CHICAGO Mayor Rahm Emanuel on Tuesday laid out a stark choice for the cash-strapped city as he proposed a 2016 budget aimed at resolving a financial crisis linked to unfunded pensions — either slash vital public safety and other services, or enact the biggest-ever property tax increase.

    In a half-hour speech to Chicago’s 50 aldermen, Emanuel said spending cuts would mean reducing 20 percent of the police force, closing 48 fire stations and laying off 40 percent of the city’s firefighters.

    “In short, if we were to fund our pensions with cuts alone, our city services would become unreliable. Our city would become unlivable. And that would be totally unacceptable,” he said, promising his plan would wipe out Chicago’s structural budget deficit within the next four years.

    Emanuel, who was elected to a second term in February, proposed a US$543 million increase in property taxes — between now and 2018 — to cover police and fire pensions.

    Facing a budget shortfall that could hit US$745 million, Emanuel is also proposing a per-ride surcharge on taxi and ride-sharing services to raise US$48.6 million and a new monthly garbage fee of US$9.50 per household to gain US$62.7 million. Garbage pickup is currently free for residences.

    While Emanuel’s proposals usually pass the city council easily, the property tax hike may meet resistance.

    “Every time there was a property tax increase of any size ... there has been an aldermanic revolt,” said Dick Simpson, political science professor at University of Illinois at Chicago and a former alderman in the 1970s.

    Ed Burke, chairman of the city council’s finance committee, said aldermen will have opportunities in the coming weeks to see if there are other solutions.

    “Public service requires people to display courage and take tough votes and this is a tough vote,” Burke told reporters after the mayor’s speech.(SD-Agencies)