Evanston City Council discussed the proposed Fiscal Year 2024 Budget at a special meeting Monday night.
Despite the city’s current $3 million net deficit, the proposed budget totals more than $449 million — a $51.8 million increase from the 2023 adopted budget. Council heard budget requests from Evanston Public Library, Evanston Fire Department, Public Works and other departments.
The city’s Proposed 2024 General Fund, which is balanced at just over $145,500,000, will primarily finance expenses like city salaries and new staff positions. According to the city’s budget team, 83% of the General Fund will go toward salaries — a $12 million increase from 2023 due to wage increases and new positions added.
To account for the salary increases coming out of the General Fund, the city is pursuing several modes of additional revenue ― including a 17.55% increase in the water rate to account for water main and lead pipe replacement costs and a $500 increase per ambulance transport to cover EFD’s medical equipment lease.
Additionally, the city is proposing a 7.8% increase in property tax levies to help balance the proposed 2024 budget.
Alds. Devon Reid (8th) and Krissie Harris (2nd) raised concerns about the proposed property tax levy. Harris said heightened property taxes on top of increases in water and sewer rates will add up for taxpayers, especially those who are “disenfranchised” or “barely making it.”
Reid noted that renters pay higher commercial property tax rates, so the increase would impact them most severely. He urged the council to consider other revenue opportunities, including lakefront parking charges and fire assessment fees for Northwestern.
“There are ways that we can close the structural budget deficits this year and potentially next year without raising property taxes, which we know are quite regressive,” Reid said. “I think it’s worth considering these ideas and lessening the burden on taxpayers.”
However, officials pointed out the council has shown restraint and hasn’t raised property taxes for three years.
Ald. Eleanor Revelle (7th) also voiced concerns about the impact of inflation on the proposed budget. Inflation and other operating expenses make up 15.6% of the $151.8 million increase from last year’s budget.
Revelle also noted that the city was able to rely on American Rescue Plan Act funds to help cover expenses the past few years. ARPA funding was allocated to communities during the COVID-19 pandemic to offset revenue losses — but, as Revelle noted, the funds won’t last forever.
“It’s important for the community to know that we don’t have those ARPA dollars to spend going forward now, and then we do have inflation to worry about as well,” Revelle said.
Mayor Daniel Biss acknowledged the city’s medium-term fiscal trajectory is “daunting.” He urged councilmembers to move forward with “caution and restraint” as the city deals with its deficit.
He also emphasized that there were requests for staffing increases across many departments in the city, but City Manager Luke Stowe and the budgeting team were only able to implement 15.6 new staff positions into the proposed budget.
Budget discussions will take place over the next six weeks. City Council aims to adopt the proposed 2024 budget at its meeting on Nov. 27.
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