On November 7, 2009, Alderman Scott Waguespack introduced an ordinance that would provide specific guidelines for future privatization efforts by the city.  This legislation aims to ensure that proposed privatization of a public asset should be done with goals in mind that extend beyond maximizing the initial payout for the asset, and that current and future taxpayers get fair value for the asset.

The impetus for this ordinance stems from the privatization of the parking meter system, in which the city leased its parking meters for 75 years for a fraction of its value and has already spend a majority of the revenue two years into the lease.  Currently, the ordinance is pending in the Committee on Finance.  Provisions of the Asset Lease Taxpayer Protection Ordinance include:

  • Increased transparency through public meetings and notification requirements
  • Third party valuation
  • Lease length limits and reassessment periods

Files

Asset Lease Taxpayer Protection Ordinance

Illinois PIRG Report – Privatization and the Public Interest

Inspector General Report – Analysis Of The Lease Of The City’s Parking Meters

32nd Ward Parking Meter Privatization Assessment