STATEMENT FROM COMPTROLLER ERIN KEANE ON 2019 BUDGET PROPOSAL TO THE CITY COUNCIL

COMMITTEE ON BUDGET AND GOVERNMENT OPERATIONS

Monday, October 22, 2018

Good morning, Chairman Austin, Vice-Chairman Ervin, members of the Committee, and members of City
Council. Thank you for the opportunity to appear before you today and to participate in these budget
hearings.

I feel lucky to continue serve you and the public and to lead the dedicated staff of the Department of
Finance (DOF). The department operations include paying city vendors, enforcing parking regulations,
collecting revenue, billing for utilities, administering tax code, managing employee benefits, issuing
payroll and accounting for and reporting the city’s finances. We are not perfect, but we work hard and
strive for continuous improvement. That said I would like to share some highlights from the past year.

PROCESS IMPROVEMENTS AND EFFICIENCIES

Over the past year, DOF has worked to expand the functionality of existing technology and invest in new
technology where needed to improve processes, become more efficient, improve accountability,
increase revenue or decrease cost.

Street Operations
During the budget hearing last year, we talked about new handhelds devices and predictive analytics
software for our Parking Enforcement Aides. The project was delayed by a few months, but we expect
the new system to be rolled out before the end of the year. The purpose of the new system is to use
data to efficiently direct enforcement personnel toward areas where it is most needed. The software
will not only increase the effectiveness of the PEAs in the field, but will also improve the accuracy of
tickets with real-time data feeds. Currently, we analyze historic enforcement data without waiting for
that technology, and continue to allocate resources based on concerns by residents and businesses
about compliance with the City’s parking laws and restrictions.

Technology has also allowed us to partner with the Chicago Police Department to receive a daily upload
of the State of Illinois Police stolen vehicle file into our Boot vans. The boot vans are driven throughout
the city and are now able to collect information on the location of stolen vehicles as they drive. Since
beginning this program in March, we have reported over 775 stolen vehicles to CPD.

Technology is also helping us plan for remote deployment for booters using satellite antennas to
transmit boot data wirelessly throughout the City. This change would cut down on travel time and
improve productivity.

Delegate Agency Payments

Technology has helped improve the delegate agency process as well. A new eProcurement functionality
went live with the City’s Delegate Agencies at this time last year. Change can be a challenge to many of
us, so we had some bumps along the way. We appreciate everyone’s patience with this change and are
pleased to report success. All Delegate Agencies are now managing their organizational information and
account details, reviewing/responding to RFP solicitations, tracking contract awards actions, submitting
payment invoices, and communicating online via i-Supplier with City department contacts. The average

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processing time for delegate contracts is down by more than 60% and the payment processing time
down by 30%.

Time and Attendance

Swiping has been successfully implemented at the Police Department. Although currently CPD
personnel are only required to swipe in each work day, the goal by the end of 2018 is to have all Police
Department employees swipe in and out each day. Transitioning from a manual, paper-driven system
will eliminate redundant processing and provide greater accountability for regular and overtime hours.

TAX POLICY AND ENFORCEMENT

Technology enhancements have also been achieved in the Tax Division. In 2017, we strengthened
ground transportation tax enforcement measures for non-Chicago taxis and liveries. Historically,
collection of the tax from these non-Chicago entities has been a significant challenge because the
vehicles are not licensed by the City. In order to close this loophole, we are now collecting the tax from
suburban taxis and liveries at the airports utilizing license plate recognition technology. This effort has
resulted in nearly 400 new taxpayer registrations and collection of nearly $1 million in tax.

Through ongoing enforcement efforts, a compliance gap was identified with non-titled use tax and
construction contractors. The non-compliance appears to be a result of lack of awareness of the tax,
rather than willfulness. Therefore, a special voluntary tax disclosure program will be offered in the
fourth quarter of 2018. The program’s goal is to educate businesses about the tax and to encourage
businesses to voluntarily come into compliance. Businesses who come into compliance through this
program will not have to pay penalties.

Another significant achievement was the launch of Chicago Business Direct, the City’s new website
which provides Tax and License services in one convenient place. Business owners and their legal
representatives may now apply for and renew City of Chicago business licenses, file tax returns and
make tax payments online without having to visit two different sites and maintain separate logins for
each.

FOCUS ON PAYMENT OPTIONS

The Department of Finance has continued to focus on providing additional notice to those who owe
money to the city and making it easier to pay. We have instituted additional reminder notices and
provide an opportunity to sign up for payment plans before penalties are assessed. Easier payment plan
terms and cost saving online payment plans have been put in place to help motorists avoid enforcement
action. In addition, the City has entered into a contract for new payment processing services which will
replace and improve current technology and expand payment services throughout Chicago’s
neighborhoods.

Payment Plans
We will continue to explore options to assist those who want to be in compliance, but cannot afford to
pay their debt in full, or afford a large down payment or high monthly payments. Early payment plans
provide up to 3 extra months to pay a new ticket without any penalties. Further, online payment plans
allow motorists up to 24 months to pay off tickets, save up to 22% in collection fees and can be started

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with just the first monthly payment. Hardship payment plans are available for those who need
assistance after they have been booted or licenses have been suspended.

Additionally, the Department of Finance has launched payment plan programs designed to offer
convenient and cost saving ways to pay administrative hearings and utility debt. These payment plans
provide flexible terms and allow participants to avoid collection costs and additional fees. Payment
plans can be set up online, over the phone or in-person.

Payment Processing
The Department is upgrading its payment processing technology and growing the number of payment
kiosks in Chicago’s neighborhoods. The new solution will provide improved data security and expand
online payment opportunities in an effort to move toward a single place to make payments for various
city fees. Further, additional payment kiosks will be installed in various police stations and libraries
throughout Chicago. Many of the kiosks will be available 24 hours a day, seven days a week and will
accept cash, in addition to checks and credit cards, providing a secure and convenient alternative to
visiting a payment center.

WELLNESS PROGRAM – “CHICAGO LIVES HEALTHY”

Employee participation in the City’s wellness program has been very strong. On average, more than
80% of the employees and their spouses, domestic partners/civic union spouses, excluding members of
the Fraternal Order of Police, are enrolled.

The program data indicates significant improvements in members’ health. The number of participants
at high-risk for developing cardiovascular disease in the next 10-years decreased by 17% and the
number of participants at an elevated-risk for developing diabetes decreased by 8%. Furthermore,
significant improvements also occurred in several key biometric health measures, including blood
pressure, total cholesterol, fasting glucose, and obesity. The improvements were observed in
participants who were in the highest risk category at their initial measurement. These results can be
used to remind people that on-going participation in the wellness program results in improved health
outcomes.

INTERNAL CONTROLS

A key area of focus within the Department since 2011 has been improving our financial reporting to
ensure proper internal financial controls and improve financial transparency. In 2018, the Department
of Finance released the 2017 Comprehensive Annual Financial Report or CAFR, which details the
significant progress the Mayor and the City have made in improving financial reporting and
accountability. For the sixth consecutive year, the independent auditors did not find any material
weaknesses in the City’s annual CAFR.

CONCLUSION

I again want to thank you for this opportunity and for reaching out to let us know when and where we
have room for improvement in our service to you, residents and other city departments.

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