City faces $3 million budget gap

Evanston's new finance director told aldermen Monday that the city faces a nearly $3 million gap in its budget for next year.

Marty Lyons said projections show general fund revenues rising 1.4 percent, but expenses increasing 4.5 percent, to $93.6 million.

He said those projections assume that $500,000 in now-vacant jobs will be cut and that contract negotiations with city unions will lead to pay raises in line with the rate of inflation. About 75 percent of the general fund budget is spent on employee salaries and benefits.

Lyons said the budget projections also assume a property tax tax rate increase next year of about 5 percent -- driven by increases in fire and police pension costs and debt service. And that's without trying to close the budget gap by raising the general fund property tax levy.

Aldermen offered a variety of ideas for how to close the gap.

Elizabeth Tisdahl, 7th Ward, who's running for mayor, said she "would be interested in some service cuts" aldermen could consider.

Anjana Hansen, 9th Ward, said the city should look into hiring a collection agency to go after unpaid fines from housing code violations -- like the process already in place for parkint tickets.

She also suggested the city may have more workers than needed on some public service crews.

Ann Rainey, 8th Ward, said she believes the city is spending too much on consultants, and she suggested aldermen should be consulted about filling existing vacant jobs to see if more of those positions could be eliminated.

Cheryl Wollin, 1st Ward, suggested taxing plastic bags at grocery stores.

Lyons suggested that the aldermen could consider several revenue enhancement strateties -- some of which they've rejected in the past -- including further increases in sanitation fees and food and beverage taxes.

City Manager Rolanda Russell said she plans to meet individually with aldermen over the next few weeks and then schedule another budget workshop before the city's proposed budget document is released at the end of December.