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2017 Budget
The management ordinance and all other items on the Budget Committees agenda passed
unanimously by voice vote. Ald. Scott Waguespack (32) made an attempt to remove a
provision in the four year contract extension with a private company that owns the rights to
the citys network of digital billboards, but he was shut down by Vice Chair Jason Ervin (28)
who said his motion was out of order. Ald. Waguespack and Ald. John Arena (45) raised
concerns that a provision in the renewed contract eliminated Council oversight of any future
changes made over the life of the contract, set to expire in 2035.
Ald. Arena pointed to a section within the ordinance (Section 13.5) giving the citys Chief
Financial Officer and the Commissioner for the Department of Transportation the authority to
execute changes to the agreement in consultation with JCDecaux without the consent of City
Council.
That language effectively eliminates City Council oversight of this contract, Ald. Arena
argued. I think that provision needs fundamentally to be removed. If we have a reason to
exist, it is to look at large contracts and to the changes that would be made.
CFO Carole Brown and Budget Director Alex Holt said both aldermen had misinterpreted the
provision. The idea of this was not to give anyone the broad power to change the nature of
the contract, Brown testified. It was just for expediency purposes and efficiency purposes to
get to the end of implementing the contract [...] any changes would have to stay within the
spirit and the materiality of the existing agreement that had been approved by Council.
Progressive Caucus Members Vote Against Revenue Ordinance Over Catalyst Fund
Transparency Concerns
by A.D. Quig ad@thedailyline.net
Three members of the Progressive Caucus voted against the Revenue Ordinance for the FY
2017 budget Monday, citing transparency concerns with the proposed Community Catalyst
Fund. It was the days only roll call vote, and the item ultimately passed, 18-3. All other items,
including the $1.35 billion property tax levy for FY2017, new parking meters and rates, and
changes to the citys plastic bag tax, also passed the committee. An expected direct
introduction from Ald. Patrick D. Thompson (11) loosening restrictions on flavored tobacco
sales near schools was held.
Attendance: Chairman Ed Burke (14), Pat Dowell (3), Leslie Hairston (5), Roderick Sawyer (6),
Greg Mitchell (7), Anthony Beale (9), George Cardenas (12), Marty Quinn (13), David Moore
(17), Derrick Curtis (18), Matt OShea (19), Willie Cochran (20), Howard Brookins Jr. (21), Rick
Muoz (22), Danny Solis (25), Walter Burnett Jr. (27), Jason Ervin (28), Ariel Reboyras (30),
Scott Waguespack (32), Emma Mitts (37), Nick Sposato (38), Marge Laurino (39), Pat OConnor
(40), Tom Tunney (44), John Arena (45), Harry Osterman (48), Deb Silverstein (50)

Catalyst Fund Debate


Aldermen Rick Muoz (22), Scott Waguespack (32), and John Arena (45) were the sole no to
votes on the revenue ordinance, which ultimately passed, 18-3. Their criticism focused on the
creation of the Community Catalyst Fund. Waguespack and Arena spent roughly two hours
quizzing City Treasurer Kurt Summers, Budget Director Alex Holt, and CFO Carole Brown on
appointments to the Funds Board, investment returns, and whether the funds activities
would be subject to Freedom of Information Act (FOIA) requests, the states Open Meetings
Act, and oversight from Inspector General Joe Ferguson. While the Catalyst Fund was

Summers pitch (he still refers to it as Fund 77 on social media), he often deferred questions
to Holt, Brown, and the Law Departments Jeff Levine.
Brown said even though the Catalyst Fund involved private actors, she didnt believe there
was any ambiguity about oversight. If the Treasurer makes an investment in the Catalyst
Fund, then that investment is subject to FOIA just like every other investment the Treasurer
makes. Summers said all of his investments are subject to IG audit and investigation.
A representative from the Office of the Inspector General was less certain, saying theyd have
to wait and see the final version to figure out exactly how much oversight the office has.
On its face, there are a number of potential bases for OIG oversight jurisdiction, both
investigative and audit, respecting the newly proposed Community Catalyst Fund,
spokesperson Pricilla Gutierrez told The Daily Line via email. However there appear to be a
number of structural distinctions from the existing Microlending program over which OIG has
oversight jurisdiction and some aspects vaguely reminiscent of the Chicago Infrastructure
[Trust] which was devised in a manner that did not provide for comprehensive OIG oversight.
The three Progressive Caucus members were quick to reference the shortcomings of the
Chicago Infrastructure Trust (CIT) and the citys TIF system in the hearing. The CIT, created by
the Emanuel administration in 2012 to tap into funding from private investors for
infrastructure projects, has been criticized for falling short of its lauded mandate, and was
revamped in 2015. Critics have argued the TIF program hasnt met its goal to spur
development in needy neighborhoods. As Ald. Arena put it, the TIF program had great
intentions but weve seen it wander off the path. The Caucus is now sponsoring a Back to
Basics TIF reform ordinance.

Arena said he worried the city wouldnt get its return on investment, or take on greater risk
than private investors. I wont support this unless I know 100% and its answered 100% that
were an investor, as any other investor out in the free world, that would come into this fund,
put its money on the table, and get the amount of money back that every other investor
would get. That is the core of my concern here.
Summers replied, All dollars are invested equally, and there will be no separate return,
separate projects, for any non-public dollars. Theyll be invested in exactly the same terms
and conditions as the public dollars. I want to be 100% clear on that. He said the goal is to
bring greater investment in areas where there is bigger perceived risk, but not real risk. City
officials emphasized there would be no direct investment from the fund. More details in our
previous reports covering the Budget Directors testimony and Summers testimony.
Arena and Waguespack sounded off about appointments to the Funds two boards as well. The
seven-member Board of Directors would be chaired by the Treasurer, and would include the
Commissioner of the Department of Planning and Development, the citys CFO, and four other
members. The Treasurer would put together a list of 10 potential candidates to fill those four
spotsbut the mayor could choose to take or leave those recommendations. The positions are
unpaid and subject to City Council approval.
A seven-member Advisory Board would also be established. It would include three aldermen
chosen by the City Council, and four other members chosen by the Board of Directors. Those
appointments arent subject to City Council approval.
I went to the item that I had the most concern about, Arena told reporters when asked why
he didnt grill officials about any other revenue items. Were creating a new entity for city
money to be invested in a unique way. I applaud the Treasurers creativity, but we need to
make sure when were being creative with public dollars that we also have a commensurate

level of oversight so that we can make sure we can pull back from the brink if were going into
investments that are unsound or if its getting off track.

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