By Bob Seidenberg
Property tax increases are never popular, but past City Council decisions to keep the taxes flat or exceptionally low, failing to keep pace with inflation, may not be in the city’s best interest in the long run.
At Tuesday’s Finance and Budget Committee meeting, committee members took a deep dive into Evanston’s property tax history to gain a better understanding of city officials’ request this year for a 7.8% increase in the city’s property tax levy.
The city’s portion accounts for about 20% of a property owner’s overall tax bill. Together, the two local school districts make up about 70%.
David Livingston, chair of the committee, had requested staff provide a summary of past property tax levies and year-over-year spending increases. The results show that in most years between 2013 and 2023, property tax increases were low – with 1%, 0% and 0% increases for 2021, 2022 and 2023. During the three-year period, the city relied on the $43.1 million in federal COVID recovery funds it had received.
Over the multiyear span, Livingston said, general fund spending increased about 4% a year, “and that includes a couple of inflation years.” Meanwhile, the city’s property tax growth over that period has been about 2.75%, he noted.
“This is one of our discretionary revenue areas,” Livingston said of property taxes, “and we’re sort of creating what, looking forward, can be a structural deficit as we hollow out [reduce the amount of property taxes used] on what was much more a significant element for the city than it is today.”
He said to the committee, which includes several council members, “I recognize that property taxes are a particular emotional point for people, but it is a fundamental element of our revenue streams. And by not keeping pace with spending, we have actually cut the percent of the general fund that is represented by property taxes in half.”
The general fund serves as the city’s main operating fund, from which salaries, benefits and other expenses are paid.
