Friday, October 4, 2024 | View in browser
City Manager Releases 2025 Proposed Budget
 EVANSTON, IL - Evanston City Manager Luke Stowe has released the City’s 2025 Proposed Budget, which prioritizes and supports the City Council goals of economic development, public safety, climate action and resiliency, housing, finances, and public health.
The proposed Fiscal Year 2025 Budget includes spending of $342,151,643. This amount represents a $13.4 million decrease from the 2024 Adopted Budget, primarily due to large-scale capital projects like the water intake replacement project moving closer to completion and a reduction in federal ARPA spending. The budget also includes a substantial Capital Improvement Program (CIP) that will be discussed and prioritized throughout the budget approval process with the City Council.
"Our 2025 Proposed Budget reflects our commitment to a healthy and thriving Evanston while delivering high-quality services to our residents," said City Manager Luke Stowe. "We look forward to discussing this proposal with the community and City Council."
The 2025 Proposed Budget will initially be presented by City staff at the Finance & Budget Committee Meeting on Tuesday, October 8, and again at the City Council Meeting on Monday, October 14. City staff will also present the budget at several upcoming joint ward meetings and town halls as staff gather feedback from the community.
Property Taxes and Other Revenues
The City budget is funded by various taxes and fees paid by property owners, businesses, shoppers, and visitors. The General Fund, the City’s primary operating fund, shows $138,762,935 in revenues and interfund transfers in and $151,278,402 in expenses and interfund transfers out.
The proposed budget includes a variety of new revenue ideas and increases for the City Council to consider for implementation in 2025. However, as drafted, the proposed General Fund budget does not include any increases for new or existing taxes or fees. Following earlier feedback from the City Council, the proposed budget holds the City’s portion of the property tax levy flat at 2021 levels, relying on accumulated reserves and one-time permit revenues from Northwestern University for the new Ryan Field football stadium project to sustain operations in 2025.
Major revenues like Sales Taxes, Income Taxes, Liquor Taxes, and Hotel Taxes have reached record highs in recent years due to high inflation. The proposed budget is optimistic that these taxes will remain at these record levels. Other revenues, such as Personal Property Replacement Taxes and Real Estate Transfer Taxes, show significant decreases in the proposed budget due to reductions by the State of Illinois and higher mortgage rates.
Public Safety Pensions
One of the most significant expense increases in the FY 2025 Proposed Budget is the City’s required contribution to public safety pensions. In July 2023, the City Council adopted a new pension policy to put the City on a path toward 100 percent funding of public safety pensions by 2040. Per the policy's details, this will be covered through a combination of property taxes, General Fund reserves, and other funding sources.
In 2025, the required annual contribution will increase from $25.6 million to $29.6 million. Following the pension policy adopted by the City Council, $9.6 million will be drawn primarily from General Fund reserves to cover this additional obligation. While the City has available reserves to cover this contribution in 2025, careful consideration will need to be given to how best to sustain this contribution in the future.
Community Benefits Agreement with Northwestern University
In Fall 2023, the City Council approved a new Community Benefits Agreement (CBA) between the City of Evanston and Northwestern University. Among the many components of the CBA is a $3 million annual contribution to the Good Neighbor Fund for fifteen years beginning in 2024. Of that $3 million, $1 million will be directed to Affordable Housing, and $500,000 will be directed towards sustainability efforts. The budget proposes to transfer the remaining $1.5 million to the General Fund to cover operating expenses.
Capital Improvement Plan
The City's 2025 Proposed Budget includes a $86.8 million Capital Improvement Plan. The proposed capital spending amounts for Council consideration are as follows:
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$27.8 million for street resurfacing, corridor improvements, and water main and lead service lines replacement.
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$10.5 million for City facility repairs and upgrades.
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$11.9 million for park rehabilitation and improvements at Beck Park, the Dog Beach, the Public Canoe Launch, and other community parks.
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$6.4 million for other transportation projects, including alley, crosswalk, traffic signal, and street light improvements.
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$15.9 million to continue replacement of the existing 115-year-old deteriorated water intake extending into Lake Michigan.
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Funding for sustainability-focused projects, including city and public charging infrastructure, solar infrastructure, and divvy bike expansion.
Proposed Changes to Water, Sewer, and Sanitation Rates
The 2025 Proposed Budget incorporates a 23.3 percent increase in the water rate to accommodate the elevated expenses associated with water main replacement and the City’s Lead Service Line Replacement Workforce Development Program. This increase is partially offset by a 13.5 percent reduction to the City’s Sewer Rate, resulting in a net average annual increase of $60 per resident or $10 more per bi-monthly bill. Furthermore, the Proposed Budget includes a 7.5 percent increase in solid waste rates, resulting in an average annual increase of $22.50 for households with a 65-gallon refuse container.
About the Budget
The annual budget conveys the City’s priorities and assigns funding to make them a reality. Most importantly, it is a policy document that sets the City's financial course. It represents the culmination of months of effort by City staff and elected officials to balance available resources with the actual and desired services required by Evanston residents, businesses, and visitors. The online 2025 Proposed Budget document can be found at cityofevanston.org/budget.
Staff will present the 2025 Proposed Budget at the Finance & Budget Committee meeting on Tuesday, October 8, and formally present it to the Evanston City Council on Monday, October 14. Residents are also invited to participate in a public hearing on the budget on Monday, October 28. Both meetings will be held in a hybrid virtual/in-person format.
City staff will present the proposed budget at various ward meetings in late October and early November. The full calendar will be posted on cityofevanston.org/budget.
Residents are encouraged to provide their input on the 2025 Proposed Budget through any of the following channels:
For more information, visit cityofevanston.org/budget or call/text 847-448-4311. For convenience, residents may simply dial 3-1-1 in Evanston.
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Media Contact: Cynthia Vargas
cvargas@cityofevanston.org
Phone: 847-877-7223
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