City finance leaders estimate the move will save Chicago $90 million this year and another $35 million next year without loading the city up with additional debt.

As the city deals with a major budget gap, finance committee chair Pat Dowell said the plan will save taxpayers more than $100 million in the long run.

Mayor Brandon Johnson announced the city will start its transition this week to merge its two shelter systems, known as the One System Initiative.

Chicago’s migrant shelters will be shut down at the end of the year and absorbed into an existing system for homeless residents, Mayor Brandon Johnson said in a Monday announcement praising his administration for getting past an earlier humanitarian crisis while brushing off concerns of shrinking bed capacity that could lead to more people on the street.

The Chicago City Council met Tuesday to discuss how to close the city’s nearly $1 billion budget gap. City Council met two weeks ago and argued about the rules, while the mayor’s opponents stalled his agenda.