Overview - Chicago

1 City of Chicago2018 BudgetOverviewMayor Rahm Emanuel2018 Budget OverviewLetter from the MayorDear 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.

2 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 $ 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.

3 In addition, we are making strategic investments to modernize the City s 9-1-1 safety is not the responsibility of the police and first responders alone, which is why this budget also includes an additional $ 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.

4 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 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.

5 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 Rahm Emanuel2018 Budget OverviewTable of ContentsThis 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 bud-get, 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 MayorProposed 2018 Budget: Key Reforms, Savings and Investments Discussion of Proposed BudgetOverview 1 Revenue Discussion 21 Corporate Fund2 Special Revenue Funds2 Enterprise Funds29 Debt Service Funds30 Property Tax Levy31 Grant Funds32 Expenditure and Workforce Discussion 33 Personnel Costs33 Non-Personnel Costs34 Pension Funds36 Capital Improvement Program 38 Introduction and Relationship to Operating Budget38 2018 Capital Improvement Program38 2018 Tax Increment Financing Program40 Financial and Budgetary Policies 42 How Chicago Budgets Budget Process47 Budget Documents48 Budget Calendar49 Basis of Budgeting50 Program and Budget Summaries by Department City of Chicago Organizational Chart53 Finance and Administration 57 Office of

6 The Mayor59 Office of Budget and Management61 Department of Innovation and Technology 63 Office of the City Clerk65 Department of Finance67 City Treasurer71 Department of Administrative Hearings73 Department of Law752018 Budget Overview Department of Human Resources Department of Procurement Services80 Department of Fleet and Facility Management82 Infrastructure Services 87 Department of Streets and Sanitation88 Department of Transportation93 Department of Aviation100 Department of Water Management103 Public Safety Chicago Police Board109 Civilian Office of Police Accountability110 Chicago Police Department 112 Office of Emergency Management and Communications 116 Chicago Fire Department118 Community Services 120 Department of Public Health121 Commission on Human Relations124 Mayor s Office for People with Disabilities126 Department of Family and Support Services128 Chicago Public Library132 City Development Department of Cultural Affairs and Special Events135 Department of Planning and Development137 Regulatory Office of the Inspector General141 Department of Buildings144 Department of Business Affairs and Consumer Protection 147 Chicago Animal Care and Control150 License Appeal Commission152 Board of Ethics153 Legislative and Elections City Council15 Board of Election Commissioners15 General Financing Requirements Budget Detail How to Read Budget Detail167 Revenue168

7 Expenditures17 Personnel175 Grants177 Glossary 1 Appendices A & B Chicago Facts and Demographics189 Employee Salary and Benefits summary by Department199 Table of Contents (continued)Proposed 2018 Budget: Key Reforms, Savings and Investments2018 BudgetOverview2018 Budget Overview9 Proposed 2018 BudgetIntroductionThe City s 2018 budget continues to make critical investments in support of Chicago s families, neighborhoods, youth, and public safety, while building on Mayor Rahm Emanuel s efforts to improve the City s long-term financial stability. In 2012, the City of Chicago was facing an operating budget shortfall of $ million. Through efficiencies, reforms, tighter spending controls, and strong fiscal management, that shortfall is reduced by 82 percent and is closed in the 2018 budget proposal.

8 Savings, Reforms, EfficienciesWith every budget and again in the 2018 budget, Mayor Emanuel seeks to identify all available opportunities to reform government operations, achieve savings and eliminate waste. A significant amount of cost cutting and reforms have been achieved in previous years "T B SFTVMU UIF CVEHFU TIPSUGBMM JT TJHOJGJDBOUMZ TNBMMFS BOE the City continues UIBU XPSL CZ JNQMFNFOUJOH strategic expense cuts and reforms no savings PS reform NFBTVSF JT too small. *O UIF CVEHFU Uhe City JEFOUJGJFT an additional $ million in corporate fund savings and reforms JO QFSTPOOFM BOE OPO QFSTPOOFM FYQFOTFT. In total, Mayor Emanuel has achieved over $650 million in savings, reforms and effJciencies since taking office.

9 Mayor Emanuel has worked consistently to contain healthcare costs over the long-term and improve the overall health and well-being of the City s workforce. 8 PSLJOH JO DPOKVODUJPO XJUI UIF $JUZhT QBSUOFST JO MBCPS BOE Uhrough various reforms and programmatic improvements TVDI BT UIF QIBTF PVU PG SFUJSFF IFBMUIDBSF DPWFSBHF GPS DFSUBJO DJUZ SFUJSFFT UIF $JUZhT healthcare costs have remained relatively flat under Mayor Emanuel, compared to national trends. According to the 2016 Annual Survey by UIF Kaiser Family Foundation and Health Research & Education Trust on Employer Health Benefits, average annual health insurance premiums and worker contributions have increased by percent over the past ten years. In 2018, the City s budgeted healthcare costs are $ million lower than initially projected due to ongoing cost-control measures.

10 Further, the City is saving $ million in workers compensation costs in 2018 relative to initial projections. This cost savings is driven by reducing healthcare costs, BT TFFO JO the Department of Fleet and Facility Management s work to improve health and safety training thereby reducing injuries along with improved benefit management by the Committee on Finance. As part of the City s investments in police reform, community policing and public safety, the Administration right sized certain civilian vacancies within the Chicago Police Department ( CPD ) and reprioritized these existing vacancies to support reform efforts and community policing. In total, the City was able to repurpose $ million of civilian vacancies, saving taxpayer dollars while 2018 Budget Overview10 Summary of Proposed Budget (continued)still expanding critical community services and supporting investments in CPD.