Tag Archives: Alderman Scott Waguespack
Documents Show Hidden Cost Of Lease Deal To Taxpayers
While Chicago’s infamous parking meter lease deal quietly celebrated its third anniversary the first week of December, the city was releasing documents chronicling more evidence the privatization of the city’s more than 36,000 parking meters turned out to be more costly for taxpayers than originally imagined.
Financial statements, released by the Chicago Inspector General’s office via their Open Chicago government transparency initiative, reveals what many critics of the lease deal had feared–the city would end up owing or paying Chicago Parking Meters, LLC millions of dollars in compensation when any sort of change or activity by the city impacts parking meter revenue for the company.
Financial statements for the company show that CPM has billed the city an additional $2,191,326 in “True-up Revenue” through the end of 2010.
As the notes from the independent auditor’s report by accounting firm KPMG LLP to the financial statements explains:
Normally, trends start in LA or New York and a decade or two later, finally make it to Chicago.
But in at least one regard, it seems Chicago is a real trend setter.
Just under two years ago, Mayor Daley made Chicago the first city in the nation to privatize it’s parking meter system.
Now other cities are following suit.
Currently, Pittsburgh seems ready to pull the trigger on a 50 year meter lease for $452 million.
Los Angeles, nearby Indianapolis and a handful of other cities have been mulling over the idea as well.
But now, it looks like the nation’s largest city, New York City, may follow Chicago’s lead as well.
According to a story in Monday’s New York Post, the Big Apple is considering selling off its 54,000 plus meter system, estimating it could generate an upfront payment of $5 billion.
But former Indianapolis mayor and now deputy mayor for NYC Steven Goldsmith says the city won’t be rushed into a deal that would dry up a revenue stream that produced $138.9 million in revenue in 2009.