Evanston released its proposed 2025 budget Friday, which totals $398,934,953 in expenditures — marking a $9.3 million decrease from the city’s adopted 2024 expenses, inclusive of operating transfers out.
This year, the city changed the way the budget numbers are represented, in accordance with other communities and recommendations by the Government Finance Officers Association. The 2025 budget distinguishes between the $56.8 million in those interfund transfers — monetary transfers from one municipal department to another — and the $342 million in regular expenses, so as to not over inflate the expenditures.
The city’s contribution to the Police and Fire Pension Funds this year totals $29.6 million. If represented the same way as in previous years, this would bring the city’s total budget to $428,531,297 — a $9.9 million decrease from 2024.
The city’s 2025 proposed budget does not include the Police and Fire Pension Funds or operating transfers in its “All Funds Summary,” in accordance with the GFOA’s recommendations. In its 2024 adopted budget, the city reported both, bringing the reported total to $438.4 million. As a result of the change in reporting, the difference between last year and this year’s budget may appear much larger than it actually is.
The proposed budget cites the gradual increase to the city’s expenditures since 2021 largely as the result of increases to salaries and benefits, its Capital Improvement Plan, inclusion of ARPA funds and the water intake program, and increases in other general expenses.
The proposed budget includes a 23.3% increase in water rates to fund lead pipe replacement, while sewer rates are projected to decrease by 13.5%.
Salaries and benefits increased the most in the past four years by $33.9 million, with an increase of $5 million this year from the city’s General Fund, which funds day-to-day operations and does not include funds earmarked for a particular project.
Evanston’s General Fund shows $138,762,935 in total revenues and $151,278,402 in total expenses, including operating transfers.
The proposed General Fund budget includes no property tax increases for city operations. Instead, the city plans to increase revenues using accumulated reserves and permit revenues from Northwestern’s Rebuild Ryan Field project, according to a Friday news release.
The only projected property tax increase is to the Evanston Public Library’s operating and debt service tax, which will provide the city with an additional $412,952 compared to last year’s levies.
The General Fund will contribute $9.6 million to the city’s required $29.6 million contribution for public safety pensions. Due to the 2023 approved wage increases for police and fire personnel, the pension contribution will increase by $4 million this year, according to the proposed budget.
Projected spending has decreased this year due to large-scale capital projects, such as the Lake Michigan water intake replacement — which is nearing completion — and a decrease in available federal funding to appropriate, according to the release.
Unrelated to the General Fund, the city proposed an $86.8 million Capital Improvement Plan, which will fund street resurfacing, municipal building repairs, park improvements, water intake replacement and sustainability projects such as improving public electric vehicle charging infrastructure.
The total revenue for this year, excluding operating transfers, only totals $319.1 million, a $17.1 million decrease from 2024. This leaves the budget shortfall for 2025 at $23.1 million.
The proposed budget will be discussed at Tuesday’s Finance and Budget Committee meeting and City Council on Oct. 14.
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— City Council approves $435 million budget for 2024, keeps property tax rate unchanged
