Aldermen accuse Daley of mortgaging Chicago's future

Mayor Daley was accused Wednesday of mortgaging Chicago's future by draining reserves that were supposed to carry the city for decades to solve two short-term political needs: freezing taxes and averting a property tax revolt.

It was opening day of City Council budget hearings, and Chicago aldermen were loaded for bear.

They complained about a dramatic decline in housekeeping services tied to layoffs, furlough days and shortened work-weeks that have left police officers and firefighters untouched, to Daley’s chagrin.

They railed about the mayor’s plan to spend all but $730 million of the combined, $3 billion in Chicago Skyway and parking meter proceeds while allowing tax-increment-financing (TIF) districts to siphon $540 million-a-year away from the city’s property tax base.

“We should re-name it the ‘Over-tax fund’ — OTF. How can we with a straight face tell the citizens of Chicago that, ‘We have $1.1 billion of your money stuffed under our mattress, but don’t worry. We’re gonna give you $35 million in [property tax] relief?’ ’’ said Ald. Tom Allen (38th).

Ald. Joe Moore (49th) noted that, by the end of next year, the city will have spent “two-thirds” of the Skyway and parking meter proceeds.

“What’s gonna happen next year? What tools do we have in our tool box?” Moore said.

Chief Financial Officer Gene Saffold reiterated Daley’s intention to “replenish the reserves we borrow” when city revenues rebound.

Ald. Tom Tunney (44th) didn’t buy it.

“We’re selling our future. . . . We’ve heard a lot of promises about how we’re gonna put this back. I just don’t believe it.”

Aldermen Anthony Beale (9th) demanded the immediate suspension of suburban-style, blue-cart recycling in Chicago until the city can afford to provide those blue carts in every ward.

The mayor’s budget includes no money to continue the citywide switch that was supposed to be completed by 2011. And some of the 240,000 households that already have blue carts would get pick-ups every three weeks, instead of every two.

“The roll-out ain’t rolling. The ball has stopped. My people feel unfairly treated,” Beale said.

Despite Daley’s promise to hold the line on taxes, fines, and fees, Budget Director Eugene Munin acknowledged that the budget includes a 14 percent increase in water rates.

“We took pains to say, ‘No new taxes,’ ’’ Munin said, noting the increase was approved three years ago.

Munin also revealed that, if police and fire join non-union employees in taking 24 unpaid days off next year, it would save the city $120 million.

Daley left little doubt where he stands on furlough days for sworn personnel. But the final decision will be made by an arbitrator.

“Everybody has to realize this is a serious, serious recession and it’s not gonna get better. And everybody has to be part of the solution — not part of the problem,” the mayor said.