The largest fight over Evanston’s budget might not be in the Civic Center this year but in the courts at the hands of a few judges.
Legal liabilities for the coming year are listed for the city at a potential $20 million. With eight large cases on deck — including $11 million in potential exposure from one suit — the city is facing much uncertainty as it heads into its budgeting season.
“Until we see results, we have to be prudent,” City Manager Roger Crum said.
He and his staff already are planning to re-evaluate the budget in six months to deal with any incurred liabilities, he said. A contingency plan would include a proposed $12-million bond, he said.
A bond is borrowed money that the city, in this case, would spend over a period of three years.
Some aldermen said they are trying to stay optimistic about upcoming court battles, but the reality is liabilities could add up quickly.
“Let’s put it this way: If we have good fortune, we might have ways of dealing with the costs in a contingency plan,” Ald. Edmund Moran (6th) said. “If something goes the wrong way, we won’t be able to deal with some of the costs effectively.”
Until resolutions are reached, an increase in legal litigations also means an increase in legal fees. The proposed budget includes $597,800 in expenditures for legal administration — $38,800 more than last year — with $65,000 in expected revenue from damages.
One large potential liability could come from Prado DeVaul v. City of Evanston, an $11 -million suit regarding a police pursuit that was won by the plaintiff and is up for appeal by the city. The plaintiff, a convicted felon, claimed that a pursuit by police led to a car accident.
“We have a lot of people suing us, many for no reason,” Ald. Steven Bernstein (4th) said. “You can’t stop it.”
Several of these cases could be resolved in the next two to 10 months, aldermen said. The city’s law department could not be reached for comment on the cases.
The city might have to rely on its insurance to deal with potential liabilities. This would continue to drive up its debt service.
A second possibility is drawing money from cash reserves. With a proposed budget that already uses $500,000 in reserves, this option would not be favored, several aldermen said.
“I have serious concerns about that part of the budget,” said Moran. “It’s never a good year to break into those reserves.”
Moran said he did not expect a single element of the budget to take care of liabilities.
If varied solutions aren’t found, the city might have to dip into some of its reserves. This could cause problems for future budgets, Moran said.
Aldermen expect that some of the litigation might be settled out of court before a trial — possibly saving the city some liabilities. A settlement with Evanston Vineyard Christian Fellowship in September, for example, resolved a large legal battle but still cost the city money.
“We’re exploring all possibilities,” Moran said of the potential for settlements.
One suit of large concern is Northwestern v. City of Evanston, which involves the rezoning of the Northeast Evanston Historic District.
The lawsuit, scheduled for a March 1 court date, is not of large monetary concern to the city, Crum said. If Evanston loses the case, the only potential liability the city may incur is the cost of legal fees.
The Daily Northwestern’s Matt Lopas contributed to this report.