Committee backs ordinance draft to eliminate interest on alley special assessments starting Jan. 2026

The Evanston Finance and Budget Committee voted unanimously to ask staff to draft an ordinance eliminating interest on special assessments for alley repairs beginning Jan. 1, 2026.

Committee members said the program generates relatively small revenue but requires significant administrative time and carries variable interest calculations tied to federal rates. Hitesh, who presented the item, described the program as a 50–50 cost split between the city and property owners for alley improvements and said interest rates applied to special assessments vary by the year of the hearing under current ordinance language.

The committee heard that revenue from interest on special assessments has been modest: Hitesh said the program typically brings in around $10,150 in years past and that year-to-date receipts were roughly $6,000 as of July, while acknowledging annual totals can reach $15,000–$20,000 after payoffs. Members said the administrative cost of mailing invoices, tracking roughly 300 accounts, and relying on an aging Microsoft Access database outweighs the revenue and community benefit of charging interest.

Several council members asked how residents are billed and what costs are covered. Staff explained the special assessment covers all costs for alley improvements — engineering, legal, construction and financial management — and that property owners are billed by the city with an option for a 10-year installment plan; overdue accounts may be sent to Cook County for collection. The committee also clarified the scope: special assessments typically fund construction-quality alley paving (8-inch concrete base) and associated drainage improvements, either green infiltration designs or connection to sewers when infiltration is infeasible.

The committee discussed whether the change should apply retroactively. Members proposed an effective date to avoid refund claims from recent projects; the motion as moved directs staff to draft a code amendment eliminating future interest and to set an effective date of Jan. 1, 2026. The committee voted to forward the draft ordinance to the full council for introduction.

The committee will receive a draft ordinance from staff for council consideration; the staff recommendation as recorded asks for amendment of municipal code sections (7-5-7-15-3 and 7-15-7) to remove interest on special assessments for alley repairs effective 01/01/2026.

Votes at a glance: The committee recorded an 8–0 vote in favor of recommending that staff draft the ordinance for council consideration.