Evanston Approves 2019 Budget With Increased Property Taxes, Fees

EVANSTON, IL — The City Council voted 6-3 Monday to approve a 2019 budget that included few of the controversial spending cuts city staff originally proposed, instead closing a shortfall mainly through increases to taxes and fees. The $319,165,450 budget balanced a projected deficit of $7.35 million deficit by raising nearly $5 million in additional revenue and reducing expenses by more than $2.6 million. Aldermen approved increases to property taxes and parking fees but rejected a tax increase on live entertainment and fee for those who fail to properly sort their recycling bins.

With the leeway from an estimated surplus of roughly $250,000, the budget includes a wage freeze for city employees, although contracts with several public employee unions remain under negotiation. The approved budget reflects a savings of more than $1 million by not including any general wage increases for any department.

The budget also includes four vacant police officer and four vacant firefighter positions for more than $1.2 million combined. However, it will not leave vacant Evanston Fire Department Station No. 4 at 1817 Washington St. A draft budget released last month contemplated $1.3 million in savings from the elimination of the firehouse.

Aldermen Judy Fiske, 1st Ward, Peter Braithwaite, 2nd Ward, Melissa Wynne, 3rd Ward, Don Wilson, 4th Ward, Eleanor Revelle, 7th Ward, and Ann Rainey, 8th Ward voted in favor of the final version of the budget. Opposed were aldermen Robin Simmons, 5th Ward, Thomas Suffredin, 6th Ward, and Cicely Fleming, 9th Ward.

Taxes and Fees

The Fiscal Year 2019 budget includes a 2 percent property tax increase, which will bring in $820,000 in additional revenue, according to city staff. Evanston, where residents currently pay an average annual property tax bill of more than $8,200, already had the most burdensome property taxes in the state and the seventh-highest in the nation, according to an analysis of Census data. The increase to the city’s share of property taxes adds about $67 onto the bill of the median Evanston home. Earlier in the budget process, city staff said such an increase was off the table.

The budget is also balanced by an increase in real estate sales tax paid by those who sell properties worth more than $1.5 million. Evanston voters approved the measure by 52 percent to 48 percent in a referendum on Nov. 6, according to unofficial results. The first progressive real estate transfer tax stamp law in the state takes effect Jan. 1, 2019 and is projected to provide the city with an extra $700,000 next year.

The city also projected it would raise more than $1.3 million in additional revenue through changes to parking rates and fees. Hiring new parking enforcement officers would add an estimated $300,000 in revenue. A method of employing a "barnacle" on street sweeping violators instead of towing their cars would add another $300,000. Sunday parking will no longer be free from 1 p.m. to 9 p.m. starting in March, and permits for parking in city-owned lots would increase by 50 percent to the $90 per month – still likely far below market value, if waiting lists are any indication. (Sunday parking was approved by a 5-4 vote, supported by votes from aldermen Braithwaite, Wilson, Rainey, Fleming and an "under duress" Wynne.)

Victims Advocates

For the second consecutive budget process, changes to the way the city provides advocates to aid victims of crimes and survivors of domestic abuse were the subject of budget restructuring.

In the process of closing a $6 million hole in last year's $335 million budget, aldermen approved a plan to move its adult victim advocates into the Health and Human Services Department and its youth victim advocate into the Parks, Recreation and Community Services Department. This year, as part of the budget balancing process, city staff had original proposed eliminating what has become two, full-time human services advocate positions and contracting with YWCA Evanston/North Shore.

According to results of the city's priority-based budgeting survey, 57 percent of respondents asked to pick the 10 most important of 46 city programs selected victims' advocacy – staffers who help survivors of sexual assault and domestic violence. (Other top-rated programs by residents: the mental health board, a grant-making organization for local nonprofits that saw the restoration of its full $750,000 budget as part of the final approved budget, and the youth and young adult services division, which will see any restructuring proposed by the city manager delayed for at least six months.)

Health and Human Services Department Director Evonda Thomas-Smith said the city had an unmet need to provide 24-hour victim service coverage. She said about 80 percent of the staff's current work focuses on survivors of domestic violence. Representatives of the YWCA, who were not present at the meeting, have said the nonprofit provides some duplicative services, Thomas-Smith said.

Police Chief Rich Eddington explained the department has begun using its chaplains to perform death notifications to fill in for some of that missing 24-hour availability, although they were hired for the purpose of ministering to officers and department employees.

"When we began this discussion over a year ago it was my plan to use the chaplains as a stopgap measure until the staffing under director Thomas-Smith had been re-upped. Unfortunately, as was just covered recently, that plan eroded over time, and we have used the chaplains over this last year to help us with death notifications," Eddington said.

He said 24-hour availability was key in this field, where time is of the essence to families and loved ones of the deceased. He said the department may need to "tool up a number of police officers to become proficient in these death notifications." As a 44-year veteran of law enforcement who is retiring at the end of the year, Eddington said he would be the "young guy" among the city's six chaplains, who are no longer able to handle the notification responsibilities.

"I burnt that bridge, I burnt them up. Their capacity has been tapped," Eddington said. "So we need to evolve to a system where that responsibility is taken over by police officers." He said notifications were a common job responsibility at other departments but Evanston police have not had to do it for about 30 years.

Rainey said the city should wait until a new chief is in place next year to sort out how to handle the victims service. She said the program had been functioning for three decades with no trouble until it was moved to the health department.

"We have a 'health and human services' department,'" Bobkiewicz said, pointing out the department already has four social workers. "Many of the victims of crimes are in need of these services." As a temporary measure, Bobkiewicz proposed a six-month contract with the YWCA. He said there would an update in June with a new police chief. The city, he said, could decide to eliminate the positions.

"Serving this community is a team effort, we have many people in need. We've spent the last five weeks talking about people in need in this community," Bobkiewicz said, "and we all as a team need to do our best with the resources allocated to serve this community as best we can."

Wilson said he wanted to make sure there were adequate resources for victim advocacy.

"I want to put enough money in here that you can do what you need to do to deliver all the services, however that looks. If you think you can do it all with just the 'Y' then we can just vote on that, that's OK if you really feel confident about that." Wilson said.

Fiske said she was a little worried about the city's relationship with Presence Behavioral Health at Saint Francis Hospital. The city has a contractual relationship that refers patients to the hospital.

"I didn't want to leave any doubt in the community," said Fiske, "that there's going to be confusion as part of this process. You're professionals and I have every faith in you."

"Our goal is to make sure that the community is served, and we will tweak it and try to fix it to make sure that that happens," Thomas-Smith said. "I work very closely with the police department now. That will continue."

Entertainment Tax

Rainey asked about an entertainment and amusement tax and was told it was only 4 percent and only for-profit operations. She initially suggested adding 1 percent to the for-profit tax as well as a new 2.5 percent amusement tax on all live theater that is not run by a church, a school district – (This would include Theo Ubique, who has recently moved into a city-owned building following a $1.4 million publicly financed renovation.) She said it was wise for those who wish to support the arts to pay via taxes on the arts.

"Everybody else needs to contribute to the arts in addition to providing us with entertainment," Rainey said.

Wynne opposed the move, suggesting it would have a negative impact on Evanston SPACE and that neither of the tax increases were necessary. Braithwaite said it appeared the nonprofits that would be taxed under the proposal are all already supported by community development or other grants. Wilson added that it would increase costs on small operators to collect the tax and manage the bookkeeping.

Fleming said the budget process had eventually restored nearly all the spending cuts originally proposed, through passing on a 2 percent property tax increase on all the city's residents.

"I guess I just am a little frustrated that we want to save everything, we want to have everything, but we're not sure how we're going to pay for everything. So at some point – I guess next year in the budget process – we have to just be a little more realistic," Fleming said. "I understand people don't want to tax this kind of thing, but I feel like it's worthwhile. If you're going to the theater, you believe in the theater, you want the arts coordinator, money doesn't grow on trees."

Rebutting concerns from opponents of her proposed performing arts tax, Rainey recalled naysayers had originally warned about dire consequences of the imposition of a liquor tax as well.

"Nobody was going to come to the city of Evanston, nobody was going to open a bar here," Now, Rainey said, it's a vital source of revenue. "You have to beat these restaurants away with a stick to keep them out of town. Everyone wants a liquor license." Her proposed increase to for-profit venues would only amount to a 40 cent surcharge on a $40 ticket, she said.

"I'm sitting in Union paying $15 bucks for 6 ounces of cheap wine and I'm going to complain about the 40 cents. Really? Really, how can we sit here and say we're going to have an arts coordinator, but we're firing our victim services people. It doesn't make sense to me," she said. “We should do both, if we're a city that's so livable. And the way to do both is we have revenue generated that is not regressive."

Rainey withdrew her proposal for the tax on non-profit theater before a vote was taken. Aldermen voted 6-3 to oppose the 1 percent increase. Only aldermen Rue Simmons and Fleming joined Rainey in supporting the increase, which would have generated about $40,000.

The City Council also voted 8-1 Monday to privatize crossing guard services to a company that said it would keep all the city's current crossing guards on board. Only Suffredin was opposed. Aldermen also agreed to remove a provision that would project an increase in enforcement of special pick-up fees for recycling bins that are not properly sorted.

"There's no law that requires you to recycle," said Public Works Director Dave Stoneback. He said the worst offenders to the city's recycling policy were both in areas in the 5th Ward, near the university in the east and west of Dodge Avenue between Church and Emerson street. Aldermen decided to postpone any enforcement of a $25 fine and increase education on properly recycling (i.e. without unrecyclable plastic bags.)

City Clerk Devon Reid, whose proposal to increase revenue and expand vital records services was rejected by a majority of aldermen last meeting, said during the meeting the mayor had ignored his request to discuss the budget.

"For the record, the policymakers up here are the aldermen," Mayor Steve Hagerty said. "So I have chosen not to have you comment on the budget tonight."

Hagerty thanked city staff and members of the community engaged in budget process for their work in recent months.

"I don't think you'll find anybody who will say it's a perfect budget," Hagerty said. "There is sacrifice that's been made across the board, in terms of programs as well as for our taxpayers, but I think it's good work that's been done, so congratulations."

Related:

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