with the City’s overall public safety strategy. Approximately 7,200 young men and 57 delegate agencies are participating in the initiative focused in 22 high-need community areas. All delegate agencies recieve capacity-building and professional development. Improving Housing and Homeless Initiatives – In 2017, DFSS completed the Chronic Homelessness Pilot. Participant assessments completed in April of 2016 showed that 55 individuals were housed, 20 were inactive, and 21 residents were placed in temporary housing units. DFSS expanded the “Day for Change” initiative to connect homeless individuals with day-labor opportunities that provide them with a modest wage and a chance to connect with basic services and opportunities for shelter. In 2017, the program served over 459 clients. In September 2017, DFSS began implementation of a new program supported by the City’s House Sharing Surcharge to provide services to 100 Chicago Public School families at risk of homelessness. These families are supported by a rental subsidy provided by the Chicago Low Income Housing Trust Fund. The Salvation Army is partnering with DFSS to build a rapid-response Emergency Homeless Assessment and Response Center to better address the needs of families as they await shelter placement. The $10 million facility will be built through an endowment to the Salvation Army at no cost to the City. The facility is expected to open spring of 2018. 128 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Community Services Addressing Food Insecurity in Chicago -- To better address challenges with food insecurity in Chicago, in 2017 DFSS partnered with the Greater Chicago Food Depository (“GCFD”) to create the City of Chicago Food Access Working Group. This working group is comprised of City departments including the Chicago Public Library, Chicago Park District, Chicago Police Department, and Chicago Public Schools to develop a "Roadmap to Innovation” aimed to bring more access to available food for those in need. This will be achieved through outreach and greater awareness of various food programs to residents in need, and will continue through 2018. 129 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Community Services DEPARTMENT OF FAMILY AND SUPPORT SERVICES The Department of Family and Support Services (DFSS) supports coordinated services to enhance the lives of Chicago residents, particularly those in need, from birth through the senior years. DFSS promotes the independence and wellbeing of individuals, supports families, and strengthens neighborhoods by providing direct assistance and administering resources to a network of community based organizations, social service providers, and institutions. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 51 76,435,254 51 82,036,890 Community Development Block Grant 26 24,071,686 26 24,036,740 Other Grant Funds 326 297,270,023 364 292,244,454 Total Full-time Equivalent Positions and Amounts 403 $397,776,963 441 $398,318,084 ALLOCATION Personnel Services Non-Personnel Services 47,638,209 350,138,754 Program Summary and Description 42,421,461 355,896,623 FTEs ADMINISTRATION 2018 Funding 38 6,154,252 CHILD SERVICES Manages comprehensive Head Start and Child Care programs serving families of children ages birth to 12. 158 250,416,074 YOUTH SERVICES Coordinates out-of-school activities, counseling, and mentoring programs for youth ages six to 18. Provides employment and training activities for youth and provides an alternative for youth entering the juvenile justice system through the Juvenile Intervention Support Center. 13 50,236,437 HOMELESS SERVICES Coordinates programs for people who are homeless or at imminent risk of homelessness as well as funds community agencies that provide housing and supportive services. Assists with non-life-threatening situations by providing well-being checks, responding to requests for emergency shelter or relocation, and social services. Operates six community service centers located throughout the city providing a range of resources such as rental assistance, case management, and veteran's services. 16 33,729,957 DOMESTIC VIOLENCE Oversees the City's domestic violence hotline. Collaborates with a network of community-based delegate agencies to provide victims of domestic violence and their families with support and services. 5 3,122,224 WORKFORCE SERVICES Provides workforce services through a coordinated network of service provider agencies that collaborate to provide quality programs and assistance to job seekers and employers. Provides programs tailored to the needs of underserved populations such as ex-offenders, veterans, persons with disabilities, and immigrants. 4 9,447,846 130 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Community Services DEPARTMENT OF FAMILY AND SUPPORT SERVICES Program Summary and Description FTEs SENIOR SERVICE PROGRAMS Provides adults ages 60 and older with access to services to remain healthy, safe, and independent. Services include the golden diners program, home-delivered meals, elder neglect services, emergency medical transportation, and a variety of social and recreational activities at regional and satellite centers. HUMAN SERVICES TURNOVER 2018 Funding 150 33,082,289 57 13,775,781 (1,646,776) 131 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Community Services Chicago Public Library Chicago Public Library (“CPL”) operates and maintains the City’s public libraries, including the Harold Washington Library Center, the Sulzer and Woodson regional libraries, and 77 branch libraries throughout the City, providing equal access to information, ideas, and knowledge. Along with overseeing the extensive collection of books, CPL provides materials, services, technologies and tools that Chicagoans need to achieve their personal goals and to establish the City’s role as a competitive force in the global marketplace. CPL supports all people in their enjoyment of reading and lifelong pursuit of learning as well as offering cultural programming and engaging in public partnerships throughout the City. CPL circulates over 9 million books, movies and CDs per year and provides state of the art digital content for download and streaming. CPL also: • Offers the largest, most comprehensive free afterschool homework help program in the country, with both in-person and online options; • Provides one-on-one support and digital tools aimed at helping people improve computer skills, as well as prepare for the workforce and apply for jobs; • Is the largest provider of pre-school literacy programs throughout the City. Increasing Technology Connections for Patrons – CPL continued to increase access to technology in Chicago by adding the HistoryMakers digital archive to CPL’s collection in 2017. This archive provides free access to the largest African American video oral history archive in the world. In addition, CPL co-hosted the annual Chicago Innovation Summit hosting over 500 Chicagoans and providing the first free, public program and expo. CPL was awarded “Leader in Digital Inclusion Best Practices” from Next Century Cities & Google Fiber for the library’s collaboration with P2PU to pilot Learning Circles, lightly facilitated online classes in libraries. Modernizing and Expanding Libraries – There are multiple modernization and infrastructure projects that were completed in 2017 or are currently underway for 2018. These projects include: • A new flagship Children’s Library at Harold Washington Library Center with an early learning play space was completed in 2017 thanks to a $2.5 million Exelon Corporation grant and city support. • Both regional libraries, Woodson and Sulzer, received extensive maintenance and repair. • In 2018, CPL will co-locate branch libraries with affordable housing in West Ridge, Irving Park and Near West Side communities, build a stand-alone branch in Altgeld Gardens, and renovate one in Bronzeville, all in partnership with the Chicago Housing Authority, which will be completed in the 4th quarter. • CPL will receive a donated rehabbed building for a new branch in the West Loop in 2018 to serve the fastest growing neighborhood in Chicago, at no cost to Chicago taxpayers and will open in the 4th quarter. • In 2018 CPL will complete a total renovation of the Whitney Young Branch, and significant renovation of the Kelly Branch. • CPL is scheduled to complete maintenance and repair projects at Legler Branch, Austin Branch, Blackstone Branch, Douglass Branch, South Chicago Branch, Sherman Park Branch, and Thurgood Marshall Branch in 2017. 2017 Highlights and 2018 Initiatives Deepening Engagement through Rahms Readers – In 2017, more than 105,000 Chicago kids enrolled in the Rahm’s Readers Summer Learning program, pushing children’s participation and engagement to all-time high. The program solidified CPL’s position among national leadership in summer learning at public libraries by co-authoring the bestselling Summer Matters: Making All Learning Count. Expanding Support for Early Learning Play Spaces – CPL developed 14 early learning play spaces in neighborhood branch libraries throughout Chicago in 2017, offering the youngest learners an engaging environment to begin their path to literacy. These spaces support librarians conducting evidence-based early childhood activities, educating families in the five basic practices of early literacy, and with early STEAM learning to support children, parents and caregivers. 132 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Community Services CHICAGO PUBLIC LIBRARY The Chicago Public Library (CPL) system supports Chicagoans in their enjoyment of reading, pursuit of learning, and access to knowledge. CPL provides equal access to information, ideas, and technology at 80 neighborhood locations. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Library Fund 870 56,653,810 907 57,383,977 Other Grant Funds 76 17,383,000 76 20,070,000 Total Full-time Equivalent Positions and Amounts 946 $74,036,810 983 $77,453,977 ALLOCATION Personnel Services Non-Personnel Services 56,053,229 17,983,581 Program Summary and Description 60,078,390 17,375,587 FTEs ADMINISTRATION 96 CAPITAL IMPROVEMENT Improves library services by renovating and constructing library facilities. 2018 Funding 10,731,976 12,767,000 CENTRAL LIBRARY SERVICES Provide public service at the Harold Washington Library Center and Popular Library at Water Works. Assist visitors of all ages in locating materials and information; utilizing library computers and online resources; requesting books, movies and music in print and electronic format; conducting programs, outreach and information and referral services. Conduct patron account services and maintain patron records; conduct collection maintenance and materials delivery. 790 47,663,130 NEIGHBORHOOD LIBRARY SERVICES Provide public service at 78 branches and regional libraries. Assist visitors of all ages in locating materials and information; utilizing library computers and online resources; requesting books, movies and music in print and electronic format; conducting programs, outreach and information and referral services. Conduct patron account services and maintain patron records; conduct collection maintenance and materials delivery. Manage facility maintenance and security needs. 70 7,166,263 TECHNOLOGY, CONTENT AND INNOVATION Plays key roles in the following areas: selection, processing, cataloging, circulation and on-going management of the library's collections; technology planning; coordinating a cohesive presence among CPL's virtual and physical technology environments; and preserving, archiving, digitizing and making available Harold Washington's Special Collections. 27 2,527,422 LIBRARY PROGRAMS AND PARTNERSHIPS Develops and coordinates cultural, civic, and educational programs and resources for patrons with a focus on innovative community-based learning practices. TURNOVER 853,485 (4,255,299) 133 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department City Development City Development FUNDING COMPARISON BY DEPARTMENT 2017 Department Department of Cultural Affairs and Special Events Department of Planning and Development Total - City Development 134 2018 33,033,551 33,147,199 181,003,783 185,973,495 $214,037,334 $219,120,694 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department City Development Department of Cultural Affairs and Special Events The Department of Cultural Affairs and Special Events (“DCASE”) is dedicated to enriching Chicago’s artistic vitality and cultural vibrancy. This includes fostering the development of Chicago’s non-profit arts sector, independent working artists and for-profit arts businesses; providing a framework to guide the City’s future cultural and economic growth, via the 2012 Chicago Cultural Plan; marketing the City’s cultural assets to a worldwide audience; and presenting high-quality, free and affordable cultural programs for residents and visitors. DCASE produces more than 2,000 programs, services and events annually. Its festivals and cultural attractions host well over 20 million people from all over the world. Its summer events contribute more than $246 million in total business activity to the Chicago economy and generate over $5.6 million in tax revenues for the City, and the department supports hundreds of individual artists and arts organizations in neighborhoods across the Chicago via $1.7 million in cultural grants annually. 2017 Highlights and 2018 Initiatives Delivering Cultural Events Citywide – In 2017, DCASE continued a partnership with the Chicago Park District to organize more than 1,000 free cultural activities throughout the city through the Night Out in the Parks program. The annual Summer Chicago Blues Festival moved to Millennium Park, and the festival experienced a dramatic increase in attendance to 500,000 guests over three days . An estimated 1.6 million people attended the 37th Taste of Chicago, the highest on record since the Taste moved to a five-day format in 2012, with over 3,000 people employed by Chicago restaurants and vendors, and more than 600 artists and performers hired to entertain Taste-goers over five days, contributing $106 million to the local economy. Other successful programs include: free events on the Chicago Riverwalk; the rebranded Chicago City Markets program; free festivals, concerts and films at Millennium Park; Chicago SummerDance and a new SummerDance Celebration; Fifth Star Honors; and more. In Gall of 2017, DCASE helped to produce the second edition of the Chicago Architecture Biennial at the Chicago Cultural Center and citywide. Presented in partnership with the Chicago Architecture Biennial organization, the Biennial is the largest international survey of contemporary architecture in North America – with exhibitions, events, performances and more by over 140 leading architects and artists from over 20 countries. Supporting the Growth of Filming in Chicago – The Chicago Film Office at DCASE continues to facilitate a record number of filming projects in Chicago. In 2016, direct local spending from film and television production reached an alltime high $500 million and generated more than 13,000 jobs. Based on current film permit totals, 2017 will exceed the record levels set last year. The Film Office issued 1,650 permits in first 9 months of 2017, nearly a 10% increase over last year in the same time period. From 2011 to 2015, film, television and commercial production generated $1.3 billion locally, with filming in Chicago comprising the vast majority of the spending. Celebrating Local Artists with the Year of Public Art – Mayor Rahm Emanuel and DCASE designated 2017 the “Year of Public Art” with a new 50x50 Neighborhood Arts Project, the creation of a Public Art Youth Corps, a new Public Art Festival, exhibitions, performances, tours and more – representing $1.5 million in investment for artistled community projects. Guided by the Chicago Cultural Plan, DCASE outlined a citywide vision for art and culture incorporating public art into projects at the Department of Transportation, Chicago Park District, Chicago Public Library and Chicago Transit Authority. Celebrating Chicago’s Creative Youth – DCASE has designated 2018 as the “Year of Creative Youth.” This follows the success of 2017 as the “Year of Public Art,” a theme that has provided renewed focus and clarity for DCASE’s work and helped spur partnerships and collaborations among City agencies and within Chicago’s communities. Through this program, DCASE aims to shine a spotlight on Chicago’s creative youth and the incredible organizations and educators inspiring the next generation through the arts. DCASE aims to elevate the contributions of youth and emerging artists to Chicago’s creative life and recognize the essential value of youth arts organizations and educators. Preliminary programming will include a new Creative Youth Festival in Millennium Park. 135 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department City Development DEPARTMENT OF CULTURAL AFFAIRS AND SPECIAL EVENTS The Department of Cultural Affairs and Special Events (DCASE) is dedicated to enriching Chicago's artistic vitality and cultural vibrancy. This includes fostering the development of Chicago's non-profit arts sector, independent working artists and for-profit arts businesses; providing a framework to guide the City's future cultural and economic growth, via the 2012 Chicago Cultural Plan; marketing the City's cultural assets to a worldwide audience; and presenting high-quality, free and affordable cultural programs for residents and visitors. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Special Events and Municipal Hotel Operators' Occupation 78 31,292,551 78 31,305,199 Tax Fund Other Grant Funds 1,741,000 1,842,000 Total Full-time Equivalent Positions and Amounts 78 $33,033,551 78 $33,147,199 ALLOCATION Personnel Services Non-Personnel Services 6,485,703 26,547,848 Program Summary and Description 6,312,982 26,834,217 FTEs 2018 Funding ADMINISTRATION 14 1,445,535 ARTS AND CREATIVE INDUSTRIES Produces and presents world-class public programming that showcases Chicago arts organizations. Attracts visitors and businesses from around the world. Provides employment opportunities for local artists. 18 3,981,145 EVENTS PROGRAMMING Produces and presents major public programs along Chicago's lakefront and in other locations citywide. Facilitates the issuance of permits for events organized by community-based groups or other event coordinators. 17 13,682,137 STRATEGIC INITIATIVES AND PARTNERSHIPS Administers cultural grants to local artists and arts organizations. Partners with corporations, foundations, and government agencies for programs and services. 11 3,014,544 MARKETING AND COMMUNICATION Increases public awareness of the City's cultural and special events programming through marketing and public relations efforts, including media outreach, advertising, the department website, and publications. Promotes the City as a desirable film location and promotes the services provided to the arts community for cultural projects and neighborhood development. 8 1,097,814 CULTURAL PLANNING AND OPERATIONS Manages department facilities such as the Chicago Cultural Center, Millennium Park, the Gallery 37 Center for the Arts, and Water Works. Manages the rental of these facilities for private events. Supports Chicago's arts community by providing planning assistance. 10 10,387,520 TURNOVER (461,496) 136 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department City Development 2017 Highlights and 2018 Initiatives Department of Planning and Development The Department of Planning and Development ("DPD") promotes the comprehensive growth and well-being of the City of Chicago and its neighborhoods. DPD is the City’s principal planning agency, working in every community to provide financing for neighborhood revitalization, preserve affordable housing and homeownership opportunities, and manage compliant land use within the City. DPD’s job is to make Chicago the best place to live, work, and raise a family. • Housing Bureau – Allocates tax credits, tax-exempt bonds, federal funds, and local funds to build and preserve single- and multi-family housing. It also provides financial assistance for residential repairs and modifications, finds new owners and redevelopment resources for troubled buildings, provides counseling, foreclosure-prevention, mortgage adjustment services to future and current homeowners, and coordinates multiple funding sources for affordable housing projects. • Economic Development Bureau – Promotes the development of industrial, commercial, and retail projects and small businesses by leveraging private investment and public financing through various initiatives, including Tax Increment Financing (TIF) revenues, property tax incentives, Cityowned land sales, and other measures that create and retain jobs. The Bureau also arranges workforce development and training assistance on behalf of local employers, provides site assistance for new and existing companies, and supervises neighborhoodbased economic development agencies. • Zoning and Land Use Bureau – Reviews proposed construction projects for Zoning Code compliance, reviews proposed changes to existing zoning designations, and ensures that very large construction projects are appropriately designed for neighborhood compatibility. Bureau priorities include the expansion and improvement of public open spaces, sustainability enhancements involving local buildings and landscapes, community-based agricultural initiatives, and historic preservation. Launching Retail Thrive Zones – In early 2017, DPD launched the Retail Thrive Zone program in eight neighborhood commercial corridors: Bronzeville, Back of the Yards, Englewood, Chatham, South Shore, Austin, West Pullman, and West Humboldt Park. The Retail Thrive Zone program leverages TIF resources to improve existing businesses and helps new businesses launch and acquire property. In July of 2017, 51 businesses were announced as initial recipients for more than $5 million in grants through the program. Expanding Neighborhood Opportunity Fund Bonus – In 2016, the Neighborhood Opportunity Bonus expanded the boundaries of the downtown zoning district, redefined the process to add density to downtown construction projects through an equitable fee system, and allocates up to $10 million from fees to support economic development, infrastructure projects, and landmarks in underserved neighborhoods. The program was further expanded in 2017 to include land formally zoned as manufacturing in the southern half of the North Branch Industrial Corridor. The Neighborhood Opportunity Bonus reforms the City’s zoning system to allow larger buildings to be built downtown and thereby generates resources to support economic activity in the neighborhoods most in need in the City. Approximately $8.5 million has been generated from these fees as of October 10, 2017 and DPD has awarded more than $3.2 million to 32 South and West Side businesses as of April 2017. Implementing the North Branch Framework Plan – In spring and summer 2017, the Plan Commission and City Council approved the implementation of the North Branch Framework Plan, which will enable underutilized land in this area to transition into a vibrant, mixed-used business district. The zoning changes and funding tools implemented through the Framework will enable billions of dollars in private investment, tens of millions of dollars in support of businesses on the West and South Sides of the city, and create thousands of jobs. More than 1,000 Chicagoans participated in the development of the plan, representing the most extensive public process DPD organized this decade. Assisting in “Mega Projects” Citywide – In 2017, DPD helped to initiate the redevelopment of several “mega projects”, including the redevelopment of the nearly 80-acre Michael Reese location in Bronzeville and the McCormick Place Marshalling Yards site in Bronzeville; purchase of the Department of Fleet and Facilities North and Throop headquarters in West Town; Improvements and modernization of Union Station in the West Loop; $500 million expansion of Willis Tower; and redevelopment of 137 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department City Development the State Street high-rises. Additionally, DPD is continuing to monitor progress on Chicago’s old Main Post Office rehabilitation with the recent unveiling of lobby renovations and upcoming completion of a 100,000-square-foot showroom designed to demonstration the potential of the 2.8-million-square-foot building. Affordability Ordinance Requirements Pilot Program – Starting in October of 2017, DPD expects to implement a three-year Affordability Requirements Ordinance (“ARO”) Pilot program to create more affordable units and test policy changes in two areas experiencing demographic changes from market-rate construction and new public amenities. The pilot will utilize the 2015 ARO framework with on-site and nearby affordability requirements that directly address community-based needs for both rental and for sale units. The impacted areas include a 10.1 mile selection of the Northwest Side and a 6.3 square mile section of the Near North and Near West Sides. 138 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department City Development DEPARTMENT OF PLANNING AND DEVELOPMENT As the principal planning agency for the City of Chicago, the Department of Planning and Development (DPD) promotes the comprehensive growth and sustainability of the City and its neighborhoods. DPD oversees the City's zoning and land use policies and, through its economic development and housing bureaus, employs a variety of resources to encourage equitable business and residential development throughout the city. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 115 14,191,649 115 14,445,048 Affordable Housing Opportunity Fund 15 34,103,000 15 38,644,796 Tax Increment Financing Administration Fund 44 4,183,656 45 4,055,490 Neighborhood Opportunity Fund 9,700,000 23,313,000 Community Development Block Grant 48 27,767,478 48 27,671,161 Other Grant Funds 10 91,058,000 9 77,844,000 Total Full-time Equivalent Positions and Amounts 232 $181,003,783 232 $185,973,495 ALLOCATION Personnel Services Non-Personnel Services 21,933,937 159,069,846 Program Summary and Description 21,286,062 164,687,433 FTEs 2018 Funding ADMINISTRATION 46 7,456,310 ECONOMIC DEVELOPMENT Promotes neighborhood revitalization and economic development. Administers programs that enhance and preserve the economic viability of Chicago neighborhoods. Provides analysis of proposed development projects and financing packages. Ensures programmatic compliance on TIF projects. Manages programs designed to create and preserve jobs and enhance neighborhood business districts. Administers programs that lead to the sale of City real estate. 55 6,177,171 HOUSING Manages programs and initiatives designed to develop and preserve affordable housing and homeownership opportunities in Chicago. Provides financial analysis of affordable housing projects and financing packages from the City's array of housing development finance tools. Ensures construction and programmatic compliance on affordable housing projects. Manages programs that target troubled, vacant, and abandoned properties for rehabilitation and restoration as affordable housing. 64 155,469,596 ZONING AND LAND USE Develops and implements citywide and community plans that enhance Chicago as a place to live, work, and raise a family. Ensures that land use within the City is compliant with the Chicago Zoning Ordinance. Reviews planned developments and lakefront protection applications. Manages programs to maintain the character of individual landmarks and districts. Creates open space plans and identifies sites to acquire for new public open spaces. 67 17,810,410 TURNOVER (939,992) 139 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Regulatory Regulatory FUNDING COMPARISON BY DEPARTMENT 2017 Department Office of Inspector General 2018 8,641,428 8,890,897 Department of Buildings 38,295,022 37,417,249 Department of Business Affairs and Consumer Protection 19,736,601 20,306,192 6,340,736 6,479,324 License Appeal Commission 179,427 186,667 Board of Ethics 825,807 833,803 $74,019,021 $74,114,132 Chicago Animal Care and Control Total - Regulatory 140 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Regulatory Police Accountability and the Police Board, with the goal of enhancing the effectiveness of public safety, protecting civil liberties and civil rights; and increasing the public's confidence in the system. Office of the Inspector General The Office of Inspector General ("OIG") is charged under the Municipal Code with rooting out misconduct, inefficiency and waste while promoting economy, effectiveness, efficiency and integrity in City government. OIG’s jurisdiction extends over most individuals working for or in connection with City government, including elected and appointed officers of the City and City Council, City employees, licensees, specified sister agencies, contractors, subcontractors, affiliated nonprofits, licensees, and business entities seeking to do business with the City. The work of OIG is done collaboratively amongst employees in five sections: • • • Audit and Program Review – The Audit & Program Review (APR) Section conducts independent and professional government performance audits of City programs and departments following generally accepted government auditing standards. Through its audits, APR provides independent, objective, evidence-based analysis and evaluations of City programs and operations. The published audits, as well as audit-based advisories provide findings and recommendations to strengthen and improve the delivery of City services. Investigations – The Investigations Section conducts both criminal and administrative investigations of allegations of misconduct, waste, or substandard performance by governmental officers, employees, contractors, vendors, and licensees, among others. It conducts these investigations either in response to complaints from a City employee or other citizen or on the Inspector General’s own initiative to detect misconduct, inefficiency, and waste within the programs and operations of City government. All of its investigations are pursued for disposition under the City’s Municipal Code, Personnel or Procurement Rules, Ethics Ordinance or Executive Orders – or criminal – pursued for disposition under federal or state criminal codes – are conducted with consideration of potential opportunities for monetary recovery for the City. Public Safety Audit – The Public Safety Section (PS) is a new section formed pursuant to ordinance enacted by the City Council in late 2016 and is charged with dedicated oversight of the City’s police and police accountability functions. PS initiates reviews and audits of operations of the Chicago Police Department, the Civilian Office of • Legal – The Legal Section provides professional and operational support to all of the other office components, with its attorneys routinely assigned to inquiries and projects conducted by the office’s Investigations, APR and PS Sections. The Legal Section also includes the Hiring Oversight Unit, which performs legally mandated audits and reviews of the City’s hiring and employment practices to ensure compliance with the various City Hiring Plans. OIG’s Hiring Oversight Unit also provides guidance, training, and program recommendations to City departments handling a broad and complex array of employment-related actions. • Operations – The Operations Section maintains the day-to-day operational functions of OIG by providing, among other things, fiscal, budgeting, human resources, and communications support. This section coordinates and implements innovative solutions and best practices so OIG’s mission components are able to work effectively in accordance with regulatory requirements. The Center for Information Technology and Analytics (CITA) conducts data analytics in support of OIG’s mission and manages OIG’s structural and operational IT infrastructure. 2017 Highlights and 2018 Initiatives After a five-month national s earch, Dr. L aura Kunard was confirmed by the City Council on April 19, 2017 as the City’s first Deputy Inspector General for Public Safety. Dr. Kunard officially started on Ju ne 19, 2017. OIG is in the final stages of fully staffing the new Public Safety Section and through Gall 2017, the office has hired 23 of the 25 dedicated Public Safety positions. In further support of the work of the Public Safety Section, OIG has staffed a Communications and Outreach team and increased staffing in its Center for Information Technology and Analytics (CITA) with advanced data and statistical analysts. OIG conducted an independent evaluation of the Chief Procurement Officers (CPO) Committee’s progress regarding the implementation of the recommendations issued by the Mayor’s Procurement Reform Task Force. On May 30, 2017, OIG issued its evaluation findings, which succinctly assessed the CPO Committee’s progress on each recommendation 141 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Regulatory and made general recommendations for establishing delivery dates for longer-term objectives and partially completed projects. On July 14, 2017, the Inspector General also appeared with the City’s Chief Procurement Officer before the Committee on Workforce Development and Audit to present its findings at the first Procurement Reform Task Force Progress Report Hearing. OIG investigative efforts culminated in the City Law Department’s early 2017 $20 million dollar recovery settlement from the original vendor of the City’s red-light camera system. During the first full year following City Council conferral of investigative oversight, OIG has engaged numerous aldermen and staff to help identify procedural and legal issues that complicate their ability to conduct their affairs in full understanding and compliance with best government administrative practices. For example, OIG convened a variety of stakeholders, including the Board of Ethics, Department of Law, Department of Human Resources, and Aldermen, to discuss the Ethics Ordinance’s definition of “City Council employees.” As currently defined under the Ordinance, the term created a potential conflict with other laws and uncertainty for Aldermen when engaging employees and contractors, and for OIG when determining applicable requirements for its investigations. As a result of this effort, proposals for an amendment to the Ethics Ordinance and more robust training for Aldermen and their staff are underway. In 2018, OIG will move into advanced stages of its threeyear Strategic Plan. It will also implement a communication and outreach plan that incorporates: • Engaging the community and stakeholders as part of a comprehensive police accountability system and to inform how the Public Safety Section prioritizes its first generation of work. • Publishing analyzed, data-based information through a new information portal which will promote transparency and provide the facts necessary to have meaningful exchanges about and establish collaborative solutions to the persistent policing, crime and social issues. The 2018 budget year will also bring the first round of audit reports and program reviews from the new Public Safety Section in addition to the continuing work of its legacy Investigations, Audit and Program Review and Hiring Oversight sections. 142 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Regulatory OFFICE OF INSPECTOR GENERAL The Office of Inspector General (OIG) investigates and helps to prevent misconduct and waste, while promoting efficiency and integrity in City operations. OIG's jurisdiction extends throughout most of city government, including City employees, programs, licensees and those seeking to do business with the City. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 64 5,598,286 65 5,896,544 Water Fund 12 1,157,586 12 1,133,219 Sewer Fund 7 810,939 7 780,459 Chicago Midway Airport Fund 0 3 219,962 Chicago O'Hare Airport Fund 13 1,074,617 10 860,713 Total Full-time Equivalent Positions and Amounts 96 $8,641,428 97 $8,890,897 ALLOCATION Personnel Services Non-Personnel Services 7,547,874 1,093,554 Program Summary and Description 7,585,201 1,305,696 FTEs 2018 Funding INVESTIGATIONS Conducts both criminal and administrative investigations of allegations of corruption, misconduct, waste, or substandard performance by governmental officers, employees, contractors, vendors, and licensees, among others. 25 2,177,311 LEGAL Provides professional operational support to all other office components. The attorneys are frequently paired with investigators, performance analysts, and compliance officers to assist in complex investigations, audits, and program reviews and to help ensure the OIG investigations produce legally sound results. This section performs hiring oversight through legally mandated audits and reviews the City's hiring and employment practices related to the various City hiring plans. 16 1,768,291 OPERATIONS Supports day-to-day functions of the OIG by providing fiscal, budgeting, human resources, and communications services. The Center for Information Technology and Analytics Operations conducts data analytics and manages OIG's structural and operational IT infrastructure. 16 1,602,530 AUDIT AND PROGRAM REVIEW Conducts independent, objective analysis and evaluations of City programs and operations, issues public reports, and makes recommendations to strengthen and improve the delivery of City services. This section evaluates programs in order to promote efficiency, economy, effectiveness, and integrity in City operations. 15 1,312,702 PUBLIC SAFETY AUDIT Initiates reviews and audits of the Chicago Police Department (CPD), the Civilian Office of Police Accountability (COPA) and the Police Board with the goal of enhancing the effectiveness of the CPD, COPA and the Police Board; increasing public safety, protecting civil liberties, and civil rights; and ensuring the accountability of the police force, thus building stronger police-community relations. 25 2,336,562 (306,499) TURNOVER 143 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Regulatory Department of Buildings The Department of Buildings (“DOB”) maintains building safety for residents and visitors by enforcing the Chicago Building Code through building permits, building inspections, trade licensing, and regulatory reviews. DOB promotes high quality design standards for new construction as well as conservation, rehabilitation and reuse of the City’s existing buildings. • • Permits and Licenses – DOB evaluates project plans and issues all construction and demolition permits in the City. DOB project managers coordinate all required internal reviews as well as reviews performed by other City departments. DOB also examines and licenses members of the building trades and conducts permit inspections during the construction process. Compliance and Enforcement – DOB conducts annual inspections of buildings in Chicago and responds to 311 service requests. DOB identifies potentially hazardous buildings, takes enforcement actions to ensure repair, and coordinates demolition when necessary. Demolition efforts focus on buildings that are vacant, open, or structurally unsound, or have been identified by law enforcement as havens for crime. DOB also conducts inspections of restaurants, public places of amusement, and annual elevator inspections. 2017 Highlights and 2018 Initiatives Reforming Requirements for Single-Family Home Renovations: – In October 2016, the City announced new process reforms for single-family homeowners, reducing technical barriers for rehabilitating residential buildings. These reforms allow single-family homeowners to obtain renovation permits for homes that do not require special zoning approvals in 30 days or less, decreasing the time to obtain a permit in 2017 by ten days. In 2017, the City has seen a 20% increase (per month) in permits for large single-family home renovations. These reforms also provide enhanced customer service for home renovation permits requiring special zoning and landmark approvals. developers, design professionals, expediters, contractors and tradespeople who perform work without a permit, work contrary to a permit, use unlicensed contractors or tradespeople, or fail to correct code violations. Additionally, the Commissioner has the authority to suspend or revoke licenses of contractors and tradespeople who perform work without a permit, work contrary to a permit, violate stop work orders, or fail to correct significant code violations. Previously, the Commissioner only had the authority to issue a stop work order for an individual work site, vacate an individual building or suspend an individual trade license. This Code change provides broader oversight to stop those who continue to violate regulations. As of September 2017, the DOB has suspended permit privileges for three architects, six expediters, and 14 contractors. Breaking Construction Records – In October 2017, the City announced the 57th tower crane to operate in Chicago in 2017, breaking the previous record of 52 tower cranes operating in Chicago set in 2016. This marks the largest number of operating cranes in a year since the Great Recession, when the City dropped as low as 12 operating tower cranes. Cranes typically operate on construction sites for over a year and can operate for as long as two years, depending on the size of project. Updating the Chicago Building Code In 2018, DOB will continue efforts to update the Chicago Building Code, aligining with national standards and modernizations as the construction industry adapts to new technologies and building methods. The DOB will also look towards introducing sign reforms to ease the regulatroy burden placed on small buisnesses while reinforcing the construction and safety requirements for larger signs. Implementing the Bad Actor Ordinance – In February 2017, the City of Chicago approved a change to the Municipal Code of Chicago that provides the Commissioner of the DOB the authority to suspend the permit privileges of 144 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Regulatory DEPARTMENT OF BUILDINGS The Department of Buildings (DOB) maintains building safety for residents and visitors by enforcing the Chicago Building Code through building permits, building inspections, trade licensing, and regulatory review. DOB promotes high quality design standards for new construction as well as the conservation, rehabilitation, and reuse of the City's existing buildings. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 198 26,103,732 199 25,331,242 Water Fund 25 2,487,483 25 2,442,832 Vehicle Tax Fund 6 511,755 6 511,011 Sewer Fund 17 2,210,778 17 2,166,488 Community Development Block Grant 48 6,981,274 48 6,965,676 Total Full-time Equivalent Positions and Amounts 294 $38,295,022 295 $37,417,249 ALLOCATION Personnel Services Non-Personnel Services 30,763,097 7,531,925 Program Summary and Description 30,577,200 6,840,049 FTEs ADMINISTRATION 2018 Funding 21 2,651,425 3 352,108 14 1,118,326 CODE COMPLIANCE Manages the enforcement of the Building Code through the administrative hearing process and voluntary compliance initiative. 2 210,960 LICENSING Responsible for the administration of tests and issuance of licenses for general contractors and members of the building trades. 1 720,711 BUILDING INSPECTIONS Inspects existing structures that are occupied or vacant but secure. Responds to resident complaints regarding Building Code violations. Reviews plans and conducts site inspections to ensure that work is done according to approved plans. Notifies owners about repairs that must be made to bring a building into compliance with code. 14 1,297,252 TECHNICAL INSPECTIONS Conducts technical inspections to ensure compliance with the Building Code, including electrical, elevator, ventilation, refrigeration, boiler, iron, and plumbing inspections. Reviews plans and conducts site inspections to ensure that work is done according to approved plans. Notifies owners about repairs that must be made to bring a building into compliance with the Building Code. 120 13,133,715 REGULATORY REVIEW / LEGISLATIVE MATTERS Responsible for maintaining and updating the Chicago Building Code and auditing Developer Services and Self-Certification projects. Reviews proposed amendments to the Building Code, as raised by the Office of the Mayor, aldermen, and the community at large. CASE MANAGEMENT Processes all violations for adjudication in Administrative Hearings and Circuit Court. 145 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Regulatory DEPARTMENT OF BUILDINGS Program Summary and Description FTEs 2018 Funding TROUBLED BUILDINGS PROGRAM Addresses buildings that harbor criminal activity, are vacant and unsecured, or have dangerous and hazardous building code violations, with the goal of reducing crime and restoring housing stock to the residents of Chicago. Coordinates a comprehensive approach to problem properties and board-ups or demolishes vacant and hazardous buildings. 42 8,498,670 CODE ENFORCEMENT Inspects existing structures which are occupied or vacant but secure and responds to resident complaints regarding Building Code violations, with a focus on housing in low to moderate income areas. 22 3,152,949 SMALL PROJECT PERMITTING Reviews and permits small projects that do not require architectural drawings. 21 1,815,267 PLAN REVIEW Manages plan review and permitting for medium-sized projects, and manages the Neighborhood Centers and the Self-Certification Program. 34 4,557,471 DEVELOPER SERVICES Manages plan review and permitting for large building projects, and coordinates the work of the accelerated Green Permit Team. 1 994,460 TURNOVER (1,086,065) 146 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Regulatory 2017 Highlights and 2018 Initiatives Department of Business Affairs and Consumer Protection Business Affairs and Consumer Protection (“BACP”) promotes and ensures a fair marketplace for both businesses and consumers in Chicago by creating a regulatory environment that promotes business growth and consumer rights. BACP provides a wide array of services, including: Licensing Innovation – BACP is establishing innovative processes in its licensing practices to focus on future collaborations and benefits for residents. Through a sophisticated new database, BACP oversees and regulates house sharing in Chicago by registering and licensing providers. This database also tracks buildings not suitable for use, and those in zones where house sharing is not allowed. A second licensing database was created to register and license pharmaceutical representatives doing business in the City of Chicago. As a significant part of a citywide initiative aimed at curbing the opioid epidemic, the initiative holds individual pharmaceutical representatives responsible for marketing and sales to residents of Chicago. • Licensing and Public Way Use Permits – Oversees nearly 60,000 active business licenses and over 15,000 public way use permits; provides the approval, denial, suspension, and revocation of all business licenses in the City. • Compliance and Consumer Protection – BACP inspects business establishments to ensure compliance with City laws and takes legal disciplinary action for violations. Investigators examine unscrupulous and fraudulent businesses practices throughout the City. • Public Vehicle Industry – BACP regulates and licenses all public chauffeurs, taxicabs, livery vehicles, ambulances, and other charter vehicles. Protecting Consumers – Two groundbreaking laws were BACP performs safety inspections and oversees enacted July 1, 2017 to protect the city’s workforce in paid public vehicle compliance with City ordinances. sick leave and minimum wages. Chicago’s paid sick leave • Cable Communications – BACP runs and creates programming for municipal television stations offering public, educational, and governmental programming. • Business Development – BACP’s Small Business Center is dedicated to helping business owners start and run their business with ease and efficiency. • Business and Consumer Outreach – BACP supports entrepreneurs and business growth in the City, offers monthly business education workshops, and consumer protection education. Reducing the Size of Government & Making it More Efficient – A citywide initiative to consolidate business licenses to make the city more business-friendly continued through 2017 to reduce the number of licenses required of Chicago small businesses from 50 to 40, down from a high of 135. Additionally, two BACP Business Compliance Investigator divisions were merged into one for greater efficiencies and cost savings by reducing duplicative administrative functions. ordinance guarantees paid sick leave to employees, day laborers, tipped workers and health care workers within the City limits. The minimum wage ordinance gave 29,000 minimum-wage workers across Chicago a 50-cent-an-hour raise to $11.00 an hour, and provided worker restitution. Improving Public Safety – BACP’s Tobacco Enforcement Team continued to crack down on tobacco sales to minors by conducting 2,503 business checks since July, 2016, and by issuing 311 citations for sales of cigarettes to minors. Other enforcement crackdowns targeted problem businesses, bars and party buses that provide unsafe environments for residents and other businesses. 147 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Regulatory DEPARTMENT OF BUSINESS AFFAIRS AND CONSUMER PROTECTION The Department of Business Affairs and Consumer Protection (BACP) licenses, educates, regulates, and empowers Chicago businesses to grow and succeed. BACP receives and processes consumer complaints, investigates business compliance, and enforces rules and regulations. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 184 18,761,601 188 18,672,192 Tax Increment Financing Administration Fund 375,000 375,000 Other Grant Funds 10 600,000 5 1,259,000 Total Full-time Equivalent Positions and Amounts 194 $19,736,601 193 $20,306,192 ALLOCATION Personnel Services Non-Personnel Services 14,135,935 5,600,666 Program Summary and Description 14,362,675 5,943,517 FTEs 2018 Funding ADMINISTRATION 19 1,908,915 OUTREACH, EDUCATION, AND MUNICIPAL TV Coordinates and creates business and community awareness events including small business expos, business education workshops, and develops information to benefit the community at large. The division also oversees and monitors cable and related telecommunications activities of Cable 23 and Cable 25, ensuring awareness of the City's services, programs and resources; and fostering independent film and television production supporting community programs. 16 2,145,479 SMALL BUSINESS CENTER - ADVOCACY Serves as an advocate for small businesses creating policies and initiatives that support business growth in every community. Works with Chambers of Commerce and other community support orgainzations to expand and create businesses. Manages the chamber grant program and microloans to support small businesses. 4 4,083,598 SMALL BUSINESS CENTER - LICENSES/PERMITS As the City's one-stop-shop for business licensing and resources, this division is responsible for processing and issuing all city general retail business licensing and processing the issuance of public way use permits to business and property owners. Business consultants offers start-to-finish case management and access to start-up counseling and financial, legal and tax advice. 31 2,848,382 LOCAL LIQUOR CONTROL Operates as the Local Liquor Control Commission, managing all liquor licensing including intake, review and processing of all liquor and public place of amusement licensing. The division also devises plans of operations, rehabilitating applicants if applicable and coordinating with law enforcment and elected officials. Oversees license discipline including settlements and orders after hearings. 6 499,789 148 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Regulatory DEPARTMENT OF BUSINESS AFFAIRS AND CONSUMER PROTECTION Program Summary and Description FTEs 2018 Funding PUBLIC VEHICLE ADMINISTRATION Oversees the administration of Chicago's public vehicle industry. Licenses transportation network providers, taxicabs, charter buses, peddicabs, public chauffeurs and other public passenger vehicles. The division is charged with regulating licensing including collecting trip data, regulating rates of fares. 26 2,179,261 BUSINESS COMPLIANCE ENFORCEMENT Initiates investigations of suspected bad businesses and disciplines those businesses found to be in violation of City ordinances or license requirement. Conducts investigations to ensure compliance with the laws governing public passenger vehicles and truck weight enforcement as well as cable television complaints. 69 5,696,703 PROSECUTIONS AND ADJUDICATIONS Prosecutes cases at the Department of Administrative Hearings alleging Municipal Code violations concerning consumer fraud, public vehicle regulations, retail regulations, and truck weight regulations. Seeks fines against businesses in violation and restitution for aggrieved consumers, where appropriate. Initiates investigations of suspected bad businesses and disciplines those businesses found to be in violation of City ordinances or license requirement. 22 1,672,372 TURNOVER (728,307) 149 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Regulatory Chicago Animal Care and Control The Chicago Animal Care and Control (“CACC”) protects public safety and ensures the humane care of animals through sheltering, pet placement, education, and animal law enforcement. Annually, there are over 40,000 calls to 311 from the public regarding animal-related inquiries and service requests, such as incidents of animal cruelty and abuse, stray animals, unwanted animals, and wildlife nuisances. Further, CACC is dedicated to removing stray, injured, and potentially dangerous animals from the public way. CACC operates and manages the Animal Care and Control facility, which shelters and cares for the animals in CACC’s care. The facility contains a complete medical complex, full radiology, and surgical capabilities for the care of its animals. The facility houses approximately 17,500 stray animals, lost pets, animals involved in court cases, animals available for adoption, and non-domestic animals. In addition, CACC provides public outreach through vaccine clinics, wildlife seminars, and adoption events throughout the City. 2017 Highlights and 2018 Initiatives Expanding Community Engagement Efforts – Throughout 2016 and 2017, CACC has implemented multiple strategies to enhance its community outreach efforts and provide continuous updates to elected officials and the public on CACC work, growing awareness about events and helping to improve outcomes for animals in CACC’s care. Since September 2016, CACC continues to publish a monthly e-newsletter to each ward with resources available through CACC and our partners. Additionally, CACC developed new brochures and a social media presence on Facebook to provide valuable information about animals and the organization, its policies, initiatives, and goals. Throughout 2017, CACC regularly engaged stakeholders, including aldermen, Homeward Bound Approved Rescues, volunteers, and the public, to incorporate their feedback in CACC’s outreach and engagement efforts to help ensure CACC is a valued community resource. In 2018, CACC plans to implement sustained humane education within Chicago Public Schools, starting with Parent University, through its Chi-Humane educational initiative. CACC is also reviewing its online tools, and will work to create a one stop pet resource for Chicago residents, communicating both CACC services and those of our partners. Growing Community Medical and Adoption Events – As of September 2017, CACC has provided 2,852 lowcost vaccines, implanted 508 microchips, and processed payments for 927 City dog license applications. These initiatives generated an estimated $50,000 in revenue, aiding CACC's mission to help more animals in Chicago. CACC also hosted 11 adoption events both off and on site, and helped partner organizations to host corporate group events to promote adoption opportunities for animals within CACC’s care. A total of over 100 dogs and cats have been adopted through these events. Improving Performance and Live Release – CACC implemented innovative programming in 2017 to facilitate successful adoptions and transfers from City shelters, enabling CACC to achieve an over 90 percent live release rate for cats and an over 80 percent live release rate for dogs. Among other initiatives, CACC has revamped its counseling process for surrendering pets, conducted bi-monthly meetings with its animal rescue network, and arranged for an automatic upload of lost pet data to an extensive database to help more pets return to their owners. In 2018, CACC plans to continue pursuing partnership initiatives, modernizing operations, and updating medical facilities to further increase CACC’s live release rate and reduce the stay of animals in the shelter. 150 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Regulatory CHICAGO ANIMAL CARE AND CONTROL Chicago Animal Care and Control (CACC) protects public safety and ensures the humane care of animals through sheltering, pet placement, education, and animal law enforcement. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 77 6,340,736 78 6,479,324 ALLOCATION Personnel Services Non-Personnel Services 4,635,433 1,705,303 Program Summary and Description 5,031,507 1,447,817 FTEs ADMINISTRATION 2018 Funding 6 581,664 ANIMAL CONTROL Responds to service requests to remove stray, vicious, and unwanted animals from the public way. Investigates animal bites and dangerous dog cases. Assists law enforcement, other departments, and sister agencies with animal-related issues. Ensures compliance of animal-related portions of the City Municipal Code and issues citations for non-compliance. 29 1,928,458 ANIMAL CARE Receives lost, injured, and unwanted animals brought to the shelter. Provides daily care and medical attention to all animals housed at the shelter. Provides customer service to visitors and educates the public about animal safety and pet ownership. Promotes maximization of live animal outcomes through lost pet redemptions, pet adoptions, and animal transfer programs. Administers vaccinations, performs surgeries, and other procedures. 38 3,748,158 ANTI-CRUELTY Inspects and responds to complaints of animal-related businesses. Conducts cruelty and dangerous dog investigations. Assists the Chicago Police Department and other law enforcement agencies with dog fighting investigations and other advanced animalrelated responses. Primary chemical immobilization experts, including non-lethal tranquilization of vicious and injured animals on the public way. 5 373,709 TURNOVER (152,665) 151 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Regulatory License Appeal Commission 2017 Highlights and 2018 Initiatives The License Appeal Commission (“LAC”) conducts and adjudicates matters pertaining to liquor licenses and violations of state or municipal liquor laws. LAC holds hearings where entities can appeal suspensions, revocations, and fines imposed against a liquor license holder; denied liquor license applications; changes in management and ownership of an existing liquor license; liquor license renewal requests; and claims of underage consumption of alcohol or the sale of narcotics on the licensee’s premises. At the hearings, parties must present arguments based entirely on the record, transcripts, or relevant code, statue, or case law, and in certain instances are entitled to call witnesses and present evidence for consideration. The rules of evidence and case law apply at LAC hearings, and a written decision is issued at their outcome, detailing the reasons for the commission’s judgement. Through August 2017, 14 appeals were filed with LAC, below the 2016 year-end total of 18. A total of 30 public hearings have been conducted through August 2017, and no appeals have been filed with the Circuit Court as of August 2017. In 2016, two Circuit Court appeals were filed. LICENSE APPEAL COMMISSION The License Appeal Commission evaluates appeals to determine the legal appropriateness of suspension, revocations, and fines imposed by the Department of Business Affairs and Consumer Protection (BACP) on liquor license holders. The Commission conducts hearings to determine whether applications for new liquor licenses were rightfully denied and enters orders thereon. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 1 179,427 1 186,667 ALLOCATION Personnel Services Non-Personnel Services 76,932 102,495 Program Summary and Description 84,420 102,247 FTEs APPEALS PROCESS Determines the legal appropriateness of suspensions, revocations and fines imposed by the Department of Business Affairs and Consumer Protection against current liquor license holders, and conducts hearings on appeals of liquor license application denials. 152 1 2018 Funding 186,667 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Regulatory Board of Ethics 2017 Highlights and 2018 Initiatives The Board of Ethics (“the Board”) interprets, promotes, administers, and enforces the City’s Governmental Ethics Ordinance, and provides confidential advice to those covered by the Ordinance. It also designs and conducts seminars and online ethics training programs, oversees the annual filing of Statements of Financial Interests and other publicly available documents filed by City employees, officials, and lobbyists. The Board of Ethics has four key responsibilities: Posting Opinions Online – In 2017, the Board created and provided public access to a comprehensive, searchable online index of 981 formal opinions it has issued, since its establishment in 1987. This index is searchable by topic and keyword, and contains a plain English summary of each case and its importance. This index is updated as new opinions are issued, and will continue to be updated through 2018. • Advice – The Board provides confidential advisory opinions to persons subject to the ordinances, or their attorneys, either informally by telephone or email, or formally by written opinion signed by the Executive Director or the Chair. It strives to issue informal opinions within 24 hours and formal opinions within 30 days. Since its establishment three decades ago, the Board has issued approximately 1,000 formal advisory opinions, and approximately 37,650 informal advisory opinions. • Transparency – The Board makes several types of documents public, including Statements of Financial Interests filed by thousands of City employees and officials, registration and quarterly report filings from 784 lobbyists, ethics pledges required of certain employees and Mayoral appointees, and gift disclosures and aldermanic recusal notices. • Ethics Education – Since 2006, all aldermen and full-time City employees have completed a required online ethics training course, which is revised by the Board every year. About ten percent of the City’s workforce must also attend an ethics seminar every four years. Similarly, all registered lobbyists must complete an online ethics training program each year. Where feasible, the Board designs and conducts training courses for vendors and community groups. • Compliance and Enforcement – The Board has citywide jurisdiction to receive, refer, and adjudicate ethics complaints investigated by the Inspector General. The Board conducts hearings and makes determinations consistent with the principles of due process and evidentiary hearings. Regulating Lobbying – The Board has undertaken aggressive regulatory stances and when probable cause concludes that various persons may have violated the lobbying or campaign finance laws, the Board has afforded them due process to rebut the Board’s conclusions. With this process the Board aims to raise awareness of the City’s lobbying laws, and a revision of the law to provide clarity on who and what activities are covered to provide transparency regarding City governmental actions. This work will continue into 2018. Expanding Public Education Outreach – In 2018, the Board will begin a series of regular tweets and short explanatory “papers” on topics of interest, such as what kinds of business travel can be paid for by third parties, what constitutes lobbying, and what are a person’s rights in a Board regulatory action. They will also create short instructional videos covering lobby registration, Statements of Financial interest, and making political contributions comply with City law. The Board aims to increase public awareness, promote compliance and greater understanding with the public. 153 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Regulatory BOARD OF ETHICS The Board of Ethics administers the City of Chicago's Governmental Ethics and Campaign Financing Ordinances and other laws adopted to help ensure that City officials and employees avoid conflicts of interests. The Board's activities include providing confidential advice; educating City personnel, vendors, lobbyists, and the public about ordinances; regulating lobbyists and campaign contributors; distributing and maintaining financial disclosure statements for public inspection; and referring complaints and adjudicating completed investigations. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 8 825,807 8 833,803 ALLOCATION Personnel Services Non-Personnel Services 756,420 69,387 Program Summary and Description 765,541 68,262 FTEs 2018 Funding ADMINISTRATION 1 143,628 EDUCATION Oversees and conducts mandatory annual and quadrennial ethics training for City employees, officials, and lobbyists, and provides educational materials and ethics presentations to others. 2 177,047 COMPLIANCE AND ENFORCEMENT Receives, refers, and adjudicates complaints alleging violations of the Governmental Ethics Ordinance. Reviews ethics investigations conducted by the inspector general, holds probable cause meetings, administers merits hearings, and makes determinations, settlements, and case dispositions. Determines violations for late filers and trainers. Maintains public database of case dispositions. 1 138,379 CASEWORK Interprets and provides confidential advisory opinions on the Governmental Ethics Ordinance. Advises City officials regarding legislative action on governmental ethics, campaign financing, and lobbying, and makes formal opinions available without names. 1 94,101 REGULATION Administers the City's lobbyist registration and reporting program; makes lobbyists' filings and data publicly available; reviews public records to ensure compliance with lobbying and campaign finance laws; commences regulatory actions where appropriate. 1 94,394 DISCLOSURE FORMS Distributes, collects, maintains, and makes publicly available annual Statements of Financial Interests filings and other required and non-required disclosures filed by City employees and officials. 1 105,988 LAW COMPLIANCE Conducts audits, monitors risk, and recommends corrective action for problems leading to non-compliance with applicable laws, rules, regulations, and policies. 1 80,266 154 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Legislative and Elections Legislative And Elections FUNDING COMPARISON BY DEPARTMENT 2017 Department 2018 City Council City Council City Council Committees Legislative Reference Bureau Council Office of Financial Analysis Dept Total 20,824,508 5,771,140 366,144 301,216 27,263,008 20,937,795 5,821,960 366,144 301,216 27,427,115 Board of Election Commissioners 11,624,299 15,606,377 $38,887,307 $43,033,492 Total - Legislative And Elections 155 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Legislative and Elections City Council The City Council (Council) is the legislative body of the City of Chicago, consisting of the Mayor, the City Clerk, and the aldermen elected from each of the 50 wards to serve four-year terms. The legislative powers of the Council are granted by the State Legislature and by the home rule provisions of the Illinois constitution. Before matters are determined and resolved by the full body, the Council’s sixteen standing committees, with jurisdiction over different aspects of City government, review and consider ordinances, orders, referenda, and resolutions. CITY COUNCIL The City Council is the legislative body of the City of Chicago consisting of the Mayor and fifty aldermen. The Council is authorized to exercise general and specific powers as the Illinois General Assembly delegates by statute. City Council passes ordinances, levies taxes, and provides necessary services to residents of Chicago. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 210 20,824,508 210 20,937,795 ALLOCATION Personnel Services Non-Personnel Services 15,763,286 5,061,222 Program Summary and Description 15,876,573 5,061,222 2018 FTEs CITY COUNCIL 210 Funding 20,937,795 CITY COUNCIL City Council Committees FUND SOURCE(S) Corporate Fund Vehicle Tax Fund Special Events and Municipal Hotel Operators' Occupation Tax Fund Total Full-time Equivalent Positions and Amounts FTEs 25 2017 Appropriation 4,905,516 703,516 162,108 25 $5,771,140 ALLOCATION Personnel Services Non-Personnel Services 2018 FTEs Recommendation 25 4,956,336 703,516 162,108 25 $5,821,960 5,039,777 731,363 Program Summary and Description 5,090,597 731,363 FTEs FINANCE 25 2018 Funding 2,264,180 BUDGET AND GOVERNMENT OPERATIONS 543,968 AVIATION 109,496 LICENSING AND CONSUMER PROTECTION 125,246 156 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Legislative and Elections PUBLIC SAFETY 161,855 HEALTH AND ENVIRONMENTAL PROTECTION 93,606 COMMITTEES, RULES, AND ETHICS 145,568 ECONOMIC, CAPITAL, AND TECHNOLOGY 105,075 EDUCATION AND CHILD DEVELOPMENT 168,483 ZONING, LANDMARKS, AND BUILDINGS 400,574 HOUSING AND REAL ESTATE 206,164 HUMAN RELATIONS 93,556 TRANSPORTATION AND PUBLIC WAY 454,137 CITY COUNCIL City Council Committees Program Summary and Description FTEs 2018 Funding PEDESTRIAN AND TRAFFIC SAFETY 249,379 SPECIAL EVENTS AND CULTURAL AFFAIRS 162,108 WORKFORCE DEVELOPMENT AND AUDIT 538,565 CITY COUNCIL Legislative Reference Bureau FUND SOURCE(S) FTEs Corporate Fund ALLOCATION Personnel Services Non-Personnel Services 2017 Appropriation 366,144 FTEs 2018 Recommendation 366,144 362,144 4,000 Program Summary and Description 362,144 4,000 FTEs LEGISLATIVE REFERENCE 2018 Funding 366,144 157 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Legislative and Elections CITY COUNCIL Council Office of Financial Analysis FUND SOURCE(S) FTEs Corporate Fund 4 ALLOCATION Personnel Services Non-Personnel Services 2017 Appropriation 301,216 2018 FTEs Recommendation 4 301,216 274,056 27,160 Program Summary and Description 274,056 27,160 FTEs COUNCIL OFFICE OF FINANCIAL ANALYSIS 4 158 2018 Funding 301,216 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Legislative and Elections Board of Election Commissioners 2017 Highlights and 2018 Initiatives The Board of Election Commissioners (BOE) registers voters and administers local, state, and federal elections within Chicago. It is composed of three Commissioners appointed by the Circuit Court of Cook County, and is funded both by the City of Chicago and Cook County. The BOE’s mission is to create a transparent, impartial, and accurate election system by managing voter registrations, safeguarding the rights of all voters to cast their ballots independently in a safe and quiet atmosphere, free of interference or intimidation. Universal Vote Centers – The Board will pursue a strategy to expand the use of Vote By Mail and the addition of Universal Voting Centers to replace the precinct-based restriction for voting. Like Early Voting Locations, Universal Vote Centers would be open to all voters in the City, regardless of where they live. This model has been successfully adopted in Colorado and is now an option for jurisdictions in California. This process will continue into 2018. The BOE is also charged with informing voters of all of their balloting options, such as Election Day voting, Early Voting, and Absentee Voting. The BOE's responsibilities and duties include maintaining the registration rolls, identifying and securing polling places, testing and preparing voting equipment, recruiting and training election judges, and conducting and supervising all elections within the City of Chicago. In accordance with federal law, all election ballot instruction materials are printed in English, Spanish, Traditional Chinese, and Hindi. Further, the BOE maintains a multilingual website and telephone helpline for assistance in English, Spanish, Mandarin, Hindi, Polish, and Korean. As part of the BOE’s language outreach, the BOE provides voter registration and election instructions in 16 languages. The BOE accepts voter registration in person, by mail, through partner agencies such as the Illinois Secretary of State’s Office and the Chicago Public Library, and via volunteer deputy registrars. New Voting Equipment – To help safeguard the vote and provide more transparency after each election, the BOE is implementing new voting equipment to prepare for the next election. These newer systems have the capacity to capture an image of each ballot for simpler post-election audits and more comprehensive reviews by any interested campaigns or civic groups. The BOE plans to move to leasing voting equipment, providing flexibility to transition to more Universal Vote Centers, as well as simplify the upgrade process as technology continues to improve. Automatic Voter Registration – Automatic Voter Registration ("AVR") legislation was signed into law in August 2017. The new legislation puts more voters on the rolls, provides more frequent updates and results in new registrations through the years, far fewer Election Day registrations, and far less work processing registrations. In other states, AVR has eliminated the peak-period surges of tens of thousands new and updated registrations in the 45 days before Election Day. 159 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department Legislative and Elections BOARD OF ELECTION COMMISSIONERS The Board of Election Commissioners conducts and supervises all local, county, state and federal elections for the City of Chicago, and is responsible for the certification of election results. The Board also manages voter registrations, maintains an accurate list of voters, and educates the public on all election dates and laws. 2017 2018 FUND SOURCE(S) FTEs Appropriation FTEs Recommendation Corporate Fund 118 11,624,299 118 15,606,377 ALLOCATION Personnel Services Non-Personnel Services 7,194,282 4,430,017 Program Summary and Description 8,391,954 7,214,423 FTEs 2018 Funding ADMINISTRATION 16 4,433,752 ELECTION PLANNING AND COMMUNITY SERVICES Recruits, trains, and places judges of election, deputy registrars, and polling place administrators. Administers early voting and assists in the creation of audio ballots for touchscreen voting. Conducts voter registration drives, voting equipment demonstrations, and educational seminars. 16 1,380,501 ELECTRONIC VOTING & INFORMATION SYSTEMS Designs and produces electronic ballots and ballot cards. Collects and reports election vote tallies. Generates lists of registered voters and processes voter verification of registration cards. Tests computer software, hardware, and telecommunications setups for early voting and Election Day activities. 10 3,233,931 ELECTION SUPPORT Establishes locations of polling places. Conducts investigations of election complaints. Trains and places nursing home judges of election, as well as judges of election for replacement ballots from military and overseas voters and for the central count of absentee ballots. 33 3,149,817 WAREHOUSE AND EQUIPMENT PREPARATION Prepares materials, equipment, and ballots for elections. Catalogues and stores all election materials and equipment. Performs audits and re-tabulations of precincts as selected by the Illinois State Board of Elections. 15 1,717,831 REGISTRATION AND RECORDS PROCESSING Processes all new and changed voter registration applications and distributes voter IDs. Maintains, scans, and indexes documents, and responds to public requests for information. Stores, retrieves, and prepares lists of voter eligibility records. Conducts a U.S. mail canvass and processes changes of address for all registered voters. 28 1,975,323 TURNOVER (284,778) 160 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department General Financing Requirements General Financing Requirements The Finance General category represents cross-departmental expenses such as IT systems, employee benefits, contributions to employee pension funds, and long-term debt service payments. The 2018 proposed budget includes a total of $1.26 billion for employer contributions to pension funds and a total of $2.01 billion for the payment of debt service. These costs are discussed in greater detail in the Pension and Debt Service Fund sections of this document. recent years. The 2018 budget moved million of public safety medical costs for Chicago Police Department and Chicago Fire Department employees that are not covered by Worker's Compensation into the Finance General fund. The total amount of these costs remains flat with 2017 given improvements to our employee safety program and case management. The Finance General 2018 budget is equal to 2017 levels for routine settlements and judgements. The proposed 2018 Finance General budget includes $476.6 million in employee benefits costs (not including pension contributions) for active employees and annuitants. Costs for employee benefits are up slightly from 2017, primarily due to additional positions being added to the budget in GENERAL FINANCING REQUIREMENTS FUNDING COMPARISON BY FUNCTION 2017 Appropriation Expenditure Categories 2018 Recommendation 1,085,988,000 1,256,340,000 20,769,000 21,634,000 3,122,941,799 3,100,963,047 Employee Benefits Workers' Compensation Payment of Judgments Debt Service Other Citywide Expenditures 438,067,712 71,510,000 22,111,700 2,067,323,125 523,929,262 476,587,660 71,510,000 22,111,700 2,010,120,709 520,632,978 Subtotal: 3,122,941,799 3,100,963,047 $4,229,698,799 $4,378,937,047 $536,599,467 $469,501,588 Pension Funds Loss in Collection of Taxes Finance General Total-General Financing Requirements Interfund Transfers and Reimbursements 161 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department General Financing Requirements FINANCE GENERAL Finance General represents cross-departmental expenses such as IT systems, employee benefits, contributions to employee pension funds, and long-term debt service payments. 2017 2018 FUND SOURCE(S) Appropriation Recommendation Corporate Fund Water Fund Vehicle Tax Fund Motor Fuel Tax Fund Sewer Fund Library Fund Emergency Communication Fund Special Events and Municipal Hotel Operators' Occupation Tax Fund Motor Fuel Tax Debt Service Sales Tax Bond Redemption Fund Bond Redemption and Interest Series Fund Library Bond Redemption Fund Library Note Redemption and Interest Tender Notes Series "B" Fund Emergency Communication Bond Redemption and Interest Fund City Colleges Bond Redemption and Interest Fund Chicago Midway Airport Fund Municipal Employees' Annuity and Benefit Fund Laborers' and Retirement Board Annuity and Benefit Fund Policemen's Annuity and Benefit Fund Firemen's Annuity and Benefit Fund Chicago O'Hare Airport Fund Affordable Housing Opportunity Fund CTA Real Property Transfer Tax Fund Tax Increment Financing Administration Fund Garbage Collection Fund TOTALS 162 827,759,578 526,042,309 76,959,648 3,756,816 283,115,773 31,703,502 95,413,000 14,099,285 15,683,000 38,923,000 681,360,000 4,337,000 80,420,000 22,329,000 36,632,000 153,194,690 322,988,000 36,000,000 500,000,000 227,000,000 716,743,871 1,152,000 66,440,000 3,433,634 812,160 $4,766,298,266 865,017,340 514,695,671 71,117,470 4,474,567 282,295,559 36,254,243 20,147,985 17,288,890 15,544,000 38,923,000 631,996,000 4,338,000 87,064,000 22,329,000 36,632,000 145,938,120 402,200,000 48,000,000 557,000,000 238,499,000 734,478,170 1,290,204 68,040,000 3,765,753 1,109,663 $4,848,438,635 2 0 1 8 B u d g e t O v e r v i e w Program and Budget Summaries by Department General Financing Requirements FINANCE GENERAL 2018 Funding Program Summary and Description PENSION FUNDS For payment to employee annuity and benefit funds. 1,256,340,000 LOSS IN COLLECTION OF TAXES For anticipated loss in collection of the property tax levy. 21,634,000 FINANCE GENERAL Employee Benefits For payment of employee and annuitant benefits. 476,587,660 Workers' Compensation For payment of claims under workers' compensation, excluding such claims for the public safety and aviation departments. 71,510,000 Payment of Judgments For payment of judgments, settlements, and outside counsel related to non-public safety litigation. 22,111,700 Debt Service For payment of principal and interest on outstanding bonds, notes, and other debt instruments. 2,010,120,709 Other Citywide Expenditures For other Citywide expenditures that do not fall within any single department's budget, including insurance premiums, accounting and auditing expenses, Citywide IT systems and maintenance, matching funds for grants, and support provided by the City to the CTA each year. 520,632,978 163 2018 BUDGET OVERVIEW BUDGET DETAIL 2 0 1 8 B u d g e t O v e r v i e w Budgets Detail How To Read Budget Detail This section contains 3evenue, Expenditure, Personnel and Grant tables that summarize the 2018 Budget Recommendations. The below diagrams clarify the table layouts. The Expenditure and Personnel table layouts are identical and, therefore, only an Expenditure table is included below. %VF UP SPVOEJOH DPMVNOT BOE SPXT NBZ OPU TVN QSFDJTFMZ SAMPLE TABLES REVENUE 5HYHQXH &DWHJRU\ Public Utility Taxes & Fees Electricity Use Electricity IMF Telecommunications Natural Gas Utility Natural Gas Use Cable Television 5HYHQXH 6RXUFHV 2012 $ 101.6 92.8 147.7 109.0 25.1 15.9 Total - Public Utility Taxes & Fees $ 492.1 Actual 2014 2013 $ 2015 96.7 89.4 140.8 105.9 26.1 16.7 $ 102.3 94.6 154.4 102.9 27.4 19.3 $ $ 475.5 $ 501.0 $ 524.8 1H[W