Evanston City Council Takes Cultural Center Off Chopping Block

EVANSTON, IL — The City Council held its first discussion of its proposed 2019 budget Monday. The initial staff proposal featured more than $3 million in revenue and $4 million in spending cuts. During a period of public comment, residents expressed concerns about cuts to mental health funding, the elimination of a fire station and the potential decertification of the city's health department. Aldermen did not discuss those concerns during the meeting.

Following a budget presentation from staff, aldermen voted to take a community center off the chopping block and gave clear direction to the manager not to make staffing changes to the youth and young adult division of the city. But no vote was taken on the latter after the city attorney said it may violate state law and city code.

The preliminary draft of Evanston's 2019 budget had calculated about $172,000 in savings from shutting down the Gibbs-Morrison Cultural Center at 1823 Church St., which the city acquired in 2015. Ald. Robin Rue Simmons, 5th Ward, said increases in revenue could be found to offset the cost of the city-owned facility, which is operated through the park district.

Rue Simmons' motion to remove the center from being considered to be cut was approved 7-2. Voting against it were 3rd Ward Ald. Melissa Wynne and 4th Ward Ald. Don Wilson, who suggested it was premature to remove anything from consideration.

A discussion of potential changes to the city's youth and young adult division followed. The division had not faced any budget cuts in this month's proposal from City Manager Wally Bobkiewicz. However, Bobkiewicz had suggested a promotion for the head of the division to a position inside the community development department focused on workforce development and employment. He said expanding a jobs program to those over age 25 was in line with the goals provided by the Council.

But in an Oct. 8 message posted to social media the city's community service manager, who had been due to receive the promotion, suggested the change would be detrimental to the city's services.

Although it was not a budget issue, Braithwaite said it was important to let the public know that the youth and young adult division would remain intact.

"This isn't a park. This isn't the arts. It's literally dealing with the violence that exists in our community," Braithwaite said, suggesting any reorganizing of the division should wait until after budget discussions.

Wilson questioned whether it was a proper motion, since it was not on the agenda or a budget item.

"We can't govern by social media," said Wilson. "Because a lot of people get something wrong on social media." He suggested the council was verging on micromanaging the city manager.

City Attorney Michael Masoncup later agreed, interjecting before Braithwaite's motion could come to a vote.

"To me you're really getting to a managerial issue," Masoncup said. "This is whether or not you have a city manager form of government. He proposed a staff issue and now you're mingling the two, and I am frankly confused what is before you. This is not on the agenda. This is not a budget issue. It sounds like you're challenging his ability to make that decision."

Braithwaite withdrew his motion, as Bobkiewicz said he would halt the plans to draw up a new job description and expand the city's workforce development program to adults.

View Oct. 22 Budget Presentation Slides »

On Nov. 6, one line of Evanston's budget will be up for a binding vote. Voters will decide whether to approve a referendum to enact the state's first progressive real estate transfer tax.

"There is some horrible, horrible advertising out that is totally, absolutely, positively not what our transfer tax stamp referendum is going to do," Ald. Rainey said, suggesting the city staff needed to provide accurate information about what the referendum is without advocating voting for or against it.

"We can say what it is. I'm just saying what it is," Rainey said. "I'm not saying you should vote for it. I'm saying what it is."

"I'd also like to say what it is," said Ald. Cicely Fleming, 9th Ward. "I got the postcard too."

The direct mail ads were sponsored by a group that received $100,000 from the Illinois Realtors PAC on Oct. 5, which is more than enough money to pay the higher tax on a pair of $5 million property sales and the equivalent 12.5 percent of the money Evanston hopes to raise from the increase on an annual basis.

Referring to a potential increase from 0.4 percent to 0.9 percent for properties sold for more than $5 million as an "80 percent tax increase on property sales," the realtors' ad campaign suggests adding a fraction of a percent to the one-time sales tax of properties that sell for more than $1.5 million would lead to "higher consumer prices," "fewer jobs" and "fewer re-investment dollars."

Under the proposed referendum, the real estate sales tax rate would remain the same for all real estate sold for below $1.5 million – a $5 per $1,000 tax paid by the seller, which translates into a tax of about $1,750 on the median Evanston home. For properties selling for between $1.5 million and $5 million, the rate would increase to 0.7 percent. It would rise to 0.9 percent for properties that sold for $5 million or more.

City staff had suggested splitting the cost between buyers and sellers while raising the transfer tax rate, but 8th Ward Ald. Ann Rainey suggested a graduated rate plan that would raise a projected $800,000 in revenue and keep tax rates unchanged on anyone who is not selling a piece of property worth more than $1.5 million.

Try 'A Balancing Act': Submit your proposal for balancing the Evanston budget »

Evanston residents have until Friday to submit their own ideas for the budget. The city's "Balancing Act" online tool allows those withing to participate in the budget process or aspiring municipal accountants to providing feedback to city staff on how they would plug the city's deficit.

Two more budget meetings with aldermen and city staff are planned. Tuesday at 8 a.m. at Bagel Art Cafe, 615 Dempster St. and Wednesday at 3:30 p.m. at Little Bean Cafe at 430 Asbury Ave. The City Council will hold a formal public hearing and truth in taxation budget hearings Saturday morning from 9 a.m. to 1 p.m., with more discussion of the budget planned before the City Council Oct. 29.

More:

• Staff Cuts, Fee Increases Balance Proposed 2019 Evanston Budget »
  
• Evanston's Budget Deficit Projection Rises To $7.5 Million »
• Progressive Real Estate Tax Hike Referendum Gets Public Hearing »