The Evanston City Council saw a presentation of the midyear financial report last week as some revenues remain down due to the COVID-19 pandemic.
Hitesh Desai, chief financial officer and treasurer for the city of Evanston, showed council members which revenues and expenses are on track for the remainder of the year and which areas need improvement.
The presentation demonstrated that revenue tied to economic activity in the general fund was still on track even as some activity-related revenues remain low. Expenses remain on target for the city’s 2021 goals.
“The return of Northwestern students and the football season brings a lot of money for the city of Evanston in taxes,” Desai said. “So we look forward to making money on that.”
Revenues that are currently trending high for the city include the state use tax, state income tax, real estate transfer tax, building permits and amusement tax. Desai explained that the increase in the amusement taxes is a result of the addition of a streaming services tax in October 2020.
However, some revenues are down including the municipal hotel tax, parking tickets, Evanston’s motor fuel tax and athletic contest tax. City officials believe this is due to the continuing COVID-19 pandemic and reduced sporting events at Northwestern University.
Among increased expenditures was fire department overtime cost. Budget coordinator Kate Lewis-Lakin said there were several vacancies in the fire department at the beginning of the year, causing existing employees to work more overtime. This is expected to decrease as the vacancies have now been filled.
The city sees the return of Northwestern students and the football season as opportunities for more growth and savings within the general fund. They also warned that the resurgence of COVID-19 and the rise of the delta variant could hinder economic activity.
The presentation also showed how the American Rescue Plan Act (ARPA) funds have been used to date in the city. Of the $43 million given to the city, approximately $38.5 million remains. ARPA funds have been allocated to water fund projects, parking fund capital projects and the guaranteed income pilot program.
Lewis-Lakin explained that city staff will be asking for $850,000 in ARPA funds for the 2021 equipment fund. This fund was removed from the 2021 bond issue.
“Currently, the equipment replacement fund is carrying a negative balance,” she said. “Unfortunately, we just haven’t been able to fund it yet, as we chose to remove it from the bonds. This is eligible to be included under the ARPA revenue loss category for the general fund.”
The proposed budget will be available on the city’s website Oct. 11 followed by budget discussions at City Council and ward meetings. The city also plans to hold a Spanish language town hall in mid-October to allow for more community input.
The targeted budget adoption date is Nov. 22.
Emily Little is a freelance reporter.
