Amid Growing Budget Hole, Evanston Explores Sale Of City Assets

EVANSTON, IL — City staff plan to prioritize the sale of Evanston's Lorraine H. Morton Civic Center and Church Street garage in response to budget challenges presented by the coronavirus pandemic, according to a memo from the city treasurer.

Chief Financial Officer Hitesh Desai said the city faces a deficit of approximately $2 million by the end of the year. Even with funding from grants provided by local and federal governments, city staff face uncertainties and challenges as they put together a 2021 budget, he said.

Next year, staff expect a loss of between $4 million and $6 million in revenue from the city's general fund, which would be added to whatever deficit spending the city ends 2020 with.

"Negotiations with the Police and Fire unions over furloughs or a suitable equivalent continue," Desai said. The city manager's office implemented a citywide one-day furlough in May for all non-public safety workers.

In a memo to the mayor and City Council ahead of Monday's meeting, Desai said staff planned to continue to work to liquidate certain city assets, including its 2100 Ridge Ave. headquarters and a publicly owned garage at 525 Church St.

"Selling either of these buildings would yield funds that could be used for procuring new spaces for City operations and investing in the City's other capital assets," Desai said.

A City Council discussion on July 13 moving city operations to the Evanston Public Library suggested aldermen are divided on the idea of permanently relocating operations away from the Civic Center and selling the building.

The city has implemented a hiring freeze, which Desai said will result in an expected $3 million savings to the general fund by the end of the year.

"Only essential positions that are being funded by COVID-19 response grants are being filled at this time," Desai told aldermen. Keeping all positions vacant through the end of 2021 could provide about $4 million in savings to the general fund, he added.

"Staff is planning to closely examine the impact of these vacancies on providing City services and evaluate the impact on residents and the community these vacancies were held into 2021," according to the memo.

Desai said city staff expect to receive about $4.4 million in grants to help pay for its response to the COVID-19 pandemic. They include money from the federal Coronavirus Aid, Relief, and Economic Security, or CARES, Act, the Illinois Department of Public Health's contract tracing efforts, and other grants.

The city treasurer and chief financial officer said staff plan to host a series of online community budget conversations in the first week of September with presentation from city staff and discussions among community members. The feedback from those meetings will be shared with aldermen along with the proposed 2021 budget by Oct. 9.

Earlier:
Amid Calls To 'Defund Police,' Evanston Mayor, Chief Talk Budget
Evanston Gets $637,500 Advance To Help Fill COVID-19 Budget Hole
Northwestern Announces $90 Million Shortfall, Furloughs 250 Staff
Furlough Day For City Workers, Housing Fund Used For Hotels