Evanston released its 2026 proposed budget with a projected expenditure totalling $403,987,896, including operating transfers out, an anticipated 2.1% increase in spending Monday.
The spending increase will amount to $8,499,478 more than the city’s 2025 expenses. The city attributed increased revenues and expenditures from fiscal year 2025 to fiscal year 2026 to bond issuance for “capital improvement projects and related spending,” in the proposal.
The city has operated on a budget deficit in recent years, but the aggregate deficit in FY 2026 decreased by almost $18 million from FY 2025.
FY 2026 will see a 13.7% increase to the city’s portion of the property tax levy, which has been flat for the last five years. The city previously avoided increases to the levy through the use of reserve funds that built up from funding avenues, including one-time permits and federal stimulus funding.
The proposed budget projects a $6.5 million increase to the tax levy to support human services programming, pension contributions and recreational parks.
According to the city, operating expenses have increased by $2.8 million, but other operating costs have decreased by 2% after excluding City Hall rent payments and the tri-annual tree inoculation program in calculations.
The city and Evanston Public Library’s combined portion of the levy is set to increase by 12.9%, following the library’s September vote to recommend raising the library’s share by 10%.
The news release also indicated a 25% increase in the Consumer Price Index, a measure of inflation in the city, since property taxes had last been raised, suggesting that the changes come at the heels of consistent growth in the cost of living.
Starting in FY 2026, the city will establish a separate Parks and Recreation Fund, moving those operations out of the General Fund. The new fund will cover the city’s parks, recreation centers, programs and community amenities. The fund’s projected revenues and expenses are even at $16,260,202.
As a result, the General Fund — which remains the city’s primary operating fund for public safety, transportation and general administration — will show lower revenues and expenditures than in previous years.
Evanston’s contribution to public safety pensions will increase by about $727,000 in FY 2026 for a total of $30.3 million. To account for this increase, the proposed budget includes a $3 million increase to the pension property tax levy.
The news release touted budget expansions for Crisis Alternative Response Evanston, “an innovative initiative aimed at providing a non-police response to certain low-risk service calls,” a new Community Benefits Agreement with Northwestern and a freeze on previously rising water price rates.
The proposed budget allocates approximately $90 million across twelve funds for the city’s Capital Improvement Plan, which is budgeted for a total of more than $500 million over the next five years. Notably, the Capital Improvements Fund — which includes construction and consultation on various city projects — and the Water Fund — which accounts for activity relating to the city’s water infrastructure — will each receive about $37 million in funding.
In the proposal, city staff also expressed concerns over the potential loss of federal grants in the wake of recent spending cuts within the federal government and evolving supply chain disruptions due to tariffs.
In the past, the U.S. Department of Housing and Urban Development has provided $2.2 million in new annual entitlement grants for “local housing and support programs,” in addition to $1.7 million in carryover funds, according to the proposed budget. Loss of these grants would either require concessions or additional revenue from other sources in order to maintain these programs, the proposal stated.
The proposed budget will be discussed at both the City Council meeting on Oct. 13 and the Finance & Budget Committee meeting on Oct. 14, before the Budget Public Hearing on Oct. 27 at City Council.
Correction: A previous version of this story incorrectly stated that the city’s budget has always operated in a deficit and avoided levies and the amount by which contributions to public safety pensions will increase in FY 2026. The graph labeled “City of Evanston Available Funds” incorrectly stated which fund balance the city used, and the graph labeled “Evanston Property Tax Levy Breakdown, FY 2023 – FY 2026” incorrectly labeled each fiscal year and the FY 2026 library fund amount. The Daily regrets these errors.
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