The Next Detroit...

...also historically run by libtards.
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City of Chicago’s cash cushion plummets, debt triples, arrests drop, water use rises
BY FRAN SPIELMAN City Hall Reporter/fspielman@suntimes.com July 26, 2013 9:10PM
Mayor Rahm Emanuel closed the books on 2012 with $33.4 million in unallocated cash on hand — down from $167 million the year before — while adding to the mountain of debt piled on Chicago taxpayers, year-end audits show.

Last week, Moody’s Investors ordered an unprecedented triple-drop in the city’s bond rating, citing Chicago’s “very large and growing” pension liabilities, “significant” debt service payments, “unrelenting public safety demands” and historic reluctance to raise local taxes that has continued under Emanuel.

The 2012 city audits explain why. They show that an unallocated balance that was $167 million a year ago because of Emanuel’s aggressive cost-cutting efforts has dropped to $33.4 million.

Budget Director Alex Holt blamed the $133.6 million drop on “honest” budgeting and ending the long-standing practice of carrying “ghost” vacancies.

“We’re trying to be more transparent about what we’re really spending and taking in — not just carrying a bunch of people who took up money in the budget and left money on the table at the end of the year,” Holt said.

“Let’s be straightforward about what we’ve got to spend and not pretend we’re gonna hire for a position we haven’t hired for, who know how many years when those resources are need to provide other services. ... This is about matching revenues with expenses. You don’t want to over-tax people.”

In last week’s report, Moody’s noted that the city’s total fund balance at the close of 2012 was $231.3 million and that Chicago has just $625 million in “leased asset reserves.” Had the city fully funded its $1.5 billion “actuarially required contribution” to its four under-funded city employee pension funds in 2012 alone, “these two reserves would have been entirely depleted,” Moody’s said.

The “unassigned” balance is $33.4 million. Experts recommend a cash cushion of at least $200 million for a budget the size of Chicago’s, according to the Civic Federation. The city ended 2009 with an unallocated checkbook balance of just $2.7 million.

The new round of borrowing brings Chicago’s total long-term debt to nearly $29 billion. That’s $10,780 for every one of the city’s nearly 2.69 million residents. More than a decade ago, the debt load was $9.6 billion or $3,338 per resident.

Last year, now-retiring City Comptroller Amer Ahmad argued that the city’s debt load was not “troubling” because, “We still have a very strong bond rating. Our fiscal position is getting better every year and we are aggressively managing our liabilities and obligations.”
He can no longer say that after the triple-drop in Chicago’s bond rating.

The audits by the accounting firm of Deloitte & Touche provide a treasure trove of information about city finances and operations.

Interesting nuggets include:

■ The number of “physical arrests” by Chicago Police officers declined again — from 152,740 in 2011 to 145,390 in 2012. That continues a six-year trend that coincides with the hiring slowdown that caused a dramatic decline in the number of police officers. Police made 227,576 arrests in 2006. The number of arrests has been dropping like a rock ever since.

The Chicago Police Department has long argued that it doesn’t measure the success of crime-fighting strategies simply by the number of arrests.

■ Emergency responses continued their steady rise — to 472,752. That’s up from 300,971 in 2006.

■ O’Hare Airport operating revenues were up by $23.2 million, a 3.3 percent increase, thanks to rising terminal rental and use charges. Operating expenses rose $19.1 million because of rising personnel and contracting costs. Airline ticket taxes known as “passenger facility charges” generated $154.5 million in 2012.

The number of passenger “enplanements” rose by a modest 37,000 — to 33.24 million. That’s despite a continued decline by O’Hare’s two largest carriers — from 8.7 million passenger boardings in 2011 to 7.4 million in 2012 at United Airlines and from 7.6 million to 7.2 million by American.

In 2003, United and American together accounted for 67.7 percent of O’Hare enplanements. Now, it’s just 44 percent.

■Budget-oriented Midway Airport is thriving, spelling potentially good news if, as expected, Emanuel chooses to revive the $2.5 billion deal to privatize Midway that collapsed for lack of financing.

Midway boardings rose from 9.45 million in 2011 to 9.78 million last year. Operating revenues were up just $462,000 because of decreased landing fees and terminal use charges. That’s even though concession revenues rose by $1.8 million due to an increase in parking, restaurant and auto rentals. Operating expenses rose by $4.2. Ticket taxes generated $43.9 million.

■The 55 percent subsidy to retiree health care that Emanuel wants to phase out and retirees are suing to maintain cost the city $97.5 million in 2012.

■ Daily refuse collections declined from 3,983 tons in 2011 year ago to 3,763 in 2012. Last year’s 52-ton increase had reversed a five-year trend. The amount of garbage generated by the 600,000 Chicago households was 4,451 tons a day in 2006 to 4,240 in 2008.

■Thanks to last year’s record heat and drought conditions, average daily water consumption rose by 23 million gallons — to 793 million gallons — reversing a steady decline. In 2006, Chicago’s 1.04 million households were guzzling 884.9 million gallons-a-day. Operating revenues in the city’s water fund were up by $122.1 million or 29.6 percent, thanks to Emanuel’s 25 percent increase in water rates.

■ Chicago’s 165 tax-increment-financing districts had a collective balance of $1.5 billion. Most of that money is uncommitted, fueling an aldermanic demand Emanuel has rejected: to declare a TIF surplus and use the money to reduce some of the 3,000 layoffs at Chicago Public Schools.

■ The condition of Chicago’s four city employee pension funds is growing ever more precarious. The firefighters pension fund has assets to cover just 25 percent of liabilities, followed by: Police (31 percent); Municipal Employees (38 percent) and Laborers (56 percent).

■Chicago’s historical collections and works of art are valued at $13.2 million.

■ Chicago’s principal private employers were: J.P. Morgan Chase (8,168 workers); United Airlines (7,521); Accenture LLP (5,590; Northern Trust (5,448); Jewel Foods (4,572) and Ford Motor Co. (4,187). The 2012 city payroll was 33,708 — down from 40,297 in 2006.

By July 31, Emanuel must release a preliminary city budget. It’s almost certain to include another massive deficit — strengthening the city’s case in contract talks with city unions — that will have to be closed with more layoffs, service cuts and new revenues.

Emanuel’s 2013 budget held the line on taxes, fines and fees — beyond those set in motion the year before and annual increases in parking meter rates locked into the 75-year lease. The mayor also eliminated 275, mostly-vacant jobs while making strategic investments in tree-trimming, rodent control and children’s health and after-school programs.

But, aldermen warned that it was the calm before the storm: a painful solution to the city’s pension crisis that will require both new revenues and concessions from city employees. Former Mayor Richard M. Daley postponed Chicago’s day of reckoning by balancing his final budget with $330 million in Skyway and parking meters reserves and other short-term fixes. That left just $76 million remaining from the widely-despised, 75-year, $1.15 billion deal that privatized Chicago parking meters.

http://www.suntimes.com/21552920-761...use-rises.html

Union boys have to eat.

This is what happens when the takers out number the givers.

Welfare is a hell of a drug.

Former RNC Chairman and Mississippi Governor Haley Barbour coined the phrase "taking coalition" to describe this unholy alliance between labor unions/progressives/civil rights activists/social justice advocates/etc. They have no interest at all in producing anything, just taking and redistributing things that others produce. It is the reason they exist. The Pilgrims had the right idea. Those that don't farm during the summer, starve during the winter.

A couple of years ago, the Illinois governor, the one that is not yet in jail like 3 others, proposed a state budget that contained a line item for income from a federal bailout, i.e. a payment from the other responsible taxpayers to fund Illinois' folly.

Big urban cities have become havens for low achieving, under-educated, lawless, drug-addicted takers and the corrupt politiians who pander to them.

Isn't it inspiring to see the joy that the misguided dickweeds on here take in the Detroit bankruptcy? Truly, what a wonderful thing for all involved....you guys can blame the auto unions, even though the auto industry has been gone from Detroit for a couple of generations. You can blame the democrats while ignoring or denying the role the republicans have taken in trashing our national economy over the past 25 years.

You can rejoice in the fact that firefighters and police officers, who loyally served the city of Detroit, putting their lives at risk, for 20, 30 or 40 years are now, in their old age, the ones who are most likely in the position of probably losing their already very modest pensions. Isn't that a great thing and doesn't it just make you feel all proud of yourself to post stuff like this up? It is really cool of you to do that. Aren't you proud?......and you ought to keep posting up stupid shit like this, just so we can continue to know how proud and happy and uncaring and stupid you really are.

Thanks.

You can rejoice in the fact that firefighters and police officers, who loyally served the city of Detroit, putting their lives at risk, for 20, 30 or 40 years are now, in their old age, the ones who are most likely in the position of probably losing their already very modest pensions.
Thanks. Originally Posted by timpage

Actually, you need to "thank" the steady and unbroken DEMOCRAT party controlled City government over the last 52 years for the lost of their pensions. But hey, thanks for playing tim.

Actually, you need to "thank" the steady and unbroken DEMOCRAT party controlled City government over the last 52 years for the lost of their pensions. But hey, thanks for playing tim. Originally Posted by RedLeg505

Funny how pyramid schemes work...OH SHIT

I guess we can thank Rudy Guilani for saving New York City....so that Bloomberg can destroy it. Too bad Detroit and Chicago didn't have a Rudy to save them.

Isn't it inspiring to see the joy that the misguided dickweeds on here take in the Detroit bankruptcy? Truly, what a wonderful thing for all involved....you guys can blame the auto unions, even though the auto industry has been gone from Detroit for a couple of generations. You can blame the democrats while ignoring or denying the role the republicans have taken in trashing our national economy over the past 25 years.

You can rejoice in the fact that firefighters and police officers, who loyally served the city of Detroit, putting their lives at risk, for 20, 30 or 40 years are now, in their old age, the ones who are most likely in the position of probably losing their already very modest pensions. Isn't that a great thing and doesn't it just make you feel all proud of yourself to post stuff like this up? It is really cool of you to do that. Aren't you proud?......and you ought to keep posting up stupid shit like this, just so we can continue to know how proud and happy and uncaring and stupid you really are.

Thanks. Originally Posted by timpage

C'mon, TP, you really need to try harder than you've been lately. I'm starting to wonder if you haven't given your login info to Assup to post in your name. Typical deflection, you're seriously going to bring up Republicans in a post about Detroit?? They're probably outnumbered 10-1 in that city.

Who's rejoicing?? This is a tragedy for all involved, but only a moron couldn't have seen this coming for the last couple of decades. This is absolute proof that you get the government you deserve.

Gone from Detroit?? You might double-check your source on that...

GM.jpg

General Motors Company
300 Renaissance Center
Detroit, MI 48243

You can rejoice in the fact that firefighters and police officers, who loyally served the city of Detroit, putting their lives at risk, for 20, 30 or 40 years are now, in their old age, the ones who are most likely in the position of probably losing their already very modest pensions.

You may want to reclaim this. It is very rare for a firefighter or police officer to stay on the job for 40 years or even 30 years. Most earn a pension after 20 years and take it. Not say that some stay on the job and we appreciate their sacrifice but their leadership put them in this position, not the city, and not the citizens. This should be between them and their union leaders who apparently screwed them over. Here is a link to an almost 30 year guy. He gets by on $34,000 a year which isn't too bad for a pension when by this time you should have saved some money of your own, paid off your house, and only have healthcare and day to day costs to deal with. He also has his social security....or does he? He only gets $200 a month because of a deal made by his leadership again.

http://finance.yahoo.com/news/retire...122300452.html

Lets get back on track. This has nothing to do with the car companies. They're private even after the bailout. This is about public unions. Not just the fire fighters or policemen but the office workers, the meter maids, the Mayor's assistant, the librarians, etc. You know, the people who negoiated with themselves for benefits. The people were never represented and now the bank is empty. They have no one to blame but themselves. Their votes for fiscally stupid politicians, their support of pensions, their acceptance of corruption, and their faith that they would get bailed out when the well ran dry. Not very much sympathy for them.

Just in case you don't want to point it out, here is an excerpt:

Detroit Emergency Manager Kevyn Orr has warned there "must be significant cuts" in pensions for both active workers and retirees. Newberry acknowledges everyone will probably have to take a "haircut," but says he and his fellow firefighters and their families shouldn't suffer from the city's fiscal mismanagement.

Isn't it inspiring to see the joy that the misguided dickweeds on here take in the Detroit bankruptcy? Truly, what a wonderful thing for all involved....you guys can blame the auto unions, even though the auto industry has been gone from Detroit for a couple of generations. You can blame the democrats while ignoring or denying the role the republicans have taken in trashing our national economy over the past 25 years.

You can rejoice in the fact that firefighters and police officers, who loyally served the city of Detroit, putting their lives at risk, for 20, 30 or 40 years are now, in their old age, the ones who are most likely in the position of probably losing their already very modest pensions. Isn't that a great thing and doesn't it just make you feel all proud of yourself to post stuff like this up? It is really cool of you to do that. Aren't you proud?......and you ought to keep posting up stupid shit like this, just so we can continue to know how proud and happy and uncaring and stupid you really are.

Thanks. Originally Posted by timpage

When it comes to dangerous jobs, cops and fireman are not even in the top ten most dangerous.
Your typical fireman starts in the dept at 19, retires at 50, and then spends more time drawing a pension that time actually working.

Somebody has to pay for that type of set up. The problem with Detroit and a multitude of other big cities is there simply are not enough left to pay.

Your typical fireman starts in the dept at 19, retires at 50, and then spends more time drawing a pension that time actually working.

Somebody has to pay for that type of set up. The problem with Detroit and a multitude of other big cities is there simply are not enough left to pay. Originally Posted by Jackie S

You could just as easily have said:

Your typical soldier enlists in the military at 19, retires at 40, and then spends more time drawing a pension than time actually working.

Somebody has to pay for that type of set up. The problem with the military is there is simply not enough left to pay.

According to your theory, we should just let soldiers, policemen and firemen make it on the own!

C'mon, TP, you really need to try harder than you've been lately. I'm starting to wonder if you haven't given your login info to Assup to post in your name. Typical deflection, you're seriously going to bring up Republicans in a post about Detroit?? They're probably outnumbered 10-1 in that city.

Who's rejoicing?? This is a tragedy for all involved, but only a moron couldn't have seen this coming for the last couple of decades. This is absolute proof that you get the government you deserve.

Gone from Detroit?? You might double-check your source on that...

Attachment 235634

General Motors Company
300 Renaissance Center
Detroit, MI 48243 Originally Posted by EXTXOILMAN

typical timmytard hypocritical asshat mentality. what would it take for you and assup the troll to realize what a failure the social democratic policies have been? and now you have the ultimate Socialist in the White House and look at the results. this guy Obammy as a Socialist makes even Billy and Hilly Clinton proud, and that's saying something. and EXTXOILMAN is right, you seem to have run out of anything relevant to say lately. must be that frustration again. lol. you just can't impress us that you are the smartest hooktard on ECC. hope the burden's not keeping you up at night. maybe that dip in Barton Springs with assup will rejuvenate you.

You could just as easily have said:

Your typical soldier enlists in the military at 19, retires at 40, and then spends more time drawing a pension than time actually working.

Somebody has to pay for that type of set up. The problem with the military is there is simply not enough left to pay.

According to your theory, we should just let soldiers, policemen and firemen make it on the own! Originally Posted by bigtex

No, I just do not think they are owed any more than any other hard working citizen.

No, I just do not think they are owed any more than any other hard working citizen. Originally Posted by Jackie S

Apparently you and I look at things differently. I personally view public servants (military, fire, police and teachers, to name just a few) as hard working citizens who probably would have received considerably more compensation had they chosen a different field. Instead they chose to serve the public for less pay. Taking care of our public servants in their later years seems to me to be the least that we can do for them. I view it as an integral part of their overall compensation package and is completely justified. I do not believe we are giving them anymore than what they deserve.

You act as though it is a free ride and as the son of a 30+ year educator, I strongly disagree!

Well TEX (if that's your real name) a person can serve in the military and wonder where they're going to lay their head down at the end of the day or they can get on with the fire department and go home nearly every night. A military person has little choice where they go or what they do after signing their name on the line. A fire fighter can just quit if he (or she) is asked to do something they consider too dangerous. They could probably just refuse to do it and get suspended (not jailed like a soldier). In this case the fire fighters union leaders took them out of the social security web (that means they got to keep that extra 12.4%) but the retired soldier can get social security when he reaches the right age. Once again, this is the fault of the leadership and not the taxpayer.