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Former Mayor Richard M. Daley's 2011 Mayoral Transition Report

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Former Mayor Richard M. Daley's 2011 Mayoral Transition Report city of chicago 2011 Mayoral Transition Report Richard M. Daley, Mayor March 8, 2011 Dear Members of the Mayor-Elect Transition Team: To assist you in your work and facilitate an efficient, effective, and transparent transition between my administration and that of Mayor-elect Emanuel, I directed my staff to prepare this report summarizing City department operations. The document includes for each department: • A narrative describing mission and core functions • A summary of key services • A budget and personnel summary and lists of major contracts, capital projects and employee unions • Organization charts • Performance measures • List of City boards and commissions It is an honor and privilege to serve the residents of our great City, and I know we share a mutual goal of ensuring that the transition of responsibility for governing our City is seamless for Chicago’s residents, businesses and visitors. My staff and I look forward to working with you to ensure that we keep Chicago moving forward. Sincerely, Richard M. Daley Mayor Chicago Residents City City Council Mayor City Clerk Treasurer Council Office of Committees the Mayor Finance and City Community Public Infrastructure Public Service Regulatory Sister Agencies Administration Development Services Safety Services Enterprise Department of Office of Budget Department of Police Office of the Department of Streets Department of Housing and Chicago City Colleges and Management Public Health Board Inspector General Water Management Economic Development and Sanitation Department of Department of Commission on Independent Police Department of Chicago Department Department of Cultural Affairs and Chicago Public Schools Innovation and Technology Human Relations Review Authority Buildings of Transportation Aviation Special Events Department of Department of Mayor’s Office for Police Chicago Transit Business Affairs and Finance People with Disabilities Department Authority Consumer Protection Department of Department of CAPS Implementation Department of Chicago Housing Family and Support Revenue Office Environment Authority Services Office of Emergency Department of Chicago Commission on Animal Management and Administrative Hearings Public Library Care and Control Communications Department of License Appeal 311 Fire Department Law Commission Office of Board of Ethics Compliance Department of Human Resources Department of Procurement Services Department of General Services Department of Fleet Management April 14, 2011 Mayor’s Press Office (312) 744-3334 Pete Scales, OBM (312) 744-1821 MAYOR DALEY ANNOUNCES RETURN OF $50 MILLION TO RESERVES City Needs $50M Less from Parking Meter Funds to Close 2010; Will Carry Over Largest Balance in Five Years; $45M in Additional Savings in 2011 Mayor Richard M. Daley announced today that thanks to favorable revenue results and reductions in expenditures at the end of 2010 the City will return $50 million to the parking meter long-term reserves. In addition, the City will carry over about $45 million into 2011, a larger-than-budgeted unreserved fund balance, and the largest in five years. The Mayor also announced about $45 million in savings already realized for the 2011 budget. “It was always my intention to repay the reserves as the economy recovers,” Daley said. “Today’s announcement of returning $50 million to the reserves is the first step towards that goal.” The total positive result from revenue sources and costs savings in the last quarter of 2010, compared to the estimates made in October, allows the City to return $50 million to the parking meter reserves and carry a $45 million year-end unreserved fund balance, the largest balance in five years. 2010 4Q Revenue and Savings Since the budget projections were presented in the fall, the City realized $16 million worth of additional savings from October through December thanks to the continuation of the hiring freeze, reductions in budgeted healthcare expenses and cuts in other non- personnel expenditures. Daley said that City officials had written several letters urging the State Comptroller to speed up income tax distributions to municipalities. As a result, the State made two additional payments in 2010, adding $32 million to the City’s year-end revenue. The State had previously been three or four months delayed in the tax distributions. In addition, the City benefited from the State’s tax amnesty program, which generated approximately $22 million in unbudgeted revenue at the end of 2010, he said. In the last quarter of 2010, sales, hotel, lease and amusement tax receipts continued to perform slightly better than the City’s conservative year-end estimates, and were up $20 million. 2 The closing of two large real estate transactions in December 2010 generated more unanticipated revenue compared to year-end estimates in the amount of approximately $10 million. Although it didn’t impact the year-end fund balance, Mayor Daley also announced that overtime expenses in 2010 were $23 million less than they were in 2009 and $36 million less than 2008, thanks to the labor agreements with the trade unions and cost reductions in police and fire. “While these revenue results and expense reductions are encouraging, they are by no means the total answer to our financial difficulties, Daley said. “Even with these results, we remain at 2004 revenue levels while operating a government which has 2011-level expenses.” “Let’s remember that through 2011, our economically sensitive revenues are expected to experience a cumulative loss of about $1 billion due to the recession,” he said. “Chicago will continue to face these economic challenges for next several years, and we will be tested to continue providing the services our residents need and deserve.” Returning $50 Million to Reserves The City’s original plan for fiscal year 2010 was to borrow $250 million from the parking meter long-term reserve. “Again, this isn’t something that we wanted to do. But Mayor Daley felt that is wasn’t right to ask people to pay more taxes at the same time that when so many were struggling to get by,” said Budget Director Eugene Munin. “We continued to work hard at cutting expenses and instituting more management efficiencies and improvements.” Then last July, the City announced that due to a number of expense reductions and management improvements, that it would borrow $60 million less. At the end of the year, the City borrowed $190 million to close the remainder of the 2010 budget gap – which was once projected at $520 million. Daley said that thanks to these favorable revenue revenue and savings which were accounted for after the end of the year, the City returned $50 million to the parking long- term reserve on Wednesday. That action will leave more than $125 million in the parking meter reserves at the end of this year under the current budget plan. “And if the positive revenue trends continue – along with these expense reductions and any additional savings realized this year – the City may need to borrow even less from reserves at the end of 2011 than the $120 million we had budgeted,” Daley said. 3 Year-end Fund Balance Although the audit of these numbers is still underway, the City currently estimates to carry over into 2011 about $45 million in a year-end unreserved fund balance. That is much more robust than the $9.4 million originally budgeted, and it will be the highest carry-over balance in five years, Daley said. 2011 Revenue and Savings Daley said the City is already seeing some significant additional savings through management intitiativesin 2011 and anticipates saving nearly $45 million in the budget, including: – $25 million in healthcare savings; – $15 million in hiring freeze savings; – $4.7 million in savings due to having only 14 run-off elections, rather than the budgeted citywide run-off election. In addition, Daley said the City closed on an agreement with DePaul University this quarter by vacating underused office space in the DePaul Center and receiving a buy- out payment of $4.9 million. The closing of that transaction was anticipated in the 2011 budget. ### EconomicallySensitiveRevenues:2005Ͳ 2010 CorporateFundShare $1,400 $1,257M $1,212M $1,200 $1,149M $1,114M $992M $1,000 $949M Hotel& Amusement s n $800 millio $ RealEstate Transaction $600 Income $400 $200 Sales $0 2005 2006 2007 2008 2009 2010YE SalesTaxesRevenues $600 $537M $543M $518M $499M $500 $471M $477M $413M $400 $386M n o $300 Milli $ $200 $100 $0 2003 2004 2005 2006 2007 2008 2009 2010YE RealEstateTransactionTaxRevenues $300 $250 $236M $242M $206M $200 $191M $150 $145M Million $ $119M $100 $82M $62M $50 $0 2003 2004 2005 2006 2007 2008 2009 2010YE HotelTaxRevenues $70 $64M $62M $60M $60 $54M $50M $50 $46M ion $39M $40 $37M Mill $ $30 $20 $10 $0 2003 2004 2005 2006 2007 2008 2009 2010YE AmusementTaxRevenues $90 $86M $79M $80 $69M $69M $70 $60 $57M $53M n $50 Millio $ $40 $38M $35M $30 $20 $10 $0 2003 2004 2005 2006 2007 2008 2009 2010YE Table of Contents Finance and Administration Office of Budget and Management ........................................................1 Department of Innovation and Technology...............................................4 Department of Finance......................................................................9 Department of Revenue................................................................... 12 Department of Administrative Hearings................................................ 17 Department of Law ........................................................................ 20 Office of
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