Mayor Daley’s proposal for the biggest property-tax increase of his 18-year tenure gathered steam Monday, even as some aldermen said they still could not stomach the size of the scaled-back increase.
The City Council’s Finance Committee voted 16-6 to approve the property-tax levy, which would rise by $86 million, or more than 11 percent, but is down from Daley’s original $108 million increase.
Separately, the committee also endorsed the rest of Daley’s proposed tax, fee and fine increases, including higher levies on beer, wine and liquor and on lease transactions for rental cars and movie rentals and a new 5 cent tax on bottled water.
The entire revenue package is part of Daley’s 2008 budget, which is slated to go before the full council next week for final approval.
“One would suspect that there’s some momentum building for a property-tax increase,” Ald. Edward Burke (14th), chairman of the Finance Committee, said after voting for it.
Daley needs 26 votes to pass his budget, but he will not be able to count on a few reliable allies, including Aldermen Bernard Stone (50th) and Ray Suarez (31st), both of whom voted against the property-tax increase Monday.
Budget Director Bennett Johnson III said there are no plans to alter the tax package again, calling it “a well-thought-out, well-balanced package that provides for the future.
“As with any compromise, as I said earlier, nobody’s very happy, but everybody I believe wants the city to go forward,” Johnson said. “This is a tough budget year. I mean, this is a time for leadership. This is not for the faint of heart.”
In addition to scaling back his property-tax increase, Daley also slightly trimmed the increase he is seeking in taxes on beer, wine and liquor. The new proposal would add 7 cents to a six-pack of beer, up to 6 cents on a bottle of wine, depending on alcohol content, and 22 cents on a liter of spirits.
Daley also cut in half his request for a new tax on bottled water, which originally was proposed at a dime per bottle. Industry officials warned again Monday that the tax will not withstand legal challenge, but Johnson said the city is confident it will.
Some of the aldermen complained that the administration was “nickel-and-diming” residents too much.
“The poor people end up paying the most here,” said Ald. Billy Ocasio (26th), who cast one of the six dissenting votes. “Who wants the title of the best unaffordable city in the nation?”
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What’s the difference?
To make up the difference for the reduced tax increases, Daley announced spending reductions and other increases in taxes and fees.
Included in the cost-cutting are elimination of vacant jobs, a delay in the expansion of a new separate collection recycling program and putting off hiring some new police officers until later in the year.
Aldermen also voted 19-5 to send on the rest of Daley’s revenue package. The mayor wants an even higher increase in the lease tax on such transactions as car and movie rentals — 8 percent, up from 6 percent now.
The package also includes a 21 percent increase in the natural-gas use tax paid by large institutions. Also going up are fees for billboards, fines for running red lights by drivers caught on city cameras and a new fee for certain developments, originally proposed at 15 cents per square foot but now at 25 cents.
