Evanston City Council on Monday night staged another act in its annual budget dance, but by the end of its meeting, the council appeared to take one step forward and two steps back.
Staring down an almost $2 million deficit and a March 1 deadline, aldermen opened the meeting aiming to approve the city’s proposed 2001-02 budget.
But after four hours of raised voices, snide remarks and pronounced gestures, the council opted to wait for further information on revenue alternatives – leaving a controversial food and beverage tax abandoned and plenty of questions unanswered.
And with other revenue-generating measures – including the much-discussed head tax – tabled at previous budget hearings by the council, aldermen might have to approve a 9.4 percent property tax increase.
The increase would be the city’s third in as many years.
Fifteen residents addressed the council, blasting the proposed food and beverage tax, which would have increased sales taxes on food and beverages, including liquor, by 1 percent.
Joel Fondell, owner of Le Peep, 827 Church St., told the council the tax might hurt restaurants because profit margins are already so low.
“Sometimes the difference between a profitable and a non-profitable day is just a few customers,” Fondell said.
He added that other business costs also are higher in Evanston than in other areas. The rent for his restaurants, he said, is the highest of any in the Le Peep chain.
Kellogg Prof. Allan Drebin, who is running against Ald. Arthur Newman (1st) in the April 3 municipal elections, also spoke against the tax.
He said that because Evanston is known as a restaurant center, the council must tread carefully.
“This is one of the few distinguishing things Evanston has,” Drebin said. “But people have choices. Increasing taxes is going to hurt these businesses.”
Newman agreed with the increase’s detractors, saying the city’s 14.5 percent liquor tax already is too high, and that it would be unwise to raise it further.
“I think we can now refer to the Evanston liquor tax as the penalty tax,” Newman said. “We are in the midst of a great period of growth in Evanston and this tax has got to come down.”
After much debate, the council voted 9-0 to remove the food and beverage tax from the budget.
Other revisions to the budget followed. During the rest of the meeting, the council also:
? Voted 6-3 to dump from the budget a $2 per resident increase in the recycling tax, which would have brought the city $400,000 a year.
? Tabled a proposed 30 percent increase in liquor license fees.
? Discussed a proposal by Ald. Ann Rainey (8th) for a .25 percent increase in the city’s general sales taxes that would raise $850,000 in revenue this year and more than $1 million in following years. The council took no action on the proposal.
? Debated a suggestion by Ald. Melissa Wynne (3rd) that a $200,000 natural gas tax rebate be transferred from the city’s general fund to its insurance fund. Other aldermen persuaded her to wait on the proposal until further information is available.
Shortly before aldermen agreed to suspend discussion of the budget until Feb. 26, Ald. Gene Feldman (9th) questioned the council’s aversion to considering measures that might hurt specific residents. He said the council should look past individuals and consider all citizens.
“All we need is for someone to anecdotally show (a tax) would bring hardship to them,” Feldman said. “Even given the fact it may have an effect on only one business – we don’t do it that way.”
According to state rules, the council has to approve a budget before March 1, when it would take effect.
The council is scheduled to discuss the budget at its next meeting, 7 p.m. Feb. 26 at the Evanston Civic Center, 2100 Ridge Ave.
