Chicago mayor prepares large property tax hike

A preliminary budget released last month showed a gaping budget shortfall for 2016 that could grow to $754 million and beyond, which some say is enough to force Emanuel to raise property taxes.

Details of his budget proposal have been leaking out in recent weeks with aldermen expecting a proposed property-tax increase of $ 500 million and an expansion of various fees and taxes.

For next year, Chicago faces a $550 million increase in annual payments to the police and fire pension funds alone that are required by the state to start putting the retirement systems on a path to solvency.

According to the Mayor’s Press Office, a $544 million increase would be phased in over four years, starting with $318 million this year. That would bring in about $30 million, with $25 million to help the city balance its books and the rest to help taxis expand their fleet of wheelchair accessible vehicles. The 2018 tab would go up by another $53 million, and the 2019 bill by $63 million.

The plan comes amid a spike in homicides in Chicago.

Emanuel is also expected to increase taxes on e-cigarettes, but that would produce a relatively meager $1 million, with that designate to support community health services as well.