Aldermen could save city residents half the projected increase in Evanston’s portion of the property tax with proposed new revenues after Wednesday’s Evanston City Budget meeting.
The 2006-2007 Evanston City Budget proposed in January recommended a property tax increase of nearly 7 percent. At the meeting, aldermen reduced that number to 3.16 percent by voting to add new sources of revenue to the proposed budget.
Aldermen voted to free up money by using cash reserves to finance debts and compensate retiring city employees for unused paid leave. Evanston Finance Director William Stafford said the city’s cash reserves are healthy enough for this move to be safe.
City staff also said they’re going to look into collecting money owed to the Chicago Housing Authority dating back to 1970. Staff said they think the authority gave money owed to Evanston and other cities to the Cook County treasurer, but the county did not pass it on.
Aldermen also voted to raise building fees to 1.5 percent, up from 1.3 percent, on developments more than $1 million, as well as increase fees for property transfers that do not pay the real estate transfer tax.
No one seconded a motion to add a 2 percent food and beverage tax to the proposed budget.
Evanston residents would spend more money at restaurants than they would save if aldermen reduced property tax instead, said Jonathan Perman, executive director of the Evanston Chamber of Commerce.
Seven Evanston restaurant owners said the tax would have a negative impact on restaurants and Evanston residents.
“Adding this highly visible tax would send a strong message to our surrounding and competing towns,” said Dave Glatt, the owner of Dave’s Italian Kitchen, 1635 Chicago Ave. “This message would be: Don’t eat in Evanston.”
Several owners said the tax would unfairly target restaurants, not Evanston’s other businesses.
“It kind of feels like we get picked on,” said Eric Singer, the owner of Lucky Platter, 514 Main Street.
Ald. Ann Rainey (8th) said she did not trust all of the restaurants’ and chamber’s statistics. She said residents did themselves a disservice by not protesting property taxes like restaurant owners opposed the proposed food and beverage tax.
An anonymous beneficiary offered to donate $60,000 to the city to create a canine unit at Evanston Police Department. The Autobarn, a group of car dealers, also offered to donate one vehicle for the unit.
Some aldermen thought accepting the donations would mean paying for one more full-time police officer. They also argued that the police department has functioned well without such a unit.
“The reality is this is not a priority,” said Ald. Lionel Jean-Baptiste (2nd).
Other aldermen said the addition of a canine unit could build community spirit.
“It’s a piece of good public relations,” Rainey said.
Reach Elizabeth Gibson at e-gibson@northwestern. edu and Jenny Song at [email protected].