Emanuel to call for almost $600 million property tax hike

Chicago Mayor Rahm Emanuel will propose raising property taxes by $543 million over the next four years to help cover soaring pension-fund costs that have triggred downgrades to the city’s bond rating.

Eleven of the 50 aldermen who call themselves progressives have lined up in support of a plan to send a rebate check to lower and middle class homeowners who will get whacked with a huge property tax hike.

As escalating pension payments push Chicago’s finances deeper into the red, Emanuel is hoping Illinois lawmakers will stretch out payments to its public safety worker retirement funds. That will be followed by an additional $109 million in 2016, $53 million in 2017 and $63 million in 2018. It is yet unclear whether Republican Governor Bruce Rauner would sign the measure into law. The mayor has been working with the Democratic leadership in Springfield to expand the tax exemption, which would allow any resident with a home valued at $250,000 or less to be exempt from paying additional property taxes for police and fire pensions. A spokesman for the mayor said details of his proposed budget are scheduled for release Monday afternoon ahead of Mr. Emanuel addressing the City Council on Tuesday. At the same time, revised building permit fees would raise $13 million, while beefed-up debt collection would capture $23.4 million.

A $5 fee for ride-sharing companies when they pick up or drop off fares at McCormick Place as well as Midway and O’Hare airports, to which the budget would give the transportation companies access authorization.