Evanston Proposes Property Tax Hike After Five-Year Freeze

After five years without a property tax hike, Evanston homeowners are facing a potential 12.9 percent increase next year under a $342 million draft budget proposed by City Manager Luke Stowe.

The proposal calls for filling a $6.5 million gap in the budget with the tax increase to balance the budget and maintain city services. If approved by the City Council, the hike would raise annual tax bills for the owners of median-value properties by $174 to $400, the Chicago Tribune first reported.

Those figures include the library’s proposed levy increase and are based on 2023 Cook County tax rates, since 2024 data is not yet available.

For a condo valued at the city’s median of $294,000, the owner would owe roughly $174 more. A single-family homeowner with a $675,000 valuation would pay about $400 more, while a multifamily building owner with a property worth $620,000 would see a $367 bump.

The proposal ends a half-decade of tax stability driven by one-time revenue sources, federal stimulus funds and inflation-fueled growth, the city manager said.

The city’s rising pension obligations for police and firefighters, guided by a new funding policy aimed at meeting state mandates by 2040, are a major cost driver.

Although the proposed 12.9 percent increase applies only to the city and library’s share of the tax bill, that portion makes up just 19 percent of an Evanston homeowner’s total tax load. The city said the hike would translate to a 2.4 percent rise in the total bill, with roughly two-thirds of all property tax revenue flowing to local school districts.

Evanston’s budget also includes fee hikes — including $7 a month more for yard waste and bulk pickups — and $91.5 million in capital spending. Projects include nearly $32 million for street and sewer work, $17 million for park improvements across multiple sites, $11.7 million for city facility upgrades, and $7 million for an electrical reliability project at the Evanston Water Plant, funded largely by regional partners.

Public hearings begin next week, and a final council vote is expected later this fall.

— Eric Weilbacher