Closed-Session Minutes Show Support for Fountain Square Rehab

By Mary Helt Gavin

Minutes from the March 27 closed-session meeting, released by City Council on Nov. 12, show that a majority of the aldermen weighed in favorably on the project presented by architect Larry Booth and developers James Klutznick and Tim Anderson. All aldermen were present, although Alderman Melissa Wynne, 3rd Ward, came in late. Others who attended, according to the minutes were James Klutznick, Klutznick Fisher Development Inc.; Tim Anderson, Focus Development Inc.; Larry Booth, AIA, Booth Hansen Associates; Peter Schaudt, Peter Lindsay Schaudt Landscape Architecture, Inc.; Steve Friedland, legal counsel [for the developers]; and others. City staff who attended the meeting were Assistant City Manager Judith Aiello, City Manager Julia Carroll, First Assistant Corporation Counsel Herb Hill, City attorney Elke Purze, Assistant City Manager Rolanda Russell and City Clerk Mary Morris. Mayor Lorraine Morton presided.

The overall presentation was for a redevelopment of the entire block as a joint venture between the City and the developer, which would include the redevelopment of Fountain Square. A part of that presentation was for the 49-story retail-residential tower.

Most of the City Council members said they favored the “project” and from the context it is unclear what was meant: whether they favored the redevelopment of Fountain Square, the private construction of the retail-residential tower or the joint project. None appeared to favor having the City as a co-applicant. 

Agenda items for closed-session items generally come from the City Manager’s office, Ms. Morris said. Neither City Manager Julia Carroll nor Assistant City Manager Judith Aiello returned calls from the RoundTable asking who had placed the closed-session meeting on the agenda. Ms. Aiello rather than Ms. Carroll answered most of the questions directed toward City staff.

Council members’ comments on the “project”
According to the minutes, which were transcribed by City Clerk Mary Morris, Council members made the following remarks about the project.

“Mayor[Lorraine] Morton thought the project would be gorgeous ...

“Alderman[Edmund] Moran [6th Ward] saw significant value in the project, not in every detail, but aspects that are potentially beneficial to the City. He thought this building does not have to be as tall as presented and could be reduced by some percentage.

“Alderman [Ann] Rainey [8th Ward] thought Moran had understated interest in the project. Most people love the project and the building.

“Alderman [Lionel] Jean-Baptiste [2nd Ward] ... thought this is the last best chance to develop this area and tell the developer that we are interested.

“Alderman [Cheryl] Wollin [1st Ward] ... consider[s] Larry Booth one of the best architects in Chicago and trusts his judgment for a building of this height. This is the only place it could be. She likes that it will be a LEEDS building. They will have to have lots of public input. She favors the project and knows it won’t be easy.

“Alderman [Delores] Holmes [5th Ward] liked the project. ...

“Alderman Rainey liked the project, but not the project without the Fountain Square renovation and removal of the Fountain Square building because they can’t do those things without the project. They will have to come to a meeting of the minds on what they will tolerate. ...

“Alderman [Elizabeth] Tisdahl [7th Ward] liked the building, but not the height; predicted the height will create a public furor. ...

“Alderman [Anjana] Hansen [9th Ward] views [sic] were similar to others. While somewhat scared of the height, she noted the 40-foot setbacks, open space and saw the development as a great opportunity. ...

“Alderman [Melissa] Wynne [3rd Ward] was keeping an open mind and liked the idea of opening up the space; asked the mechanics of the City buying the Fountain Square building. ... Alderman Wynne thought what would significantly change public opinion is what is altered and the bonus Council gets by having that. ... Alderman Wynne said a tall building alone without the plaza would draw thousands of people and be criticized, whereas a tall building with the plaza would be different. ...

“Mayor Morton confirmed that the Fountain Square building is to be purchased, torn down, and a two story building built with a restaurant. ...

“Alderman Moran stated Council had a lively discussion and significant interest in the proposed project. Not everybody was ready to sign off. ...

“Mr. Anderson said he was “pleased to have the dialogue. He asked if there was any interest in having the developers pursue the purchase of the Fountain Square building on the basis of making it contingent upon TIF assistance? ...

“Mr. Anderson asked the next step. They want to get to the planned development process. ...

“Ms. Aiello said the next step prior to the public process is to let the Chair of the Plan Commission and Design Evanston see what is proposed then take it to the Economic Development Committee.”

Aldermen were somewhat gun-shy of having the City be a co-applicant with the developer on the project. Some persons at the meeting, including Mr. Klutznick, said they did not wish to circumvent the public process.

“Mayor Morton asked what they were asking for. Mr. Anderson said they would like to enter into a public/private partnership to achieve the public Fountain Square project, do the project on the north part of the block and the City be a co-applicant in the PD process.
They would like the City to enter negotiations to try to acquire the Fountain Square building. After they get PD approval, they want to enter a re-development agreement. ...

“Mr. Hill noted that the interconnection between the two developments is different and Council does not have to have the developer do Fountain Square as it was when they built a new parking garage. That is a policy discussion that Council needs to have and would be the framework for the redevelopment agreement.

“Ms. Carroll asked the purpose of making the city a co-applicant.  Mr. Anderson said it makes a stronger statement if the two are linked. Alderman Bernstein noted that people in Sherman Plaza might oppose this. They are asking the City to step up and say they approve this development, which says it is approved and pre-empts the PD process which they did once when a gun was held to their head. He would not do that again.

“Mr. Klutznick said it was not their intention to in any way to preclude the public process to go forward. Council will do what they believe is appropriate. 

“[Ald. Moran said h]e would not want to be a co-applicant; urged they develop a value statement on this project and be unified.  Overall it has a huge potential upside to contribute in a major way to downtown aesthetically and economically. He urged Council to go with this or some variant. He would like Council to signal to the developers that evening that Council likes these elements and some elements they want to continue to discuss; don’t want to be a co-applicant; must have a public process and work on a collaborative basis and encourage them to go forward.

“Alderman Bernstein thought the project was fabulous visually and liked the concept of space for Fountain Square; would never vote to co-sponsor the project and has a philosophical aversion to imminent [sic] domain.

“Alderman Jean-Baptiste understood that Sherman Plaza needed to happen. He thought this is the last best chance to develop this area and tell the developer that we are interested. Staff will get direction on the specifics from Council; agreed the City should not be a co-applicant.

“Alderman Wollin noted ... they cannot be co-applicants.

“Alderman Rainey [said] ... [t]he developer has to apply for a planned development.

 

Panel, Citizens Troubled by Open Meetings Act Violations

The recent opinion by the office of the Illinois Attorney General that the City Council had violated the open meetings act by meeting in closed session with developers of the proposed 49-story tower reverberated in the Nov. 14 session of the public hearing on the tower.

Barbara Rakely read into the record some of the minutes from the closed-session meeting, which appeared to indicate that the developer had requested that the City be a co-applicant on the tower proposal - which would have included the rehab of Fountain Square - so as to pre-empt the planned-development process.

Plan Commission member Johana Nyden said, “It’s frustrating to know that this plan has already been vetted by another group that was supposed to hear it after us.

Plan Commission chair James Woods said, “This [the Plan Commission hearing] is the process it has to go through [now].”

Ms. Rakely said, “I would consider this a charade.”

Plan Commission member Colleen Burrus said, “I completely agree with you, and the City Council has to be held accountable.

Retiring Plan Commission member Al Hunter said there were two procedural things that troubled him: the closed-session meeting and City Council’s subsequent exemption of this proposal from the downtown moratorium. “The process is flawed,” he said; “things just aren’t right.”

Steve Friedlander, attorney for the developers, said, ‘I want to respond to the suggestion that my client did something improper. We wanted collaboration and proposed [the joint application.”

Oliver Gould,  who said he had attended many of the other sessions of the hearings on the tower, said, “I said three months ago, ‘This looks like a done deal.’”

 

Hearing on the Tower Continues

Architect Presents Modifications to Tower Proposal; Citizens and Panel Speak of Public Benefits

By Mary Helt Gavin

It is now one retail-story shorter than before, said architect Larry Booth, but the overall height of 523 feet remains the same.

New base, same height
In testimony before the City’s Plan Commission on Nov. 14, Mr. Booth presented some modifications to the proposed retail-residential tower that he said made it a more aesthetically pleasing building. As now proposed, the parapet at the base of the tower would be about the same height as the former Marshall Field’s building on the northwest corner of Church Street and Sherman Avenue. “We’ve kept the architectural arrangement of the bays, the stone base and the detailing on top that leads to the glass of the tower,”

Mr. Booth told the Plan Commission and the audience of about 70 people. “This makes a big difference,” he said; “it will settle the building in [to its surroundings].” He also said there would be three bands of “reinforced sculptural mullions” on the balconies that would effectively divide the building into distinct areas. “Glass technology is very interesting,” Mr. Booth added. “By changing types of high-performing glass we can change the shape of the building” He suggested using different tones of glass - in “sympathetic colors” - on different sides of the building, according to their exposure to the sun. Different glass would be used at the top, he said, so the building would “dissolve softly into the sky.”

 In answer to a question from a member of the Plan Commission, he said the glass would not be mirrored - “we’re not going to go back to the 60s.”

Mr. Booth promised that if the building were approved he and his team would keep working on it. He said, “As an architect I can’t say I enjoy these meetings but they do make for a better building. ... What’s important to me is that we get the most beautiful building.”

Citizen comment
During the public comment period residents voiced concerns about the height, the scale, the density, it appropriateness for Evanston and its effect on the quality of life here.

Architect Paul Janeke said he felt the tower as proposed has “no connection to the City of Evanston. The kind of glass-clad curtain wall [at the base] is not new; it is very tired.” He added the issue for him “is height. I would like to see a smaller tower.”

Andrew Fisher, who said he lives in a downtown high-rise and does not own a car, said he is “concerned about the air pollution and congestion that could be generated by the tower. ...Will be become more like the Eden’s Expressway after an accident - log jammed?”

Oliver Gould said his building on Hinman Avenue would be in shadow three hours a day.
“You are overlooking the most important part of the proposal,” he told the Plan Commission members. “What is the impact on the community as a whole? What will be its impact on the real estate values in downtown Evanston?”

Michael Lembeck and his wife, Mary Ann, said they are the owners of William Shoes The Walking Spirit and Williams Next Door - the local shoe retail business that has been in their family for more than half a century. They said since the Sherman Plaza development has come rents have doubled and in some cases tripled. “I don’t think the Walking Spirit and Williams Shoes and Williams Next Door can survive,” Mr. Lembeck said. He said none of their customers had voiced support for the tower. “Mr. and Mrs. Evanston are opposed to the tower. It’s like someone has proposed a breast augmentation for Evanston - from a C cup to an EEE cup.” He added, “It’s hard to be booted out after 50 years.”

Dennis Marino of the City’s Community Development Department said the City has a business-retention specialist who would try to help them relocate.

James Klutznick, the developer in charge of the retail aspect of the project, said he had spoken with Mr. and Mrs. Lembeck on several occasions. “We’re trying to find a way to get them into a home [business location] that would be a mid-range home. We are actively involved.”

Public benefits
Colin Savoy spoke, saying he is a professional planner with 27 years of experience. He said he is concerned about the quality of life and the character of the community. “This is the concern we’re raising now as a community - that we’re changing the direction of Evanston as a residential community. The height and other variations requested by the developers, he said are “excessive, not matched by the project.”

He said the planned-development process - the review process the City uses now for developments of more than 24 units - has two main issues: benefits to the city in exchange for flexibility [in zoning] from the City. “We need to get a much bigger public plaza [in exchange for the added height.”

Steve Friedland, the developers’ attorney, enumerated the public benefits the proposal offers and said he believes “they justify the significant changes [in zoning] we are seeking.”

- The TIF increment from this project (the difference between the taxes on the property as improved and unimproved), which he said would be significant enough to pay for the City’s rehab of Fountain Square

- A contribution - possibly as great as $900,000, the developers said previously - to the City’s affordable housing fund. (This is the amount mandated by the formula in the City ordinance)

- Preservation of the Hahn building, which the developers recently purchased

- A “meaningful contribution” to the City’s rehab of Fountain Square

- The incorporation of sustainable elements so that the building would be silver- certified LEED (Leadership in Energy and Environmental Design) building

- The architectural quality of the building itself

Plan Commission member Colleen Burrus said she felt “the whole public benefit [list] is meaningless.

Mr. Friedland said the developers believed that having only one significant building on the block was “best for the City” and reminded the Commission members that there had been a proposal for another tower, rising above the Hahn building. The developers' purchase of the building, he said, prevents that from happening.

Referring to a letter written by Plan Commission chair James Woods, listing his concerns about the tower, Plan Commission member Charles Staley said he had similar concerns.

He said he thought the Hahn building should be both preserved and improved - “upgraded to a level that merits its landmark status. ...

I agree that the public benefits [enumerated by the developer] are not enough to warrant the height and density [sought]. I think the developer should undertake redevelopment of the whole block.”

 He said he would like to see the building’s roof reinforced and an outdoor garden installed there, “connecting to the terrace on the tower.” He suggested that the developer and his attorney return in December with a “package” of public benefits.

Al Hunter, who after six years was attending his last meeting as a member of the Plan Commission, said he agreed, “We really should be talking about the entire block.” He spoke of the difference between “use value” and “exchange value.” Use value, he said, is the “sentiment, the things that are not translated to market value, the values of the citizens. 

It is use value that defines the quality of life.”

One of the functions of the Plan Commission, he said, is to preserve use value. He added,

“What is missing [from the proposal] is creativity - in terms of building there is not much.

How does it stand out? If we are going to have this building it should be a work of art. ...

“We’re just not there.”

See the Downtown Evanston Plan Summary , Public Review Draft, 10/19/07 (PDF)

View all of the documents for the Downtown Plan. (PDF)

Suffredin Announces for State's Attorney.

Cook County Commissioner Larry Suffredin threw his hat into the ring for State's Attorney, with events in both Chicago and Evanston. Several dozen supporters attended a campaign kickoff at Koi Restaurant on Davis Street on Nov. 5. In announcing his campaign, Mr. Suffredin said, "I will continue my fight to get guns off the street and make our communities safer. ... I will join forces with local police to target ongoing gang and drug activity and will work tirelessly on behalf of crime victims." Mr. Suffredin also promised to "aggressively use the office's civil powers to ensure we're protecting our environment from harmful polluters, consumers from deceptive lending practices, and our elderly from fraud and abusive caretakers."

AG Finds Council Violated Open Meetings Act in Meeting With Klutznick

By Mary Helt Gavin

City Council violated the Illinois Open Meetings Act by discussing the proposed 49-story high-rise in a closed-session meeting on March 27, according to the office of Attorney General Lisa Madigan. 

A letter dated Oct. 29 to Jack Siegel, the City's Corporation Counsel, from Terry Mutchler, public access counselor for the Attorney General's office, reaffirmed the opinion stated in a letter of July 18: "[T]he City Council violated the Open Meetings Act ... and we recommend that Council release to the public the portion of the closed-door session related to [the proposal for the 49-story high-rise at 708 Church St.]"

Public bodies are required to conduct their business in public, according to the Illinois Open Meetings Act. There are several limited exceptions that allow closed-session meetings, one of which is discussion of the purchase or sale of real estate.

The RoundTable obtained correspondence between the City and the Attorney General about the propriety of the closed-session meeting.

Robert Atkins, a local attorney, requested in May that the Attorney General examine whether the March 27 meeting violated the Open Meetings Act. His letter, dated May 17, said the meeting was held "for the purpose of discussing a developer's plan to building a 49-story condominium tower in downtown Evanston." Mr. Atkins' letter also said "many Evanston residents" believed that the closed-session meeting was held illegally.

The City's attorneys have said they felt the meeting - held with developers James Klutznick and Tim Anderson, who subsequently submitted a proposal for a 49-story mixed-use high rise on that property - was proper, because the discussion primarily involved discussion of the rehab of Fountain Square and the possible acquisition of a parcel in the Fountain Square block.

In a July 10 letter to the Attorney General, the City's First Assistant Corporation Counsel Herbert Hill termed the discussion of development of the property for the proposed tower "incidental discussion with the developer of a related parcel." He also stated that the purpose of the closed-session meeting "was to determine the feasibility of acquiring real estate for the enlargement and enhancement of Fountain Square." He said the discussion turned on whether to acquire the property that abuts Fountain Square - known as the Fountain Square building - and whether purchase or condemnation would be the better course of action.

"[A]t [the March 27] executive session, there was incidental discussion with a developer of a related parcel and the impact of that development on Fountain Square," the letter says, "In the event the City were to purchase the subject parcel, the area known as Fountain Square would be enlarged and extensively redesigned. The acquisition of the additional real estate for Fountain Square and the related improvements of an enlarged and enhanced Fountain Square were discussed at the Executive Session. This discussion cored in the context of whether the City should acquire the subject property," Mr. Hill's July 10 letter continued.

Ms. Mutchler's response, dated July 18, again noting the purpose of the Open Meetings Act and citing sections of the law (5 ILCS 120/2) applying to closed-session meetings, said that in the March 27 meeting, "The City of Evanston was limited to discuss the purchase of a specific piece of property and the setting of a price for sale or lease of property. No other discussion would be permitted outside those items ...An incidental discussion of the development of an unrelated piece of land is neither identified to the public as a reason for entering closed session on this date, nor is it covered under the provisions [of the subsection of the Act]"

In further correspondence to the Attorney General's office, dated Aug. 28, Corporation Counsel Jack Siegel requested that Ms. Mutchler reconsider her opinion and offered an expanded context for the closed-session meeting: that the subject of the session was the redevelopment of the entire tax-increment financing (TIF) district, which includes Fountain Square, the 708 Church parcel (the site of the proposed tower) and the Fountain Square building, which the City contemplated acquiring by purchase or condemnation.

"The basic issue," Mr. Siegel's letter said, "was the Council's consideration of the possible acquisition of a building known as the Fountain Square Building. The Building is located in the TIF district, as is a proposed development by a developer who in fact, was present at that meeting. ... the discussion in the closed meeting at which the possibility of acquiring the Fountain Square Building was considered necessarily involved the purpose for which such acquisition would take place. The City could acquire the Fountain Square Building for the purpose of implementing a redevelopment plan which included the developer's proposed project. Before the City Council could consider such acquisition as part of the redevelopment project, it was necessary to learn how the City's acquisition would fit into the proposed development."

Mr. Siegel's letter also disputes Mr. Atkins' allegations about the purpose of the meeting. He said the meeting was not held to discuss the proposal, "although ... the City Council necessarily had to understand the context in which the possible acquisition of the Fountain Square building was to be considered." Although the City has given no explanation as to why the tower proposal was not discussed publicly before the Council adjourned to a closed session, Mr. Siegel said there was "no intent by the City Council to violate the Open Meetings Act."

A request by the RoundTable to read the closed-session minutes and to listen to the tape recording of the meeting was denied by the City on Nov. 1. City Clerk Mary Morris said Council was did not have to follow the Attorney General's request to release the minutes of the closed session and she could not release them until the Council had approved the release.

Remembering Those Who Served in Wars.

Veterans, families of soldiers and other Evanston residents gathered at Fountain Square on Nov. 11 to celebrate Veterans' Day. With Northwestern Navy ROTC members serving as color guard, the ceremonies touched on wars past and present. At 11 a.m., the crowd faced east and observed a moment of silence.
  
Standing at the lectern, Greg Lisinski of American Legion Post 42, speaks to the audience who braved the chill to remember veterans past and present. The ceremony was organized by Post 42, William B. Snell VFW Post 7186 and the North Shore Vietnam Veterans. Photo by Laura Rust

Links From City's Website: Free Speech or Misuse of City 'Brand'?

By Mary Helt Gavin

A discussion at the Nov. 5 Rules Committee meeting left unresolved the issue of what sort of links the City may offer from its website. The committee had hoped to resolve a complaint by members of the Evanston/North Shore NAACP about some comments posted on a message board about Oakton School, accessible on the website of Eighth Ward Alderman Ann Rainey. The website, annrainey.com, is accessible from the City's website, cityofevanston.org.

The NAACP group objected to some comments posted last spring by Ald. Rainey and others concerning Q.T. Carter, who was then principal at Oakton. They said they felt that Ald. Rainey's website appeared to have the imprimatur of the City, because of its link from the City's website.

George Mitchell, president of the NAACP, said his group wanted "the removal of the City link to private websites that have the potential to be viewed as governmental."

Judith Treadway, chair of the education committee of the NAACP, said a website "linked from the City of Evanston's website gives the impression that it is sanctioned by the City. No other alderman has a website that is linked."

Two questions appeared to arise from the NAACP's complaint: whether the link from the City's website is a use or possible misuse of the City's "brand" and whether an elected official should be able to post comments on a blog or message board.

A memo from First Assistant Corporation Counsel Herb Hill indicated that "brands" are used more in the corporate than in the municipal world and, although there were no cases directly on point he did not think that the link to Ald. Rainey's website was a violation in that area.

"Cases show the City is immune from liability," he said, but he also said he thought the City should establish guidelines about its website and web links.

Ald. Rainey showed a printed copy of her website, which now bears two disclaimers: "My domain name is bought and paid for by Ann Rainey and not by the City of Evanston." And "So as not to confuse anyone, this is not the official web site of the City of Evanston."

Ms. Treadway said she objected to the content of some of the posts. She said Ald. Rainey had called her and former District 65 School Board member Terri Shepard "meddlers."

Ald. Rainey agreed that she had called the two "meddlers" but said she had apologized and said she "should have called them 'community activists.' ... But I think it had to do with Q.T. Carter [then principal of Oakton School] and the devastating situation we have at Oakton School - which, by the way, persists." 

Ald. Rainey also said, "The issue comes to us because of comments on a message board over which I have no control ... the Oakton School Message Board."

Alderman Lionel Jean-Baptiste, 2nd Ward, said some would not see a "meddler" as being an activist.

Ald. Rainey said she agreed but also said, "... I don't go to the national government when I hear something I'm offended by."

Ms. Treadway said, "The issue is the linkage from the City's website to this message board. Most of it is gossip. You lack discretion, Alderman Rainey, on what you put on your board - it is misinformation, disinformation and lies."

She added she was not trying to deny anyone free speech but said the website is "not promoting the positive image of the City of Evanston, one of whose values is to promote racial harmony."

Ald. Rainey said that all the message boards could be accessed from the Library's website, www.epl.org, as well. "If you decide to eradicate all links from the City's website you'd also eliminate websites with ads, like The Weather Channel and Lou Malnati's. Is the City endorsing Lou's? ... It's not some vile, evil matter; it's commuication."

Alderman Elizabeth Tisdahl, 7th Ward, who chairs the Rules Committee, said, "Everyone should look at the links. We have to consider wiping out enormous numbers of links from the City's website."

The committee members, needing to adjourn to attend a scheduled budget meeting, requested further guidance from Mr. Hill.

Referendum To Increase Transfer Tax Rate

On Nov. 5, the City's Rules Committee, composed of all nine aldermen, orally approved changes to the referendum question to increase the real estate transfer tax rate, which will appear on the primary election ballot next year.

Aldermen have approved asking the voters for an increase in the real estate transfer tax rate, but the formal wording has not yet been approved by City Council.

At present the real estate transfer tax is $5 for every $1,000 of value of the real estate transferred; the tax is generally paid by the seller. The revenue is put into the City's General Fund, its main operating fund.

The referendum seeks a $1 increase, to $6 per $1,000 of value, with the increment split equally between the fire and police pension funds.

According to a City-produced brochure about the referendum, approximately 1,700-1,800 pieces of real estate are sold annually in Evanston.

City officials say that as of March 7 of this year, the police and fire pension funds had an unfunded actuarial liability of approximately $140 million, which must be completely funded by 2033. The primary election date was moved from April to February 5, 2008.

City Looks for Five-Year Budget Plan

By Mary Helt Gavin

With expenses projected to outpace revenues for at least the next five years and with seriously underfunded fire and police pensions, City officials are trying to correct what they term systemic problems in the budget.

At a budget committee meeting on Nov. 5, Finance Director Matthew Grady and City Manager Julia Carroll said they would recommend a combination of trimming expenses and seeking new revenues "previously thought to be off the table" to bring the City's revenues and expenses into equilibrium for the coming fiscal years.

Looking at the expenditures and revenues projected for the General Fund, Ms. Carroll and Mr. Grady said there would be a $2.2 million shortfall for the 2008-09 fiscal year if no changes were made on either the revenue or the expense side.

The City is projecting a deficit of $4.8 million for fiscal year 2009-10, $5.5 million for 2010-11. $7.8 million for 2011-12 and $10.5 million for 2012-13. The total deficits for the five-year period, if changes are not made, are projected at $30.8 million.

Even the retirement of the Downtown II tax-increment financing (TIF) district in 2009 "doesn't come close to closing the gap between revenues and expenses," Ms. Carroll said.

Assumptions
Evanston has several favorable conditions, said Mr. Grady, such as increases in median household value, median household income and per capita income and a decrease in unemployment in the past several years. Revenues for the general fund are projected to about 2 percent next year, not enough to keep pace with expenses, he said.

Expenditures are likely to increase about 4 percent, or $2 million each year for the next several years. Salaries and benefits - payments for health care, retirement, Social Security and Medicare - are projected to increase from 3.5 percent (for Social Security and retirement 2009-23) to 10 percent (health care, 2008-13).

Council will have some tough decisions to make, said Ms. Carroll.

Parking fines, water revenues, early retirement
savings
The City is looking at substantial increases in the City's portion of the property tax bill (about 20 percent of the entire bill). City staff are preparing to search closely to find additional sources of revenue, Ms. Carroll and Mr. Grady said.

Mr. Grady again suggested a $5 increase in the monthly garage rate and a 50-percent increase in the downtown meter rate. He said the implementation of new technology would bring in a 6-percent increase in revenues from parking ticket fines in the coming fiscal year and a 2-percent increase thereafter.

Alderman Melissa Wynne, 3rd Ward, said a [small] regular increase in the garage parking rate was preferable to a large rate. "It's cheaper to park on the streets, so we want to aim people into the garages.  Even with the first hour free, people can figure out that it's cheaper to park at meters." She said, though, that compared to private garages in the downtown area, the City garages are "a good deal." Further, she said, with improved technology the City will be able to collect more [parking] fine revenue.

Alderman Edmund Moran, 6th Ward, asked whether staff "had ever looked at the tradeoff between the cost of aggressive parking-fine seeking and the sales tax revenue that might accrue downtown from a friendlier parking environment. "Downtown Evanston was supposed to bring in $400,000 and two-thirds of that was predicated on ticket fines and one-third, I'm assuming, was related to coins put into meters. When I talk about trading off between citations and revenue, [I'm suggesting] maybe if we didn't go after people so hard [with parking tickets, more] people would come here."

"I see what you mean," Ms. Carroll responded. "People can park free at Old Orchard." She said the City had not done a study to see whether free parking in downtown Evanston would bring in more sales tax revenues than would parking fines.

Water may be another source of revenue for the City, as contacts with the Village of Skokie and the Northwest Water Commission are being renegotiated, Mr. Grady said. In addition, he recommends "a small increase in the sewer rate." Water fund revenues within the City were down again this year, for the most part because the wet summer kept many people from having to water their lawns.

The City may be able to garner some savings through the early retirement incentives, health-care incentives (as yet unspecified), and "managed competition" for City services, Ms. Carroll said.

"Is that a word for privatizing?" asked Alderman Ann Rainey, 8th Ward. Ms. Carroll said it was a form of competitive bidding between a City team (for collecting refuse, for example) and an outside team.

The City's offer of an early retirement program has had several takers. The idea was to entice senior staff to retire so they could be replaced by lower-paid but qualified newcomers, the City said. The City expects to gain about $600,000 from that, Mr. Grady said.

Mr. Grady and Ms. Carroll also suggested increasing the home rule sales tax by a quarter of a percent, from 1.75 to 2 percent. However, Ald. Moran said he believed the City already charges the maximum home-rule sales tax.

No specific proposals to close the operating shortfall have been presented to City Council. City officials are also looking for ways to help fund the police and fire pension funds (see page 4).

Ms. Carroll said, "With carefully crafted revenue enhancements and expense reductions, we can close the [General Fund] gap.

Capital programs
The City's capital projects are scheduled on a rolling five-year plan. The plan for 2008-09 includes money for the civic center, Ms. Carroll said, whether the present one will be rehabbed or a new one rebuilt.

Traditionally the City Manager presents a tentative budget to the City Council on Jan. 1. The present fiscal year ends on March 1, 2008, and the City must adopt a balanced budget by that time. 

Council Bytes

Crime was on the minds of citizens and Council members alike at the Nov. 12 City Council meeting. A non-agenda item - reconsideration of the installation of blue-light safety phones in the residential area near the Northwestern University campus -consumed the majority of the Council's time.

At the Oct. 29 City Council meeting, aldermen approved an ordinance under which the City would enter into a contract with Northwestern for the University to install nine safety phones - five in CTA stations and four in the neighborhoods. An outcry from residents protesting the location of the phones led Council to reconsider the measure and refer the issue of the location of the four residential phones to the City's 9-1-1 Committee, whence it originated.

Carolyn Smith, a local realtor, said she felt the presence of the phones stigmatized the neighborhood and that local residents should have been consulted about them. "Nobody asked us what we thought about this and we have to live with them," she said. David Schoenfeld, president of the Northwestern Neighbors community group, said, "Many neighborhoods in the City need these phones more than we do." He said his group was concerned about the maintenance cost, the appearance of the phones and their "stigmatizing" effect.

Several Northwestern students spoke in favor of the phones, saying students felt safer with the phones. Two students said they had seen two armed robberies in front of their dormitory and urged Council members to approve the phones. Kate Pascal said, "Please be assured there is value and comfort in the blue-light phones."

Mayor Lorraine Morton said, "Crime is everywhere," and spoke of having been accosted on Ridge Avenue recently.

Alderman Cheryl Wollin said, "We know these phones deter crime. ...Let's not pretend we don't have a problem. Friends, we have a problem.

There's an issue [of crime] in this community. There is no date set yet for the next 9-1-1 Committee meeting, which is assigned to take up the issue.

Tax levy
The Council also held a public "truth in taxation hearing for the 2007 property tax levy" for both the City of Evanston and Evanston Township. Those levies, and one for the downtown taxing district, are scheduled to be approved at the Nov. 26 City Council meeting.

The levy falls short of the amount needed for police and firefighters pension-fund contributions for this year. Rather than amend the budget and seek an additional property tax increase for the present year, City Manager Julia Carroll and Finance Director Matthew Grady have recommended using unrestricted reserves to fill the pension-fund gap for this year. Timothy Schoolmaster, president of the police pension-fund board, said he had been reassured by the City Manager that the pension funds would receive the full actuarial amount.

Affordable housing
November is Illinois Affordable Housing Month, and though Mayor Morton had not received the official proclamation, she made note of the month.

Aldermen approved a grant of $5,160 for Connections for the Homeless to use for a year of rent subsidy for a family and a grant of $80,000 to Reba Place Development Corporation to help defray additional costs incurred for a required fire-suppression system in the affordable condominiums they are developing at 602 Mulford St.