Tentative Budget: 15-Percent Hike in City's Portion of Property Tax to Cover Pension, Debt and Operations

By Mary Helt Gavin

The City Manager's tentative budget for 2008-09, presented to City Council members on Dec. 31, calls for a 15.15-percent property tax increase and adds new fees and increases existing fees and fines. Expenses, adjusted for interfund transfers, are pegged at $182.9 million, up $17 million or 10.2 percent over the previous year. By City accounts, it will cost an Evanstonian with a $10,000 property tax bill an additional 82 cents per day to live here.

The growth in expenses continues to outpace revenues, but the big-ticket item in the tentative budget is the unfunded liability in the police and firefighter pension funds. Unless and until the City Council decides upon another way to fund the annual contributions, they will be paid through property tax revenues. Both pension funds must be fully funded by 2033. (See Dec. 12 RoundTable.) A referendum question on the Feb. 5 ballot seeks an increase in the real estate transfer tax rate. If voters approve the increase, the increment will be split between the two funds. (See story on page 4.)

The Big-Ticket Items: Pension Funds, Debt Service and Salaries
Unfunded pension fund liabilities came under closer scrutiny this year, and the City's new actuary revised the amounts owed by the City to be upwards of $140 million. While full funding is not required until 2033, the City is lagging behind with about 41-percent funding and must increase the annual amounts accordingly. These increases account for nearly $8 million in new expenditures for 2008-09.

Expenditures through the General Fund cover the majority of daily operations of the City (excluding fleet, water and sewer services). These expenditures, which include salaries and benefits for the City's nearly 600 employees, are expected to increase to $84.3 million, adjusted for interfund transfers. This represents an increase of $4 million, or 5 percent, over the prior year.

Other major increases are due to the Sherman Avenue Garage ($2.2 million), sewer service ($1.6 million), debt service on the City's general obligation bonds used to fund capital projects ($734,000) and fleet service ($960,000).

Revenues Still Lag
As proposed, the bulk of the budget will be balanced upon the shoulders of property owners in Evanston, who would see an increase on their property tax bills next year: just over $300 to an annual property tax bill of $10,000, according to the City.

In addition to the property tax hike, the budget calls for the following increases in fees:

• An increase of $1.95 per month (from $5 to $6.95 per month) in the fee for refuse collection from a single garbage cart ($423,000)
• An additional charge of $2.50 per household per month for refuse collection from a second garbage cart ($100,000)
• A license fee of $40 per unit for all rental units in Evanston ($525,000). This will not apply to university dorms or sororities or fraternities, which are already covered by the City's rooming house ordinance, said Ms. Carroll.
• Business licenses fees ($42,000)
• Increases in taxi industry fees and licenses ($53,000)
• An increase from $10 to $15 in the fine for parking at an expired meter ($252,000)
• Increases in parking rates - from $80 to $85 in the parking garages and from $.50 to $.75 per hour at meters
• An increase in residential parking permit fees from $10 to $15 per year ($35,000)
• An increase in late fees for overdue library books (adults only) from 10¢ per day to 15¢ per day ($20,000)
• An increase in vehicle sticker fees ($495,000)

On a more positive note, revenues from both home-rule and state sales taxes are projected to be higher in the coming year, due to increased retail sales: The City projects $40,500 from home-rule sales taxes and $100,000 additional from state sales taxes.

Recreation fees are expected to increase between 3 and 5 percent for next year, resulting in about $250,000. Modifications to yard-waste collections and other programs of Streets and Sanitation could garner $235,000 in savings and $160,000 in new revenues - including $100,000 from the Solid Waste Agency of Northern Cook County for increased tonnage of recycled materials.

Real estate transfer tax revenues are projected to drop by nearly 6 percent, or $230,000, in the coming year - from nearly $4 million to $3.7 million.

Trying to Hold the Line on Expenses
City staff have pared expenses again this year, said Ms. Carroll, trimming more than $1 million from City departments overall. The "open exchange between departments regarding expenditure reductions" resulted in reductions developed "across multiple departments in a fair and equitable manner," according to the budget letter. The result was that non-labor expenses were kept low, and Ms. Carroll says she believes some progress has been made in addressing employee costs.

City administrators began working nearly two years ago with representatives of both AFSCME and the public safety unions - which cover nearly all City employees - to address spiraling medical benefit costs, she said. "Union leadership was involved in discussions with a committee that met for about 12 weeks," Ms. Carroll told the RoundTable. "I think we have pretty good buy-ins from the unions. We're adding a deductible for the first time, and we're increasing the co-pay amounts, which can generate a lot of savings," she added. The projected savings are $653,000 for this year.

Even with the paring down of expenses, the total expenditures in the General Fund, excluding interfund transfers, are projected to increase about $4 million over the 2007-08 fiscal year.

Personnel Cut, Not Programs
The payoff, if there is any in this budget of major increases, is that no program cuts are proposed. "In my three years here I know there are some things the Council does not want to touch - the branch libraries, for one thing, and mental health funding, for another," Ms. Carroll told the RoundTable. She added, "This budget proposes to maintain existing services. My concern is that if we cut programs it will cut services and staffing levels we have not talked with Council about."

In personnel matters, there are passive as well as active cuts. Many senior staff members and department heads have taken advantage of the City's early retirement incentive programs. Only some of these vacancies will be filled, said Ms. Carroll.

Last year the City offered an early retirement incentive for senior staff; at least seven department heads have announced their retirement or have already left.

Nine full-time-equivalent positions will be eliminated in the coming year, on top of 6.65 full-time-equivalent positions eliminated last year through early retirement. Six new positions are proposed for the coming fiscal year.

New Titles, New Positions
The position of assistant city manager, which will become vacant with the retirement of Judith Aiello in the next few weeks, will not be filled; instead, Ms. Carroll proposes hiring a full-time economic development director.

In the police department, the vacant deputy chief position will not be filled, but two patrol officers will be hired instead, said Ms. Carroll. "The police chief [Richard Eddington] and I propose to create a small tactical unit, composed of two officers and overseen by a sergeant." Chief Eddington said the tactical unit will be trained to study and respond to crime patterns as they emerge.

Should the Council approve the licensing of rental units, as proposed in the budget, the implementation would require an inspector and a clerk. The cost of those positions would be covered by the revenues generated through the inspections, Ms. Carroll said.

In addition, the budget proposes a new position of assistant director of public works to help oversee the more than 200 employees in that department.

Next Steps
Budget workshops are scheduled for Jan. 12 and Feb. 2, with optional workshops on Feb. 9 and 18, in City Council chambers. The public hearing on the budget is set for Feb. 4, and the final Council meeting to approve the budget is scheduled for Feb. 25. By law the City must approve a balanced budget by the beginning of its next fiscal year, March 1.

Committee Considers Resolution in Support Of Undocumented Immigrants

By Joe Linstroth

A resolution calling for humane and just treatment of immigrants and their families was proposed at the Human Services Committee meeting on Jan. 7. The resolution aims to clarify the community's support for the local immigrant population and offers specific guidelines to ensure that immigration status is not a barrier to receiving social services or unlawfully used in criminal complaints against non-citizens.

"I thought it was time to have the discussion and adopt a resolution for the just and humane treatment of immigrants," said Sixth Ward Alderman Edmund Moran, who helped draft the resolution.

Evanston resident Rachel Heuman also helped organize the project. She cited the recent publicity of anti-immigration rhetoric voiced by groups like the Minutemen, and by individuals such as former Republican presidential candidate Tom Tancredo and CNN personality Lou Dobbs, as part of the impetus for the resolution.

"It is very frustrating to hear a very vocal minority presenting itself as the opinion of the people," said Ms. Heuman.

A six-person committee met in November to research similar resolutions adopted by other municipalities and to draft one tailored for the Evanston community. In addition to Ald. Moran and Ms. Heuman, the committee included Cristina Traina, professor of religion at Northwestern University; Martha Pierce, founder and director of the Chicago Metropolitan Sanctuary Alliance; Fr. Robert Oldershaw, pastor emeritus at St. Nicholas Catholic Church; and local resident John Heuman.

"The support is enormous in the community," Ms. Heuman said, highlighting endorsements from many local social service providers, scholars and faith-based organizations.

The proposed resolution affirms the contributions to American society made by immigrants, and notes Evanston's long tradition of supporting peace and justice issues, including the City's assistance to Salvadoran refugees, opposition to the Iraq war and efforts to integrate public schools and provide bilingual education.

The resolution also calls for the City to adopt policies that would ensure the fair treatment of local immigrants. It prohibits all City entities from disclosing information regarding citizenship status, police inquiries into a person's immigration status where it is not required by law, and the conditioning of public benefits provided by the Department of Health and Human Services based on citizenship status.

The resolution, Ms. Heuman said, confirms there are certain regulations in place to protect immigrants from discrimination. "As we all know, if a rule or regulation is not overtly spoken or understood, it could very quickly disappear," she said.

In addition to addressing the local immigrant population, the resolution urges comprehensive immigration reform at the national level that would, among other things, provide a path to citizenship for undocumented people "in the City of Evanston and elsewhere in this nation."

The resolution is similar to those passed by Chicago and Cook County, which support undocumented immigrants and their families.

After more than two hours of discussion on Jan. 7, the Human Services Committee approved the resolution and decided to hold it in committee "to broaden the participation," said Alderman Lionel Jean-Baptiste, 2nd Ward, whose motion to hold the resolution carried.

Nearly 50 people packed the small committee room, most of them supporting the resolution.

Reverend Robert Moseley of Hemenway United Methodist Church said, "We must oppose legislation that precludes individual rights."

A statement from Congresswoman Jan Schakowsky said, "I strongly support your effort, which calls for compassionate immigration reform at the federal level and other levels. It is important that in this time of immigration-bashing we stand up for such people in our midst. ... It makes sense from a moral perspective and a public health perspective."

Others who supported the resolution included Fortino Leon, co-founder of OLE (Organisation Latina de Evanston), Bennett Johnson, former president of the Evanston/North Shore NAACP and long-time spokesman on civil rights in Evanston, Dickelle Fonda of the North Shore Coalition for Peace and Justice, Arizona Tuckwell and Joan Safford.

Madeline Ducree, who appeared to agree with only some aspects of the resolution, said, "When I hear people say that people came here and work hard and do work that no one else will do ... that is not correct. It hurts my feelings. Do not think that because you are Belizean, Mexican, Jamaican and Haitian that you want to clean someone else's toilet for the rest of your life. You won't. You'll want to move up. Let us not forget those who worked in this country."

One aspect of the debate was whether the resolution came in response to problems already existing in Evanston or whether it was largely "symbolic."

A member of the human services staff said the department did not discriminate when they were using local funds for their services. Police Chief Richard Eddington said the police department does not discriminate on the basis of immigrant status. "We have undertaken no action that would violate anything in the sanctuary-city resolution."

Aldermanic Discussion
On motions by Alderman Steve Bernstein, 4th Ward, two clauses were deleted - those referring to leadership by religious institutions and the effects of the North American Free Trade Agreement on immigration.

One topic that hovered over the discussion was whether this protection of immigrants, though it relates only to status, would in fact offer those persons additional protections not afforded to others, particularly other minorities.

Alderman Delores Holmes, 5th Ward: "This is such a hot issue all over the country, I'm afraid of the feelings it would generate. ... I'm nervous because there are haters in our community. It's not that I would not support reform. If we're going to do something symbolic, then we'll do it."

Ald. Jean-Baptiste responded, "I think there are many things that are not just symbolic but put us on notice how not to discriminate." He added. "Speaking as the most recent immigrant on the Council, I'm just suggesting that we pass the resolution and hold it to see if we can broaden the participation."

Ald. Bernstein said, "All we're not going to do is target for status. ... This is consistent with what I hope is the reality now - all we're doing is codifying what we're doing."

Hans Peter Geiser said he "wants to make a compliment to the political culture tonight, that you, citizens of a town" are asking for this compassionate resolution. "I'm deeply impressed," he added.

Lionel Bian Pitts, who was born in Belize, said he was glad the resolution passed and that it was held in committee. "It will broaden the participation," he said.

Real Estate Transfer Tax Referendum To Fund Police And Firefighter Pensions

A referendum question on the Feb. 5 ballot asks for an increase of $1 - from $5 to $6 - for every $1,000 of value of real estate being transferred. The transfer tax is only paid when real estate is sold, and, in Evanston, is usually paid by the sellers.

At present, the revenue from the transfer tax is used in the City's General Fund, its main operating budget. Should the increase be approved by voters, that increment would be used to fund the state-mandated police and firefighters pension funds.

The City estimates that the amount of revenue generated by the proposed increase would be $800,000 per year. The transfer tax paid on the sale of a $300,000 house for example, would increase from $1,500 (300 x $5) to $1,800 (300 x $6). Approximately 1,700-1,800 parcels of real estate are sold annually in the City of Evanston.

Need for Pension Funding
As of March 1, 2007, the police and firefighters pension funds had an unfunded actuarial liability of approximately $140 million. The police pension fund was 44.3 percent funded; the firefighters pension fund was 41.1 percent funded. The state mandates that the liability be 100-percent funded by 2033.

The 2006 property tax levy contribution to the two pension funds was $7.9 million; the actuarial recommendation is $12.1 million.

In order to reach full funding by 2033, it is anticipated that the annual cost of the City's employer contributions to the police and firefighters pension funds will require increases in property taxes over the next 26 years unless other sources of revenue are found.

Moody's Ratings Service recently cited the growing unfunded pension liabilities when it downgraded the City's Aaa credit rating to Aa1.

On Sept. 24, 2007, the City Council directed the City Clerk to submit a referendum question for the Feb. 5, 2008 ballot, asking voters to determine whether or not to increase the real estate transfer tax to provide an alternate revenue source for public safety pensions.

King Day Celebrations

'We Shall Not Be Moved' Community Celebration to Focus on Black Churches

The experiences of Evanston's black churches during the Civil Rights Movement will be the focus of a community celebration honoring the legacy of Dr. Martin Luther King, Jr. "We Shall Not Be Moved" will begin at 11 a.m. on Jan. 19, at the Fleetwood-Jourdain Center, 1655 Foster St. with a roundtable discussion by local ministers. The celebration is open to all at no cost and lunch will be included. A photography exhibit of the Civil Rights Movement, is in the upstairs gallery. For more information, call 847-448-8254.

"We Shall Not Be Moved" is also the theme of the two Black History Month art exhibitions at the Noyes Cultural Arts Center, 927 Noyes St., and the focus of the Black History Month celebration on Feb. 10 at Fleetwood-Jourdain Community Center.

Northwestern's Observances
Alexis M. Herman, former U.S. Secretary of Labor, and Northwestern alumna Eva Jefferson Paterson, president and founder of the Equal Justice Society, will be the featured speakers at Northwestern University's commemoration of Dr. King's life and legacy. Ms. Herman will speak during the 11 a.m. celebration at Pick-Staiger Concert Hall, 50 Arts Circle Drive. Ms. Paterson's talk will take place during the 7 p.m. Candlelight Vigil observance in Alice Millar Chapel, 1870 Sheridan Road.

The annual candlelight vigil, Northwestern's longest-running observance, has been hosted for more than 20 years by the Alpha Phi Alpha Fraternity, Inc., the late Dr. King's fraternity.Both events are free and open to the public.For more information about 2008 Martin Luther King Jr. Day events at Northwestern, visit www.northwestern.edu/mlk or e-mail mlk@northwestern.edu.

Community Foundation to Receive $2 Million Grant

The Evanston Community Foundation (ECF) will receive a $2 million endowment grant this month from the Grand Victoria Foundation to support "Every Child Ready for Kindergarten, Every Youth Ready for Work," ECF's 2006impact plan to build a stronger community, beginning with young families and the organizations that support them. The partnership of the two foundations has already generated more than $1 million in contributions to ECF.

ECF will receive $1 million for its Communityworks endowment and $1 million for its operating endowment, as well as an additional $2 million in matching funds by raising an equal amount by the end of 2010.

"We are elated to build on the project we have begun with our partners here in Evanston," says Sara Schastok, ECF executive director, "and by Grand Victoria's willingness to commit $4 million to endowments for Evanston - what an opportunity."

The Communityworks Initiative
The Communityworks Initiative, begun in 2003, was designed to help Illinois community foundations identify and address issues that determine the quality of community life and help them raise local dollars to effect changes that community members wish to see.

"We organized more than 35 listening sessions and public meetings in just 30 months that began in 2004. This process led us to zero in on the years birth to three as the most strategic place for us to focus initial Foundation efforts. We have established a learning community relationship with our grantee organizations and have engaged an evaluation team," says Ms. Schastok.

Evanston has been recognized for its strong Communityworks Advisory Committee, chaired for more than three years by local resident Paul Finnegan. This committee has led the effort to develop a three-year implementation strategy for the ECF's impact plan and advises its board of directors. "Through our community meetings and listening sessions, and through working with local and national experts, we created our 'Every Child Ready for Kindergarten, Every Youth Ready for Work' plan," says Mr. Finnegan. "Our initial focus on young families with children aged 0-3 is designed on a solid base of research. This is Evanston's great chance to seize an opportunity - we look forward to creating a broad community partnership to reach our goals."

ECF Board Chair Kendal Gladish said the Foundation has an "unprecedented" opportunity to help families and childcare organizations prepare Evanston's youngest residents for success in kindergarten and beyond. "We all have a responsibility to stand with Evanston families to build the strength of this incredible town. The Board of Directors is honored and excited by Grand Victoria's new commitment that positions us to do more," she added.

Corection

In the story about the Bill of Rights essay contest that appeared in the Dec. 26 issue of the RoundTable, the name of Liam Lundy was omitted as a winner in the "video" category. Liam collaborated with Sam Miller on the project.

Also in the Dec. 26 edition, an item in the Traffic Guy column indicated the City may outsource the collection of parking fines at the rate of $188 million but the correct figure is $188,000 per year.

The RoundTable regrets the errors.

Referendum Question on Feb. 5 Ballot

Shall the City of Evanston impose a real estate transfer tax increase of twenty percent (20%) to establish a new transfer tax rate of six dollars ($6.00) for every one thousand dollars ($1,000.00) of value, or fraction thereof, to be paid by the seller of the real estate transferred?

The current rate of the real estate transfer tax is five dollars ($5.00) for every one thousand dollars ($1,000.00) of value, or fraction there of, and the revenue is used for the City's general fund. The revenue from the increase is to be used for the funding of the City's Police and Firefighters' Pension Funds with fifty cents ($0.50) of each dollar going to the City of Evanston Police Pension Fund and fifty cents ($0.50) of each dollar going to the City of Evanston Firefighters' Pension Fund.

Federal Suit ChallengesCity's Tear-Down Tax

A complaint filed in federal court on Jan. 4 challenges the constitutionality of the City's tear-down tax that was adopted by the City on June 4, 2007. Under the City's ordinance, there is a tax of $10,000 to demolish a residential structure in the City, and either $10,000 or $3,000 per unit (whichever is more) to demolish a multi-family structure. The tax is deposited into an Affordable Housing Fund and used to achieve the City's affordable housing goals.

Michael and Victoria Kathrein filed the suit on behalf of themselves and classes of other persons affected by the ordinance. Among other things, they allege that the tax constitutes a taking without just compensation in violation of the Fifth Amendment and that it deprives them of equal protection of the laws, because the tax is not imposed equally among all citizens and it also exempts owners of commercial property. The complaint seeks, among other things, an order enjoining enforcement of the ordinance, as well as damages suffered by the members of the alleged classes.

Retirement and the Loss of Institutional Memory

In the past two years, the City has lost at least 11 long-standing civil servants through retirement or as office-holders took other jobs: the finance director (Bill Stafford), the budget director (Patrick Casey), the director of health and human services (Jay Terry), the human resources director (Judy Witt), the public works director (David Jennings), the police chief (Frank Kaminski), the library director (Neal Ney), the director of community development (James Wolinski), one assistant city manager (Judith Aiello) and the first assistant corporation counsel (Herb Hill) and the director of the Human Relations commission (Paula Haynes).

Finance Director Matthew Grady III resigned his position last month, having served for less than one year. In addition, City Clerk Mary Morris has resigned her elected position, effective in May.
While the City has garnered savings from these early retirements - in some cases by hiring less-senior replacements at lower salaries and in some cases by not filling the vacancy - several City officials as well as long-time residents have commented on the exodus of institutional memory.

Property Crimes on The Rise

The recent spike in property crimes can be chalked up in large part to the time of year. "It's seasonal," Commander James Elliot of the Evanston Police Department told the RoundTable. "This is the time of year when families are gone and students are out of the dorm," he said. Burglars notice such things and take advantage of them, he added. "These are for the most part crimes against property - laundromats, storage rooms, basements and vehicles," Cmdr. Elliot added. "Burglars don't want to confront people. They want to [commit the crimes] when they think they're alone," he said.

Cmdr. Elliot said many of these recent crimes have been cleared through arrests. The State of Illinois' early release of prisoners has added to the population of ex-offenders in many municipalities, including Evanston. About 300 persons released from Illinois prisons have returned to Evanston, Cmdr. Elliot said. The Department of Corrections notifies the Evanston police of each person released from a state facility - where the person has been incarcerated, for what offense and the expected date of release and return to Evanston. The police find this information useful in solving crimes, because ex-offenders often repeat their criminal conduct when they are released. Police Chief Richard Eddington said of the approximately 30 suspects arrested in the past several weeks, "none had no criminal record."

"Prisoners' re-entering the community presents a problem, first, by the sheer numbers," Chief Eddington told the RoundTable. A second problem, he said, is "when we have that volume of re-entry and no commitment on the part of the offenders to become skilled or re-skilled or reintegrated, it's a prescription for recidivism."

The police urge everyone who sees anyone or sees anything suspicious to call the police immediately. "We've had several significant burglary clearances, and three or four of them started with a 911 call," said Chief Eddington. "If we apprehend a suspect, we can clear the crime and maybe learn more. If no one calls in or if they wait until something happens, the police are then several hours behind" in addressing the crime, he added.