Emanuel Floats Water Tax Hike To Fund Pensions

CHICAGO (CBS) -- To help save one of the city's underfunded pension plan, Mayor Emanuel is proposing a water tax on city residents.

The tax, which, on average, would cost $4.43 cents for each home per month, would go towards funding city workers' pensions.

The mayor briefed aldermen on Wednesday, telling them the new tax would bring the Municipal Employees Pension Fund to near solvency by 2057.

The 7 percent water tax hike would cover the next five years. That $4.43 average cost per month would go up each year.

Debra Roberts was at city hall asking about her water bill. She wasn't pleased to learn about the proposed increase.

"I had nothing to do with the pension," she said. "I don't feel responsible for it."

Without the tax revenue, the pension fund would be insolvent in about 10 years, the mayor's office said.

Trent Hicks wonders how viable the city will be if everybody starts to bail out.

"I mean, when does it stop?" he said.

The tax hike will not apply to the garbage fee, and it must be approved by city council.

Other parts of the mayor's pension solution requires action by state lawmakers.