City Council - 2025-12-19
Meeting Intelligence Preview
Meeting Summary
The Chicago City Council passed the substitute 2026 municipal code revenue ordinance alternative by a vote of 29-19, authorizing various tax and fee increases including business license fees, driveway fees, bed taxes, and streaming taxes. The council also approved $1.8 billion in general obligation bonds (39-11) and a bond refunding ordinance (50-0). Budget items including 19 ward fund transfers passed unanimously (49-0).
Key Decisions (4)
2026 Municipal Code Revenue Ordinance Alternative
Substitute revenue ordinance amending titles 1, 3, 4, 7, 8, 9, 10, 11, 14a, 14b, 14x, and 15 of the municipal code. Includes business license fee increases from $250 to $500, driveway fees, 15-cent bed tax, streaming tax, and aggressive debt collection measures. Introduced by Alderman Matt O'Shea and others.
2026-2027 General Obligation Borrowing Ordinance
Authorization for $1.8 billion in new general obligation debt to cover firefighter back pay, lawsuit settlements, and capital needs. Alderman Conway opposed, noting city already has $40 billion unfunded pension liability and $25 billion outstanding debt.
General Obligation and STSC Bond Refunding Ordinance
Ordinance regarding issuance of city general obligation bonds and/or sales tax securitization corporation sales tax revenue bonds for refunding outstanding general obligation bonds and/or sales tax revenue bonds.
Ward Fund Transfers for 2025
Series of 19 transfer funds within wards 1, 14, 21, 22, 33, 34, 36, 39, 40, 41, 46 and various committees for year 2025.
Market Signals (4)
Sentiment
Business community expressed concern that both budget proposals are difficult for businesses, with the Chicagoland Chamber of Commerce noting businesses face taxes at a 4-to-1 margin compared to other revenue sources.
Commercial Demand
Illinois Retail Merchants Association warned that aggressive debt collection and business taxes could drive employers out of neighborhoods, potentially reducing commercial activity.
Housing Demand
Public comments highlighted property tax concerns and displacement of residents, with speakers noting difficulty maintaining home ownership due to rising taxes.
Other
Hemp industry representative supported Mayor Johnson's proposed $2 per item tax on hemp products with testing standards and 21+ restrictions, indicating regulatory framework development for this sector.