State & Local Reports

OIG audited the Chicago Department of Transportation’s (CDOT) billing process for commercial driveway permit annual fees to determine whether the Department accurately and completely billed commercial property owners for driveways that use the public way. We found that CDOT either did not bill, or inaccurately billed, an estimated 6,713 permitholders, resulting in annual revenue loss between $1.1 million and $1.5 million. If collected, this would increase driveway permit revenue by 39-54%. In addition, the City does not actively pursue payment for driveway permit fees that are past due, resulting in at least 11,561 active permits with $3.8 million in overdue fees in CDOT’s records. Lastly, CDOT has no confidence that all relevant driveways are recorded in its current driveway permit system and is thus likely forgoing an unknown amount of additional revenue by not billing all relevant property owners.

A 2017 audit by the Office of Inspector General (OIG) found that the City perpetuates significant inequities between wards and underfunds residential street infrastructure needs by approximately $228.8 million annually, primarily because it does not follow best practices for multi-year capital planning. The previous administration disagreed with our findings and declined to reform its residential street infrastructure management. To reduce inequities in residential street infrastructure funding between wards and to begin to address unmet needs citywide, we urge the City to stop funding core residential infrastructure through Menu. Instead, the Mayor should empower CDOT to fully inhabit its infrastructure management role. CDOT should conduct a comprehensive citywide needs assessment, prioritize projects according to need, and implement a multi-year capital plan for maintenance and improvement of both residential and arterial streets, in line with best practices. While aldermen and constituents should be encouraged to provide input, CDOT’s infrastructure professionals are best positioned to develop long-term plans and make cost-effective decisions regarding the City’s limited infrastructure resources. If the City chooses to continue some form of Menu Program, it should be limited to discretionary projects with no program or operational connection to core citywide infrastructure such as street resurfacing.