THE CIVIC FEDERATION 2017 ANNUAL REPORT

research • information • action since 1894

2017 THE CIVIC FEDERATION’S MISSION To provide research, analysis and recommendations that: • Champion efficient delivery of high-quality government services; • Promote sustainable tax policies and responsible long-term planning; • Improve government transparency and accountability; and • Educate and serve as a resource for policymakers, opinion leaders and the broader public. THE CIVIC FEDERATION’S HISTORY from our The Civic Federation was founded in 1894 by several of ’s most prominent citizens, including , Bertha Honoré Palmer and Lyman J. Gage. They chairman coalesced around the need to address deep concerns about the city’s economic, political and moral climate at the end of the 19th century. The Federation has since and become a leading advocate for efficient delivery of public services and sustainable president tax policies. 2017 CIVIC FEDERATION STAFF Today the work of the Federation continues to evolve as greater emphasis is placed on working with government officials to improve the efficiency, effectiveness and accountability of the State of and local governments. The Civic Federation’s The State of Illinois’ enactment of a comprehensive fiscal Lauracyn Abdullah Institute for Illinois’ Fiscal Sustainability was launched in 2008 to provide Illinois Director of Finance and Operations policymakers, the media and the general public with timely and comprehensive year 2018 budget in July 2017 gave taxpayers reason to Patricia Acosta analysis of the state budget and other fiscal proposals for the State of Illinois. Executive Assistant breathe a short sigh of relief as Illinois finally joined the 49 Katy Broom Communications Director other states in abiding by the most basic of financial tenets.

Roland Calia PAGE(S) Project Manager IN THIS REPORT However, following more than two years of unmanaged

Laurie Cohen 3 Senior Analyst, IIFS Letter from the Chairman and President spending, Illinois’ challenges are far from over.

Carol Frenda Membership and Events Manager Civic Federation Priorities in 2017 More than ever, the Civic Federation is called upon to increased transparency of some of the County’s data. Sustainable Tax and Fiscal Policies 4 - 5 Benjamin Kidder provide critical analysis and recommendations as our And we continue to raise awareness of the obvious Senior Analyst, IIFS Responsible Long-Term Financial Planning 6 - 7 governments at all levels face the results of decades of need to consolidate or streamline Illinois’ nearly 7,000 Annie McGowan High-Quality, Efficient Government Services 8 - 9 short-sighted policy decisions exacerbated by the State’s units of local government. Senior Research Associate budget impasse. As we address these unprecedented Laurence J. Msall challenges, the Federation continues to insist on telling The Federation’s influential work is made possible FY2018 Budget Analysis Summary 10 - 11 President taxpayers what they need to know rather than the only by the support and dedication of our members Mark W. Patoska simple answers they might want to hear. Building the and friends. We remain particularly grateful for the Manager of Local Government Research Institute for Illinois’ Fiscal Sustainability 12 - 13 political will to implement painful reforms may be expertise of each member and the steady leadership Isabella Romano difficult, but it will be necessary in order to secure our of our officers and committee chairs as they steer our Communications Specialist, IIFS Annual Civic Awards Luncheon 14 - 15 state’s financial future. work throughout the year. Sarah Wetmore Vice President and Research Director Despite the shaky financial landscape, Civic On behalf of the Civic Federation, thank you for your Motorola Solutions Foundation Excellence 16 Federation members and staff find many reasons to be continued interest, support and guidance. in Public Service Award encouraged. The State’s archaic school funding formula was overhauled in 2017. The City of Chicago has Photography by staff unless otherwise indicated Financials 17 more construction cranes in the air than ever before. Following publication of a recent Civic Federation Kent A. Swanson Laurence J. Msall report, Cook County public safety officials have Support 18 - 19 Chairman President

2 THE CIVIC FEDERATION THE CIVIC FEDERATION 3 Photo courtesy of City Colleges of Chicago. A Coalition to Call for an End to the of this report to their own work. The Budget Impasse Federation’s annual report on the estimated Following news in May that the Illinois full value of real property in Cook County General Assembly might attempt to pass a found that the estimated total value of stopgap “budget” for the second year in a real estate in the County rose for the third row, the Civic Federation convened a group year in a row after having fallen for six of eight civic and social service organizations consecutive years prior. to call for the State to enact either a comprehensive, balanced budget or no Establishing a Task Force to Study budget at all. Because unmanaged piecemeal Regional Competitiveness spending for large areas of government had In June the Civic Federation held its first continued over the previous two fiscal years, meeting of the newly established Chicago pressure on lawmakers to pass funding for Regional Competitiveness Task Force other areas of government had been relieved, to evaluate the Chicago area’s strengths, while the State’s backlog of bills ballooned weaknesses and where the region is an to unprecedented levels and Illinois’ most outlier for good or bad. The goal of the vulnerable citizens were irreparably harmed. Task Force is to develop actionable policy CIVIC FEDERATION PRIORITY As part of the Coalition for a State Budget, recommendations on tax, fiscal, economic, representatives from the Better Government quality-of-life and other issues in order Association, Civic Federation, Forefront, to help the region support its diversified Metropolitan Planning Council, Sargent economy and compete globally and Shriver National Center on Poverty Law, nationally for business and population. United Way of Metropolitan Chicago, Union League Club of Chicago and Voices Sustainable Tax and for Illinois Children came together to “Mr. Msall and his amplify this message, culminating in a press Civic Federation conference that generated local and national Fiscal Policies coverage along with acknowledgement from colleagues are respected many lawmakers in Springfield. leaders that play a critical

§ Pondering the City of Chicago’s role guiding government Fiscal Future institutions like City In April, the Civic Federation and Federal “Laurence Msall, president of the Reserve Bank of Chicago cohosted Colleges in the efficient The Civic Federation’s nonpartisan analyses and recommendations Civic Federation, a nonpartisan the policy forum, “Chicago’s Fiscal and thoughtful use promote sustainable tax and fiscal policies. This work is a critical resource Future: Growth or Insolvency?” Experts, Chicago-based government- practitioners and academics from around watchdog group, … said there of taxpayer resources. for Illinois governments as they address serious financial challenges such the country gathered to discuss the best and are really only a few ways for the They help ensure that as persistent structural deficits and historically low credit ratings. worst case scenarios for Chicago’s economic future. While recognizing the City’s serious state to solve its pension problems. City Colleges lives up to challenges—financial and otherwise—expert Illinois would need a constitutional our promise to provide “We share a common goal with the Civic panelists and guests saw many opportunities amendment that would allow the Federation in promoting policies that provide to stabilize Chicago’s finances and expressed Chicagoans with quality, optimism that with dedicated action the state to reduce the liability or affordable education budget transparency and accountability and City could leverage its resources and talent a means of bringing in enough to move past its current woes. leading to promote an environment where sound, principled revenue to cover state operations upward mobility.” financial decisions are made throughout Chicago. Annual Reports on Consumer Taxes and pay off pension debts over The independent analysis offered by the Civic and Estimated Property Values time.” The Civic Federation’s report on selected —Juan Salgado, Federation is something we continue to encourage consumer taxes included rates and THE WALL STREET JOURNAL, 7-5-17 City Colleges of Chicago as we pursue fiscally responsible policies that serve descriptions of taxes in place in the City of Chancellor Chicago on sales, accommodations, leases, every neighborhood in Chicago.” hotels, liquors, restaurants, soft drinks, tobacco and parking. As in past years, —Rahm Emanuel, local government officials commented to Federation staff in 2017 on the helpfulness Chicago Mayor

4 THE CIVIC FEDERATION THE CIVIC FEDERATION 5 Updates on Chicago Finances from the hosted an Indonesian fellow as part of City’s Treasurer and Chief Financial a U.S. State Department and American Officer Council of Young Political Leaders At the 124th Annual Meeting of the Civic program. Nurul Komolasari works for the Federation Board of Directors, members Indonesian government body responsible heard from City of Chicago Treasurer for ensuring accountability for entities that Kurt Summers about the City’s financial manage state finances. While at the Civic challenges and opportunities. Echoing Federation she attended local government Federation research, Treasurer Summers meetings, met with government officials, said that Chicago’s challenges are solvable assisted with research and learned more if officials come together to make the about best practices in government finance, difficult decisions required to stabilize the accountability and transparency. City’s finances. Earlier in the year, City of Chicago CFO Carole Brown met with the Sharing Civic Federation Research Federation Board to discuss the challenges with a Broad Audience faced by the City and by the Chicago Public As fiscal dysfunction continues to cripple Schools in light of the then-ongoing State of Illinois and its local governments, Civic CIVIC FEDERATION PRIORITY Illinois budget impasse. She said that while Federation staff are increasingly asked to “The Civic Federation’s the City and CPS were working to insulate provide insight and analysis on the ongoing longstanding commitment themselves from Springfield’s budget-related crises and to share recommendations dysfunction, the governments’ futures for reform. The Federation presented to rigorous policy research necessarily depended on action at the State to or moderated panels for many civic, and fiscal responsibility level. government and nonprofit groups in 2017, is second to none. As including the League of Women Voters, Chicago’s Treasurer, I have Responsible Long-Term Discourse on Illinois Pension City Club of Chicago, Chicago Municipal Challenges and Opportunities Analysts Society and NPR Illinois, among depended on the Civic In 2017 the Civic Federation continued others. Federation’s thorough Financial Planning to push for solutions to Illinois’ crippling analysis, and I hope that pension crisis. To gain insight into all of us—as government challenges related to addressing $130 billion

§ in unfunded liabilities at the State level officials, fiduciaries and alone and into potential avenues for reform, private citizens—look to Federation members and staff met with Laurence Msall and the The Civic Federation works to focus attention on the long-term scholars, public officials and other experts Civic Federation staff and throughout the year, including Former U.S. board for guidance as we consequences of current fiscal policies. We urge all governments Comptroller General David Walker, John “Illinois has the distinction work toward a brighter to use long-term planning to align financial capacity with essential Marshall Law School Professor Ann Lousin of being the first state ever to and Teachers’ Retirement System Executive operate without a budget for more fiscal future for our city Director Dick Ingram. service objectives. than a year, according to Msall. and state.” International Exchanges on Best ‘Unfortunately, the gimmicks that —Kurt Summers, Governance Practices have worked in the recent past are Chicago Treasurer “Local governments like ours continue to confront In February, the Civic Federation hosted a WorldChicago delegation to not sufficient enough to make up challenging fiscal times. As we work hard to meet our discuss the Federation’s monitoring of the gaping hole that exists now,’ government finances. The delegation, Msall said.” obligations to residents by operating efficiently and hosted through the U.S. Department of State’s International Visitor Leadership CNN MONEY, 6-29-17 responsibly, we appreciate the insight, analysis and Program, included auditors and journalists independent voice offered by the Civic Federation, from Algeria, Egypt, Iraq, Saudi Arabia and the Palestinian Territories. As part which are of great assistance to us.” of the program, delegation members engaged with staff at the Federation and other Chicago institutions involved in —, public sector oversight to discuss best Cook County Board President practices for promoting good governance Civic Federation Vice President Sarah Wetmore testifying at a local and transparency. In May, the Federation government budget hearing.

6 THE CIVIC FEDERATION THE CIVIC FEDERATION 7 Providing a Signal Boost for Criminal Justice Transparency Reform “A prominent Chicago watchdog Throughout 2017, Civic Federation members and staff met with criminal justice group [says] Cook County [public advocacy groups and public officials to safety officials] are sitting on data discuss various aspects of criminal justice that’s needed to evaluate how governance and transparency. Special guest speakers included Cook County Board well the criminal justice system President Toni Preckwinkle, President of the here is functioning—data it says Chicago Police Board Lori Lightfoot and is routinely available in other Illinois Justice Project Director Paula Wolff. jurisdictions.”

Later in the year, the Civic Federation CRAIN’S CHICAGO BUSINESS, 11-17-17 published The Impact of Cook County Bond Court on Jail Population: A Call for Increased Public Data and Analysis. The report examined difficulties obtaining data related CIVIC FEDERATION PRIORITY Pushing Forward on Local to the Cook County bond court and jail Government Consolidation and also called on Cook County criminal With nearly 7,000, Illinois has more units of justice officials to follow the practices of local government than any other state. The other large metropolitan jurisdictions in City of Chicago Chief Financial Officer multiplicity of local units of government, Carole Brown speaking to the Civic Federation more fully disclosing critical criminal justice many of which are funded predominantly by Board of Directors. data. According to the report, increased property taxes, is often cited as a reason for transparency would enable the public to high property tax rates in Illinois. In April, High-Quality, Efficient have better informed discussions about members of the Transform Illinois coalition, criminal justice and the effective use of including Civic Federation staff, testified taxpayer dollars, ultimately empowering at a subject matter hearing of the Illinois Government Services taxpayers to hold government officials more Senate Government Reform Committee. accountable. The Civic Federation’s Local Government § With varying degrees of success, advocacy Committee hosted public officials groups had worked for years to shine a light throughout the year to discuss consolidation on the lack of available criminal justice data, initiatives. DuPage County Chairman Dan The Civic Federation champions the efficient delivery of high-quality and the strong signal boost provided by the Cronin, who co-founded Transform Illinois, Federation’s report drew increased attention spoke in April to the committee about the government services. For many governments facing prolonged budgetary from the media and key public officials, importance and incremental nature of local challenges, efficient delivery can require reevaluating long held spurring a modest increase in available data government consolidation, commending the just weeks after publication. Federation for its ongoing public education assumptions as well as considering alternative methods for providing efforts in that sphere. In September, the and funding critical services. committee met with Illinois International “‘For the Chicago Public Schools to Port District Chairman Michael K. Forde and Executive Director Clayton Harris spend approximately $70,000 a day III, who discussed House Bill 1797, which “The Civic Federation is searingly honest and rigorous in in interest costs, that’s $70,000 a would forgive roughly $15 million in Port day that doesn’t go to the benefit of District debt. Citing a lack of detailed its annual review of the Metropolitan Water Reclamation economic development plan, the Civic students. It doesn’t go to fund the Federation opposed the legislation, though District’s budget and processes, which I appreciate and school lunch program. It doesn’t it was later enacted by the Illinois General respect. Those of us in public office – and those we serve – buy books. It doesn’t pay teachers’ Assembly. The Civic Federation continues to call for the dissolution of the Port District are true beneficiaries of the Federation’s work.” salaries. It’s $70,000 a day that and the consolidation of its port operations they might as well have burned in into the City of Chicago. Illinois Justice Project Director Paula Wolff —Debra Shore, Daley Plaza,’ [Msall] said.” discussing public safety data transparency with Civic Federation members. Metropolitan Water Reclamation District Commissioner , 6-27-17 Photo courtesy of Commissioner Shore.

8 THE CIVIC FEDERATION THE CIVIC FEDERATION 9 City of Chicago financial safeguards, including substantial The Civic Federation supported the reserves, to cover shortfalls or financial proposed FY2018 City of Chicago budget emergencies. of $8.6 billion because it continued to work toward stabilizing the City’s City Colleges of Chicago finances, put the four City pension funds The Civic Federation supported the City on a path toward solvency and worked to Colleges’ proposed FY2018 operating incorporate short-term capital expenses budget. The $442.6 million budget into the operating budget rather than was a prudent plan to begin to stabilize funding them through borrowing. the District’s finances following an unprecedented two-year State of Illinois Chicago Public Schools budget impasse that severely impacted The Civic Federation opposed CPS’ institutions of higher learning. proposed $5.7 billion budget because it did not do enough to divert the District from its dismal fiscal trajectory. Amid budget, liquidity, debt and pension “‘The county must not use [the funding crises, the FY2018 budget relied repeal of the sweetened beverage on nearly $570 million in uncertain tax] as an excuse to use gimmicks funding and on costly short-term borrowing for operations. and one-time revenue sources to balance the fiscal year 2018 Cook County budget,’ the Chicago Civic With a projected $200 million revenue After Mayor Emanuel unveiled his 2018 budget, loss for FY2018 due to the repeal of Federation research group told Civic Federation President Laurence Msall gave a sweetened beverage tax, the Civic board members during hearings City Hall reporters the Federation’s initial reaction. Federation called on the Cook County this week and in a published Board of Commissioners and agency commentary.” CIVIC FEDERATION officials to identify sustainable ways to balance the budget without the expected THE BOND BUYER, 11-1-17 funding. The Federation encouraged the County Board of Commissioners to approach the FY2018 budget with a long-term perspective and to not use the Chicago Park District revenue crisis as an excuse to use gimmicks The Civic Federation supported the Fiscal Year 2018 to close the FY2018 budget gap. Park District’s FY2018 proposed budget of $462.3 million because it reduced Chicago Transit Authority the District’s reliance on prior year The Civic Federation opposed CTA’s fund balance, implemented savings and Budget Summary proposed $1.5 billion FY2018 budget efficiencies and reduced the size of the because it relied on overly optimistic District’s workforce. At the same time, the

§ projections of restored funding from District planned to increase the level of the State of Illinois and embarked on funding to its pension plan. a dangerous path of borrowing for operational expenses. As an alternative Forest Preserve District of The Civic Federation produces annual analyses and recommendations for the path to generate additional revenue, Cook County balance the budget and maintain service The Civic Federation supported the Forest budgets of eight local governments, as well as a cycle of Illinois budget reports levels, the Civic Federation recommended Preserve District’s proposed FY2018 Voices for Illinois Children President exploring increased fares on trains and budget of $198.2 million because it Tasha R. Green Cruzat and Civic Federation President Laurence Msall calling for an end prepared by the Federation’s Institute for Illinois’ Fiscal Sustainability. The express buses during high-demand periods. employed reasonable fiscal practices and to the two-year budget impasse at a press Federation is often the only independent organization that examines many of focused on the use of innovative measures conference with representatives from Metropolitan Water such as cell tower placements and other Illinois civic organizations. these governments’ budgets in any detail – or at all – meaning its work is vital Reclamation District sponsorships to generate much-needed The Civic Federation supported the revenue and stabilize the Forest Preserves’ to helping citizens understand the governments’ spending plans. MWRD’s Tentative FY2018 budget of financial position. $1.1 billion because it continued to control operating expenses and maintained

10 THE CIVIC FEDERATION THE CIVIC FEDERATION 11 The Coalition for a State Budget held a press conference in downtown Chicago to call for an end to the impasse. (For more, see pages 4 and 5 of this report).

The Illinois Senate approved a budget for the upcoming fiscal year. The House did not take up the Senate plan before the end of the regular session. Both chambers passed a resolution to remain in continuous session. ’ institute for illinois JUNE Pointing to the prolonged impasse, both Standard & Poor’s and Moody’s Investors Service fiscal sustainability lowered Illinois’ credit rating to just above non-investment grade. The State’s cash shortfall became so severe that areas that were supposed to be funded, such as public schools, were Launched in 2008 with support from the John D. and Catherine T. waiting months for State dollars. MacArthur Foundation, the Institute for Illinois’ Fiscal Sustainability JULY informs the Illinois budget process with timely fiscal policy analysis With further downgrades looming, Illinois started FY2018 without a budget. Roadwork and recommendations to State officials, the media and the public. immediately ceased, and Illinois lost the ability to participate in inter-state lottery games. On July 6, Illinois’ two-year budget impasse ended when both houses of the Illinois JANUARY General Assembly overrode Governor Rauner’s veto to enact a $36 billion plan. However, The State of Illinois opened calendar year 2017 eighteen months into a budget impasse. A funding for elementary and secondary education was made contingent on passage of still- elusive school funding reform. report by the Office of the Illinois Comptroller estimated accrued interest penalties on overdue Illinois Governor Bruce Rauner addressing the bills for the fiscal year to be more than $700 million. Institute staff were immediately approached by members of the media, other civic Civic Federation Board of Directors. Leaders from the Institute and the Sargent Shriver National Center on Poverty Law co- organizations and officials at all levels of government for analysis and briefings on the authored a guest column in The State Journal-Register detailing the impasse’s irreparable harm recently passed budget. to Illinois’ reputation and most vulnerable citizens and calling for an end to the stalemate. An Institute report found that the State’s higher education shortfall persisted despite the new budget. Illinois Senate President John Cullerton and Senate Minority Leader Christine Radogno spoke to the Civic Federation Board of Directors about their proposed “grand bargain” AUGUST compromise to end the impasse and thanked the Federation for continuing to push for an Governor Rauner vetoed Senate Bill 1, which aimed to reform the State’s school funding end to the crisis. formula. School districts throughout Illinois expressed doubt that they would be able to open Civic Federation President Laurence Msall their doors if State payments contingent on the reform were delayed. Later in the month, the and Illinois State Representative David FEBRUARY General Assembly passed and the Governor signed a similar bill into law, enacting Illinois’ Harris testifying before the Illinois House The Institute proposed a series of recommendations in its FY2018 State Budget Roadmap first reform to education funding in decades. Cities & Villages Committee in support of that would end the State’s fiscal crisis, establish a sustainable long-term financial plan and House Bill 2575. pay off Illinois’ unpaid bills. In the analysis, the Institute noted that none of the painful SEPTEMBER but necessary recommended spending cuts or increased revenues would go toward better Almost two months after Illinois enacted a budget, the State’s backlog of bills still stood at or additional services for Illinoisans but would instead settle many billions of dollars in nearly $15 billion. obligations already incurred. An Institute blog post noted that while well-run states would not even be in the position to Governor Rauner presented his recommended FY2018 budget to the Illinois General Assembly. have to do so, Illinois’ plan to borrow up to $6 billion to pay down a high-interest portion Acknowledging a $4.6 billion gap, the budget again offered Illinois lawmakers a choice of its bills could save the State money in the long-term. between passing elements of the Governor’s Turnaround Agenda in exchange for unspecified revenue or granting the Governor broad authority to make cuts. OCTOBER MARCH The State completed the sale of $6 billion in bonds to pay down part of the backlog of bills, Illinois Senate Minority Leader which eventually resulted in a reduction of $8.7 billion in the backlog. There was no detailed Civic Federation President Laurence Msall testified at the Illinois House Cities & Villages Christine Radogno and Illinois Senate President plan to address the remaining overdue bills. Committee in support of House Bill 2575, which would create a Local Government Protection John Cullerton presenting their proposed “grand bargain” compromise to the Federation’s Authority to provide a forum to assist Illinois’ many financially distressed local governments. The Civic Federation expressed conditional support for House Bill 3649, the Debt Board of Directors. Later the same week, he testified at a joint hearing of the Senate Appropriations I and II Transparency Act, as a good step toward providing increased oversight and better management committees about the corrosive effects of the ongoing budget impasse. “The impasse is decimating social of Illinois’ still-enormous backlog of unpaid bills. The legislation was later enacted. services agencies that help the APRIL NOVEMBER most vulnerable citizens, including Illinois lawmakers debated a plan to provide partial funding for higher education and human Amid the ongoing pension crisis, the Institute published two reports detailing the critically services, called the “lifeline” plan. underfunded status of Illinois’ five pension funds. Lawmakers, members of the media and “Several days ago school children, the elderly and public officials continued to turn to Institute research and updates for insight into the costs An Institute analysis found that the proposed funding would cover less than one-third of the of the crisis. the mentally ill, according to a human services shortfall and even less of the higher education shortfall. [the Civic Federation] put out a coalition of groups including the report on just what it will take to DECEMBER MAY Civic Federation, which tracks the Institute updates drew attention to the fact that Illinois has not had a major capital program get Illinois out of its current fiscal In its State of Illinois Recommended Operating and Capital Budgets Analysis, the since 2009. To discuss the State’s infrastructure needs and significant backlog of deferred state’s finances.” Institute did not support Governor Rauner’s recommended budget for FY2018 because it mess. We find it jaw-dropping.” maintenance, Civic Federation members and staff met with representatives from the Illinois had an operating deficit of at least $4.6 billion and presented insufficiently detailed plans Department of Transportation. BLOOMBERG, 5-31-17 for closing the gap or addressing the State’s massive backlog of bills. The report called THE PADUCAH SUN, 2-16-17 on lawmakers to reject any piecemeal approach that impeded progress on enactment of a comprehensive plan.

12 THE CIVIC FEDERATION THE CIVIC FEDERATION 13 Event photos by Mike Kelly 2017 annual civic awards luncheon honoring ilene s. gordon and pnc

The Annual Civic Awards Luncheon, now in its 35th year, recognizes civic leadership in Chicago. Named for the Federation’s founding members, the Lyman J. Gage Award and the Addams-Palmer Award recognize the outstanding civic contributions of Chicago individuals and institutions.

The 2017 Civic Awards Luncheon honoredIlene S. Gordon, Chief Executive Officer, Ingredion, with the Lyman J. Gage Award for Outstanding Civic Contribution by a Chicagoan. Ms. Gordon’s trailblazing leadership was recognized as a critical part of the region’s business, civic and charitable fabric, paving the way for the next generation of corporate and philanthropic leaders. In addition to her many accomplishments, she was honored for her commitment to diversity in the workplace and for empowering young women through opportunities in STEM education.

Ilene S. Gordon accepting the 2017 (Above, Left) Lyman J. Gage Award for Outstanding Civic PNC received the Addams-Palmer Award for Exemplary Civic Involvement by a On Monday, June 26, hundreds of Illinois business, civic and government leaders gathered Scott C. Swanson, President, Contribution by a Chicagoan. Chicago Institution for its focus on long-term investments, charitable giving and at the Hilton Chicago to celebrate the civic achievements of both honorees. The Civic PNC Bank, Illinois, accepting the 2017 Federation greatly appreciates the leadership of event co-chairs John A. Canning, David Addams-Palmer Award for Exemplary Civic volunteerism in the areas of early childhood education, support for women and girls and Involvement on behalf of PNC. economic development, among others. Scott C. Swanson, President, PNC Bank, Illinois, R. Casper, Lester Crown, Andrew J. McKenna, Michael J. Sacks and Maurice Smith, accepted the award on behalf of the organization. as well as the generous support of all who attended. (Above, Right) Attendees at the 2017 Annual Civic Awards Luncheon.

(Top Left) MWRD Commissioner Debra Shore (Left) and Robin Brown. Back row: Civic Federation Chairman Kent A. Swanson, luncheon co-chair (Bottom Left) Lester Crown, luncheon co-chair Luncheon co-chair Maurice Smith Andrew J. McKenna, luncheon co-chair welcoming guests. Maurice Smith, Michael H. Moskow, Civic Federation President Laurence Msall. (Top Right) Front row: luncheon co-chair Manuel Sanchez and luncheon David R. Casper, Ilene S. Gordon, co-chair Lester Crown. Scott C. Swanson, luncheon co-chair John Canning.

14 THE CIVIC FEDERATION THE CIVIC FEDERATION 15 26th annual motorola solutions foundation STATEMENT OF excellence FINANCIAL POSITION in public Year Ended September 30, 2017 ASSETS 2017 service Cash and cash equivalents $ 404,725 Investments 3,192,179 award Accounts receivable 55,284 Sponsored by the Motorola Solutions Foundation and the Civic Grants receivable 350,000 Federation, the Excellence in Public Service Award annually recognizes Trustee pledges receivable 224,399 Manuel Cuevas Trisan of Motorola Solutions Prepaid expenses 64,337 introducing Arnold Randall as the recipient a non-elected government official who has had an extraordinary impact of the 2017 Motorola Solutions Excellence in on the quality of government services in the City of Chicago, Cook Leasehold improvements and equipment 354,342 Public Service Award. County and the State of Illinois. Total Assets $4,645,266

On December 7, 2017, the Motorola Solutions Foundation and the Civic Federation honored the outstanding public service of Arnold Randall, General Superintendent of LIABILITIES AND NET ASSETS the Forest Preserve District of Cook County. Business, civic and government leaders from across the State of Illinois and Chicago region attended the awards breakfast at the Palmer LIABILITIES House Hilton Grand Ballroom to recognize Mr. Randall’s outstanding public service Accounts payable $ 16,324 accomplishments. Accrued wages 92,610 Arnold Randall, General Superintendent of Following brief remarks from Civic Federation President Laurence Msall and Chairman Accrued vacation 30,468 the Forest Preserve District of Cook County, accepting the 2017 Motorola Solutions Kent Swanson, Illinois Senator Heather Steans gave the salutation address highlighting Deferred revenue 26,000 Foundation Excellence in Public Service Award. the importance of public service in Illinois. Manuel Cuevas Trisan, Corporate Vice Deferred rent 446,766 Cook County Clerk David Orr and President for Motorola Solutions, introduced Mr. Randall, discussed his many civic Civic Federation Member Donald Franklin. accomplishments and presented the award. The presentation included a video tribute Total Liabilities $612,168 from local government officials and civic leaders.

In his acceptance speech, Mr. Randall discussed the importance of vibrant outdoor spaces NET ASSETS in an urban area and his passion for the mission of the District, which works to defend Unrestricted and restore those spaces. He also thanked members of his staff, Cook County Board President Toni Preckwinkle and the Board of Commissioners without whom, he said, the Undesignated $ 266,521 Forest Preserves’ recent strides would not have been possible. Board designated 3,192,178

Temporarily Restricted 574,399 Total Net Assets 4,033,098 Total Liabilities and Net Assets $4,645,266

(Right) Arnold Randall with family, friends, supporters, government officials and representatives from the Civic Federation and Civic Federation President Laurence Msall Motorola Solutions Foundation. speaking with a reporter on camera about local government financial challenges.

16 THE CIVIC FEDERATION THE CIVIC FEDERATION 17 Kandace C. Lenti James E. Spiotto John P. Garvey Dover Foundation Wintrust Commercial Banking Chapman Strategic Advisors LLC Sarah Garvey Exelon Corporation Peter G. Glick Patti Eylar Thomas E. Livingston Daniel C. Sprehe CSX Corporation JPMorgan Chase Graham Grady Franczek Radelet support Patrick J. Hagan Ilene Gordon Support and guidance from the Civic Federation’s Trustees, Board of Dave Lundy Kent A. Swanson Donald Haider Ingredion Incorporated Directors and Council is fundamental to our success. Our membership Aileron Communications Riverside Investment & Development Co. Andrew Hamilton Jim Gordon and Greg Jones M. Hill Hammock The Edgewater Funds William D. Mack Carol Thompson David Hickerson Gryphon Senior Living Group, LLC is made up of a diverse group of business and professional leaders from Morgan Stanley Chapman and Cutler LLP a wide range of Chicago area companies and institutions. Members give Kevin Hynes GSU Foundation at Governors Christine Maki Kathy A. Thompson Bennett Johnson III State University generously of their time and expertise in the planning and execution RR Donnelley CIBC Blake Johnson The Hon. Julie Hamos of our mission to provide a nonpartisan, objective perspective on state Karen Kane IlliniCare Health Michael Marrah John F. Tierney Joseph Lane Verne G. Istock MMA Consulting Invesco Ltd. and local government tax and finance issues. Michael Lovett ITW Susan L. McKeever Allen B. Truesdell Rick Mattoon Jack Ringer Family Foundation 2018 civic federation trustees Deloitte & Touche LLP James Maurer Edgar D. Jannotta Thomas J. McNulty Robert J. Buford Kenneth C. Griffin Sarah Pang Glenn Mazade Kane & Co. Neal, Gerber & Eisenberg LLP Thomas C. Vanden Berk Craig McCrohon Martin J. Koldyke David R. Casper Adam Hoeflich Michael J. Sacks UCAN Stanley Meadows Karen Z. Gray-Krehbiel and Lew Collens Daniel P. Kearney Maurice Smith Dorri McWhorter Lester McKeever, Civic Federation President YWCA Metropolitan Chicago Robert S. Vihon Bradley Mincke John H. Krehbiel Robert W. Crawford, Jr. Michael L. Keiser Harrison I. Steans Laurence Msall and Civic Federation Board Worsek & Vihon LLP Denise Obrochta William C. Kunkler, III Member Susan McKeever. Lester Crown Frederick A. Krehbiel Frederick H. Waddell James S. Montana, Jr. Kevin O’Mara Lettuce Entertain You Enterprises Harve A. Ferrill Paul La Schiazza Law Offices of James S. Montana, Jr. Daniel Wagner William Planek Lisbeth Levine The Inland Real Estate Group Inc. Moira Pollard Ann Lurie Timothy E. Moran 2018 civic federation board of directors Schmidt Salzman & Moran, Ltd. John F. Ward, Jr. Carol Portman Madigan Family Foundation Ward and Ward P.C. James Regan David May Steven H. Abbey Nancy J. Clawson Ronald J. Gidwitz Monica Mueller Judith Rice Andrew J. McKenna Huntington Merrill Lynch, Pierce, Fenner & GCG Partners Motorola Solutions John L. Ward Smith, Incorporated, Bank of Alexander Rorke McCracken, Walsh, Carlisle Miguel Santiago & deLaVan Allan R. Ambrose America, N.A. Judith A. Gold Brian Murphy Jeffrey D. Warner Northern Trust Perkins Coie LLP Grant Thornton LLP PNC Bank Buzz Sawyer Michael Moskow Elizabeth Coolidge Kevin Scanlan Nixon Peabody LLP James Anderson UBS Financial Services Inc. Susan Hayes Gordon Michael E. Murphy Andrew L. Weil Daniel Scheeringa Karin M. Norington-Reaves CNA Ann & Robert H. Lurie Children’s Sara Lee Corporation DLA Piper LLP John Shaw Northwestern Memorial Foundation Ronald S. Cope Hospital of Chicago Patrick Sheahan O’Brien’s Restaurant A.G. Anglum Schain Banks Bert Nuehring A.J. Wilhelmi Andrew F. Gottschalk Crowe Horwath LLP Illinois Health and Hospital Association Dion Smith PJH & Associates, Inc. Murray E. Ascher David P. Crosson KPMG LLP William L. Smith, Jr. PwC Henry Crown and Company HNTB Corporation Michael F. O’Brien Simon Wlodarski Keith Staats Schwarz Supply Source Paul D. Green JLT Specialty USA Bank of America Robert Stanek Nancy Searle Robert Barry Omar Daghestani Ernst & Young LLP AT&T Stifel Joseph B. Starshak Gordon I. Segal and Carole B. Segal Holly O’Connor Jerrold Wolf Kathleen Thomas Sanjay Sharma Philip D. Hale HOC Consulting LLC Fiscal Choice Consulting Jason Baxendale Mark R. Davis Loyola University Chicago Greg Wass Kathy and Scott Stanton The Chicago Community Trust O’Keefe Lyons & Hynes, LLC Gregory J. O’Leary Jill Wolowitz Marcus Wedner UL LLC Albert C. Hanna Chesley, Taft & Associates LLC Health Care Service Corporation Lance Weiss Union League Club of Chicago Brian A. Bernardoni Nancy DeMaso Steven Weiss Chicago Association of REALTORS® Illinois Eye Institute, Illinois College Kevin W. Hoecker University of Illinois at Chicago Robert Pasin The Hon. Corinne Wood Paul Wierbicki William C. Kunkler, III of Optometry RBC Capital Markets, LLC Radio Flyer Inc. Civic Federation Trustee Lester Crown, Jeffrey Bethke Paul Williams John L. Wilhelm, M.D. Kevork M. Derderian Jason Horwitz 2018 civic John A. Canning and Civic Federation DePaul University Donovan W. Pepper Kevin Wrenn Continental Offices Ltd. Anderson Economic Group Walgreen Co. federation council foundation Chairman Kent A. Swanson. Roger H. Bickel The Civic Federation also gratefully Freeborn & Peters LLP Duane M. DesParte Gregory C. Hosbein partners Samuel L. Persico Catherine Adduci acknowledges the following supporters Segall Bryant & Hamill The John Buck Company Scott A. Bremer Jon B. DeVries Bridget Anderson and foundation partners for their financial The Chicago Community Trust Hardwick Law Firm Margaret Houlihan Smith Sylvia Puente Karen Atwood support and encouragement of our work: Commercial Club Foundation Charles R. Droege United Latino Policy Forum Ed Bachrach Crown Family Philanthropies Whitney Carlisle Baker Tilly McKim Barnes O’Keefe Lyons & Hynes, LLC Lori H. Igleski supporters The Lloyd A. Fry Foundation Anthony T. Reinhart William Bennett Michelle Dukler MB Financial Bank, N.A. Abbott Robert R. McCormick Foundation Ford Motor Company Alicia Berg Cason Carter The Grove, Inc. Allstate Insurance Company The John D. and Catherine T. Aileen Blake Citadel LLC Mark Ishaug Aaron C. Rudberg Aon Foundation MacArthur Foundation Arthur Duquette Thresholds Myer Blank S2G Ventures APCO Worldwide Motorola Solutions Foundation Victor Chang Greg Carlin Baird Capital Wells Fargo Brian D. Fabes John A. Janicik Scott Saef Peter E. Coburn Civic Consulting Alliance Mayer Brown LLP Blue Foundation Sidley Austin LLP Steven Collens Timothy L. Christen The Boeing Company John Czulno Baker Tilly Clayton Frick William Ketchum Lois Scott Bluestein & Associates Deloitte Services LP Amy Day Epoch Advisors Bowe Stewart Foundation Robert J. Christie Jim Kranjc Rolanda Derderian Bucksbaum Retail Properties Northwestern Memorial Hospital Stephen B. Friedman Ryan LLC Harry J. Seigle Julian D’Esposito SB Friedman Development Advisors Rita and John Canning The Elgin Company Martin Eisenberg Richard Ciccarone Catherine Krawitz Chicago Botanic Garden Jeff Emme Merritt Research Services Charles R. Gardner BMO Global Asset Management Brian Septon Chicago Urban League Timothy J. Faerber CDCT Land Company, LLC The Terry Group Chicago Zoological Society Steve McClure II, Civic Federation Board Jerry H. Cizek III Liam Krehbiel John B. Filan Crain Maling Foundation Members Daniel C. Sprehe and Anthony G. Gedeller A Better Chicago Stephen R. Smith Michael Fox Wm. Wrigley Jr. Company James & Catherine Denny Foundation Monica Mueller, Steve McClure. Amsted Industries Donald B. Franklin Dan Leary Deutsche Bank America Foundation T-Mobile Carol Garnant

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