After a five-year freeze on property tax increases for the city of Evanston, City Manager Luke Stowe announced on Monday that the city needs to raise property taxes by $6.5 million to balance its budget.
Stowe released the draft $342 million budget with an announcement on the city’s website.
If the City Council were to approve the budget with the tax hike, homeowners and property owners could see the portion of property taxes they pay to the city of Evanston rise by 12.9%, or between $174 and $400 annually for the owner of median-value residential properties in Evanston, according to Cynthia Vargas, a spokesperson for the City of Evanston. The figures include the library’s proposed tax levy increase. All figures use 2023 tax rates (payable in 2024) as Cook County has not yet posted 2024 tax rates (payable in 2025), Vargas noted.
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Vargas broke down what the increased property taxes would look like for median homeowners in Evanston, as evaluated by the Cook County Assessor’s Office:The owner of a condo with a market value at the median price of $294,000 would pay an additional $174; the owner of a single-family home with a market value of $675,000, the median, would pay nearly an additional $400, and the owner of a multi-family building at the market value of $620,000, the median, would pay an additional $367 if the City Council approves the property tax hikes.
Evanston Township High School is also considering levying more revenue, which means homeowners’ property tax bills could see increases from both the city and the high school district.
Though renters do not receive Cook County property tax bills, property tax bill increases affect landlords, who can pass on the increased expenses to renters.
“This budget, and the proposed property tax levy increase, reflects our commitment to long-term financial sustainability,” Stowe said in his announcement. “By responsibly aligning revenues, meeting our pension obligations, managing operating costs, and investing in infrastructure and services, we’re positioning Evanston to meet today’s needs while protecting our fiscal health for the future.”
Stowe said the city relied on reserves from one-time permit revenues, federal stimulus funding and inflation-driven growth to freeze its property taxes in the past few years.
“It’s important to note that the City and Library’s portion of the property tax represents just 19 percent of the total tax bill, with approximately 67 percent allocated to local school districts,” the announcement said. “As a result, the proposed increase translates to only a 2.4 percent rise in the total property tax bill.”
The City Council’s new pension policy for police and fire employees also raised expenses significantly, the announcement said. State law requires municipalities to fund 90% of its public safety employees’ pensions by 2040.
The budget proposal also includes measures to raise yard waste and special/bulk pickups to $7 a month and $1.11 per property to keep up with the cost of service delivery.
The budget draft includes spending $90.5 million in capital improvements. Those include the following, taken directly from a city document.
- $31.9 million for street resurfacing projects, corridor improvements, sewer rehabilitation, water main and lead service lines replacement.
- $11.7 million for city facility repairs and upgrades.
- $17.1 million for park rehabilitation and improvements at Fountain Square, James Park, the Public Canoe Launch, Cartwright Park, Fitzsimons Park, the Dog Beach, and other community parks.
- $$9.3 million for other transportation projects, including alley, crosswalk, traffic signal and street light improvements.
- $7 million for an electrical system reliability project at the Evanston Water Plant, primarily funded by the communities that purchase water from Evanston.
- Funding for sustainability-focused projects, including charging and solar infrastructure.
City staff will present the 2026 proposed budget to the City Council on Oct. 13, and to the Finance & Budget Committee on Oct. 14. City staff will also present the budget at upcoming ward meetings and town halls to gather community feedback.