The Evanston City Council set aside more than $12 million in its 2008-09 budget for the police and fire pension funds at Saturday’s budget review meeting.
How that revenue will be generated, however, is still being debated. The council has until December to decide how much will come from a property tax increase and how much will come from cutting services, said City Manager Julia Carroll.
The council ear-marked the $12 million to ensure the city will meet its “minimum annual required contribution” toward the pension funds, which are $140 million short of their state-mandated goal for the year 2033.
2008-09 will be a “catch up” year, because the city is behind in its funding of the pensions, said Carroll. The city will only need to contribute about $500,000 per year over the next decade to stay on schedule.
Carroll recommended transferring money from the city’s General Fund to minimize a possible property tax spike. She warned that taking money from the reserve is a financially unhealthy practice, but does not believe it will hurt the city in this instance since the “catch up” year is a one-time occurrence.
The council also began individually debating and voting on each of Carroll’s proposed revenue additions to lessen the need for a possible tax hike or General Fund transfer.
The aldermen voted 7-2 to increase the cost of new vehicle stickers from $60 to $75, a measure which is expected to generate $495,000.
In a unanimous vote, the council shot down a proposal to increase the parking violation fines.
Ald. Rainey (8th) argued that the city first needs to collect its currently unpaid fines, which may add up to more than $1 million.
The council held discussion regarding a possible increase in the cost of obtaining a business license in Evanston, so that the requirements for obtaining a license could be researched.
The council’s next budget review meeting will take place immediately after a public hearing regarding the budget at 7 p.m. Monday at the Evanston Civic Center, 2100 Ridge Ave.
Reach Sean Walsh at [email protected].
