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City Manager Releases 2027 Proposed Budget

On Tuesday, October 6, City Manager Luke Stowe will release the City’s 2027 Proposed Budget, which prioritizes and supports housing affordability, climate action and resiliency, economic development, finance and organizational performance, public health and safety, and parks and infrastructure.

The proposed Fiscal Year 2027 Budget includes $348,977,295 in spending (excluding operating transfers). This amount represents a 2% increase over the 2026 Adopted Budget, primarily due to ongoing capital project needs, projected increases in employee salaries and benefits, and investments in lead service line replacements.

“This budget, and the proposed property tax levy adjustment, reflects our commitment to long-term financial sustainability,” said City Manager Luke Stowe. “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.”

The 2027 Proposed Budget will initially be presented by City staff at the Finance & Budget Committee Meeting on Wednesday, October 7, and again at the City Council Meeting on Monday, October 12. City staff will also present the budget at several upcoming joint ward meetings as staff gathers community feedback.

Budget Highlights

The FY 2027 Proposed Budget includes several strategic investments and community-focused initiatives:

  • Investment in Lead Service Line Replacements - The City will continue its progress towards replacing nearly 10,000 water service lines suspected of containing lead by 2047. Read more about the City’s plan to replace around 5% of impacted service lines per year.
  • Grants - The City has been successful at applying for and receiving various infrastructure grants. This includes nearly $7 million in the PRO Housing Grant to invest in affordable housing in the community.
  • Community Benefits Agreement (CBA) with Northwestern University - In fall 2023, the City Council approved a new CBA with Northwestern University, resulting in more than $3 million in annual contributions from the university for sustainability, affordable housing, and general City operations. Also in 2027, there will be an additional $2.5 million minimum sales tax guarantee from events held at Ryan Field, $1 million of which will support the Affordable Housing Fund, and the remainder will continue to support the General Fund.
  • Adding Capital Expense to the Parks and Recreation Fund - In FY 2026, the City established a new Parks and Recreation Fund to enhance transparency and enable more precise tracking of departmental performance relative to peer communities. Continuing to build on that progress, the FY 2027 CIP expenses related to Parks assets will be budgeted in the Parks Fund

General Fund Revenues and Expenses

The City’s FY 2027 Proposed Budget is funded through a combination of taxes and fees paid by residents, businesses, shoppers, and visitors. The budget for the General Fund reflects $143.8 million in revenues and operating transfers, and $149.9 million in expenditures and operating transfers.

Operating revenues and transfers in have increased by $8.1 million (6.0%). The majority of that increase is primarily due to growth in economy-based revenues and proposed tax rate increases for the Streaming Tax, Rideshare Tax, and Natural Gas Use Tax.

Operating expenses and transfers out have increased by $2.2 million (1.5%). The majority of that increase is tied to budgeted 2% wages increases for all union and non-union employees. Union negotiations with all four bargaining units are still ongoing as of the budgeted publication date.

Parks and Recreation Fund Changes

In Fiscal Year 2026, the City established a new Parks and Recreation Fund to enhance transparency and enable more precise tracking of departmental performance relative to peer communities. The Parks and Recreation Fund reflects $27.3 million in revenues and transfers, and $27.3 million in expenses and transfers.

The Parks and Recreation Fund’s expenses have increased by $11.0 million (68%). The primary drivers of this increase are the addition of Parks-related projects in the CIP ($7.6 million) and the transfer of the Greenways Division from the Public Works Agency to Parks, which occurred in April 2026 ($2.6 million). The Parks and Recreation Department underwent a thorough review of its programs and services, which led to some restructuring of departmental personnel and operating funds. This restructuring yielded a net reduction in headcount and a $131,000 reduction in expenses.

The Parks and Recreation Fund’s revenues have increased by $11.0 million (68%). The primary drivers for this increase are budgeting for the sale of General Obligation (GO) Bonds to fund parks-related CIP projects ($7.6 million) and an increase in the property tax levy ($4.8 million). This also includes a $1 million reduction in the transfer from the General Fund to the Parks and Recreation Fund, mirroring a reduction in the General Fund corporate property tax levy.

Capital Improvement Plan

The City's 2027 Proposed Budget includes an ambitious $86.3 million Capital Improvement Plan. The proposed capital spending amounts for Council consideration include:

  • $24.8 million for water main construction and lead service line replacement.
  • $21.4 million for transportation projects, including alley, crosswalk, traffic signal, street light improvements, and replacement of the Lincoln Street Bridge.
  • $5.4 million for parks, including Philbrick Park, Mason Park, Fountain Square, and the Dog Beach. 
  • $8.5 million for City facility repairs and upgrades, including Fire Station 3, Sherman Garage, and Robert Crown Community Center.

Property Taxes

To avoid property tax increases in recent years, the City has relied on excess reserves built up from one-time permit revenues, federal stimulus funding, and inflation-driven growth in other revenue sources. The FY 2027 Proposed Budget includes a $5.14 million increase to the City’s property tax levy and a $316,000 increase to the Library’s property tax levy. This is an 8.9% increase in the total property tax levy for the City and Library combined.

It’s important to note that the City and Library’s portion of the property tax represents just 19% of the total tax bill, with approximately 67% allocated to local school districts. As a result, the proposed increase translates to only a 1.7% rise in the total property tax bill. This equates to a $180 annual increase for a $481,000 home, the median value in Evanston (US Census, DP04 ACS 2024 5-Year Estimate). 

Market Value of Property

Approximate City/Library Tax 2025 Levy

Estimated City/Library Tax 2026 Levy*

Approximate Increase (Annual)

$250,000

$1,047.47

$1,141.02

$93.55

(Median) $481,200

$2,016.17

$2,196.23

$180.06

$750,000

$3,142.41

$3,423.06

$280.64

$1,000,000

$4,189.88

$4,564.07

$374.19

*Including proposed 8.9% increase in FY 2027 budget

Proposed Water and Sanitation Rates

The FY 2027 Proposed Budget includes targeted adjustments to water and solid waste fees to reflect the actual cost of service delivery. There are no proposed changes to Parking Rates or Sewer Rates in the Proposed Budget.

The proposed FY 2027 budget includes $40.9 million in capital improvements, funded through state loans, GO bonds, and available reserves. The Water Fund faces significant long-term pressures from aging water mains, higher construction costs, and the requirement to replace approximately 10,000 lead service lines between 2027 and 2047. Following a 23.3% rate increase in 2025 and no increase in 2026, the FY 2027 budget proposes a 25% water rate increase to support planned infrastructure investments and associated financing costs.

The proposed budget includes fee and tax increases totaling $400,000 to offset higher labor costs and the elimination of $450,000 in annual property tax support for the fund. The revenue increases include a $0.05 increase to the bag tax and a 5% increase to waste pickup fees.

About the Budget

The annual budget conveys the City’s priorities and assigns funding to make them a reality. Most importantly, it is a policy document that sets the City's financial course. It represents the culmination of months of effort by City staff and elected officials to balance available resources with the actual and desired services that Evanston residents, businesses, and visitors require. 

The online 2027 Proposed Budget document will be available on Tuesday, October 6, at cityofevanston.org/budget.

Residents are encouraged to provide their input on the 2027 Proposed Budget through any of the following channels:

For more information, visit cityofevanston.org/budget or call/text 847-448-4311. For convenience, residents may simply dial 3-1-1 in Evanston.