Evanston proposes 8.9% property tax hike in fiscal year 2027 budget

The City of Evanston has released its proposed budget for fiscal year 2027, which includes an 8.9% property tax levy increase. A significant portion of the additional revenue, approximately $3.8 million to $4.8 million, is earmarked for the Parks and Recreation Fund to address historical underfunding.

To balance the budget, the city proposes several tax and fee increases. These include doubling the tax on streaming services to 10%, raising the rideshare tax from 20 cents to 50 cents per ride, and doubling the tax on natural gas. Additionally, water rates are projected to rise by 25%, and residential garbage fees are expected to increase by 9%. Real estate transfer taxes for properties valued over $1.5 million will also rise.

City Manager Luke Stowe stated that the budget aims to align revenues and meet pension obligations to ensure long-term financial sustainability. The city plans to draw approximately $6.1 million from its reserves to balance the General Fund, a move that may exhaust excess reserves and necessitate further spending cuts or tax hikes by fiscal year 2028.