Chicago residents will soon have to pay higher taxes on their water-sewer bills to help save the city’s largest pension fund from going bust. Proceeds will go to the city’s financially troubled municipal workers pension fund. “That’s what we’ve done in Chicago for decades and it’s the reason Chicago has the worst credit rating of any city other than Detroit”.
Advertisement
The tax increase will take effect early next year. It will cost households $53 on average in 2017, according to data provided by the city.
City Council members voted 40-10 on Wednesday to approve the almost 30 percent tax.
After the vote Emanuel commended aldermen for having “collective courage” to approve the tax.
With the new tax in place, the fund is expected to be 90% funded by 2057.
Some aldermen have raised concerns that even with the new tax revenue, the city will be short $300 million in 2023.
Advertisement
The fund is now only 32% funded, meaning it has 32 cents for every dollar it owes.
