Overview
- The City Council voted 44–6 Monday to require that the $75 million upfront transfer fee from the Stonepeak parking‑meter deal be used as an extra pension payment rather than folded into the mayor’s budget.
- Mayor Brandon Johnson had included the $75 million in his proposed FY2027 plan to offset pension costs, but aldermen said the payment must be supplemental so it does not replace budgeted pension contributions.
- The ordinance directs the payment to four city pension funds with roughly $25.12 million each slated for police and fire plans and about $12.375 million each for the municipal employees and laborers funds.
- City officials estimate the Stonepeak deal will also yield a 5% profit share that could total about $367 million over 57 years while some aldermen say net proceeds may be far lower after private operator costs.
- Council supporters say the extra payment will reduce long‑term pension costs, but opponents warn the decision creates a $75 million hole in next year’s spending that could force cuts to services, affect borrowing plans and complicate the mayor’s remaining budget proposals.