Property Tax Hike The Price Of Avoiding Cuts To Fire, Police

EVANSTON, IL — The City Council Monday will discuss a possible property tax hike as an alternative to public safety cuts. The closure of a fire station and elimination of vacant police positions had been proposed as part of spending cuts to close a $7.4 million budget shortfall. But at a special meeting to discuss the budget last week, aldermen suggested they could not support cuts to the police and fire departments' budgets.

Staff presented a revised budget plan for discussion Monday that restores funding to the departments. The initial proposal to balance the budget had $4.3 million in spending cuts and $3.3 million in increased revenue. The latest version is weighted toward increased taxes and fees, with $4.8 million in additional revenue and $2.8 million in reduced spending.

A property tax hike that city staff previously said was off the table is the most notable new addition to the proposed budget. The latest budget-balancing plan includes a 2 percent increase to the city's property tax levy, bringing in $820,000. In September, Assistant City Manager Erika Storlie said taxpayers were already feeling "pinched" with last year's property tax increase to fund Evanston/Skokie District 65 school.

"That left a very small amount of bandwidth for any property tax increase to support city services," Storlie said at a budget outreach meeting. "People are feeling that there is no longer any room to increase the property tax and we need to look at other sources of revenue."

Other revenue increases in addition to the property tax hike come mainly from fees and fines. Two more parking enforcement officers are expected to increase parking ticket revenue by $400,000. An increase in ambulance fees billed to insurance companies is projected to provide an additional $400,000. According to a revised budget worksheet, raising the price of monthly parking permits in city lots and eliminating free parking on Sundays offer another $250,000 in revenue, while increasing the flat tax on ride-hailing networks by 225 percent for non-shared rides will generate $280,000.

Under the new proposal, Fire Station No. 4 will remain open, four vacant firefighter positions will remain and an increase to the fire department's overtime budget will be included, along with a cost study for a total of about $800,000.

Four vacant police department positions also return at a cost of $444,00. Cuts to the mental health board's funding have been reduced from $250,000 to $150,000, cuts to the cultural arts program and the Gibbs-Morrison Cultural Center have been restored and the health department would keep a communicable disease surveillance specialist position.

The city's fiscal year begins Jan. 1. The projected 2019 deficit is comprised of a $4.9 million shortfall in the general fund, $1.5 million to bring the reserve fund back to recommended levels and $1 million for the first set of bond payments for the construction of the Robert Crown Community Center.

The proposal also envisions an increase of $700,000 in revenue from the tax hike on the sale of properties for more than $1.5 million approved by voters by referendum last week. It will take effect starting Jan. 1, 2019, pending the passage of an implementing ordinance by the City Council.

The proposed budget balancing plan to be discussed by aldermen Nov. 12 includes a surplus of more than $323,000. Keeping the surplus intact is important because negotiations with the city's unions are still underway and the budget as proposed includes no general wage increases, Bobkiewicz said.

Earlier:

• Evanston City Council Takes Cultural Center Off Chopping Block
• Staff Cuts, Fee Increases Balance Proposed 2019 Evanston Budget
• Evanston's Budget Deficit Projection Rises To $7.5 Million