Chicago Reader

Friday, October 19, 2007

City Hall in a sound bite

Posted by Ben Joravsky on Fri, Oct 19, 2007 at 11:30 AM

In this scene, taped at Monday's budget hearing, we learn a lesson in how to interpret the code words of City Hall.

The speakers are Third Ward alderman Pat Dowell and budget director Bennett Johnson III; the topic is tax increment financing districts.

Dowell used to work in the city's planning department, so she's one of the few aldermen who understands how the TIF program really works.

In this exchange, taped by AlderTrack (props on the new site, guys), she presses Johnson to see whether schools, parks, and taxpayers stand to get anything back for the $700 million (that's Johnson's own figure) they're losing to the city's 156 TIF districts.

Johnson, who's quite smooth, promises to run her questions by the city's lawyers, as though the issue she raises was an intriguing but radical concept in need of investigation. In fact, in the suburbs people have already challenged the legitimacy of pouring money into TIFs while schools and other public necessities go underfunded.

What Johnson's really saying is that he'll have the boys and girls in legal cook up some cockamamie justification for why they can't do what the mayor was never going to let them do in the first place. It's his way of letting Dowell know that her idea isn't going anywhere. As everyone should know by now, the mayor is never going to loosen the reins on his favorite slush fund.

Still, give Dowell credit. She's one of the few aldermen brave enough to link the massive tax hike the mayor's proposed to one of its leading cause: runaway TIFs.

May more follow her lead. 

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Monday, October 15, 2007 Dowell: Like my colleagues, I really am not feeling this property tax. My constituents have a problem with it as well, and, like Aldermen [Ed] Smith I too have been accosted at church about the property tax, so I'm trying to think of other ways that we can find some revenue, so I have some things I want to throw out. This is to the budget chair [City Budget director Bennett Johnson III]. Can you tell me the number of TIFs [tax increment financing districts] we have in the City? Steve Lux, City Comptroller: 156 TIFs. D: OK. Can you tell me how much money is in the reserve fund for these a hundred and ... how many TIFs? 156 TIFs? L: There's 156 TIFs. The cash balance I believe is approximately $700M. D: $700M. (pause) OK. Can you tell me how much money the City has spent on providing services to these TIF districts, in terms of police patrol, streets and sanitation services, to the these 156 TIFs? L: I don't know if we calculate that out, but under state statute there's only certain requirements that we can use TIF dollars for. D: No, I'm not saying you use TIF dollars for that, but I'm saying, the general revenue funds pay for services within these TIFs. Do you know how much money comes out of our general revenue to support these 156 TIFs? Johnson: We can TRY to get a number for you. OK. We'll look at that. D: That would be good to see. And I'm wondering, have you looked at other cities that use tax increment financing as a strategy, whether or not these cities have extracted fees from their reserve accounts to help pay for the services that we pay for out of those TIFs? J: I know right now we do charge obviously for administrative costs in setting up those TIFs, but, through the chair, we will get this information to you about how many services are being provided there, and we can look at other cities to see if that is done anywhere else. D: Because I think that if we had some kind of fee on these TIFs, to pay back the general revenue fund, for the service we provide, that might generate SOME money towards reducing the deficit. J: We just have to make sure that it's LEGALLY possible, because, as the comptroller noted, there's only certain, you can only pay for certain things, and the problem is, as the TIF statute is written now, you can't pay for general services. It's all basically infrastructure, building, and jobs. But we can look at it. D: OK.

Posted by Hugh on October 19, 2007 at 12:57 PM | Report this comment
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questions to ponder A duly elected, sworn-in, sitting alderman of the City of Chicago. Has in front of her the complete budget documents as prepared by the chief executive. Why is she asking how many TIFs there are? Why is she asking what the TIF balance is? Is her reading comprehension flawed? No. Because TIF is NO WHERE mentioned in the budget. TIFs are OFF BUDGET. $700M not on the table but your taxes are going up

Posted by Hugh on October 19, 2007 at 1:06 PM | Report this comment
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Isn't that what Enron was doing keeping Partnership off the books?

Posted by ross on October 19, 2007 at 2:38 PM | Report this comment
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Everything, Mr. Mayor? Mayor blasts tax hike foes But Daley offers substantial raise in office allowance for aldermen By Gary Washburn, Tribune, October 12, 2007 Daley opened the door to a possible reduction in the property levy. "We are looking at everything," he said Thursday. http://www.chicagotribune.com/news/local/northwest/chi-daleyoct12,0,4774095.story

Posted by Hugh on October 19, 2007 at 2:48 PM | Report this comment
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Dowell answered Daley's challenge Daley says compromise possible on budget plan By Gary Washburn, Tribune, October 17, 2007 Daley said City Council members always come to him saying "'Mayor, I want this; Mayor, I want that.'" But with the potential for inadequate resources if aldermen don't back his proposal, "when they see nothing happening in their community, don't blame Mayor Daley," he declared. "You go find it." http://www.chicagotribune.com/news/local/chi-daley17oct17,0,3535482.story

Posted by Hugh on October 19, 2007 at 2:57 PM | Report this comment
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FIND THE $700 MILLION CONTEST Chicago Budget Game, Home Version Play along at Alderman Dowell on your own computer! Go to the City web site http://egov.cityofchicago.org Select City Departments at the top Scroll down to Budget & Management Click on 2008 Budget Browse the proposed budget documents Find the $700M Find ANY MENTION of TIF win valuable prizes including property tax relief

Posted by Hugh on October 19, 2007 at 3:04 PM | Report this comment
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Here is a better contest: The first Reader blogger who gives a shit about this can take off the tin-foil helmet and stop looking for black helicopters and get a real life. That is All.

Posted by Orion on October 19, 2007 at 3:22 PM | Report this comment
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More people are giving a shit about TIFs after Daley proposed gouging taxpayers for an additional $300 million. If people waking up and challenging Daley scares you so be it. Daley needs to serve Chicagoans instead of his developer buddies and end his abuse of TIFs.

Posted by Hahaha on October 19, 2007 at 4:18 PM | Report this comment
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THE CITIZENS HAVE BEEN TIF OUT BY DALEY AND THE PIRATES. WANT TO SEE A PICTURE OF DALEY IN HANDCUFFS GO TO CHICAGOCLOUT.COM

Posted by BLASTER on October 19, 2007 at 4:43 PM | Report this comment
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Daley's Budget Director Bennett Johnson III: "I know right now we do charge obviously for administrative costs in setting up those TIFs" For SETTING UP the TIFs, Mr. Director? Were you sworn in? Your Dept of Planning & Development takes "administrative fees" out of EVERY TIF, EVERY YEAR. Even TIFs with NO ACTIVITY. Your TIF annual reports to the state show the property tax money LEAVING the TIF accounts, going to DPD, but your DPD budgets do not show the income. What's up with that?

Posted by Hugh on October 19, 2007 at 5:21 PM | Report this comment
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Here's something different: HAVE NO DOUBT, VOTE INCUMBENTS OUT Here is how to get it done: 1) REGISTER TO VOTE 2) Make a list of every INCUMBENT, (leaving those few incumbents who you are CERTAIN deserve to be reelected off of your list) 3) BRING this list with you when you go to vote 4) DO NOT vote for ANYONE on your list 5) If the INCUMBENT has only one CHALLENGER, vote for that CHALLENGER, no matter who it may be 6) If the INCUMBENT has 2 or more challengers, then: If the INCUMBENT'S name is listed 1st, then vote for the CHALLENGER who is LISTED LAST or If the INCUMBENT'S name is NOT LISTED FIRST, then vote for the CHALLENGER who IS LISTED FIRST (This will concentrate the most votes for a SINGLE CHALLENGER, thus providing the greatest possibility of the incumbent losing) 7) Whenever you have the choice to RETAIN or NOT RETAIN an elected official, vote to NOT RETAIN 8) Vote for whomever you choose, for whatever your reasons, it's your vote and you can cast it for whomever you please, but, remember, the INCUMBENTS are the people who have been, are, and will continue to be, the one's responsible for all of our current troubles Cast your votes with the sole purpose in mind of ousting practically all those currently holding, and abusing, the power and authority they've been entrusted with. This is something different. This will work. Try it, you'll like it.

Posted by Ain't it about time, boys & girls.... on October 19, 2007 at 6:00 PM | Report this comment
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I give a shit because I respond to every post. *wahhhhhhhhhhh*

Posted by Orion on October 20, 2007 at 3:05 AM | Report this comment
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HAVE NO DOUBT, VOTE INCUMBENTS OUT Here is how to get it done: 1) REGISTER TO VOTE 2) Make a list of every INCUMBENT, (leaving those few incumbents who you are CERTAIN deserve to be reelected off of your list) 3) BRING this list with you when you go to vote 4) DO NOT vote for ANYONE on your list 5) If the INCUMBENT has only one CHALLENGER, vote for that CHALLENGER, no matter who it may be 6) If the INCUMBENT has 2 or more challengers, then: If the INCUMBENT'S name is listed 1st, then vote for the CHALLENGER who is LISTED LAST or If the INCUMBENT'S name is NOT LISTED FIRST, then vote for the CHALLENGER who IS LISTED FIRST (This will concentrate the most votes for a SINGLE CHALLENGER, thus providing the greatest possibility of the incumbent losing) 7) Whenever you have the choice to RETAIN or NOT RETAIN an elected official, vote to NOT RETAIN 8) Vote for whomever you choose, for whatever your reasons, it's your vote and you can cast it for whomever you please, but, remember, the INCUMBENTS are the people who have been, are, and will continue to be, the one's responsible for all of our current troubles Cast your votes with the sole purpose in mind of ousting practically all those currently holding, and abusing, the power and authority they've been entrusted with. This strategy will be especially effective in a primary election and, with a wealth of challengers, will give the people a fighting chance at having neither a Dumbocrat, nor a Retardican to choose from in the general election. All independent-minded citizens who want to serve their fellow citizens should make every conceivable effort to get themselves on the ballot in every primary election. This will work. Try it, you'll like it.

Posted by an open invitation on October 20, 2007 at 5:19 AM | Report this comment
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> how to interpret the code words of City Hall When it comes to property taxes, City Hall is winning the war of words. They control the language. Use an acronym, TIF. They're not "property tax dollars," they're TIF dollars. You can't use those $700M, Madam Alderwoman, those aren't US dollars, they're TIF dollars.

Posted by Hugh on October 20, 2007 at 11:56 AM | Report this comment
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If this TIF money is so wrong, so loosely spent by the mayor and sounds so illegal, then why aren't the FEDS looking at it?

Posted by Loose money on October 20, 2007 at 1:11 PM | Report this comment
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Listen to our City budget director & comptroller plea that under state law the TIF property tax dollars are in an impenetrable lockbox. Well, a few years ago Daley had another little shortfall crisis - Millennium Park overruns. Normally no problem except that Millennium Park is not in any TIF district, though it was across the street from the Central Loop TIF, Chicago's oldest and most lucrative off-budget slush fund. Originally in IL TIF funds could only be used INSIDE a TIF district. So they liberalized state law to allow TIF money to cross streets. Crisis averted.

Posted by Hugh on October 20, 2007 at 1:44 PM | Report this comment
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how to interpret the code words of City Hall "as the TIF statute is written now, you can't pay for general services." translation "Look lady, the $700M is not yours to do with. It doesn't belong to you. It belongs to the Mayor's developer pals. They have spent good money and lots of it over the last couple of decades purchasing politicians to construct their lockbox in state law and stuff it full of property taxes. If you had some bright ideas about how we should be spending our money, you should have seen this day coming like they did. We have a wide-open, free market place for politicians here in Illinois, and you had the same opportunity to purchase influence as everyone else. Don't blame us for your lack of foresight."

Posted by Hugh on October 20, 2007 at 5:56 PM | Report this comment
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"If this TIF money is so wrong, so loosely spent by the mayor and sounds so illegal, then why aren't the FEDS looking at it?" Guess what, they are..............

Posted by surprise, surprise on October 21, 2007 at 12:27 AM | Report this comment
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I appreciate the service orion is rendering the public, as his comments ALWAYS stimulate the appropriate reaction from same. If only mayor mumbles would be so frank and forthcoming in expressing the attitudes of orion, which are the common ones shared by many members of the machine. Thanks, orion, you are a proud example of your peer group.

Posted by re orion on October 21, 2007 at 7:26 AM | Report this comment
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May more follow her lead. Planning & Development is due up today Monday 10/22 in the Budget hearings. Question We Wish Someone Would Ask That $700M, can you please direct my attention to it in these budget documents? Those "administrative fees", can you please direct my attention to where they are realized as revenue in these budget documents? If not, what OTHER sources of revenue are not documented in the Mayor's budget proposal? And what OTHER city operations, other than "setting up TIFs" are not comprehended by this document?

Posted by Hugh on October 22, 2007 at 11:09 AM | Report this comment
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Those 156 TIFs, from how many of them did the City extract "administrative fees' last year?

Posted by Hugh on October 22, 2007 at 11:23 AM | Report this comment
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Simple. Effective. Easy. S.E.E.? HAVE NO DOUBT, VOTE INCUMBENTS OUT Just do it.

Posted by observer on October 22, 2007 at 12:27 PM | Report this comment
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This is somewhat reassuring, for several reasons. First, can anyone seriously imagine Dorothy Tillman intelligently discussing TIFs (or anything else)? She might, in some crude way, figure out that TIFs equal money that can be spent in a lot of ways that tax money can't or shouldn't, but if she did she'd probably start yelling abour "reparations". Second, I don't think TIFs are all that set in stone, especially in light of the Mayor's tax proposals. A little timely scrutiny might go a long way.

Posted by Yossarian on October 24, 2007 at 12:30 PM | Report this comment
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"A little timely scrutiny might go a long way." More like a LOT of INTENSE scrutiny WILL go a helluva long way in 'solving' those financial, tax related problems CREATED by the gross misuse of TIFS. The time is ripe for the exposure of the fraudulent misuse of the TIF laws. Hugh's innovative contest, ie., 'where's the $700,000,000 in TIF MONEY going?', is a humorous way of saying, "What the fuck have you thieves and rascals been doing with $700,000,000 of taxpayers' money?" Great question, now is the time to compel those responsible to answer it.

Posted by About TIFS on October 24, 2007 at 1:11 PM | Report this comment
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The jokes on the people in the 3rd ward who thought they were getting an independant alderman. The ward is being run from the 5th floor. The new alderman Pat Dowell voted YEA to every single thing the mayor asked. We thought she would be more progressive like Preckwinkle. The mayor needed a alley and now he has her. Talk about waste. The 1.9 million Park on 47th and King Drive that has been PAID for is now going to be dug up so Pat Dowell's white developers can get a piece of it. They didn't like Tillman's 70/30 plan or the Blues District that was to include majority African American workers and culture...Well to my neighbors, You Order It, You Eat It...I am hoping that St. Rep Ken Dunkin win committeman a then got after her for the alderman seat...He has my vote...

Posted by 47th Betty on November 21, 2007 at 10:51 AM | Report this comment

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