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.

This advisory summarized the findings of OIG’s 2017 Chicago Department of Transportation Aldermanic Menu Audit and urged Mayor Lightfoot to implement the related recommendations. Specifically, the advisory noted,• the Aldermanic Menu Program (“Menu”) creates significant funding inequities, including a gap of $9.3 million between the best- and worst-funded wards;• Menu underfunds citywide residential infrastructure needs by $228.8 million annually;• the City allows alderman to spend Menu funds on projects other than residential street infrastructure; and• the City does not follow best practices for multiyear capital planning of residential street infrastructure.OIG suggested that the City stop funding core residential infrastructure through Menu and empower the Department to fully inhabit its infrastructure management role.