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4 days ago
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‘A lesson in worst practices': Shocking audit reveals Chicago parking meters have made $2B for private company
Have you ever been strapped for cash? Perhaps you took a payday loan, sold a long-term asset or even made an early withdrawal from your 401(k). And chances are, you've later regretted it. This is the situation the City of Chicago finds itself in — and the cost may have been billions. Privatizing public infrastructure is a growing trend among cash-strapped cities that need fast revenue. Back during the 2008 financial crisis, Chicago was broke and needed to raise money. Rather than make the unpopular move of raising property taxes, then-mayor Richard M. Daley chose to privatize public assets. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) 'If we didn't have money for a long-term debt, you're talking about a serious economic crisis then for Chicago,' Daley said at the time, according to NBC 5 Chicago. So, Chicago City Council struck a deal to lease the city's 36,000 parking meters to investment consortium Chicago Parking Meters LLC, a group of global investors led by Morgan Stanley. The investors paid nearly $1.157 billion to receive the revenue from the meters for 75 years — and the city must reimburse them whenever the parking meters are taken offline, such as for festivals or construction. The deal was essentially rubber-stamped 40-5 in favor by the council, which had only a few days to review it before voting — turning out to be what the Better Government Association later called 'a lesson in 'worst practices.'' Soon after, a report issued by the then-inspector general found the city was paid at least $974 million less than it could have made from operating the parking meters itself over the term of the deal. While an analysis done by 32nd Ward Alderperson Scott Waguespack — who voted against the deal — found the deal could have been worth $5 to $10 billion, reported NBC 5. Now, a 2024 audit by accounting firm KPMG has found that, with another 58 years still left in the agreement, the private investors have already recouped their initial investment. In 2023, the meters generated a record $160.9 billion in income, bringing the total income from the start of the deal to $1.97 billion. 'It's just one of those deals that I would beg people never to replicate anywhere in the United States,' Waguespack told NBC 5. Still, many Americans can relate to the situation that faced Mayor Daley. When we're desperate for funds, we can make rash decisions that negatively affect our long-term financial health. Almost 4 in 10 (37%) U.S. adults would not be able to cover a $400 emergency expense with cash savings, according to the Economic Well-Being of US Households in 2024 report from the Federal Reserve Board of Governors. And while many of these people say they could cover the expense some other way, such as using a credit card, borrowing from family or friends or selling something, 13% would not be able to pay the expense by any means. About 58% of Americans are 'living paycheck to paycheck and experienced a cash emergency in the past 12 months,' according to The 2025 Cash Poor Report from peer-to-peer lending platform SoLo Funds. Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it These 'cash-poor' Americans may not be who you think they are. Forty percent have a full-time job and one in seven cash-poor households earn more than $75,000 per year. The top unexpected expenses, according to the report, are auto repairs, medical bills and utility bills — common expenses that can happen to any of us. To cover these expenses, some may turn to short-term financing options that could end up costing them more money in the long term. For instance, buy now pay later (BNPL) services come with an average borrowing cost of 23%, according to The 2025 Cash Poor Report, which can increase substantially if the borrower incurs repeat late fees. Another option is a payday loan, which is one of the most expensive ways to borrow. The industry average cost of borrowing for payday loans is 35%, according to the report, but origination fees, late fees and processing fees can push this as high as 49% of the principal borrowed. Increased borrowing and missed payments can also affect your credit score, which in turn can limit your future ability to borrow. People might also look to sell long-term assets such as stocks, bonds or mutual funds, but this too can have long-term financial costs. If you're 30 years from retirement and sell $10,000 of an asset today that's earning 7% per year, then you'll have about $76,000 less when you retire due to the loss in compounding interest. Plus, research has shown that time out of the stock market can be costly — and missing the best days in the market can be devastating to your long-term returns. And, if you make an early withdrawal from a tax-deferred account such as a 401(k), you'll also pay a 10% tax penalty. To avoid high-cost borrowing in an emergency or cashing out long-term investments during a downturn, start by building an emergency fund that could cover unexpected expenses. A rule of thumb is to have three to six months' income in an accessible account, such as a high-yield savings account. While desperate times may call for desperate measures, it's worth consulting with a financial advisor (or a free counseling service) to discuss your options before getting saddled with debt or selling long-term assets. Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you'll need a substantial stash of savings in retirement Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
‘A lesson in worst practices': Shocking audit reveals Chicago parking meters have made $2B for private company
Have you ever been strapped for cash? Perhaps you took a payday loan, sold a long-term asset or even made an early withdrawal from your 401(k). And chances are, you've later regretted it. This is the situation the City of Chicago finds itself in — and the cost may have been billions. Privatizing public infrastructure is a growing trend among cash-strapped cities that need fast revenue. Back during the 2008 financial crisis, Chicago was broke and needed to raise money. Rather than make the unpopular move of raising property taxes, then-mayor Richard M. Daley chose to privatize public assets. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) 'If we didn't have money for a long-term debt, you're talking about a serious economic crisis then for Chicago,' Daley said at the time, according to NBC 5 Chicago. So, Chicago City Council struck a deal to lease the city's 36,000 parking meters to investment consortium Chicago Parking Meters LLC, a group of global investors led by Morgan Stanley. The investors paid nearly $1.157 billion to receive the revenue from the meters for 75 years — and the city must reimburse them whenever the parking meters are taken offline, such as for festivals or construction. The deal was essentially rubber-stamped 40-5 in favor by the council, which had only a few days to review it before voting — turning out to be what the Better Government Association later called 'a lesson in 'worst practices.'' Soon after, a report issued by the then-inspector general found the city was paid at least $974 million less than it could have made from operating the parking meters itself over the term of the deal. While an analysis done by 32nd Ward Alderperson Scott Waguespack — who voted against the deal — found the deal could have been worth $5 to $10 billion, reported NBC 5. Now, a 2024 audit by accounting firm KPMG has found that, with another 58 years still left in the agreement, the private investors have already recouped their initial investment. In 2023, the meters generated a record $160.9 billion in income, bringing the total income from the start of the deal to $1.97 billion. 'It's just one of those deals that I would beg people never to replicate anywhere in the United States,' Waguespack told NBC 5. Still, many Americans can relate to the situation that faced Mayor Daley. When we're desperate for funds, we can make rash decisions that negatively affect our long-term financial health. Almost 4 in 10 (37%) U.S. adults would not be able to cover a $400 emergency expense with cash savings, according to the Economic Well-Being of US Households in 2024 report from the Federal Reserve Board of Governors. And while many of these people say they could cover the expense some other way, such as using a credit card, borrowing from family or friends or selling something, 13% would not be able to pay the expense by any means. About 58% of Americans are 'living paycheck to paycheck and experienced a cash emergency in the past 12 months,' according to The 2025 Cash Poor Report from peer-to-peer lending platform SoLo Funds. Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it These 'cash-poor' Americans may not be who you think they are. Forty percent have a full-time job and one in seven cash-poor households earn more than $75,000 per year. The top unexpected expenses, according to the report, are auto repairs, medical bills and utility bills — common expenses that can happen to any of us. To cover these expenses, some may turn to short-term financing options that could end up costing them more money in the long term. For instance, buy now pay later (BNPL) services come with an average borrowing cost of 23%, according to The 2025 Cash Poor Report, which can increase substantially if the borrower incurs repeat late fees. Another option is a payday loan, which is one of the most expensive ways to borrow. The industry average cost of borrowing for payday loans is 35%, according to the report, but origination fees, late fees and processing fees can push this as high as 49% of the principal borrowed. Increased borrowing and missed payments can also affect your credit score, which in turn can limit your future ability to borrow. People might also look to sell long-term assets such as stocks, bonds or mutual funds, but this too can have long-term financial costs. If you're 30 years from retirement and sell $10,000 of an asset today that's earning 7% per year, then you'll have about $76,000 less when you retire due to the loss in compounding interest. Plus, research has shown that time out of the stock market can be costly — and missing the best days in the market can be devastating to your long-term returns. And, if you make an early withdrawal from a tax-deferred account such as a 401(k), you'll also pay a 10% tax penalty. To avoid high-cost borrowing in an emergency or cashing out long-term investments during a downturn, start by building an emergency fund that could cover unexpected expenses. A rule of thumb is to have three to six months' income in an accessible account, such as a high-yield savings account. While desperate times may call for desperate measures, it's worth consulting with a financial advisor (or a free counseling service) to discuss your options before getting saddled with debt or selling long-term assets. Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you'll need a substantial stash of savings in retirement Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Yahoo
4 days ago
- Business
- Yahoo
‘A lesson in worst practices': Shocking audit reveals Chicago parking meters have made $2B for private company
Have you ever been strapped for cash? Perhaps you took a payday loan, sold a long-term asset or even made an early withdrawal from your 401(k). And chances are, you've later regretted it. This is the situation the City of Chicago finds itself in — and the cost may have been billions. Privatizing public infrastructure is a growing trend among cash-strapped cities that need fast revenue. Back during the 2008 financial crisis, Chicago was broke and needed to raise money. Rather than make the unpopular move of raising property taxes, then-mayor Richard M. Daley chose to privatize public assets. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) 'If we didn't have money for a long-term debt, you're talking about a serious economic crisis then for Chicago,' Daley said at the time, according to NBC 5 Chicago. So, Chicago City Council struck a deal to lease the city's 36,000 parking meters to investment consortium Chicago Parking Meters LLC, a group of global investors led by Morgan Stanley. The investors paid nearly $1.157 billion to receive the revenue from the meters for 75 years — and the city must reimburse them whenever the parking meters are taken offline, such as for festivals or construction. The deal was essentially rubber-stamped 40-5 in favor by the council, which had only a few days to review it before voting — turning out to be what the Better Government Association later called 'a lesson in 'worst practices.'' Soon after, a report issued by the then-inspector general found the city was paid at least $974 million less than it could have made from operating the parking meters itself over the term of the deal. While an analysis done by 32nd Ward Alderperson Scott Waguespack — who voted against the deal — found the deal could have been worth $5 to $10 billion, reported NBC 5. Now, a 2024 audit by accounting firm KPMG has found that, with another 58 years still left in the agreement, the private investors have already recouped their initial investment. In 2023, the meters generated a record $160.9 billion in income, bringing the total income from the start of the deal to $1.97 billion. 'It's just one of those deals that I would beg people never to replicate anywhere in the United States,' Waguespack told NBC 5. Still, many Americans can relate to the situation that faced Mayor Daley. When we're desperate for funds, we can make rash decisions that negatively affect our long-term financial health. Almost 4 in 10 (37%) U.S. adults would not be able to cover a $400 emergency expense with cash savings, according to the Economic Well-Being of US Households in 2024 report from the Federal Reserve Board of Governors. And while many of these people say they could cover the expense some other way, such as using a credit card, borrowing from family or friends or selling something, 13% would not be able to pay the expense by any means. About 58% of Americans are 'living paycheck to paycheck and experienced a cash emergency in the past 12 months,' according to The 2025 Cash Poor Report from peer-to-peer lending platform SoLo Funds. Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it These 'cash-poor' Americans may not be who you think they are. Forty percent have a full-time job and one in seven cash-poor households earn more than $75,000 per year. The top unexpected expenses, according to the report, are auto repairs, medical bills and utility bills — common expenses that can happen to any of us. To cover these expenses, some may turn to short-term financing options that could end up costing them more money in the long term. For instance, buy now pay later (BNPL) services come with an average borrowing cost of 23%, according to The 2025 Cash Poor Report, which can increase substantially if the borrower incurs repeat late fees. Another option is a payday loan, which is one of the most expensive ways to borrow. The industry average cost of borrowing for payday loans is 35%, according to the report, but origination fees, late fees and processing fees can push this as high as 49% of the principal borrowed. Increased borrowing and missed payments can also affect your credit score, which in turn can limit your future ability to borrow. People might also look to sell long-term assets such as stocks, bonds or mutual funds, but this too can have long-term financial costs. If you're 30 years from retirement and sell $10,000 of an asset today that's earning 7% per year, then you'll have about $76,000 less when you retire due to the loss in compounding interest. Plus, research has shown that time out of the stock market can be costly — and missing the best days in the market can be devastating to your long-term returns. And, if you make an early withdrawal from a tax-deferred account such as a 401(k), you'll also pay a 10% tax penalty. To avoid high-cost borrowing in an emergency or cashing out long-term investments during a downturn, start by building an emergency fund that could cover unexpected expenses. A rule of thumb is to have three to six months' income in an accessible account, such as a high-yield savings account. While desperate times may call for desperate measures, it's worth consulting with a financial advisor (or a free counseling service) to discuss your options before getting saddled with debt or selling long-term assets. Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you'll need a substantial stash of savings in retirement Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Connectez-vous pour accéder à votre portefeuille
Yahoo
22-05-2025
- Politics
- Yahoo
Clayton Muhammad, called the ‘voice of Aurora,' set to leave city government
Clayton Muhammad, Aurora's chief engagement and equity officer hailed as 'the voice of Aurora,' is set to leave his role at the city. Over more than 10 years, Muhammad has acted as one of Aurora's main spokespersons and promoters. At a city meeting on Tuesday, he was honored for his service to Aurora both within and outside of city government. 'The fingerprints that you've left all over the city, and these huge shoes to fill — just incredible,' Mayor John Laesch said. In a proclamation naming 'Clayton Muhammad Day' as July 22, his birthday, Laesch said Muhammad has been a 'dedicated and distinguished public servant' who has done the job 'with unwavering commitment, integrity and professionalism.' Since joining the city as the first Director of Communications in 2013 under former Mayor Tom Weisner, Muhammad has played a 'vital role' in the city's engagement, community outreach and communications efforts, according to the proclamation. Laesch also said during the event that Muhammad has earned the respect of his colleagues, elected officials and community partners because of his 'love of Aurora, institutional knowledge and tireless work ethic.' Videos shown at Tuesday's meeting featuring city employees and community members talking about Clayton backed up the proclamation's claims. Multiple people in one of the videos, when asked for one word to describe Muhammad, said he is 'phenomenal.' 'He is known far and wide, and beloved. I don't know if I've ever come across someone who didn't like Clayton,' Aurora Assistant Chief of Staff Nicholas Richard-Thompson said in a video. Others featured in the video spoke of Muhammad's work ethic, his care for others and the impact he has had on so many throughout the city. Representatives from Chicago area media were also among those who spoke highly of Muhammad in videos played at the Tuesday meeting. 'You really put Aurora on the map locally,' NBC 5 Chicago's Christian Farr said to Muhammad in a video played at Tuesday's meeting. Muhammad said at the meeting that, having been born and raised in Aurora, he loves the city. His 12 years working at the city, plus his 10 years working as the spokesperson of East Aurora School District 131, has been 'the honor of a lifetime,' he said. Before working as the director of Community Relations and district spokesman for East Aurora School District, Muhammad was first a sixth-grade teacher at Waldo Middle School in the district and then worked at the Quad County Urban League. Muhammad also founded the Boys II Men organization, an Aurora-based mentoring group. According to Laesch's proclamation, Muhammad leaves behind a 'lasting legacy of excellence in public service.' For his efforts, the city of Aurora also presented Muhammad with a custom-made brooch officially declaring him 'The Voice of Aurora.' rsmith@
Chicago Tribune
22-05-2025
- Politics
- Chicago Tribune
Clayton Muhammad, called the ‘voice of Aurora,' set to leave city government
Clayton Muhammad, Aurora's chief engagement and equity officer hailed as 'the voice of Aurora,' is set to leave his role at the city. Over more than 10 years, Muhammad has acted as one of Aurora's main spokespersons and promoters. At a city meeting on Tuesday, he was honored for his service to Aurora both within and outside of city government. 'The fingerprints that you've left all over the city, and these huge shoes to fill — just incredible,' Mayor John Laesch said. In a proclamation naming 'Clayton Muhammad Day' as July 22, his birthday, Laesch said Muhammad has been a 'dedicated and distinguished public servant' who has done the job 'with unwavering commitment, integrity and professionalism.' Since joining the city as the first Director of Communications in 2013 under former Mayor Tom Weisner, Muhammad has played a 'vital role' in the city's engagement, community outreach and communications efforts, according to the proclamation. Laesch also said during the event that Muhammad has earned the respect of his colleagues, elected officials and community partners because of his 'love of Aurora, institutional knowledge and tireless work ethic.' Videos shown at Tuesday's meeting featuring city employees and community members talking about Clayton backed up the proclamation's claims. Multiple people in one of the videos, when asked for one word to describe Muhammad, said he is 'phenomenal.' 'He is known far and wide, and beloved. I don't know if I've ever come across someone who didn't like Clayton,' Aurora Assistant Chief of Staff Nicholas Richard-Thompson said in a video. Others featured in the video spoke of Muhammad's work ethic, his care for others and the impact he has had on so many throughout the city. Representatives from Chicago area media were also among those who spoke highly of Muhammad in videos played at the Tuesday meeting. 'You really put Aurora on the map locally,' NBC 5 Chicago's Christian Farr said to Muhammad in a video played at Tuesday's meeting. Muhammad said at the meeting that, having been born and raised in Aurora, he loves the city. His 12 years working at the city, plus his 10 years working as the spokesperson of East Aurora School District 131, has been 'the honor of a lifetime,' he said. Before working as the director of Community Relations and district spokesman for East Aurora School District, Muhammad was first a sixth-grade teacher at Waldo Middle School in the district and then worked at the Quad County Urban League. Muhammad also founded the Boys II Men organization, an Aurora-based mentoring group. According to Laesch's proclamation, Muhammad leaves behind a 'lasting legacy of excellence in public service.' For his efforts, the city of Aurora also presented Muhammad with a custom-made brooch officially declaring him 'The Voice of Aurora.'
