In the face of a $140 million deficit in the city’s police and fire pension funds, the Evanston City Council is discussing ways to generate revenue from nonprofit organizations, including Northwestern.
“We’re trying to survive the city’s financial crisis and still provide city services,” said Ald. Elizabeth Tisdahl (7th). “We need to find ways to pay our bills.”
On Sept. 4, Tisdahl, along with Alds. Lionel Jean-Baptiste (2nd), Ann Rainey (8th) and Steven Bernstein (4th), formed a special committee to explore the Payment In Lieu of Taxes program, commonly referred to as “PILOT.”
“The city has been looking at PILOT on and off for about 15 years,” said Evanston Finance Director Martin Lyons. “Right now we’re gathering information and discussing our options.”
The new committee met for the first time Sept. 10, when aldermen brought up a variety of possible solutions, such as requiring non-profit organizations to pay the city for fire services.
Another option being considered is soliciting money from NU. As a nonprofit organization, the university does not pay property taxes, an issue that has been a source of frustration for many aldermen and residents for years, said Tisdahl, who represents part of the Evanston campus.
“We’re looking at what other universities do for their cities and using that to develop a variety of ideas for dealing with Northwestern,” Lyons said.
According to Tisdahl, the committee has taken particular interest in Harvard University and the Massachusetts Institute of Technology, both of which make voluntary payments to the city of Cambridge, Mass. every year.
“These schools realize the strain that a university puts on city services,” Tisdahl said.
University spokesman Al Cubbage said that although NU is exempt from property taxes, the school pays nearly $4 million in other city taxes, including athletic ticket sales and parking.
“Northwestern is a huge economic engine for this city,” he said. “Besides miscellaneous taxes, our students and faculty spend a great deal of money in Evanston shops and restaurants.”
In addition, Cubbage said the university gives back to the city every year through various on-campus charities. In March, Dance Marathon raised over $65,000 for the Evanston Community Foundation.
“The university does not feel that additional cash contribution is either adequate or justified,” he said.
Tisdahl said that although the committee has only met once, she expects discussions will become more regular as they search for resolutions before the year’s end.
“We deal with the budget very heavily in January and February, so we are hoping to have some solid ideas to bring to council in the coming months,” Tisdahl said.
In July, aldermen were locked in debate over National-Louis University’s petition to use a Central Street building as a dormitory for its PACE program, which educates young adults with multiple learning disabilities. Although some aldermen said the school should make voluntary contributions to account for the loss in property taxes, Tisdahl said it would be unfair since there never was a policy in place.
“We can’t expect money from these groups when we try to change the rules at the last minute,” she said.
Jean-Baptiste, who voted against the National-Louis proposal, said contributions from nonprofits, especially wealthy entities such as NU, are essential for sustaining the city’s quality of operations.
“There is a desire to have a vibrant, functioning community,” he said. “Maintaining this goal requires an elective effort to fund a budget that can provide city services.”
