Chicago Mayor Emanuel Officially Proposes Utility Tax for Pension Funding

Though sources confirmed Rahm Emanuel’s proposal earlier this week, the Chicago mayor on Wednesday officially unveiled his proposal to raise utility taxes to generate revenue for pension contributions to the city’s largest funds.

The tax will hit water and sewer bills, and is expected to raise in the neighborhood of $230 million annually.

From NBC Chicago:

In a speech to investors Wednesday, Emanuel suggested applying a tax on the city water and sewer bills under a plan that would increase the utilities by close to 30 percent over the course of four years.

By the end of the four-year phase, the average homeowner would pay an additional $226 per year, the Tribune reports, or close to $38 on each bill.

Emanuel believes the new tax will help stabilize the city’s pension fund. With the new revenue source, the city could raise close to $239 million a year to help reduce the multi-billion dollar municipal workers fund that the city of Chicago owes.

The mayor says he will seek a City Council vote on the water and sewer tax in September.