Evanston restaurant owners and residents expressed mixed feelings regarding the City Council’s proposed one percent increase in the food and beverage tax.
“It seems like other things could be cut first,” said Natalie Converse, manager of Pete Miller’s Seafood and Prime Steak. “I wouldn’t get too worried, though, because people will still want to go out and eat.”
During their Feb. 4 budget review workshop, the aldermen unanimously voted to include the food and beverage tax hike in their budget proposal, although originally the council planned to discuss the issue only if the Feb. 5 transfer tax referendum failed.
The tax would go into effect April 1 if it passes the Administrative and Public Works Committee and City Council votes.
The one percent increase is expected to generate $849,000 and reduce the need for a property tax hike.
Creating new revenue has been a priority for the council since it promised more than $12 million for the police and fire pension funds on Feb. 2. The council set aside the money because it could face legal trouble from the state government if it does not keep up with its expected annual contributions to the pension funds, which are about $140 million short.
“If this council is serious about doing anything about eliminating a 15 percent property tax increase, we’re going to have to do something we haven’t done before,” said Ald. Ann Rainey (8th), who introduced the measure.
Rainey argued that the increase will not have a major impact on restaurants or customers, noting that a one percent addition to a $200 check would be two dollars.
Some residents agreed with Rainey’s position.
“It’s a fairly small sacrifice,” said Evanston resident Marlyn Payne. “We need to make sure the pension funds get what they need.”
Northwestern’s presence in the community was also an issue for some.
Evanston resident Hillary Kennedy said she supports the increase because it will be a way for NU students who eat off-campus to contribute to the city.
“I think it’s justified,” Kennedy said. “Northwestern does not pay taxes.”
Some students, however, were less supportive of the increase.
“I have a hard enough time paying for dinner when I go out,” said Julia Detchon, a Weinberg freshman. “Restaurant prices are already high.”
Some restaurant owners were more critical of the council’s proposal.
The increase is “absolutely ridiculous,” said Patrick Breslin, owner and manager of the Celtic Knot Public House. “It’s squeezing our small businesses out of Evanston. We already have the highest taxes in the Chicago area.”
Because the restaurant industry has comparatively small profit-margins, independently owned restaurants will be hurt the most, Breslin said.
The Administration and Public Works Committee will discuss the issue during its meeting tonight at 5:30 p.m. at the Evanston Civic Center, 2100 Ridge Ave.
Elise Foley contributed to this report.
