Muhammed's entry features the image of renowned city planner Daniel Burnham in front of several Chicago buildings with an architect's protractor.
The design goes on the city's new parking stickers in June.
"He entered the competition last year, right, Muhhamed? And he was a finalist, so he's an example of if at first you don't get first place, you try again," said Miguel del Valle, Chicago city clerk.
Nine other finalists were also honored.
Muhammed wins a $1,000 savings bond, which will be used for further education.