[{"_1":2,"_111":-5,"_112":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75,87,99],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6241123,"mediaKeyId","3309906-a85e160126afee93cb5fddddb58f33af","parentId",3309906,"title","Committee hears preliminary briefing on grocery tax replacement options after state change; staff to return with analysis","audioSeconds",166,"startMs",7133000,"endMs",7299000,"viewUrl","/Search/View?dp=1&key=3309906-a85e160126afee93cb5fddddb58f33af&start=7133&end=7299","thumbnailUrl","https://assets.pipeline.soar.com/3309906-a85e160126afee93cb5fddddb58f33af/thumbnail_7133000.jpg","articleUrl","/articles/6241123/Evanston/Cook-County/Illinois/Committee-hears-preliminary-briefing-on-grocery-tax-replacement-options-after-state-change-staff-to-return-with-analysis","mediaUrl","https://secure.pipeline.soar.com/6241123-86dc8294e9beb059086c1d1fa9bb4395/orig.mp4?Expires=1770444669&Signature=BK1BtXkfyO~AkLLFpcrOsiDc~IOnOJbKQT5oFUTDe6pdnNJ7oEPy51FaJXFgfSRPlJ1uCehKn-ei4UIuwTt4bWHuIfPiET3so~rHlV6jw4h0Mqt8NWobTd5N7siwtPgZekKI6CVblVsfv5lR6OjmEKoWFfLY4InHaE4-treIqRIdfJAsUwUijuFNxMEWquCRmT33tXFoVfuKsbeNs2sGiJbKLfye~GZGbh1lTBbnZCQ34d3I-PZb1pLHMsn9vuhyXhkOU8iD1gFh5MMmthgdXgU2PifUfCJIeDNXIJvk3RCkuhBMq-ol~Ijxv4yBjlHqj9X2t7drAJh3J7rRTCbmFQ__&Key-Pair-Id=KUT5TJCACFTXG","author","City Council of Evanston, IL","date","2025-05-15T00:16:42Z","article","Staff briefed the Finance & Budget Committee about state action that eliminated a state-level grocery tax and the local options available to recover roughly $2.5 million in annual revenue.

Finance staff said municipalities have the option to adopt a local sales-tax-based grocery tax to replace lost revenue, to increase other local taxes such as the home-rule sales tax, or to identify alternate budget reductions. Staff noted over 60 municipalities were considering or had already adopted local measures and reminded the committee of an October 1 local-adoption deadline for an option that would be effective January 1.

Committee members asked for additional data on where Evanston residents purchase groceries and on the distributional impact of various options. The committee directed staff to return next month with a fuller analysis to inform a deliberative decision.

Why it matters: The $2.5 million gap is material to the city’s structural budget shortfall and the committee will need to weigh revenue options, program cuts or other budget changes before the October deadline.

Next steps: Staff will prepare a briefing next month with more detailed revenue and distributional analysis and examples of approaches other municipalities have taken.","mediaType","Video","parentTitle","Finance & Budget Committee Meeting 5-13-2025","oneSentenceSummary","Following a state-level change that removed a state grocery tax, Evanston staff briefed the Finance & Budget Committee on options to replace about $2.5 million in lost revenue and announced an October 1 deadline to adopt a local replacement for a January 1 effective date; the committee asked staff to return with more data next month.","taxTitle","Evanston, Cook County, Illinois","taxId",2640,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6241128,"Finance committee recommends one-year extension with Sikich, plans RFP for next year",794,4156000,4950000,"/Search/View?dp=1&key=3309906-a85e160126afee93cb5fddddb58f33af&start=4156&end=4950","https://assets.pipeline.soar.com/3309906-a85e160126afee93cb5fddddb58f33af/thumbnail_4156000.jpg","/articles/6241128/Evanston/Cook-County/Illinois/Finance-committee-recommends-one-year-extension-with-Sikich-plans-RFP-for-next-year","https://secure.pipeline.soar.com/6241128-d062e4715569da06c6ad42ec5a09d678/orig.mp4?Expires=1770444669&Signature=aXEfqOxNaHUv~VLpgRcl-19TJHd~Kx3psDDDpuMonMvAWZnY2-HjwDcCWY5tvsnVQ-ecGpiyf~HQoR3rHB1-U~eu0DNbrMCljjMvy~HqqbBwmePPTQMZWix2G1mT2u~7ABiiNznAT3wyMZJZrKlar2~YmKRo5GW2uQvu~KnU4OQe9y436JQMvssGIcNVhkayBK~zZoTWT8C-HCuibASLBNz05RLPjiS8R51zEGtxcCszWdUF2IhPbzOBI3BWF4sw9dW2R5ijEjee0hEv7Cc1kd7ARaBgjFr7Wak2PJCCW1p6tn55hcnFACHHpqEWK4GzRKzactB9tpQswFPw9yTr2w__&Key-Pair-Id=KUT5TJCACFTXG","City finance staff and committee members discussed whether to run a full request-for-proposals (RFP) for auditing services after a multi-year relationship with Sikich.

Hitesh explained Sikich’s technical experience with GASB pronouncements, pension and OPEB reporting and the firm’s large municipal client base. Committee members raised independence and best-practice concerns; Council member Kelly argued routine rotation and periodic market testing improve independence and keep pricing competitive. Committee member McMillan also urged an RFP; other members said the committee’s near-term priorities and the coming high‑priority budget work made a full RFP this month a poor use of limited staff and committee time.

The committee voted to recommend a one-year extension of Sikich’s contract while directing staff to issue an RFP in the following year. The roll-call vote recorded committee approval to extend Sikich for one year and to pursue an RFP after that extension.

Why it matters: Independent audits support transparent financial reporting and credit-market access. The committee balanced the benefits of continuity and technical familiarity against the governance practice of rotating audit firms or partners periodically.

Next steps: Staff will notify Sikich of the one-year extension recommendation to City Council and prepare an RFP process for next year, along with a proposed policy for audit-rotation frequency.","After a lengthy discussion about auditor tenure and technical expertise, the committee voted to recommend a one‑year extension for Sikich as city auditor and directed staff to issue a request for proposals (RFP) next year to test the market and set a rotation policy.",{"_33":88,"_35":36,"_37":38,"_39":89,"_41":90,"_43":91,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6241133,"Finance committee tables $20 million bond proposal; flags negative CIP cash and approves budget amendment recommendation",1847,1064000,2911000,"/Search/View?dp=1&key=3309906-a85e160126afee93cb5fddddb58f33af&start=1064&end=2911","https://assets.pipeline.soar.com/3309906-a85e160126afee93cb5fddddb58f33af/thumbnail_1064000.jpg","/articles/6241133/Evanston/Cook-County/Illinois/Finance-committee-tables-20-million-bond-proposal-flags-negative-CIP-cash-and-approves-budget-amendment-recommendation","https://secure.pipeline.soar.com/6241133-be9ca0b523aec70b3ae125e369ff5eba/orig.mp4?Expires=1770444669&Signature=OQpmIEXOEZ0LRXzOP5e5-0Tt0y7ZcJFGsEHWlkR8vO3NdN-MrD8WIgl0MQmXu4QN-4hh6ZR8L84NvpmoPUt5vgKSt7L8-iH48mRaf8HIqf5K3r0yda9wYSrYZAZH2ABPWl3cPnnCgl6NhXeqQYhuE3SooXkjx5KV8Q8FH1oTZz0V0OKkSnkbNDOy8RDW~R7dZ9w27vOLkNeABzFP-Md8CJhUkhW7M0CECRnwARZvES7f07HeGBqMXucfo6Pm5jwRSI1H7CRp6wB0Qd2IEqSRic1-0rpP95FT9q2jx~EP83s3YQDPY1YO~8vNCoIVh0hLxC~lMyxrBs9ExuHagmm2gw__&Key-Pair-Id=KUT5TJCACFTXG","City finance staff told the Finance & Budget Committee the capital improvement program has been financed in recent months through short-term measures and that the CIP fund cash balance is negative.

Chief Financial Officer Hitesh (presenting) and Clayton (staff presenter) told the committee the city has used four temporary measures to keep capital projects moving: a 2024 bond issuance for earlier projects, cash that will eventually be owed to IDOT but not yet invoiced, approximately $5 million in short-term cash advances from other city funds, and depletion of the CIP fund reserve. Clayton reported the most recent CIP cash balance as about negative $1.4 million with a fund-balance around negative $7–8 million and that current obligations to 2024 and 2025 projects total roughly $15.2 million, of which about $7.4 million has already been spent.

Staff recommended the committee consider an issuance of approximately $20 million in general-obligation bonds to cover 2024 projects and part of 2025 projects. Staff estimated a $20 million issue would generate about $1.5 million in annual debt service—about $50 on the property tax bill for a $400,000 home—and noted roughly $10 million in prior general-obligation debt rolls off this year so the net impact could be smaller.

Anthony Missel, the city’s financial adviser, briefed the committee on market timing and said summer is generally a better market window than the fall; he also said a competitive sale sets the interest rate on the sale date and estimated a timeline that could result in a mid‑July sale if the process were started immediately.

Committee members raised concerns about issuing debt in a volatile municipal market. Committee member McMillan and Committee member Livingston said they preferred to wait for clearer rate moves and to rely on available liquidity and a line of credit if necessary. Laura Biggs, the city engineer, emphasized near-term CIP spending pressure: she said bills lists in summer can draw $2–$3 million from the CIP fund twice monthly through October.

After discussion, a motion to table the recommendation to issue bonds was made and the committee voted to table the item until July. Roll-call on the tabling motion recorded affirmative votes from Council member Suffredan, Council member Davis, Council member Rogers, Council member Kelly, Committee member McMillan, Council member Nussma, Committee member Livingston and Chair Ryckis.

Related budget items received action: the committee recommended to the City Council an ordinance amending the fiscal-year budget to account for overspending in eight funds (including a general fund overage cited around $7.4 million) and other carryovers. The budget amendment recommendation (ordinance 40‑o‑25) passed committee roll call. The committee also discussed—but did not permanently approve—a proposed $2 million permanent transfer from general-fund reserves to the CIP fund; members agreed to treat the money as a temporary loan rather than a permanent reduction in general-fund reserves and asked staff to present options.

Why it matters: The committee’s decision to delay a bond issuance preserves optionality on market timing while flagging that the CIP fund requires a funding solution in the coming months. The recommended budget amendment brings existing overspending into alignment with state and auditing practices and will proceed to City Council for final approval.

Next steps: The bond item was tabled to July; staff will return with updated market timing and cash-flow modeling. The budget amendment will be forwarded to City Council per committee recommendation. Staff was asked to present options for interfund loans or transfers and to track expected invoices from IDOT and near-term CIP spending schedules.","The Finance & Budget Committee discussed issuing $20 million in general obligation bonds to fund 2024–25 capital projects, heard that the capital improvement program (CIP) fund has negative cash and fund-balance, agreed to table a bond recommendation until July, and recommended a fiscal-year budget amendment to address overspending.",{"_33":100,"_35":36,"_37":38,"_39":101,"_41":102,"_43":103,"_45":104,"_47":105,"_49":106,"_51":107,"_53":108,"_55":56,"_57":58,"_59":109,"_61":62,"_63":64,"_65":110,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6241140,"Evanston officials, residents debate state tax incentive tied to Illinois House Bill 26 21",6711,423000,7134000,"/Search/View?dp=1&key=3309906-a85e160126afee93cb5fddddb58f33af&start=423&end=7134","https://assets.pipeline.soar.com/3309906-a85e160126afee93cb5fddddb58f33af/thumbnail_423000.jpg","/articles/6241140/Evanston/Cook-County/Illinois/Evanston-officials-residents-debate-state-tax-incentive-tied-to-Illinois-House-Bill-26-21","https://secure.pipeline.soar.com/6241140-c773558c7778a187712b7ee060fa6f34/orig.mp4?Expires=1770444669&Signature=YIxbPx5MFWb1H~J1ZPDxGUAF-bDcbS5AcaZzclsNuTqX0noyrEpCaSm3CUhthnJ42V3xdHYt4wsqWrFrLI6gbtHUhBFaOBf1xJAO9izhz8-Hr5Zz4j6U7U5VpaIphlbFk0P2OmsTp0zMm4PXriujE3sYIllu5V21ORcmDMKSxEK6Mewhqb2DSDnpQMaHm6sooMc-fDXShAamQRbWTxxjbjBlLpGUWdaKV-5SM-5F0ydIWhGIzF1cS-UBqTyd5sd9ZVHE5YzVOiD4vPdW5WFLOhKBAm3RFHhvjhazckXnj675ic24yuZT9-4WB1oelASd6nm6vi4wO9Mq51i43wy-Vg__&Key-Pair-Id=KUT5TJCACFTXG","Julia Forgash, a Fourth Ward resident, told the Finance & Budget Committee she is worried the state tax incentive under Illinois House Bill 26 21 will shift costs to local taxpayers if developers pursue the program instead of following Evanston’s Inclusionary Housing Ordinance (IHO).

“My understanding is that according to House Bill 26 21, a developer qualifies for a property tax break according to the percentage of affordable housing units allotted,” Forgash said during public comment, adding that the tax incentives “are very high” and could leave the city “on the losing end of this deal.”

The committee discussion and multiple public speakers laid out competing concerns. Chris Oakley, an Evanston resident and licensed architect, urged more study and said the bill’s incentives may depress long-term property tax revenue for the city and schools while encouraging 20% affordable-unit proposals. Oakley warned that 10% IHO options that do not trigger the state incentive would preserve more property tax revenue for local governments.

Council member Kelly framed the issue as a choice between gaining on-site affordable units tied to the state incentive and preserving the city’s full share of property taxes. Kelly called for a pause on approving additional projects that would rely on the state incentive and proposed a joint review with housing and finance committees and affected taxing bodies to evaluate changes to the IHO.

Committee members and public commenters offered examples to underline the fiscal effects they feared and praised. A school board member who arrived late, John Martin, and other speakers cited modeling that showed tens of millions of dollars in foregone property tax revenue for large projects over multi-decade timeframes if developers receive the HB 26 21 incentive and provide 20% affordable units. Jack Kennedy, speaking during public comment on a related budget topic, urged better budget transparency as the committee weighs trade-offs.

City staff and the committee clarified that the state incentive operates by reducing the assessed value used to calculate property tax bills; the levy t hat the city and other local taxing bodies set is spread across the tax base rather than directly “given” away by the city. Committee members noted that developers can apply for the state program regardless of the city’s IHO, and that the law and related programs were originally designed with much larger markets in mind.

The committee did not take formal legislative action on the issue. Members agreed to place the topic on a forthcoming agenda and to discuss a possible subcommittee or joint review with the housing committee and school district representatives to study the fiscal trade-offs and policy options.

Why it matters: The HB 26 21 incentives are intended to encourage developers to include affordable units on-site by lowering assessed value for taxing purposes; however, in smaller jurisdictions like Evanston, committee members and speakers warned the incentives may produce significant reductions in property tax revenue for the city and overlapping taxing bodies while delivering on-site affordable units that sunset under program rules. The committee flagged potential downstream impacts on school district revenue and on current residents’ tax burdens.

Next steps: The committee asked staff to schedule further discussion, including cross-committee review and outreach to school districts and developers, so the city can quantify projected revenue effects and consider possible changes to the IHO or other local measures.

","City committee discussion and multiple public comments focused on how Illinois House Bill 26 21 interacts with Evanston’s Inclusionary Housing Ordinance, with residents and council members warning the state tax incentives could shift costs to local taxpayers while proponents say the incentives spur affordable units and new development.","actionData","errors"]

Article not found

Committee hears preliminary briefing on grocery tax replacement options after state change; staff to return with analysis

Finance committee recommends one-year extension with Sikich, plans RFP for next year

Finance committee tables $20 million bond proposal; flags negative CIP cash and approves budget amendment recommendation

Evanston officials, residents debate state tax incentive tied to Illinois House Bill 26 21