Aldermen call special meeting over how to spend $75 million parking meter payment

Three Chicago City Council leaders have called a special council meeting for Monday to decide how the city spends the $75 million up-front payment from the sale of its parking meters, a dispute that could open a $75 million gap in Mayor Brandon Johnson’s proposed 2027 budget.^{1, 2} The Chicago Sun-Times first reported the call for the meeting.¹

The disagreement

The council approved Stonepeak Partners’ $2.53 billion purchase of the parking meters last month by a 46-3 vote, with the money earmarked for pensions.^{1, 2} The compromise that sweetened the deal requires a $75 million transfer fee at closing, 5% of net income going forward, and 2% of the sale price if the meters are sold again before the deal ends in 2084, according to the Sun-Times.¹

Johnson’s budget applies the $75 million toward the $363 million pension advance for 2027, as part of that payment rather than in addition to it.^{1, 2} Finance Committee Chair Pat Dowell of the 3rd Ward, Scott Waguespack of the 32nd and Nicole Lee of the 11th, who negotiated the compromise, want an ordinance directing the money to the 2026 budget as an extra pension payment instead, the Sun-Times reported.¹ Adopting that approach would create a $75 million gap in the mayor’s budget, both outlets reported.^{1, 2}

The council leaders’ case

The aldermen say the September ordinance left it to the council to decide how the money would be used.¹ “Our goal was always to use this money to reduce our pension liability - not to maintain a steady level,” Dowell told the Sun-Times.¹ Asked how the gap would be filled, she said, “That’s not my problem.”¹

“It’s clear in the legislation we passed for the parking meter deal that the city council would decide that,” Lee told the Sun-Times.¹ Waguespack told ABC7 Chicago that the council had “a very specific purpose for the 75 million” and that the budget should follow it.² Members of the Budget Accountability Coalition joined the call for the special meeting, ABC7 reported.²

The mayor’s case

Johnson said the deal gave the city “the option” to use the $75 million “in a variety of ways,” according to the Sun-Times.¹ He said the original language was not specific about how the money should be applied, ABC7 reported.²

“If the city council decides to use their authority to put an additional $75 million on top of the supplemental payment, of course, again that is their prerogative,” Johnson said, according to ABC7.² He added that his office was talking with alderpersons every day.¹ “I look forward to continuing collaboration with the members of city council, the people of Chicago, to pass our budget,” he said.²

The wider budget

Johnson’s proposed $17.6 billion budget relies on $480 million in borrowing to cover police settlements and $664.2 million in new and increased taxes, according to the Sun-Times.¹ Some alderpersons have threatened to reject his proposed corporate head tax for a second year.¹