HomeMy WebLinkAboutMinutes 1990F1
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Draft - Not Approved
Minutes
Budget Policy Committee Meeting
January 17, 1990
Present: Ald. Brady, Ald. Drummer, Aid. Collens, Aid. Korahak
Members Absent: Ald. Juliar, Ald. Nelson
Staff: Bruce Zimmerman, Robert Shank, Vincent Adamus,
Reese Alexander. Sally Roethle
Guests: Cynthia Scott, League of Women Voters
Presiding
Official: Aid. Collens, Chair
Summary of Action:
Aooroval of Minutes
The minutes of the 11/29/89 meeting were corrected as follows with
underlining used to indicate new language and parentheses used to indicate
deleted language. On page 2, paragraph 2 should read: "Aid. Collens
suggested she would be willing to head a small committee (follow through on
the Staff Report suggestion that a task force be created) to publicize the
Census....": and on page 3, paragraph 5 should read: "Aid. Brady Stated
concern regarding the treatment by some Committees of the City Budget Policy
as a guildine, not a Policy ... and the need for strong Council endorsement.
The Committee agreed to deal with this issue at its next meeting." With
these two corrections the minutes were approved.
Use of Fiscal Year 1989--90 Income Tax Surcharve Revenues
In response to Aid. Brady's question regarding exact information an the
1989-90 income tax surcharge revenue total, Finance Director Robert Shank
explained that will not be known for another three months, that the new
estimate of less than sl million may change but is based on the present pace
through October and that income taxes vary more on a month to month basis
than do other taxes.
Aid. Collens explained the proposal before the Committee from the City
Manager is to allocate for FYB9-90 the current estimated income tax
surcharge revenue to be received in FY89--90 of less than $1 million as
follows: $200,000 for fair housing legal expense costs, $110.597 for
capital equipment purchases and the remaining $600.000 to $700,000 for new
library construction. She reviewed earlier projections of $1.3 million
noting a proposal to allocate sl million for new library construction and
$300,000 for police pension funding.
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Budget Policy Committee
MinutpO of 1/17/90... 2
In discussion Aid. Drummer pointed out that the FY90-91 Proposed Budget its
out o4 balance due to City Council action on 1/9/90 which included approval
of consultant's fees for the Commonwealth Edison Task Force. Aid. Brady
reviewed the funding requirement of $21 million for new library
construction. It was noted that of that amount $16 million in City funding
had b"en committed, that the Library was to attempt to find $1 million in
private funding leaving a $4 million shortfall and that the City Manager
recommended allocation of $1 million toward that amount from 1990-91 income
tax surcharge revenues. Aid. Brady noted that the Library had reported to
Council that it could not secure private funding sources. Aid. Collens
noted that without a borrowing program library construction could not begin,
Aid. Korshak stated that in his opinion the Police Pension Fund should be
funded rather than library construction.
Aid. Brady moved approval of the City Manager's recommendation that the
State Income Tax Surcharge revenues of less than $1 million to be received
in FY1999-90 be allocated in the amount of $200,000 for fair housing legal
expense+s, $110,597 for capital equipment purchases and the remaining funds
for new library construction. In discussion the Committee agreed that the
new tax revenue should be used for general fund purposes. Aid. Drummer
stated concern regarding funding needs for human services requirements and
suggested that some legal costa for fair housing may be recovered through
court action.
Aid. Korshak moved a substitute motion to use these revenues to fund
$110.597 in specific capital equipment purchases. $300,000 in fair housing
legal expenses and the balance be allocated to help meet the unfunded
balance in the Police Pension fund. Motion was not seconded. Aid. Brady
stated disagreement with the proposal noting that current Police Pension
funding allows for the required pension amount for retiring police officers.
Aid. Drummer moved a substitute motion that the balance of funding be split
between the Police Pension Fund and new library construction. Motion was
not seconded.
Aid. Collens reminded the Committee that Police Pension Funding is a matter
for FY1940-91 and urged that that discussion be considered at scheduled
Council meetings for the proposed budget. Aid. Korshak then moved a
modified motion that $110,597 be allocated in FY89-90 for capital equipment
purchases, $200,000 for fair housing and the balance toward Police Pension
funding. Motion was not seconded.
Aid. Drummer offered another substitute motion to split the recommendation
by allocating s110,597 for capital equipment purchases and $200,000 for fair
housing legal expenses and determining later on the remaining balance .
Seconded by Aid. Korshak. Motion failed: two ayes (Aid. Korshak and
Drummer), two nays (Aid. Collens and .Brady). -
Motion to approve the original question failed; two ayes (Ald. Collens and
Brady), two nays (Aid. Drummer and Korshak). Aid. Collens stated that this
matter would be forwarded to City Council for its 1/22/90 meeting without a
Committee recommmendation.
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Budget Policy Committee
Minutes of 1/17/90... 3
Multi -family inspection Pee
Aid. Collens stated that this matter began as a reference to the P&D
Committee regarding suggestion that multi -family rental units be licensed
and was later considered as part of a recommendation in the Griffith Report
on fees for inspectional services at a cost of $14 per dwelling unit per
year to recover approximately 75% of the City's cast far the inspection
program.
Aid. Korshak noted a concern expressed at the Planning and Development
Committee that fees will trigger higher rents as landlords pass this cost on
to tenants. Aid. Brady noted that in that Committee the idea of a fee, not
the fee itself was the subject of discussion, was defeated and not
considered to be a matter requiring further discussion.
In response to Aid. Collens question, Ald. Drummer stated interest in
bringing this matter back to City Council for consideration. In response to
Aid. Korshak's statement that local governments have to look carefully at
user fees to supplement revenues, Ald. Brady reminded him of a article he
had distributed to the Committee pointing out problems associated with such
fees.
Aid. Brady moved that Staff provide detailed information on the sequence of
discussion an this matter with accompanying eocumentation for further review
and reconsideration by the Budget Policy Committee. Motion approved
unanimously.
Committee Recommendation an Adherence to Budoet Policy
The Committee then considered Aid. Wallin's statement to the Human Services
Committee dated November 20, 1909 regarding Support of budget policy in
preparation of proposed budgets as submitted by boards and commissions.
Aid. Drummer stated that his concern in this regard is that the Recreation
Board may be more concerned with presenting a balanced budget than with
addressing unmet needs in the community. He noted that at the November
Human Services Committee discussion of the Recreation Board's proposed
budget he had asked the Board to focus on needs. Ald. Korshak stated that
the issue is at what point should a board advocate for needed funding and
how can that be a problem if revenues are not also identified.
Aid. Brady noted that raising revenues to increase a budget beyond
previously approved limits is one thing but that city funding is limited by
property taxes. She suggested that boards and commission come in at budget
and provide a statement of unmet needs if necessary. Aid. Drummer agreed
with that approach.
Assistant City Manager Bruce Zimmerman stated that the 1.5 budget increase
guideline applies to City support which is equated to the property tax. He
explained that the Recreation Board increased non -property tax revenues to
support certain unmet needs in the past. He noted that in budget -
preparation, all departments, Boards and Commissions have the opportunity to
state in writing and clarify unmet needs which cannot be funded due to _
policy guideline limits. `�
Budget Policy Committee
Minu to,5 of 1 / 17/90... 4
Ald. Drummer stated his concern regarding rising costs for recreational
servicos, overhead increases and a decline in programs. Aid. Korshak then
suggested that Aid. Wollin's statement of 11/20/89 to the Human Services
Comittee, Subject: Meeting of Nov. 13, 1989 should be changed to expand
paragraph 02 to read: "Boards and Commission have the responsibility and the
right to identifv needs and fundinq sources (to advocate for particular
needs) within their area of expertise, but they are expected to do this
within the budgetary constraints".
1990 Census Subcommittee Reoort
Aid. Collens stated that she will be meeting with a Census Specialist on
1/19/90 regarding identification of hard -to -target populations. Resources
of staff who work with or have direct contact information will be provided
to the Census Specialist who will be working with community groups to
publicize the census and assist in addressing the efforts to avoid an
undercount in 1990 Census.
Fees for Services to Tax Frempt Institutions
Ald. Brady suggested that tho Committee schedule and conduct a special
meeting on this single topic and extend an invitation to all Council members
to attend. Aid. Korshak expressed interest in further review all materials
available on this topic going back ten years or more.
Ald. Collens reviewed material provided in September and asked that -Staff
request an update on a previous legal opinion in this regard and determine
whether or not any legal cases not previously known or researched may be
available for further review. Staff was also requested to provide an update
on data provided in 1982.
Ald. Collens noted that Staff will do additional follow up on information
contained in the 1989 National League of Cities survey report, "Issues and
Opportunities for University Communities" and on the State of Wisconsin's '
pending research on service fees for tax exempt properties.
Next Meetina Date The Committee agreed that the next meeting will cover one topic: Fees for
Services to Tax -Exempt Institutions. A date in late February or early March
will be selected based on availability for Committee and other Council
members.
Adjournment
There being no further business, meeting adjourned at 10 p.m.
E
Staff
cc: Joel Asprooth, City Manager
Draft -- Not Aooroved
Minutes
Special Meeting
Budget Policy Committee
March 14, 1990
Present: Ald. Brady, Aid. Collens, Ald. Davis, Aid. Esch,
Ald. Korshak, Aid. Nelson, Aid. Warshaw
Members Absent: Ald. Juliar, Aid. Drummer
Staff: Judith Aiello, Bruce Zimmerman, Robert Shonk,
Reese Alexander, Sally Roethle
Guests: Susan Fleming, St. Francis Hospital; Ray Grady,
Evanston Hospital; Thomas J. Kerr, IV, Kendall
College; Michael Weston, Northwestern University
Cynthia Scott, Diane Lloyd, League of Women Voters
Gerald Murphy, Chamber of Commerce
Presiding
Official: Aid. Collens, Chair
Summary of Action:
Ald. Collens called the meeting to order at 7:50 p.m. stating that
this special meeting of the Committee was called to discuss payments
from tax exempt institutions, a matter which had been discussed in
previous years.
Aid. Korshak noted three topics for discussion: 1) the question of a
tuition tax; 2) a reference from Ald. Morton regarding the situation
which arises when a tax exempt organization seeks zoning relief; and
3) a ❑uestion of fees for specific services to be assessed against
various organizations in the city. Aid. Korshak then moved that item
#3, fees for services, be tabled for the present time and that the
discussion be confined to items #1 and #2. Motion seconded by Aid.
Brady. After brief discussion motion passed unanimously.
Aid. Collens reviewed Corporation Counsel's opinion on tuition tax
dated January 13, 1982, an update of same dated March e, 1990, a April
15, 1990 Committee memo to Council an the tuition tax policy option,
and a March 1990 update on costs and revenues attributable to
Northwestern University.
Ald. Korshak proposed that the Committee determine its sense of
whether or not this is an appropriate time in the City's history to
seriously address the question of a tax on tax-exempt educational
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Budget Policy Committee ... 2
March 14, 1990
institutions. He noted that if some feel this would be
counter -productive, the Committee should not have to proceed with this
difficult issue for the time being. Ald. Brady responded that the
question is phrased too broadly, that opinions from Corporation
Counsel consider the tuition tax to be constitutional but that is
different than a payment in lieu of taxes or a tax on tax-exempt
institutions. She suggested rephrasing and adding a question.
Ald. Brady moved that the Committee send a questionnaire to all
Council members asking if they would consider the idea of a tuition
tax. In discussion Ald. Korshak suggested that Council would benefit
more from results of a Committee discussion and that little may be
gained from a survey beyond requests for more information. Ald. Brady
stated that over time there has been enough information distributed
regarding this issue. Ald. Collens agreed with the idea of
determining Council interest in working through the issue. Ald.
Nelson questioned whether the tuition tax should be directed to all
students, Northwestern students or all students at higher education `
institutions. Ald. Brady suggested the question be directed to a
tuition tax on students at institutions of higher learning.
Ald. Nelson noted the need to determine interest in extending the tax
to private schools at the elementary, junior and high school level.
Ald. Brady noted that many families who pay tuition at these schools
also pay property taxes and that Corporation Counsel's opinion did not
limit the tuition tax question to Northwestern University. Ald.
Nelson suggested that this point may call for another legal opinion.
Ald. Warshaw suggested distinguishing the question by size of the
institution. Ald. Collens asked that Corporation Counsel provide an
opinion which considers whether the tuition tax opinion stands as
constitutional if it is limited by the size of the institution and/or
limited to the grade level to determine if the tax can be
distinguished by higher educational levels and all private schools.
Ald. Nelson noted that this should be posited by asking if there can
be any categorical definitions that can be implemented in order to
avoid an equal protection argument.
The motion approved was to survey the Council as to whether they would
be willing to consider a tuition tax for all students at institutions
of higher learning and to ask Corporation Counsel to provide an
opinion as to whether there can be any legal categorical definitions
regarding a tuition tax on student receipts that can be implemented
and what they are, specifically in reference to the size the
institution, the level of education offered and other ways that might
be considered.
The Committee then reviewed a staff update on costs and revenues
associated with Northwestern University. Ald. Brady noted that the _
calculations indicate an approximate net expense to the City of
$635,000 in 1982 and $1.5 million in 1990. She asked that
Budget Policy Committee ... 3
March 14, 1990
Northwestern University be given an opportunity to review these
figures and respond with any additional costs and revenues or
differences they may have with this information.
Aid. Warshaw asked for a justification on excluding certain costs for
the City. Ald. Nelson clarified that this would be similar to
overhead costs attributable to the University. Aid. Warshaw asked
that another Calculation be provided to include the total city costs
divided by the population total and population without Northwestern
University students included. Aid. Callen suggested limiting this to
services we know to be used by University students such as the library
versus programs provided by the Commission on Aging. Aid. Nelsen
noted that there are methodologies other than those used by Staff in
1982 such as using total property tax divided by student population.
Other methods were suggested but Aid. Warshaw suggested that further
calculations be held off until the survey response information is
available.
Ald. Collens suggested that Northwestern University also be asked to
provide an update on their statement of contributions to the City
including economic development and other contributions they would like
on the record for consideration. She also asked the University,
National -Lewis University and Kendall College be requested to provide
information on the number and the relative amounts of financial
assistance provided by those institutions toward tuition costs. Aid.
Korshak suggested that this information be presented in terms of ratio
of financial assistance given the income of the institution. Aid.
Collens also suggested that recently published information be provided
an the income level of students. Aid. Warshaw noted recent
information from the University on tuition increases proposed and the
allocation of a portion of those revenues toward financial aid.
Aid. Caliens directed the Committee's attention to a results of a
recent staff survey of numerous municipalities which are home to
private and public Colleges and universities. Aid. Korshak noted that
Mr. Sidney Zwick had also done considerable research in this regard
which may be of interest and suggested that staff contact Mr. Zwick
regarding data he has collected. Aid. Collens stated there is
considerable difficulty in determining how fees for services are
implemented other than through long standing agreement, and that
recent joint agreements in the area of economic development appear to
be the single most frequently cited form of university financial _-
contribution.
Aid. Esch recalled a Evanston Neighborhood Conference meeting in
September 1989 at which a speaker reviewed the history of the
relationship between Ithaca, New York and Cornell University. After a
long period of poor relations, a new group was formed to discuss
possibilities, the results of which provided a University program that
offers in -kind services to the local school district and a new
town/gown relationship. -
Budget Policy Committee ... 4
March 14, 1990
Ald. Collens asked that members from the Planning and Development
Committee explain the zoning ordinances requested for consideration by
the Budget Policy Committee. Ald. Karshak responded that the P&D
Committee had considered a ZHA case of a tax-exempt organization which
had applied for a special use and that when the ZBA's recommendation
to grant the special use was presented, Staff suggested a condition be
added to require an annual payment in lieu of taxes from that
organization. In response, the applicant responded that this
stipulation had only recently been presented to them, subsequent to
the close of the case by ZHA, and asked for additional time to
consider their response. At P&D Ald. Morton suggested creation of a
policy in regard to requiring a payment in lieu of taxes at the time a
special use or variation is granted. In response to Ald. Davis'
question as to whether this requirement had been placed an other cases
of this type, Ald. Brady noted that that historical information has
been requested.
It was noted that the Budget Policy Committee has been requested to
explore a policy in this regard. Ald. Collens stated that a
discussion an this matter began in 1983 in reference to an alley
vacation request by St. Francis Hospital which was sent to P&D
Committee, then to ZAC and that a legal opinion had been provided by
Corporation Counsel in this regard. The entire matter was tabled by
Council in 1984.
Ald. Brady clarified that this matter concerns tax exempt institutions
which apply for a special use or variation and which would be subject
to a policy approved by Counsel which would automatically require a
payment in lieu of taxes based on special criteria. Ald. Collens
noted that this would not be an attempt to secure a payment in lieu of
taxes if a tax-exempt organization were to buy a piece of property
that was formerly on the tax rolls and was not coming in for zoning.
Ald. Brady stated that this only came up in the past week and that she
would not vote for any type of payment of this kind prior to creation
of a City Council policy. Ald. Collens stated that the reference in
1983 and 1904 was broader. It dealt with vacations, demolitions, plats _
of subdivision and a variety of items which are discussed in the
documents from 1983 and 1984.
Ald. Nelson suggested that this matter needs to be discussed by P&D in
the meantime. Aid. Callen suggested that that Committee proceed and
allow time for the Budget Policy Committee to begin to consider that
reference at its next meeting on April IS.' Returning to the subject
of a tuition tax and fees for services, Ald. Brady suggested that it
is important that representatives of the Budget Policy Committee
discuss with the University the issues of tuition tax and payment for
services to determine the position of the University and any
considerations they may have in this regard.
J -
Budget Policy Committee ... 5
March 14, 1990
Aid. Brady suggested that Ald. Collens and Korshak represent the
Committee at such a meeting, before or after results of the survey
question is known. Aid. Korshak responded that he felt there was
nothing to be gained by his attendance at such a meeting. He stated
that it is his opinion that University officials have conspicuously
failed to recognize any obligation to the Evanston community. He
stated that he has no interest in causing any injury to the University
and respects it as a powerful institution. He cautioned that if the
City's economy suffers the University may some day find itself in a
situation not unlike that faced by the University of Chicago some
years ago which cost that institution a great deal of money to
resolve. He stated that resident's hostility against the University
is immense and growing. He suggested that the people of the
University might give thought to what an appropriate relationship is
between the City and the University.
Ald. Nelson agreed with Aid. Korshak's sentiments that more can and
ought to be done by the University regarding the details of its
relationship with the City. He stated his endorsement of the concept
of Aid. Brady's suggestion. He stated that although the University
contributes more per annum now than ever before that information is
not being communicated by the University. Aid. Nelson recalled that
the 1983 resolution regarding joint economic development efforts
obliges the Mayor to provide for continuing dialog with the University
and to report at least semi --annually on what is happening.
Aid. Brady urged that the suggested meeting take place prior to the
next Budget Policy Committee meeting and again urged Aid. Korshak to
attend. Aid. Collens stated concurrence with Aid. Korshak regarding
the level of community hostility despite the fact that many residents
understand and appreciate the University's contribution to economic
development. She agreed to the meeting, to report results to the
Committee and stated her hope that Ald. Korshak would join her but
respects his wishes.
Next Meetin❑ and Adfournment
Aid. Collens stated that the Committee will meet next on Wednesday,
April 18. The agenda will include discussion of results of the
Council poll, the reference from P&D regarding payment in lieu of
taxes, and a report on the discussion with Northwestern University.
The meeting adjourned at approximately 9:30 p.m.
'b.id
feamil--
Staf fi/
Cc: Joel M. Asprooth, City Manager
Draft - Not Approved
MINUTES
BUDGET POLICY COMMITTEE
Meeting of April 18, 1990
Members Present: Aldermen Brady, Collens, Juliar and Korshak
Members Absent: Aldermen Drummer and Nelson
Staff Present: Joel Asprooth, Jack M. Siegel, Bruce Zimmerman, Robert
Shonk, Reese Alexander, Sally Roethle
Guests Present: Michael Weston, Northwestern University; Cynthia Scott,
League of Women Voters
Presiding Official: Alderman Collens, Chairman
Summary of Action: A quorum being present, Alderman Collens called the
meeting to order at 7:45 P.K.
Approval of Minutes: The minutes of the January 17, 1990 and March 14, 1990
meetings were approved as submitted.
Payment in Lieu of Taxes: Alderman Collens introduced discussion of this
topic, stating that it is related to a zoning case for the property at 1834
Chicago Avenue. now under consideration in the Planning and Development
Committee. In response to Alderman Brady's question regarding Corporation
Counsel's opinions on payment in lieu of taxes written in 1971 and in 1990,
Mr. Siegel responded to the difference between the two. He noted that the
first opinion was issued prior to the enactment of dome Rule and has
provided additional opinions since that time in which he pointed out that a
discretionary act and a legislative choice for an applicant seeking a
special privilege could be conditions for imposition of a payment in lieu of
taxes. He noted that the City's zoning power is not restricted by State
Statute and that the opinion written in 1971 was based on a case which is no
longer applicable. Mr. Siegel continued by stating that the Court has said
that conditions can be imposed that are reasonably related. He noted that
the fiscal welfare of a community under Home Rule is a reasonable objective
that can be served. He suggested to the Committee that the City not have a
blanket requirement that would trigger a payment in lieu of taxes but that
each case be judged on merits. including use, need for City services and
population density.
In response to Alderman Collens. Mr. Siegel stated that standards should be
set to determine how much a payment in lieu of taxes would be. He suggested
that the Council create a policy which states that whenever such a case
comes forth the City will impose a payment in lieu of taxes based on
specific criteria.
Alderman Karshak noted the 1834 Chicago Avenue case and questioned whether
there was any relationship between potential injury over different sets of
circumstances, for example, in a change from a taxable to a tax exempt
property in which case the City of Evanston loses property tax revenue. He
MINUTES OF THE BUDGET POLICY COMMITTEE
Hooting of April 1.8, 1990............ Page Two
stated that the attorney for the property owners argued that since there
were no tax revenues provided for that property before, why is it necessary
now since no harm to the City resulted without payment in lieu of taxes.
Alderman Korshak stated his understanding from the opinion provided by
Corporation Counsel that the City can do what it wants in this case. Mr.
Siegel responded that the injury to a municipality can be the loss of taxes
or the additional burdens imposed on the community in that regard. Alderman
Korshak stated that increasing the size or changing the use of a property
oven if it is tax exempt does not mean that it is not a burden to City
services.
The City Manager suggested that even though Corporation Counsel does not
recommend the use of the standard covenant, it is logical that the City
should treat each case in the same manner. As an example, he cited the 1834
Chicago Avenue case and noted that, if City Council does not recommend a
payment in lieu of taxes, the question of precedent could be raised. He
suggested that the City Council has to consider the possibility of creating
a pattern.
Corporation Counsel noted the problem of equal protection and stated that
ouch case should stand on its own. If a list of ten examples were cited,
and in eight cases the City only assessed one dollar per year or $100,000.
the City would be in a liable position.
Alderman Collens suggested that part of the record for each case would have
to be related to the impact on City services. She cited, as an example, the
possibility of Evanston Hospital purchasing two adjacent houses for parking
purposes which would then be removed from the tax rolls. If this property
were then used as a major clinic versus a parking lot, the demands for City
services would be very different. Alderman Collens stated that the point to
be considered is the effect of the use in terms of what it will cost the
City. She suggested that the City must be careful with the present nature
of its zoning ordinance, noting that hospital and university zoning require
a special use for many activities, not all of which have service impact.
She advised caution because special use has been used as a control.
Alderman Korshak agreed that the City must be careful due to the numerous
tax exempt institutions in the municipality and stated that the City cannot
support them all, that this is an inordinate amount of tax burden on
residents. He suggested that this situation be considered before granting
variations for special uses - that the City provides many services to those
not paying for them. He stated that good police and fire protection allow
for lowered property insurance costs which benefit tax exempt institutions
that do not pay for police and fire services. He then stated that the City
is providing services to all in the community, particularly safety services,
but fails in its duty without providing tax relief as it can.
Alderman Juliar responded that the City has not changed a great deal, that
Northwestern University has been here for over 100 years and that most
churches and synagogues have also been here for a very long time. He argued
that Alderman Korshak's statement was akin to someone moving to Elk Grove
Village and then complaining about the noise at O'Hare Airport. Alderman
MINUTES OF THE BUDGET POLICY COMMITTEE
Meeting of April 18, 1990............ Page Three
Korshak countered that when the University received its exemption over l0o
years ago no one at that time considered the growth at the present period.
Alderman Collens suggested that the City needs to find a policy for payment
in lieu of taxes that is reasonable. She noted that the tax exempt status
of churches is nation-wide, as is the case with schools, and that there is
nothing peculiar about the situation in Evanston. She noted that this
policy requires the same treatment for all tax exempt institutions, from
Northwestern University to small churches, in the city.
Alderman Collens stated that in instances where a discretionary legislative
act is requested by a tax exempt owner or entity, such as a vacation,
variation or special use, that a payment in lieu of taxes be required; the
amount of payment needs to be determined by consideration of the taxes that
would be lost as a result of the act, the nature of the new use and the
demand for City services associated with it.
Corporation Counsel cautioned that a problem might be created in case of
churches. He stated that there is no foolproof answer, nor one that someone
will not challenge, but advised that the situation should not dissuade the
Council from creating a policy and suggested that it be used on case by case
basis. Mr. Siegel suggested that the best means is to come up with criteria
that establish a rule of law and standards to prevent picking and choosing.
He noted that this is done with zoning variations, granting licenses, and
wherever the City imposes conditions in order to determine qualification.
Alderman Brady suggested the Council needs direction on what this should be
and that staff be asked to consider criteria.
Corporation Counsel stated that he would like to study the staff report on
payments being made in other instances. He cautioned the Council not to use
proposed assessed valuations which are too much like ad valorem taxes. He
advised that the question calls for creation of a general policy and a set
of criteria to be applied to implement that policy. He further advised that
the Committee consider the nature of existing services provided to the
applicant, what impact those services may have and the value of same.
Alderman Collens asked that staff provide information to the Committee as to
and what other tax exempt entities should be included in this policy and
suggested that the proposed policy should address preservation of taxable
bodies of land. Alderman Collens asked that staff come back with an
exploration of criteria, suggestions of a process that could be used and
that can be put in place.
Tuition Tax: Alderman Collens began discussion on consideration of a
tuition tax, noting that Corporation Counsel's recent opinion stated that
such a tax could be applicable to tuition payments at all private
institutions of higher education, while not required on private tuition
payments paid at schools in the K-12 level. She suggested that the
Committee develop a policy recommendation in this regard for Council
consideration as a response to the fourteen affirmative Council votes in
favor of consideration of a tuition tax. -
MINUTES OF THE BUDGET POLICY COMMITTEE
Meeting of April 18, 1990............ Page Four
In response to Alderman Brady, Corporation Counsel stated that he thinks a
legal challenge to such a tax would not be sustained. He noted that a key
argument may be whether such a tax could be construed as an occupation tax;
another would be equal protection in that student tuition at private schools
offering K-12 grade levels would not be subject to the proposed tax.
Alderman Korshak stated that his original suggestion was that tuition be
taxed at 1.5%. Alderman Brady stated concern regarding the revenue amount
but suggested that the schedule proposed in draft Ordinance 122-0-82, a
$10.00 per unit tax per quarter, is too high. Alderman Collens noted that.
given information gathered today by staff, it appears that annual tuition
tax revenue from two institutions, Northwestern and Kendall College, would
be approximately $346,225 if the $10.00 per unit schedule were used.
Alderman Korshak suggested consideration of recovery of costs related to
police, fire and library services. He noted that costs of police and fire
services, in particular, were used in past discussions on a tuition tax as
the most acceptable means of establishing a per capita cost; a percentage of
which was used to represent other City costs. Alderman Korshak suggested
the cost of providing police and fire protection services as the basis for
determining the proposed tax. Asked by Alderman Brady if he would consider
reducing the cost for Northwestern University in view of their public safety
program, Alderman Korshak responded that he would not, due to the standby
requirement for City police services in cases of serious criminal offense.
Alderman Collens referred to the City staff report of March 12, 1990
updating the 1982 analysis of City service costs and revenues attributable
to Northwestern University, noting that police and fire costs are
017,000,000. Alderman Collens asked that the Committee consider a schedule
to be used to draft a new ordinance for consideration. The City Manager
noted that police and fire service costs were used in the past because these
were the most easily identifiable services to students and all other
residents that could be broken down on a per capita basis, the most
acceptable services for this purpose, and that a fraction of these costs was
used to determine costs of other City services. The City Manager stated
that the $10.00 per unit schedule was adopted from a draft ordinance
prepared in the early 1970's. The City Manager noted that these
calculations were felt to be the most reasonable beginning point when this
tax was discussed in 1981 and 1982, but that any method could be established
by City Council,
The Committee then discussed the difference between the tax on tuition and a
fee for service. The City Manager noted that the essence of a fee for
service is that the service is dependent on payment of the fee and that
failure to pay a set fee for services results in withholding or withdrawal
of the service. He stated that he never considered withholding services to the University if proposed fees were not paid. Corporation Counsel
clarified a tuition tax as a tax on the privilege of paying for higher
education, not a tax on the institution. For example, Northwestern
University or Kendall College would only be required to collect the tax and
would be compensated to do so.
MINUTES OF THE BUDGET POLICY COMMITTEE
Meeting of April 18, 1990............ Page Five
Alderman Collens stated that using a figure of 12,000 Northwestern students
represents 16% of the Evanston population. The student portion of police
and fire costs is than 16% of total costs, which suggests that if
Northwestern University were to locate elsewhere the City could save
$1,770,506 on police protection and $1,105,564 on fire protection. (These
figures represent estimated costs based on the staff report on costs for
services attributable to Northwestern University, 3/14/90.) Alderman
Collens stated disagreement with the logic of this formula. The City
Manager disagreed with that conclusion, stating that there are certain base
costs the City would always incur for this property. He noted that the land
would remain, would still require protection, whether otherwise occupied or
vacant, and that short of an assessment for market value on all Northwestern
property, there is no flawless formula. He stated that staff could use any
other formula suggested by the Committee, but noted the difficulty of
finding an impregnable assumption.
Alderman Collens stated that the City staff report of 3/14/90 provides a per
capita cost of providing police and fire services at $239.29 per student at
Northwestern. She further noted that a 1.57. formula based on $13,000
tuition for a student at Northwestern, is $195.00 and that the 1982
ordinance provides for a $10.00 per unit cost. She asked that Alderman
Korshak suggest the use of one of these formulas for the tuition tax
proposal. Alderman Korshak did not respond.
Alderman Collens stated that the formula needs more work, which may require
legal assistance and that a reasonable formula is needed. Alderman Brady
responded that some contribution from the students is necessary for the City
to provide what it must, but that calculation changes based on the decision
as to how many students must pay the tax is necessary. Alderman Collens
stated that the 1982 draft ordinance defines this as tuition of students
taking courses in Evanston, and that the approximate number of full-time
students at the Northwestern campus in Evanston is 10.868, and at Kendall
College is 400 students. Figures for Garrett or Seabury Western have not
been collected. She noted there are also 545 part-time students at
Northwestern. Alderman Collens suggested that a now, realistic schedule to
determine tuition tax payments is needed. She asked that staff ssnd to
Seabury Western and Garrett the same information request as was sent to
Kendall College, National College of Education and Northwestern University
for data on financial assistance and student populations.
Corporation Counsel suggested that he review a new draft of a tuition tax
ordinance in view of case law since 1982. Alderman Collens asked that staff
prepare a new draft ordinance for the nest Committee meeting, scheduled for
May 16, 1990, at Which time the Committee will vote on taking it to Council
for consideration. She noted that the Committee will conduct a public
hearing on the proposed tuition tax at a later date. She further stated
that she will vote in favor of moving a reasonable ordinance out of
Committee for Council review, but that she would not vote in favor of a
tuition tax when the Council considered it.
MINUTES OF THE BUDGET POLICY COMMITTEE
Meeting of April 18, 1990............ Page Six
AdJournmont
The regular Committee meeting adjourned at approximately 10:00 P.M. The
Committee then adjourned into Executive Session to discuss the probability
of imminent litigation.
Next Meeting Date
The next meeting date of the Budget Policy Committee is Wednesday, May 16,
1990 at 7:45 P.M.
Respectfully submitted,
Sally Roe le erztizL
Assistant to the City Manager
cc: Joel Asprooth, City Manager
I'
Present:
Draft — Not Approved
Minutes
Budget Policy Committee
May 16, 1990
Ald. Brady, Ald. Collens, Ald. Juliar,
Ald. Korshak
Members Absent: Ald. Drummer, Ald. Nelson
Staff: Joel Asprooth, Robert Shonk, Reese Alexander,
Sally Roethle
Guests: Michael Weston, Northwestern University
Cynthia Scott, League of Women Voters
Cheryl Ross
Presiding
❑fficial: Ald. Collens, Chair
Summary of Action:
Ald. Collens called the meeting to order at 8:10 P.M. and announced
that Ald. Juliar would arrive shortly. Ald. Brady moved a quorum
present. Motion approved.
Approval of Minutes
Minutes of the April 1B, 1990 meeting were approved as submitted.
Tuition Tax
Ald. Collens introduced a new draft tuition tax ordinance revised by
Corporation Counsel and noted his commentary on recent Court
decisions as these might effect the proposed tuition tax. A
preliminary staff report on revenue projections at various taxing
rates was distributed. Ald. Brady stated that tax rate should be
based on a percent and suggested that the proposed ordinance and
revenue projection report be forwarded to City Council for
consideration.
Aid. Korshak moved approval of the proposed draft tuition tax
ordinance requiring, a 1.5% tax rate and that the draft by forwarded
to City Council with an attached statement of recommendation from
the Budget Policy Committee. Motion failed for lack of a second.
In discussion Aid. Collens recommended creation of an entirely new
ordinance draft for 1990.
Ald. Brady moved that the proposed draft ordinance be submitted
using a .5% tax rate formula. Seconded by Ald. Collens. In
discussion Aid. Korshak commented on the importance of Council
consideration; justification and reasonableness of a 1.5/, tax rate
in terms of the expense required to provide police and -fire
protection. Ald. Brady responded that the tax is probably necessary
Budget Policy Committee
May 16, 1990...2
but would prefer not to have to support a tuition tax. In doing so
she recommends a minimal tax rate that does not burden students.
She stated that negotiations with the institutions to establish a
formula for a payment in lieu of taxes would be preferred but
experience indicates that is not likely and suggested that a .5%
tuition tax rate from 16% of the population is not unreasonable.
Ald. Juiiar stated that he would oppose a tuition tax in any form
because he feels it discriminates against a segment of the
population. Ald. Korshak responded that the burden of
discrimination has been on the tax paying citizens; that a segment
of the population can no longer afford to live in Evanston due to
high taxes. He recalled that in 1981 he proposed a 1% tuition tax
an the s6e00 tuition at Northwestern which was considered extreme at
the time however the University raised tuition by $1200 that year.
Aid. Korshak stated that the burden would not have to be on students
if the institutions made voluntary contributions. Ald. Collens
responded that a variety ❑f arguments including very favorable ones
have been presented regarding the University's contributions to
economic development in the City of Evanston.
Motion to present the draft tuition tax ordinance for City Council
consideration at a .5% rate was approved: 3 ayes, 1 nay (Juliar).
In response to Ald. Brady's question about proposed ordinance
Section 3-30-5, Violations, as to wham fines for violations would be
directed, City Manager Asprooth responded that the most logical
party would be the institution as the collecting party.
In concluding this discussion the Committee agreed to conduct a
public hearing on the proposed tuition tax at the soonest possible
date prior to the end of current semester and quarter terms.
Thursday, May 31 was selected as the hearing date. Ald. Korshak
suggested that Corporation Counsel be asked to determine whether
language should be added to the proposed tuition tax ordinance to
include Allen Center tuition. Ald. Collens noted that questions
regarding use of the Allen Center have not yet been resolved.
Payment in Lieu of Faxes
Ald. Collens introduced discussion of a proposal from the City =
Manager entitled, "Criteria for application of a requirement for
payments in lieu of property tax". In response to Ald. 2rady's
question as to whether annual payment costs would be determined only
on the improvement, the type of request or entire property, the City
Manager suggested that future decisions on the application of this
Criteria be made on a case by case basis, that the'issues involved
defy a formula.
M
Budget Policy Committee
May 16, 1990...3
Ald. Collens suggested that language be added to indicate
application of the requirements for payment in lieu of taxes only
where property is to be removed from the tax roils and/or
discretionary action will require a change in demand for City
services. The City Manager recommended clarification of "demand for
City services" and suggested narrowing situations in which a
required payment would bo applied. Ald. Brady stated that criteria
should address the demand for city services and stressed the point
that creating a new policy will require prior notice regarding
possible payment in lieu of taxes.
In regard to granting zoning relief Aid. Korshak criticized the test
of adding a burden, stating that a burden already exists for tax
paying residents. He suggested a comparison between an agency such
as ACORN and Evanston Hospital as support for the recommendation
that the nature of a request must first be examined. Ald. Brady
responded that with criteria about the demand for City services
ACORN could attempt to obtain a zoning variation to make a building
handicapped accessible and that would negate the payment
requirement. Ald. Karshak responded that he would examine the
nature of the request and consider the burden.
Ald. Collens agreed with Ald. Korshak that a philosophical
difference exists in their respective positions an tax -exemption.
Ald. Brady commended the use of a phrase in paragraph 1, which lists
possible discretionary actions the City could be asked to take for
the benefit of a tax --exempt entity or property, which read:" ... and
other non -ministerial acts of the City Council....."
Ald. Collens moved rewriting sentence #1, paragraph #1 as follows:
"A payment in lieu of property tax will be required when the City of
Evanston is asked to take a discretionary action for the benefit of
a tax exempt entity or property when such action will have an impact
on the property tax base or on the demand for City services." Ald.
Brady seconded the change. In discussion Ald. Brady suggested
merging paragraphs #1 and #3. Ald. Karshak stated concern about
calculating the effect upon the City for a change such as an alley
vacation and suggested the only measurable factor is the value cf
the existing services which were provided at no cost. The Committee
discussed at length various situations and possibilities related to
the need for a specific policy for payment in lieu of taxes versus
an ad hoc approach. Ald. Brady reiterated support for a notice
requirement. Ald. Collens spoke against a policy statement for
zoning applicants created to serve as a warning possibility and
stated her position in favor of a clear, definitive statement of
intent for a payment in lieu of taxes policy.
Ald. Brady asked that Staff consider creation of a simple approach
for a zoning policy statement based on removing property from the
tax rolls and demand an City services in the form of a short, one
paragraph notice which could be drafted and legally upheld and
considered by the Committee.
Budget Policy Committee
May 16, 1990...4
After considerable discussion Aid. Korshak suggested the following
language to be read by the Chairman of the ZBA to tax-exempt
institutions applying for zoning relief: "You are advised that the
recommendation of the Zoning Board of Appeals will be made to the
City Council via the Planning and Development Committee of the
Council. You are to understand that modifications to the
recommendation may be made by P & D or the Council, which
modification, if applicant is a tax-exempt organization, may include
a payment in lieu of taxes."
Aid. Brady moved that the above language be reviewed by appropriate
City staff and forwarded to the Planning and Development Committee
for their consideration.
Reference from Ald. Morton on Budget Policy
Aid. Callens explained that Aid. Morton wants zero property tax
increase in FY199-1992 and would like the City Council to advise the
City Manager to prepare such a budget for consideration. Aid. Brady
stated concern regarding continuation of state income tax revenues
and the possibility of severe limitations on spending if the tax is
continued. Mr. Asprooth suggested that action on the matter would
likely be delayed until mid -November. He stated that the City has
used too many one --time revenues to balance its budget, that loss of
the income tax surcharge will leave a big budget gap and that
planning is necessary now, well in advance of budget preparation.
He suggested a priority setting process in which all City programs
and services are rated as first, second and third priorities as a
means to begin to make necessary and meaningful reductions.
He urged the Committee to consider the type of process it wants for
next year to avoid the same difficulties encountered in past January
budget sessions. He suggested a process which would have to be
conducted throughout the Fall months, a process to decide
priorities, so that the proposed budget represents necessary
cutbacks as determined by Council.
Adjournment
Ald. Callens adjourned the meeting at 10:25 p.m. The next meeting
will be a public hearing on a proposed tuition tax, May 31, 1990 at
7:30 p.m.
cc: Joel Asprooth, City Manager
Draft - Not Anoroved
Minutes
Budget Policy Committee
Public Hearing on Proposed Tuition Tax
May 31, 1990
Committee Members
Present:
Ald.
Brady, Ald. Collens, Ald.
Korshak, Ald. Nelson
Members Absent:
Ald.
drummer, Ald. Juliar
Other City Council
Members Present:
Mayor
Barr, Ald. Esch, Ald. Lanyon,
Ald. Rainey,
Ald.
Rudy, Ald. Warshaw, Ald.
Wald
Staff:
Joel
Asprooth, Judith Aiello,
Bruce Zimmerman,
Robert
Shank, Sally Roethle
Guests:
The
list of Guests and Public
Speakers is attached.
Presiding
Official: Ald. Collens, Chair
Summary of Action:
Ald. Collens called the meeting to order at 7:30 P.M. and explained
the purpose of the hearing as an_opportunity for the Budget Policy
Committee to accept public comment on a proposed tuition tax. She
stated that a recent Committee survey of City Council members
indicated that a majority were willing to consider a tuition tax
ordinance. Ald. Collens also noted that although the Budget Policy
Committee voted in favor of bringing this ordinance to City Council
for full discussion and consideration, that vote does not reflect a
unanimous Committee endorsement of the proposed tuition tax. She
stated that it is expected that the proposed ordinance would be
introduced for City Council Consideration an either June 11 or June
25, 1990.
Ald. Collens explained that the proposec ordinance the requires a .5%
tax on full-time and part-time, undergraduate and graduate student
tuition paid per quarter or semester to any college or university in
Evanston. The tax would be collected by the educational institutions
as agent for the City and a 3% collection fee would be retained by the
college or university.
A Summary of Public Comments
Clint Moore III, Student Body President, Seabury-Western Theological
Seminary, spoke against the tax, stated Evanston is first in many
areas but to tax education would be a terrible precedent.
71
Public Hearing on Tuition Tax...2
May 31, 1990
Rev. O.C. Edwards Jr., Faculty, Seabury-Western Theological Seminary,
spoke against the tax, asked the Committee to consider the reasons for
tax-exempt status granted to educational institutions, noted direct
and indirect educational contributions and services to public
interests such as plays, museums, volunteerism.
Hunter Smith, Senior, Northwestern, spoke against the tax, saying it
would tax tax -supported federal educational grants and loans, that
passage would result in tremendous legal costs for City and schools,
that students generally don't vote, are not constituents and as such
cannot influence City business, a tax directed at them is unfair.
Arva Rice, Senior, Northwestern, Peer Counsellor in Financial Aid
Office, spoke against the tax, stated the "rich kid" image of
Northwestern students is untrue, 50% of students have some financial
aid, many would have difficulty paying tax.
John Byrne, Journalism Student, Northwestern, spoke against the tax,
said many students could not afford to pay s65fyear, that the tax is
aimed at administration, hurts and puts students in the middle.
Richard Nelson, Evanston Resident since 1945, Northwestern Caw School
graduate, moved to Evanston because it was an open community, served
on many community boards, past president of Northern Illinois
University, spoke against the tax, against assessing a private school,
and urged the Council to support the University and to work with them
to negotiate a settlement.
Jackie Dyess, Comptroller, Seabury-Western Theological Seminary, life
long Evanston resident, spoke against the tax, stated seminary
provides free lectures and is strongly opposed to tax, many students
begin studies there heavily indebted with previous student loans, many
volunteer time at Evanston churches, homeless shelter.
Michael C. Weston, Evanston Resident, Vice -President and General
Counsel, Northwestern University, spoke against the tax, noted century
of City -University partnerships threatened, ignores university
contributions which enhance Evanston's quality of life; 1500
university employees live in Evanston, 10,000+ students here; 1952
tuition tax effort failed, economic development agreement created, -
Research Park investments by City and university total $16 million. _=
Park employs 405 at 35 companies, s30 million in new and rehab
construction to date, 40% minorities, university is committed to spend
over $25 million in economic development to benefit City; original
charter allowed 2,000 tax-exempt acres, 690 acres owned in 1980's,
many acres since sold, 1972 voluntary action to sell• 14+ acres added
to tax base; noted long standing policy of returning non -educational
use property to tax base; other universities that make payments to
host cities do so because they have taken land off tax rolls.
N
Public Hearing on Tuition Tax ... 3
May 31, 1990
Lee A. Ellis, Senior Vice -President, Business and Finance, Northwestern
University, spoke against the tax, stated annual university payment to
City is over $1 million for other taxes, fees or service costs,
population count including students benefits city per capita revenues,
500,000+ N.U. visitors in City annually, NU has its own public safety
department, operates landfill used by many residents, a low interest
low to City of $4 million adds $122,000 direct annual subsidy.
Jim Carleton, Vice -President, Student Affairs, Northwestern University,
spoke against the tax, noted over 240 NU students are from families
with annual incomes of $5,000 or less, 50 to 60% of undergraduates
receive some financial assistance, many more incur debt to pay tuition,
asked Council not to put price tax an heads of students.
Victor Rosenblum, Law and Political Science Professor, Northwestern
University, an faculty and resident for 30 years, spoke against the
tax, stated firm belief that it is illegal, opposes tax as incompatible
with city's dedication to education and principles of City of Evanston,
burden of tax on students and university would represent city as a
hostile host; urged Council to continue tradition of support of
education.
Donald Weeks, 2242 Ashland, spoke in favor of the tax, stated high
taxes for residents create a burden, urged university to consider
actions it can take to improve its relationship with residents to
prevent further deterioration of same.
John Buccheri, 23 year Resident, School of Music faculty, NU, spoke
against the tax, stated any residential property tax relief would be
welcome but tuition tax would be divisive, spoke of NU's cultural arts
contributions to community of Evanston including many free musical
concerts, free bus services for seniors provided, artists of
international renown brought to city, concerts are free or low cost;
School of Music budget supports these activities.
Adolph Hansen, Vice -President for Administration, Garrett Evangelical
Theological Seminary, resident, spoke against the tax, noted history of
city leadership provided in past by seminary representatives, clarified
tuition costs, stated tax is insensitive to students, noted net tuition
for FY99--90 was 37% of tuition charged due to financial aid provided,
believes it is illegal, noted Garrett not clearly a college or
university and for tax purposes is considered a church.
Thomas Kerr, President, Kendall College, spoke against the tax, stated
tax is bad principle, higher education a traditional path to
opportunity, tax strikes at philanthrophy, volunteerism and educational
opportunity - foundations of institutions, Kendall adds distinctions to
city with Culinary Institute, Mitchell Indian Museum; students received
$1.3 million in financial aid in 1989-90, approximately 60% of tuition
collected, tax would affect those who most need services and are least
able t❑ pay.
Public Hearing on Tuition Tax ... 4
May 31, 1990
Sydney Zwick, Evanston Resident, spoke in favor of the tax, interest
in issue related to costs of perquisites for administrators of
tax-exempt institutions, i.e., residence in tax-exempt properties,
stated university is most interested in income generation versus
traditional liberal arts education, suggested university rebate to
students amount equal to proposed tuition tax.
Richard Stillerman, Resident, spoke in favor of the tax, noted
institutions which nhare various financial burden with host
communities named in a 1988 joint study at Cornell University
including Stanford University, Michigan State, Cornell, University of
Michigan, Iowa State, Michigan State, Colgate, these range in cost
from $115,000 at Colgate to $4 million annually at Stanford; noted
City budget totals $77 million and NU raised more in 1989
contributions, noted costs of city fire and police service to NU paid
by residents, noted NU, not City, recipient of $52 million in federal
government grants for Research Park, sympathized with students, tax
symbolizes NU need to pay fair share, supports NU reduction of tuition
by amount of student tax.
Peter Frey, Resident, NU faculty, spoke against the tax, stated
students are being attacked as a result of City problem with its costs
for services, education as a target is a sad precedent; his property
assessment increased 80%, believes his city services are miserable,
stated many NU students live outside Evanston and receive no city
services; suggested Council consider tax for services delivered.
Shar Tadjbakhsh, President, Student Government, Northwestern
University, spoke against the tax, stated students feel they
contribute by buying at local retail stores and through volunteerism 1fE
and campus activities which serve the public, noted creation of
External Relations Chair in student government to improve student -city
relations.
Rita Miller -Hubbard, Resident, NU Graduate Student, spoke against the
tax, suggested City address problem with university without taxing
education, urged city not to set national precedent with tax.
Kim Harker, Graduate Student, Medill School of Journalism, NUq spoke =_
against the tuition tax, submitted signatures of approximately 1,000
persons opposed to the tuition tax***W; stated students pay sales =
taxes at stores which hike prices beyond those charged in other
neighborhoods.
Linda Such, Resident for 20 years, spoke against the tax, spoke of
need for reduced property taxes, suggested tuition tax idea is bad
public policy, city is a haven for tax --exempt institutions; suggested
projected tuition tax revenue not a sufficient solution to high taxes,
urged city to seriously cut spending, encourage development, increase
efficiency and challenge itself as corporations do.
_y
Public Hearing on Tuition Tax...5
May 31, 1990
Mr. Brookhart, NU Student, spoke against the tax, stated 100 residents
of his dorm all opposed tax, urged city -university cooperation, stated
students provide much to city as volunteers, noted that endowment
provides financial aid to students.
David Ellis, Evanston Fireman, spoke in favor of the tax, suggested
consideration of tax as a fair -share fee, suggested residents should
not have to pay for those who receive tax-free services.
Sandra Valentine, Evanston Resident, spoke in favor of the tax, stated
that 10% of 1959 earnings paid to real estate taxes, without reduction
in property taxes city will lose low and moderate income residents,
enjoys NU offerings to public, prefers assurance of adequate fire
services.
Robert Eisner, Professor, NU, Evanston Resident 31 years. urged
Council consideration of Evanston scenario without presence of
university and stated that would result in much higher taxes and lower
services, tax will send message that city does not favor university
community which will result in negative impact on City.
Margarita Matles, Evanston resident, spoke against the tax, stated
that it is unfair that parents who would pay tax cannot attend this
hearing to protest this tax, suggested students boycott Evanston shops
if tax imposed, stated city costs can be cut by directing attention to
city employee benefits.
Gerald Murphy, Executive Director, Chamber of Commerce, spoke against
the tax, stated active members of Chamber oppose the tax, suggested
consideration of state legislation to relieve tax base, noted some
businesses moving from city.
Mark Ertel, Evanston resident for 21 years, spoke against the tax,
noted he spoke against tuition tax proposal at City Council meeting 1B
years ago, suggested tax is illegal because it affects a class of
people, is unequal because it does not tax fatuity and others who
receive same city services, stated concern about possible future
taxation of churches, day care centers, suggested more taxes will only
increase expenses, not reduce property taxes.
Jahn Bergncff, NU Alumnus, President, Evanston Alumni Council, NU
Trustee, 22 year Evanston Resident, spoke against the tax, stated that
substantial body of NU alumni oppose tax, suggested it is
ill-conceived with air of hostility, stated embarrassment that Council
will spend this time on a manipulative tax to bait the university,
urged speedy removal of this item from the Council agenda. E
****NOTE: Petitions containing sionatures in conosition to the Tuition ��_
Tax are available for examination in Room 4600, Evanston Civic Center,
2100 Ridge Avenue.
Public Hearing on Tuition Tax ... 5
May 310 1990
Mr. Hrookhart, NU Student, spoke against the tax, stated 100 residents
of his dorm all opposed tax, urged city -university cooperation, stated
students provide much to city as volunteers, noted that endowment
provides financial aid to students.
David Ellis, Evanston Fireman, spoke in favor of the tax, suggested
consideration of tax as a fair -share fee, suggested residents should
not have to pay for those who receive tax-free services.
Sandra Volentine, Evanston Resident, spoke in favor of the tax, stated
that 10% of 1989 earnings paid to real estate taxes, without reduction
in property taxes city will lose low and moderate income residents,
enjoys NU offerings to public, prefers assurance of adequate fire
services.
Robert Eisner, Professor, NU, Evanston Resident 31 years. urged
Council consideration of Evanston scenario without presence of
university and stated that would result in much higher taxes and lower
services, tax will send message that city does not favor university
community which will result in negative impact an City.
Margarita Matles, Evanston resident, spoke against the tax, stated
that it is unfair that parents who would pay tax cannot attend this
hearing to protest this tax, suggested students boycott Evanston shops
if tax imposed, stated city casts can be cut by directing attention to
city employee benefits.
Gerald Murphy, Executive Director,
the tax, stated active members of
consideration of state legislation
businesses moving from city.
Chamber of Commerce, spoke against
Chamber oppose the tax, suggested
to relieve tax base, noted some
Mark Ertel, Evanston resident for 21 years, spoke against the tax,
noted he spoke against tuition tax proposal at City Council meeting 19
years ago, suggested tax is illegal because it affects a class of
people, is unequal because it does not tax faculty and others who
receive same city services, stated concern about possible future
taxation of churches, day care centers, suggested more taxes will only
increase expenses, not reduce property taxes.
John 9ergho44, NU Alumnus, President, Evanston Alumni Council, NU
Trustee, 22 year Evanston Resident, spoke against the tax, stated that
substantial body o= NU alumni appose tax, suggested it is
ill-conceived with air of hostility, stated embarrassment that Council
will spend this time on a manipulative tax to bait the university,
urged speedy removal of this item from the Council agenda.
****NOTE: Petitions containing signatures in opposition to the Tuition
Tax are available for examination in Room 4600. Evanston Civic Center.
7100 Ridoe Avenue.
Public Hearing on Tuition Tax ... 7
May 31, 1990
Adfournment
Ald. Collens asked Committee members to contact Staff if any more '
information or research is required on this matter. She suggested
that anyone interested check with the City Clerk's office prior to
June 11 to confirm that as the date for introduction of the proposed
tuition tax ordinance an the City Council agenda. She further noted
that according to Council rules, debate and discussion of the proposed
ordinance would then be scheduled for the Council meeting two weeks
after introduction.
There being no further public comment the hearing was adjourned at
approximately 9:15 P.M.
�wWLYi4' Staff
cc: Joel Asprooth, City Manager
DrALt - Not Angrgved
MINUTES
BUDGET POLICY COMMITTEE
Meeting of July 18, 1990
Members Present: Aldermen Brady, Collens and Juliar
Members Absent: Aldermen Drummer, Korshak and Nelson
Staff Present: Joal Asprooth, Bruce Zimmerman, Robert Shank, Vince Adamus,
Sally Roethle
Guests Present: Cynthia Scott, league of Women Voters; Gerald Murphy,
Evanston Chamber of Commerce
Presiding Official: Alderman Collens, Chairman
Summgry of Action: Alderman Collens called the meeting to order at 7:45 F.M.
Approval of Minutes: The minutes of the May 16, 1990 regular meeting and May
31, 1990 special meeting were approved as submitted.
UJ991-92 8udaet Po13cy Projections and PoI&X: At the Committee's request,
the City Manager reviewed his July 13, 1990 memo to the Committee on the
FY199I-92 projections. He noted these projections are submitted with conditions
six months prior to the fiscal year and are very much subject to change, The
City Manager stated that these projections represent staff's best efforts in
forecasting revenues and expenditures in FY1991-92. He noted that staff is
conservative in forecasting coming year expenditures. Regarding revenues, he
explained that the gap, as projected between revenues and expenditures, is
higher than in prior years due to two major one-time revenues in FY1990-91 which
included $375,000 transferred from the Parking Fund from the sale of 1800
Sherman and $900,000 in Income Tax Surcharge revenues. The projections do not
include Income Tax Surcharge revenues beyond June 30, 1991. He noted that the
City may not know until as late as June of 1991 whether or not the Income Tax
Surcharge will be extended. He suggested that the Food and Beverage or Sales
Tax revenues would be the only possibilities for increases in FY1991-92.
The City Manager recommended that consideration be given to expenditure
reductions, acknowledging that it is very difficult, but significant reductions
that can be held in January and February of 1991 are now necessary.
Regarding the budget policy, the City Manager suggested no changes in the
current budget policy but noted Alderman Morton's reference to the Committee
which suggested no property tax increases. He stated that if that reference
were to be followed, projected revenues would be $721,000 less than currently
projected. He noted that some major revenue categories appear to be performing
poorly at this point, including sales taxes, real estate transfer taxes and
utility taxes. In response to Alderman Brady, the City Manager suggested ways
in which to address the apparent revenue shortfall, including curtailing
spending by mid -year in areas such as overtime and capital equipment purchases
unless absolutely urgent. He also noted the effectiveness of freezing vacant
positions as a means to reduce expenditures and that the Police and Fire
Departments, having the greatest turnover, would be the areas most affected. He
v
MINUTES OF THE BUDGET POLICY COMMITTEE
Meeting of July 18, 1990............ Page Two
stated that in a labor intensive organization employee hires are the most
effective means to control expenditures.
In response to Alderman Collens' question on the 9.2% increase in FY1990-91
expenditures over FY1989-90, the City Manager noted the addition of 5.5 Parking
Enforcement Officers, the creation of a new Drug Awareness Reduction Education
program, first time budgeting of grants (including the State Per Capita Grant to
the Library, the Fair Housing Grants and the Township' Grant to Emergency
Assistance) and IMRF increases. Regarding projections for FY1991-92, he noted
that $1.5 million could be added to projected revenues if the Income Tax
Surcharge were added to the revenue projections for the full fiscal year or
beyond June of 1991.
Alderman Brady suggested that the State Legislature may vote to extend the
Income Tax Surcharge, but it is more likely to include certain new conditions,
including reducing property tax levies, and 50% or less of current rates.
Alderman Juliar agreed with Alderman Brady regarding Income Tax Surcharge
revenues. The City Manager stated that a two year hiatus on pension bills in
the legislature is coming to an end and suggested that legislative action may
have a sizable impact on the City.
Alderman Brady moved that the City Council maintain the current budget policy as
recommended by the City Manager. In discussion, Alderman Collens noted that
approval of the current policy would mean rejection of Alderman Morton's
recommendation. Alderman Juliar said he did not believe the policy was
incompatible with Alderman Morton's reference regarding holding property taxes
at the current level because the policy sets a ceiling on tax increases - it
does not require that they be raised at all. Alderman Brady stated that her
rationale for supporting the Manager's recommendation to maintain the current
policy is an effort to address serious financial difficulties using a limited
increment of the present budget policy limitations. The Committee voted 3-O.in
favor of Alderman Brady's motion.
met Process: The Committee then discussed the City Manager's memorandum
on a recommended budget process and setting budget priorities. Alderman Brady
stated her support of a process like this and recommended that the Council use —_
it in lieu of anything better. She suggested a refinement of the proposed -
process to include the following six components:
(1) That three City Council committees be created to include six Aldermen
for the purposes of considering and deciding on priorities to ensure
diversity and dialog.
(2) That selection of members for three committees be determined by a
lottery system, but that measures be taken to avoid having two Alderman
from the same ward on the same committee.
(3) That the senior Alderman in each group be chairman.
(4) That the essential programs, as determined by the City Manager and
staff, be reviewed by the Council and concurred with or changed prior to
the start of the process. All the program elements within the City -
government are to be considered and those prioritized as less than
essential priority programs will be the topic -for consideration on the
budget process.
MINUTES OF THE BUDGET POLICY COMMITTED:
Meeting of July 18, 1990............ Page Three
(5) That a lottery system also be used to distribute the non -essential
elements for review to each of the three committees.
(6) That the three committees report back to the Council as a whole for
final discussion and decision on the priority setting process.
In discussion, Alderman Juliar agreed with Alderman Brady's proposal on
process and suggested that the Council should have done this years ago. He
stated interest in creating interest groups for selection committees.
Alderman Collens objected, stating that there could be a serious lack of
objectivity with committee membership determined by interests. The City
Manager advised the Committee of Alderman.Lanyon's suggestions for the
process which were as follows:
(1) That staff should sort out; prior to the process, a prioritized listing
of elements from critical on down;
(2) That present standing committees be used for the decision making
process; and .
(3) That the process include quantification of the impact of certain cuts on
other departments or agencies.
In commenting on these three suggestions, the City Manager noted that
quantification of impact would be difficult to do on a wide spread basis,
but that staff would try in some reduced manner. Alderman Collens remarked
that using the three standing committees would quickly become a problem due
to the uneven workloads. Alderman Brady concurred and stated that a fresh
approach by people who are not vested in certain interest areas would be the
only way to ensure an objective discussion.
Alderman Brady suggested that the process include three specific dates:
(1) A Council meeting to discuss the process and agree to the guidelines;
(2) A time for the three committees to review, discuss and decide on
priorities for the program elements.assigned to each;
(3) A third date for committees to meet together, as a Committee of the
Whole, to review the Committee recommendations and to reach agreement on
priority setting for all elements.
After considerable discussion, the City Manager noted that there was no
perfect plan or solution to establish and carry out a process such as this. -
He suggested that staff could, to some extent, identify or assess impact
issues on the priorities for various program elements. He noted that he has
worked through this process with the department heads and that he would
provide the Committee a final report on the results of that process.
Alderman Brady suggested that the Council use these and leave room for
changes or additions to the staff recommendations. The City Manager
suggested that the Committee schedule a time for the Budget Policy Committee
to first examine the results of the staff budget priority setting process
prior to the first meeting of the Council in this process.
In conclusion, the Committee agreed to recommend to City Council the
following process and calendar for the budget process to set priorities:
MINUTES OF THE BUDGET POLICY COMMITTEE
Meeting of July I8, 1990............ Page Four
(1) August 15, 1990 - The regular Budget Policy Committee meeting will
include review and discussion of the staff recommendations on priority
setting for program elements;
(2) Monday, August 27, 1990 - The Committee will request of the Mayor in
advance of this meeting that on this regularly scheduled Council meeting
night an hour be set aside for Council discussion of identification of
essential and non -essential program elements; •
(3) Wednesday, September 12, 1990 - The regular Budget Policy Committee
meeting will include on its agenda an opportunity for public comment on
the priorities established by City Council regarding essential and
non -essential program elements;
(4) Monday, October 1, 1990 at 7:30 P.M. - The three designated committees
meet to discuss the program elements assigned to each. Staff will be
available to meet with the committees, as necessary, to answer any
questions that may come up;
(5) Saturday, October 6, 1990 - The Council meets as a whole to review in
final form the recommendations of the three Committees and to reach
final agreement on priority setting.
Kfournment: The Committee adjourned the meeting at approximately 9:15
P.M. The next regularly scheduled meeting of the Budget Policy Committee
will be on -Wednesday, August 15, 1990 at 7:45 P.M. The -•regularly scheduled
meeting for September 19, 1990 was cancelled. The Committee will meet in
September on September 12, 1990.
Respectfully submitted,
Sally ethle u
Assistant to the City Manager
cc: Joel Asprooth, City Manager
Draft - Not Aooroved
Minutes
Budget Policy Committee
August 15, 1990
Members Present: Ald. Brady, Aid. Collens. Aid. Juliar
Aid. Present: Ald. Esch. Ald. Wollin
Members Absent: Ald. Drummer. Aid. Karshak. Aid. Nelson
staff: Joel Asorooth. Robert Shank, Vince Adamus, Sally Roethle
Guests: Nancy Sims, League of Women Voters
Al Girardi, Medill School of Journalism and News Voice
Presiding
❑fficial: Ald. Collens, Chair
Summary of Action:
Aid. Collens called the -meeting to order at 7:45 P.M.
Approval of Minutes
Minutes of the July 18, 1990 meeting were approved as submitted.
FY1990-91 First Quarter Financial Statement
Aid. Collens noted that City Council referred the quarterly report to the
Budget Policy Committee for review at her request. The City.Manager
acknowleged the Committee's request to have future quarterly reports
forwarded to the Committee first but reminded the Committee of its prior
decision two years ago to send these reports directly to Council.
In response to questions regarding pension funds status Mr. Shank stated
that Police Pension Fund administrative expense was spent almost entirely
on legal expenses. Ald. Collens and Brady noted that fund reserves are
diminished if budgeted funds are overspent. Fire Pension Fund expenses
+or purchase of a duplicating machine were also explained. It was noted
that Parking Fund revenues are ahead. Aid. Collens asked that Staff
report this to the Administration and Public Works Parking Subcommittee.
She noted comparision of parking garage revenues ahead of scheduled
versus a community perception. voiced in discussions about residential
lake;ront area parking, that the garage is underutilized.
Regarding an estimated s71.000 increase in state income tax surcharge
funds the City Manager explained that these will bL'allocated to the
General Fund where the greatest need exists. He noted that more than
s950.000 had been budgeted for the new library fund. Aid. Collens
requested a report on use of the State Income Tax Surcharge Revenues.
Budget Policy Committee
August 15, 1990...2
Budget Priaritv Spttinq
Ald. Callens stated that the Committee agenda for budget priority setting
requires a review and discussion of Staff's recommended priority program
elements and agreement on a recommendation to be submitted to City
Council for its con"ideration and approval at the August 27, 1990
meeting, the City Manager introduced his 8/13/90 memo to the Committee
which lists all Genural Fund program elements, designates certain
elements as category A (essential), provides as grouping of elements and
a narrative explanation on the basis for category A prioritization. He
explained category A as a listing of critical programs without which the
city cannot operate. In response to Ald. Brady the Manager stated that
these are categorized according to the nature of the service and that
decisions were not expense driven.
The City Manager stated that staff has gone as far as possible making
line item cuts, that further budget reductions require program cuts.
Regarding programs which were not categorized as "A" the Manager stated
that in some cases there may be risk involved but that change has to be
tried.
Ald. Brady suggested the Committee present its report to Council
requesting their consideration in terms of changes to category "A" and
note that program elements in that category would be exempt from the
small group process discussions.
Responding to a discussion of difficult issues which could arise
regarding the process the City Manager emphasized the importance of
agreement an a solid listing of most essential services to direct debate
on specific program elements. He suggested prior questions to consider
might be in regard to what the City noes and whether we have to do it
all. He stated that agreement on a listing of "A" programs allows and
creates a list of debatable services. The Manager stated his agreement
on the difficulty of the process due in large part to community
diversity.
The City Manager responded to Ald. Collens suggestion that some
discussion time be used to focus an program elements such as the Legal
Department and whether additional attorneys should be hired versus
contracting out services. He warned against expecting the budget
prioritization process to provide management study type results and
suggested that as another agenda item which. if necessary, would have to
tie taken up at a later time. the Manager stated that a broad based
organizational study, done correctly, is an expense that could not be
completed in time for this budget preparation. He noted specific
departmental studies done in the past inr-luded Pali-ce, Housing and
Property Services, Recreation, Sanitation. He also explained the
multi -year organization study approach used at Northwestern University
which defines groups of departments and a peer group of staff, faculty
and comparable academic representatives from other institutions who
conduct full scale studies to look at demand, operations and personnel.
.'
Budget Policy Committee
August 15. 1990...3
Using this model the University has phased out programs and found
programs operating under too few resources. Aid. Brady stated the
United Way of Chicago is using the same process.
Aid. Brady asked that Staff enlarge the City Manager's Report to
provide the total cost of each program element, rev&nue generated by
each program element and the total number of employees allocated to
each program element. In response to her suggestion that Staff
identify incremental reduction or contractual service possibilities,
Aid. Collens objected that adding another component at this stagy
would complicate the process. Aid. Wollin suggested that some
possibilities exist for variations on program operations. Aid.
Collens stated that separating programs out of category "A" will
allow closer scrutiny. Discussion continued on problems associated
with narrowly defining categories and a process to identify change
options for certain program operations.
The City Mananger explained that his report used category "A" to
identify programs critical to government operations regardless of
cost. He suggested many possible time consuming debates on issues
surrounding the budget reduction process including merits of
specific programs compared to others and the problem of trying to be
all for all which the city cannot continue to do. Also noted were
interests and time needs of Boards and Commissions. In summary he
stated that no system is perfect but whatever is decided must work
for the Council.
Ald. Juliar stated that the Council needs to look at'the Community
Development Block Grant Committee funding recommendations. The City
Manager responded that the Council puts large stock into these. It
was noted that in most communities CD funding is now used to address
unmet community needs.
The Committee reviewed and discussed the Manager's recommended
category "A" program elements. In response to questions on specific
programs the Manager responded that duplicating, mail and telephone
service will be examined incrementally due to changing technologies;
that omitting the Neighborhood Foot Patrol allows debate, highlights
costs of higher taxes and provides an opportunity to identify the
orogram value; that establishing a VicelNarcutics element was a
+unction of community and Council push; tnat civilian positions have
been created in the Police but not the Fire department; that fire
personnel are rotated through various programs; that the
interdependence of parks special facility maintenance and recreation
programs require mutual consideration; that the private elm tree
program totally pays for itself and would not be ddne by another
agency; that street sweeping operations are done twice per month.
Budget Policy Committee
August 15, 1990...4
The Committee recommended and agreed to remove the Commission on
F1OO9 frAm POP 1W.' i �-ip: in A Apw44+ nQ oo �mprgpn4y AAgj4tance
program it was agreed that if not provided by the City, the Township
could do so. It was agreed that the General Contingency element be
removed from the listing. Regarding Purchased Services the
Committee agreed that a separate listing be created to rank these
and to include the Youth Advocacy and Emergrencv Assistance Services
programs to same.
The Committee agreed to recommend
listing of category "A" programs.
the Committee's Public Hearing on
comment by Boards, Committees and
and organizations.
Council approval of the amended
Staff was requested to publicize
Wednesday September 12 to invite
Commissions and community groups.
AQenda for 9/12/90 Public Hearina
The Committee agreed to allocate time at the September meeting to
assign three committees for the October 1 small group discussions on
programs elements in the "B" and "C" categories.
Aid. Brady suggested that a public hearing also be scheduled for the
Committee's October 17 regular meeting date to allow final comment
on Council final prioritizations.
Adfournment
The Committee adjourned at approximately 10:15 p.m.
Q-�
Staff
cc: Joel Asprooth, City Manager
y
Draft - Not Approved
MINUTES
BUDGET POLICY COMMITTEE
Public Hearing
Meeting of September 12, 1990
Members Present: Aldermen Collens, Drummer, Juliar, Korshak and Nelson
Members Absent: Alderman Brady
Aldermen Present: Aldermen Esch, Feldman, Rudy and Wold
Staff Present: Joel Asprooth, Robert Shank, Bruce Zimmerman, Judith Witt, Judith
Aiello, Vince Adamus, Joe Zendeli, Richard Grodsky, Sally Roethle
Guests Present: Attendance Sheet Attached
Presiding Official: Alderman Collens, Chairman
Summary of Action:
Alderman Collens called the meeting to order at 8:00 P.M.
Approval of Minutes: The minutes of the August 15, 1990 meeting were approved as
submitted.
Public Hearinq on Budget Proqram Element Priorities for FY1991-92: Alderman
Collens explained the City Council's planning process for the FY1991-92 Budget. To
determine possible expenditure reductions, the City Council considered all program
elements in the General Fund and agreed on a listing of program elements considered
essential. This public hearing was scheduled to accept public comment on all other
program elements categorized as non -essential. A priority ranking of these elements
for possible program reduction will be done at a later time.
Alderman Collens asked that those wishing to speak limit comments to the listing
under consideration and noted that a public hearing an October 17, 1990 will provide
the public an opportunity to comment on the results of the City Council's meetings
on October 1 and October 15. Those meetings are expected to provide results of
Council's ranking of the non -essential program listings. The following is a summary
of speaker comments at the public hearing.
Bruce Theibold stated objection to the tuition tax as an attempt to raise revenue;
stated objection to the proposed sale of air rights for Church/Chicago to balance
the City Budget; stated objection to annual City funding of the Human Relations
Commission; stated that prosecution of fair housing violations and human rights
concerns are duplicates of State and Federal government efforts; stated objection to
the City funding attorneys to act as Public Defenders; stated objection to
expenditures for criminal defense; stated objection to $18 in taxes going toward
General Assistance and the relatively high assistance payments provided by Evanston.
Township; in conclusion, stated the City Council attempts to protect everyone and
can no longer afford those politics or expenditures.
MIffUTES OF THE BUDGET POLICY COMMITTEE
Meeting of Soptember 12, 1990............ Page Two
Alderman Juliar responded to Mr. Theibold's comments, asking that he acknowledge
that he had been charged and fined as a result of violations of fair housing
regulations unforced by the Human Relations Commission. Mr. Theibold responded that
was the case?, and it has been settled.
Paul Gallow;i_y, Evanston !'reservation Commission, commended the Council and wished
it success of) this process, He noted the work of the Commission is a contribution
to the City which is only possible with an administrative component. This cannot be
provided by volunteers. He noted that other housing or planning professionals
Cannot provide this function due to lack of expertise and time. The Preservation
Commission', $46,000 annual budget affords adequate resources to provide a good
program in tfp City of Evanston. Program highlights were noted, including securing
a grant for i.he rehabilitation of the South Boulevard Railroad Station, increasing
the tax base through increased market value of restored properties, promoting
development of vacant property and providing technical assistance in redevelopment
of City properties, working with private organizations and assisting residents and
institutions in the city. Over 200 residents were assisted in the past year. fie
noted that the State organization does not have resources to provide these services
and that the coordinator's position is integral to the work of the Preservation
Commission. If that position is cut and the program eliminated, the Commission
efforts will be decimated. He asked that the Council consider whether this is the
right time to eliminate the Preservation Commission while the North Shore is under
increased development pressure, when landmarks are reaching their golden age and
when there is growing community pride in appearance review. In conclusion, he
stated the Commission's interest in working with Council in any way in which they
can be of assistance in the budget prioritization process.
Alderman Belson asked that the Commission provide a report to the Council regarding
their consideration and recorunendations for a new staffing approach in which other
North Shore communities might share in the expense to provide preservation support.
John Coin, Preservation League of Evanston, asked that those in attendance in
support of preservation please stand (approximately 20 individuals were present) and
stated that the character of the community, the business community and the
architecture of the community benefit from preservation. He stated that the
Preservation Commission and coordinator are a vital link to this preservation
effort, which is 1/10 of le of the City Budget. -
Barry Isaacson, Chairman of the Commission on Aging, stated that on behalf of the
Commission he appreciates the Council's budget work and noted that the Commission on
Aging provides services to meet the needs of the elderly, 17% of Evanston's
population. The Commission's comprehensive work is directed to those most in need. -
Advocacy and ombudsman services for long term care residents are most important to
providing advocacy for those who cannot do so for themselves. He noted 95 -_
volunteers visit these facilities once a week and compared that to one visit per �_
year by the State. He noted a 512,000 Federal grant for the ombudsman program which
requires matching City funds. He also noted the community resource guide provided
by the Commission and over one hundred calls handled each month. He stated that
with 2.5 positions and over 100 volunteers the Commission is highly efficient in
serving the elderly and their families in Evanston. A transcript of the complete
text of these statements is attached.
MINUTES OF THE BUDGET POLICY COMMITTEE
Meeting of September 12, 1990............ Page Three
Gwen Osborn, Arts Council and a 16 year Evanston resident/writer/musician, stated
that the Arts Council programs and services are essential to the City, particularly
to the underserved. She noted two primary goals - economic development of the arts
industry, with over 150 non-profit organizations, and promotion of arts for the
underprivileged. Ms. Osborn described the advances in the past years regarding
increased diversity of persons who are now performing in and being served by the
arts in Evanston. She noted that affirmative action goals, established in 1983 and
1984, are wide ranging, giving high profile to highly effective activities designed
to ensure racial diversity in programming participation and staffing. Despite
success, more needs to be done and the help of City Council is solicited. She noted
that all funded arts organization: reflect the City's diversity. A complete
transcript of Ms. Osborn's remarks is attached.
Richard Stillerman stated the importance of looking at City departments, salaries,
benefits, administrative costs and reserve funds. He stated agreement with program
priorities listed as "A" but suggested that additional cuts be made within that
listing. He stated that victim/witness and vice/narcotics elements in the Police
Department should be included in the "A" listing because these address foremost
societal issues and help those with the fewest resources in the city. He stated
that the employee safety element should be an "A" priority due to federal
regulations and the increasing importance of safety. Mr. Stillerman questioned
whether or not the City of Evanston has too many employees and referred to a report
provided by the Chamber of Commerce indicating that City staff salaries were
comparatively higher than other municipalities. He stated that the City needs to
economize and suggested freezing positions. He suggested that benefits to employee
costs are very high and that the City must be concerned about the burden this
creates for taxpayers. He stated that the City has S14,000,000 in undesignated
funds which should be used to abate taxes to citizens. In conclusion, he stated
that the frame of mind in approaching this budget process is most important, that if
the Council is committed to cuts it will serve residents and that increased
efficiency is very important.
Alderman Nielson asked that Mr. Stillerman provide specific information on his
statement regarding S14,000,000 in undesignated funds. Mr. Stillerman stated that
in the most recent financial report an S18 to SI9 million undesignated, unreserved
fund amount is listed. Alderman Collens stated that City staff will provide a
written response.
Jim Matykiewicz stated that the City needs to cut costs for any activity for which
any other government entity will pay. Fie stated that the City duplicates many
County services and that many City of Evanston programs do not have 100% Evanston
clientele. He suggested these be eliminated. He also stated that there is S200,000
in excess in the Township budget.
Alderman Drummer responded that the $200,000 noted in the Township budget is
required to meet cash flow problems. He noted that S300,000 of the Township money
was allocated to the Families in Transition program and that the most recent
Township budget included a S500,000 abatement to taxpayers.
Alderman Wold responded that the use of County services is of interest and asked
that Mr. Manikevitz provide a listing of suggested programs and services in this
regard.
MINUTES OF THE BUDGET POLICY COMMITTEE
Meeting of September 12, 1990............ Page Four
Linda Buch stated that the City needs revolutionary thinking and made reference to
the City'-: budget policy to eliminate expenditures, She noted that the list under
consideration at this time includes 106 General Fund program elements ranked as "A"
and 73 Gan{oral Fund programs ranked as non -essential. She suggested that a better
framework and change in attitude is needed and suggested a revision in budget policy
to allow no tax increases. She stated that in using a policy cap it is most likely
that the tiudget will be increased up to that limit. She suggested that the Council
look at City government 15 years ago, when attitudes were different and commented
that most municipalities have fewer employees than Evanston. She suggested that new
policies are needed on what good government should do and that the City needs to
change it welfare mentality. She stated that social services are needed for
emergenclos, but that the City of Evanston does not have to be the social conscience
for the North Shore. She stated that the Families in Transition program does not
belong in the City Budget and objects to the concept which provides, among other
things, rental subsidies to seminarians. She suggested a cost/benefit analysis and
that when groups ask for funds the successes and failures of programs be measured.
In conclusion, she suggested that the Council create a cost cutting task force and
noted that the City has 44 regular committees. She stated that new ordinances
should always include a dollar figure for the costs associated and suggested that
the Council needs to continually focus on cost cutting to balance its budget.
Alderman Juliar responded that he would personally be very pleased to discuss and
review the City budget with anyone or any groups who so request.
Bernie Schmidt commented on the Council's budgeting process, suggested that goals
are needed and that the Council should determine an amount to be cut from the budget
beyond the $2.5 million projected shortfall. He suggested that a S4 million cut be
considered and that the difference be returned to taxpayers. He stated that
residents will continue to attend public meetings and follow City action on budget
matters. He urged the Council to set a tangible goal for the budgeting process.
Ed Moran, President of the Recreation Board, stated the Bo;:rd's understanding of
the City budgetary problems and its interest in working with the Council. The
Recreation Board feels it has a great deal to offer and is very much in touch with
residents. He stated that leisure services are critical to the quality of life in
Evanston and should not be surrendered. He stated that a tentative Recreation
budget will be the subject of a public hearing on September 18, 1990 and he expects
that reductions will be made with an eye toward working to address the Council's
efforts. In conclusion, he stated that the Recreation Board will provide any
information needed by the Council in this process.
Alderman Drummer commented that the Recreation programs in the City of Evanston
generate up to 60% of the total Department budget, a little known fact in the
community.
Stephanie Quan, Co -Chairman of the Southeast Evanston Neighbors, stated strong
support for maintaining the South Branch Library, a cultural oasis on Chicago Avenue
which is much needed and valued. She noted that it has been there for 70 years and
is essential to the quality of life in the neighborhood. She stated that on behalf
of SEEN that it advocates the South Branch retention with no loss in services or
hours.
C
Y
MINUTES OF THE BUDGET POLICY COMMITTEE
140eting of September 12, 1990............ Page five
Gerald Murphy stated that 25% to 35% of city governments have self insured group
coverage and encouraged Council consideration of the same for Evanston.
George Cyrus, Chairman of the Chamber of Commerce Budget Review Committee, urged
that the City Council search for efficiencies and ways to economize. He noted that
a real estate taxation committee report will be forthcoming with suggestions for
budgetary controls, reductions and efficiencies in City government. He asked that
the Budget Policy Committee and Council consider possible areas of savings,
Including savings in the reductions in the Health Department legal fees, creation of
a Legal Review Committee to guide the City in its litigation, consideration
regarding the City's benefit programs, suggested more self insurance and
consideration of privatization.
Alderman Feldman stated that he had hoped to hear people suggest changes to the "A"
listing and statements regarding specific programs that can be reduced and at what
amount. He noted that the public hearing has so far indicated advocacy interests
and interests in attitude but that much more is needed regarding specific budgetary
reduction information. He stated that the City Council gets double messages from
residents and community groups: to save programs and spend the necessary dollars to
do so and to cut. He urged that specific suggestions and information be presented
for consideration.
Conclusion of Public Hearing
Alderman Collens thanked those present for attending and providing comments. She
stated that the next City Council budget prioritization meeting will be on Monday,
October 1, 1990 at 7:30 P.M. at which time the City Council will Work within three
committees to prioritize non -essential program elements and that on October 5, 1990
the Council will meet as a whole to make final recommendations in this regard. She
also noted that on October 17, 1990 the Budget Policy Committee will hold another
public hearing to accept comment on the final results of this process. She noted
that the Unified Budgeting Panel meetings start on September 13, 1990 to hear grant
requests for purchased services and that the Community Development Block Grant
Committee starts their hearings on October 9, 1990 and several Tuesdays thereafter.
Selection of Budget Priority Discussion Grouns
Alderman Collens explained that a random draw system would be used to select the six
members to review each of the three listings of program elements on Monday,
October 1, 1990. She noted that it had been previously agreed that each committee
would include two Alderman from each of the standing committees and that only one
Alderman from each ward would be represented on each group. The results of the
random selection were as follows:
Group
Alderman Brady
Alderman Feldman
Alderman Korshak
Alderman Paden
Alderman Rainey
Alderman Washington
MINUTES OF THE BUDGET POLICY COMMITTEE
Meeting of September 12, 1990............ Page Six
QrQua
Alderman Drummer
Alderman Esch
Alderman Morton
Alderman Rudy
Alderman Wold
Alderman Wallin
Group 2
Alderman Collens
Alderman Davis
Alderman Juliar
Alderman Lanyon
Alderman Nelson
Alderman Warshaw
It was noted that the senior ranking Alderman on each of the three selected
committees would chair that committee.
Grouoinq of Proqram Elements
The City Manager explained that as proposed the program elements categorized as
non -essential were grouped to provide a relatively equal number for each list and to
keep departments together in the same group. In response to Alderman Nelson's
question regarding a mechanism to address topics such as self insurance, employee
benefits and the level of some "A" listed program elements, Alderman Collens
responded that these topics can be brought up in the small group discussions but
that no separate process was otherwise established to do so.
The City Manager commented that the process provides for the broadest magnitude and
that incremental reductions can and will be proposed and can be discussed with
Council at the appropriate time. Regarding Alderman Wald's question on staffing,
the Manager stated that a department head will be present to represent program
elements within each group and that a staff person will be assigned, in addition, to
assist each group. Alderman Collens stated that a cover memo will be prepared to
explain the exercise and to focus groups to use the same priorities used to create
the "A" listing. In response to Alderman Wald's concerns regarding the Council's
role as devil's advocates and possible staff advocacy of a program, City Manager
Asprooth responded that staff will be present only as information resources to the
Aldermen to answer questions presented by the Aldermen. In response to Alderman
Feldman's question regarding advocating for program cuts or additions, City Manager
Asprooth responded that the purpose of the process was to get the Council to agree
on high, medium or low rating priorities of program functions and services. He
noted that that agenda, on its own, is a major undertaking. Alderman Collens added
that the public hearings scheduled for this evening and on October 17, 1990 were
scheduled in order to allow proponents of programs to make their statements to the
Council.
Alderman Feldman then asked about Committee consideration of a formal approach to
the suggested study of efficiencies and economies versus programmatic changes. He
stated that he felt there was as much merit to that study as to categorizing
programs and services. City Manager Asprooth responded that the Council adopted the
prioritization process several weeks ago and that an incremental expenditure
reduction study and reductions in program elements have been done every year up to
MINUTES OF THE BUDGET POLICY COMMITTEE
Meeting of September 12, 1990............ Page Seven
this point. He acknowledged the importance of suggestions from the Council, but
that in the past ten years, goals have not been reached looking at incremental cuts
and studies regarding efficiencies and economies. He stated that what Is now needed
is a look at what the City is doing, the range of services and how they can be
reduced to save money. The need at this time is to look at programs in terms of the
broad financial question which he believes is the prior question. Alderman Feldman
responded that he believes the prioritization process has merit and is well
organized. City Manager Asprooth added that the questions regarding number of
employees and cost of benefits are posed and will continue to be posed every year
and that these are functions, in fact, of the number of programs provided by the
City.
Alderman Lanyon asked about prioritization of program elements reviewed by the Human
Services Committee. Alderman Collens responded that the intention, as previously
approved by Council, was to send the priority ratings to the Community Development
Block Grant Committee and to the Unified Budgeting Panel and to bring these to the
meeting of the full Council on October 6, 1990. She stated it was important not to
interfere with the Unified Budgeting Panel but that the survey responses from
Council members will give the Unified Budgeting Panel the benefit of the Council's
thinking. Alderman Drummer moved that the City Council responses to the human
services priority group listings be tabulated and the results forwarded to the
Unified Budgeting Panel and to the Community Development Block Grant Committee as a
guide and notice of the Council's thinking on these prioritizations. Seconded by
Alderman Juliar. After considerable discussion, the motion passed unanimously.
Adiournment - The meeting adjourned at approximately 10:30 R.M. The next meeting of
the Budget Policy Committee will be on Wednesday, October 17, 1990 at 7:4 5 P.M.
This meeting will begin with a public hearing to accept input on the results of the
City Council budget prioritization process.
Sally Roethle
Assistant to the City Manager
cc: Joel Asprooth, City Manager
SIGN-I?J SHEET:
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STATEMENT TO THE EVANSTON CITY COUNCIL
BUDGET COMMITTEE
WEDNESDAY, SEP'TEMBER 12, 1990
Madame Chairman, Aldermen and fallow Evanston citizens, 2iy
name is Gwen Osborne, newly appointed to thn Arts Council and an
Evanston residont for 16 years. I are a writer and a musician.
T have been an arts cuj i ror and an tjEA arts administration fellow.
So, although I am .a neophyte on the Evanston Arts Council, my role
as an arts advocate is not new and T am acutely aware of the
importance of the arts in our community.
I am here tonight to make the case that in our city, the
programs and ser-rices of the Evanston Arts Council are essential,
with a significant and measurable impact on both the economic
vitality of the community and on the lives of Evanston residents
--particularly our underserved communities. We believe that the
continued vitality of our city's quality of life is dependent, in
part, on the diversity of our co=unity's cultures. It .is
essential that the City of Evanston continue its role in the
development of multicultural programming and opportunities for all
its citizens. _
The Arts Council has two primary goals: First the economic
development of the Evanston arts industry, its professional artists
and its more than 150 not -for -profit arts organizations. Send, the
dovelopment of program and opportunitieu in the arts for
Ev.anston's inderserved communities --including children, senior
citizens, the mentally and physically challenged and people of
color.
Within these two goals, it is on the "integration," if you
will, of t^.e agency's rrants Program and Affirmative Action Program
ttiat i would like to focus your attention.
As you ;snow, not -tor --profit arts and non -arts organizations
apply annually to the Arts council, for matching grants of up to
$2,000 in support of arts programming in Evanston. These grants
r-3re used to support artu programming that not only provide jobs to
Evanston ar! i5ts, but 5i.gnificant arts opportunities to the
underservPd constituencies which I have just identified in our
community.
As m7 son was growing up in Evanston ten years ago, if we
attended a cultural activity in this city, we could almost be
assured that the aidiences, the actors, the musicians, the
directors, choreographers, dancers, artists and any supporting
personnel ;multi be all white. There was little in the arts
activities available which represented his heritage or the cultural
diversity of the community in which he lived. During that same
period of tine I worked as an arts editor. I can assure you that
senior citzzens and persons with disabilities were virtually absent
as well.
Acccrding to research done by the Arts Council in 1983,
neither to e boards, staff nor volunteers of the vast majority of
Evanston's art_ organizations represented the city's rich cultural
and ethnic diversity. As a result of its 1933-84 Long Range
Planning Project, the agency's Arts and Affirmative Action Program
was established as an integral part of all of the Arts Counci.l's
programming.
For the last five vears, the Arts Council has maintained a
high -profile, effective Affix:native Action Prcgrann which mandates,
among other things, that arts organizations receiving grants make
significant and ongoing efforts toward reflecting the ethnic and
racial diversity of Evanston --on their boards, staff, volunteer;
and in the programming. Although the results have been
extraordinary, I ask the members of this committee and the City
Council to help us continue the work which remains to be done.
As a result to the Affirmative Action Program, when arts
organizations in Evanston plan performance schedules, new audience
dev::.lrpnent, solicit new board members, audition or select artists,
careful attention is paid to diversity. All arts organizations
currently receiving funding from the City of Evanston have
effective, annually updated affirmative action plans. They are all
different; they all reflect the unique needs and problems of each
organization. Each plan contains goals and strategies, a timetable
for achieving those goals and an underlying commiment to reaching
out to underserved constituencies.
-T ask you to consider these examples of our success:
Because of thn Arts Courcil's Affirmative Action Prcgran,
17orthlicsht Theatre has made a significant commitment to African -
American plays, the hiring of minority actors and the recruitment
of minority bard members.
Becallse of thn Arts Council's Affirmative Action Prcgran, the
Evanston Art Center now provide, more than half of its scholarships
to non -white students, has developed an annual ethnic festival
focusing on demonstrations and family workshops which explore
various cultures and has increased the participation of persons of
color an its board of directors.
Because of t1in Arts Council's Affirmative Action Program,
organizations such as light Opera Works, basically Bach and the
Evanston "symphony Orchestra have developed special programs for
senior citlzens in Evnnston and have made Significant commitments
to the recruitm-nt of board members from Evanston's African
American c-cminunity.
As i indicated, these are but a few examples of how the Arts
Council's Grants and Affirmative Action programs have worked in
concert to focus arts programming toward serving the broader needs
of our diverse population.
With funding from the Illinois Arts council, a staff position
was created four years ago to offer technical assistance to these
arts organizations, thereby enabling them to develop ttie efLective
outroach programs and affirmative action strategies, l have just
briefly touched upon. This same staff position is essential to the
coordination of the Arts Council's annual Ethnic Arts Festival--
Evanston's celebration of cultural diversity and :.he arts of more
than 30 ethnic groups.
in Evanston, a unique, diverse city, the role of the Arts
Council is clear. Through the Noyes Cultural Arts Center, we
provide lour cost space tc pretessional artists and arts
organizations. We mandate that. those artists and organizations
provide more than $30,000 annually in co:nnunity services to
underserved Evanston constituencies.
Through Arts & Recreation MaPazine, a basic marketing,
outreach and economic development tool, the Evanston arts industry
is showc7trin 1 ana promoted throughout the Chicago matropo.litan area.
Within the Evanston city limits, &'ts�& Recreation is the only
regular medium dedicated to bringing news and information on arts
events into the homes of all our citizens.
I know from personal experience that the arts are an essential
part of our l lves. Whether it is the humanization of a public
square with w,culpture, the essential truth one sees in a child's
eyes when he sees his heritage unfold through African dance or the
pride felt by 2 senior citizen completing the traditional folk art
embodied in a new quilt the arts are. essential.
It is, therefore, an appropriate role for local government to
ensure that all citizens aro given access to the rich cultural
tapestry that weaves through our community. It is incumbent upon
each one of us as citizens of this community and as builders of the
future to ensure that that rich cultural is both developed and
preserved for those who follow us. Thank you.
o
44
yPO .
` 1
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o
cir��•� �t4�.,'a� `���� O�1ca,I�o- Op a'co �, n 5ca� Ciao` ti: �r ,�.' Cr <aJ -'s'`
September 12, 1990
To: Budget Policy Committee, Evanston City Council
From: Board of Directors, Evanston Public Library
Re: Budget Priorities, Fiscal Year 1991/1992
The Evanston Public Library Board of Directors presents the following
statement for use in deliberations on budget priorities for the fiscal
year 1991/1992. We appreciate the enormity of the Committee's
responsibility as it establishes priorities for City services and programs
in the light of increased attention upon the local property tax.
We recognize the priorities that have been recommended by the Committee
for the Main Library services and resources. As advocates for community
library service, we must recommend that all current library programs be
classified as "A" priority services. Library Board policy supports the
importance of preserving the integrity of the Main Library. We also deem
the three extension programs as "A" priorities as they are used by many
residents who find convenience in their location and satisfaction in their
more intimate service.
We must share an additional concern we have as it relates to our branches
and bookmobile. As we embark upon the new building project, we anticipate
at least some disruption of service at the .`•iaia Library. We believe that
the continued availability of service from the branches will help to
alleviate any disruptions or inconveniences created by construction and
allow us to maintain service at as high a level as possible.
We will be pleased to provide the Committee with any information which it
desires.
4 .i
E A cS';r �., f 0 N
50
September 12, 1990
To; Alderman Marjorie Collens and Members of the Budget policy Committee
What is priority?
If one reads 'Webster's or peruses Budget priorities For The GeneraT
Fund, it is possible to overlook the South Branch Library.
To the residents of South Evanston, however, South Branch definitely
has prioity status.
As an integral part of our community, an important center of learning
and enrichment, and a eultural oasis on Chicago Avenue, South Branch
represents a facility which we need and value.
The South Branch Library has a Long history. Since it opened its
doors seventy three (73) years ago, it has continued to provide
excellent service,
Our expert and earing Librarians, the wonderful Children's Room,
the proximity to homes, schools and businesses, all make South Branch
an essential element in the quality of life we cherish.
Although you are only now beginning to wrestle with a budget year
fraught with difficulties, the membership of South East Evanston Neighbors
wishes to be on record as advocating the retention of South Branch,
with no loss of service or hours.
In these days of increased emphasis on education and the importance
of learning and reading from an early age, it is not conceivable to
contemplate a threat to this rital community institution. The South
Branch Library is a priority in the life of our neighborhood.
Respedtfully submitted!
Stephanie N. Quan, Co—chairman
220 Kedzie Street
Evanston, 11. 60202
708/864-9663
Daft - Not Aoat ov,ed
MINUTES
BUDGET POLICY COMMITTEE
Public Hearing
Meeting of October 17, 1990
Members Present: Aldermen Collens, Brady, Drummer and Nelson
Members Absent: Alderman Korshak and Juliar
Other Elected
Officials Present: Mayor Barr, Aldermen Rudy, Wollin, Davis Paden,
Feldman, Warshaw, Rainey and Wold
Staff Present: Vince Adamus, Charles Anderson, Joel Asprooth, C.
Louise Brown, Richard Grodsky, Linda Lutz, Catherine
Powers, Sally Roethle, Jane Volberding, Donald Wirth,
Judith Witt, Joseph Zendell, Bruce Zimmerman,
Guests Present: Attendance Sheet Attached
Presiding Official: Alderman Collens, Chairman
F
Summary of Action: -
Alderman Collens called the meeting to order at 7:45 P.M.
ADDroval of Minutes: The minutes of the September 12, 1990 public hearing
were corrected to show that Aldermen Wollin and Alderman Warshaw were
present for that meeting.
Alderman Collens noted that several communications were submitted to the
Committee regarding priorities in the budget setting process. These
included letters from the Ladd Arboretum Committee on the Ecology Center
budget, from Stephanie Quan for the Southeast Evanston Neighbors on behalf
of the South Branch Library, five letters in support of the Victim/Witness
Youth Outreach Program, and a letter from the Evanston Preservation
Commission to the Budget Policy Committee responding to a question regarding
program administration.
Alderman Collens then opened the meeting for public comment on the City
Council's budget prioritization process.
Sheila Davis, Ladd Arboretum Committee, spoke on behalf of the Ecology
Center and Interpretive Services program elements. She noted that the
Ecology Center accomplishes environmental education goals through programs
and services provided for the public at large and at the schools. These
include summer camps, workshops, and various forums. She stated that the
Ladd Arboretum Committee is aware of the budget shortfall that the City
faces and is submitting a budget for the Ecology Center Interpretive
Services at 4% below prior year expenditures. Ecology Center expenses
include personnel costs and responsibility for four buildings: the Ecology
MINUTES OF THE BUDGET POLICY COMMITTEE
Meeting of October 17, 1990............ Page Two
Center, two fog houses and the Carlson Greenhouse at the Lighthouse Park
District. She noted that 55% of all expenses are covered by revenues earned
for the Ecology Center, including contributions to the Evanston
Environmental Association, summer camp fees and community garden fees.
Barry Isaacson, Chairman of the Commission on Aging, thanked the Budget
Policy Committee for restoring the Commission on Aging to an "A" priority.
Speaking on behalf of the ombudsman program, he noted that the Commission's
enabling ordinance requires assistance to the elderly in nursing homes and
that a Federal subsidy to the City supports this program. He noted that one
paid staff and 95 volunteers go into nursing homes weekly as part of this
program. Without the ombudsman program, quality services to the elderly
would be diminished. He noted that 100 complaints were resolved in the last
year and that elderly residents need this program to give them a voice. He
also noted that the Commission on Aging supports the continuation of the
Senior Taxicab Program as a needed service for the elderly in Evanston.
Richard Stillerman commented on results of the City Council's prioritiza-
tion process, noting that few programs were not listed as "A" priority and
savings would be minimal. He suggested serious work is necessary regarding
the relative importance of programs and services. He suggested that the
Council prioritize all program elements and ask whether the Arts Council is
more important than the Preservation Commission, if tree planting is more
important than the James Park Ski Hill, if the Levy Center is more important
than sports centers. He suggested that fewer dollars be allocated to
programs in the lower priority scale.
Stillerman suggested that all program elements be reduced by 10y. to yield
the several million dollars needed, positions be frozen at retirement or
voluntary leave. For exempt positions, only allow the reinstatement of that
position if justified evidence is submitted to the City Manager and Budget
Policy Committee; consider salaries compared with other communities and
examine the number of employees in each program; have employees bear more of
the share of benefit costs in line with private industry; look at ways to
increase efficiency.
Stillerman asked whether three types of pickup by the Sanitation Department
and its services are required weekly. He suggested examining the necessity
of the current number of City owned vehicles. He also suggested considering
legal work in-house versus hiring outside legal firms at high fees and he
suggested consideration of duplicated -services that can be eliminated.
Regarding the City Manager's response explaining that undesignated funds in
the FY1989-90 Financial Report were designated reserved funds, Stillerman
suggested that the report include a footnote to better explain this point
and that it appears that some of these funds, including the $4.5 million in
General Fund undesignated funds, could be used for operating purposes and
for 1990 Real Estate Levy collected in 1990. He also suggested that $11.5
million in capital improvements, designated for the new Libra;•y, be
allocated now for required operations and that the City can borrow funding
later for Library construction.
In conclusion, Stillerman stated that he recognizes the difficulty the
Council faces and the many choices it must make, but suggested that it is
essential at this time to give taxpayers a break.
MINUTES OF THE BUDGET POLICY COMMITTEE
Meeting of October 17, 1990............ Page Three
Robert McKendriz stated that the City Council should put taxpayers as an
"A" priority.
Stephanie Quan, Southeast Evanston Neighbors, stated that she was pleased
that the City Council had designated the South Branch Library as an "A"
priority. She stated that the South Branch remains an important part of
life to residents of Evanston.and has been a part of that neighborhood for
75 years. She read a statement of support signed by hundreds of Southeast
Evanston residents and showed posters displayed at Lincoln School created by
its students in support of the South Branch Library. She further noted that
the two branch libraries will be important in the Library's transition to a
new main building and that the South Branch Library is an aesthetic oasis in
that area, the importance of which cannot be diminished.
Bea Danielson stated that if the payroll of the City of Evanston were cut
many programs could then be cut. She stated that she had examined published
records of the City's payroll and found that over S2,000,000 is spent for
payroll. She stated that her research shows that 36 department heads cost
the City $1,950,232, that the Council, Mayor and City Clerk get nominal
salaries, that there are 383 employees who earn S30,000 to $65,000 per year
and over 290 employees who earn $15,000 to $30,000 per year. She noted that
186 people were paid under $500 per year and stated that in her opinion
something is wrong with payouts of this type. She stated her support of
Police and Fire personnel but suggested careful examination be given to
personnel activities in other departments. Ms. Danielson stated her views
of unsatisfactory City removal of alley gravel. She stated that she had
complained to the City many times and suggested that some departments need a
good review to determine what priority they have. She also complained about
tree trimming, parkway repairs after streetlight installation and watermain
repairs.
Dick Hallak, Juvenile Probation Officer of Cook County Courts, stated his
support for the Victim/Witness Youth Outreach Program, that he has been
involved with this program in Evanston since its inception and feels it is
essential in the work that he does with youth in Evanston. He noted that he
currently carries a caseload of 45 Evanston juveniles which he believes
would be doubled without the work of the Victim/Witness Youth Outreach
program which serves to keep children out of trouble and the Court system.
Mr. Hallak then read a letter from Cynthia Hutchinson, an Evanston resident
who asked that he read it on her behalf, which stated that the Victim/Wit-
ness Youth Outreach program is important to the community and does excellent
and important work for citizens, that it has helped many children in all
situations, including scared and shy children, sexually abused children and =_
several children who would be lost without this program and whose lives have
been made better because of it.
Eugene Thomas, a school social worker in Evanston for 20 years, stated
that he has worked with the Victim/Witness Youth Outreach program for many
years and stated there are many important services provided by this program,
including intervention, which will save dollars in the long run. He
suggested that the Victim/Witness Youth Outreach program be supported
because it reaches youth who cannot be reached through any other means in
the community and offers services to those youth who cannot be served by 1.
more sophisticated agencies.
MINUTES OF THE BUDGET POLICY COMMITTEE
Meeting of October 17, 1990............ Page Four
Bruce Theobald, private citizen and member of real 'estate industry, stated
agreement with City Manager Joel Asprooth regarding his response to a $2.5
million budget deficit which included a priority setting process and the
current effort for zero based budget. He commented on an earlier statement
regarding the City's many desirable programs which produce measurable
results. Theobald stated that if all these programs continue to be
supported, the City of Evanston middle class will be taxed out of this
city. He suggested that the City Council concentrate on what is necessary
and suggested that the Human Relations budget be considered, that it costs
$150,000 a year and that in FY1989-90 was $350,000 beyond budget due to
legal fees. He noted that Oak Lawn recently voted down a fair housing
ordinance much like the City of Evanston's and urged any Alderman present to
speak to what the Human Relations Commission does that no State or Federal
agency can do. Mr. Theobald asked that the minutes reflect that no comment
was made.
He then stated that the Public Defender's Office receives $75,000 from the
City of Evanston and suggested that someone could burglarize your home and
be defended by someone funded by the City of Evanston. He suggested that
the Council stop addressing partisan politics, noted that the budget
prioritization process resulted in raising, not lowering program priorities;
suggested that the Council work to develop a balanced budget and to reduce
taxes or that he may run for City Council.
Linda Buch, resident, stated that she was pleased that the Council started
early on the budget process -this year because it allows time to start over.
She stated that as a citizen, taxpayer and management consultant, she was
concerned and had suggestions to make based on months of observation of
several City Council meetings: some committees are working to pass
ordinances which require tax dollars to enforce, including BOCA codes,
parking ordinances; it takes tax dollars to handle all of this, including
the work of 41 committees, none of which is dedicated to cutting spending.
She stated that no Alderman has asked, in review of any budget, whether the
programs are effective and suggested that only vague questions are being
asked. She stated that yardsticks are not available, that progress cannot
be known, that without measurable data and criteria the City will not know
the effectiveness of City programs. She stated that she had heard Aldermen
ask about costs to restore services in a proposed budget and heard questions
which prompted boards and commissions regarding needed appropriations. She
suggested that Aldermen have taken on more of a leadership role but sees
them lost in an exercise, losing perspective.
She then stated that 20 years ago the City of Evanston had 430 employees and
a stronger mayor form of government. She noted that, with a slightly lower
population, there are now 844 employees. She described this as a spending
binge which started about 20 years ago and grew with inflation. She noted
uncontrolled expenses including Debt Service, State mandated pensions and a
large City employment list. She thanked the City Manager for providing a
report on the number of employees and personnel costs compared to other
communities and noted that it points out differences in various services and
differences for purposes of comparison. She noted that the -City of Evanston
has many employees for programs that are often supported in other cities by
volunteers or charitable organizations. She suggested that the City Council =
MINUTES OF THE BUDGET POLICY COMMITTEE
Meeting of October 17, 1990............ Page Five
urge employees to get their skills up and begin to look for Jobs in private
industry. She suggested cutting down to 550 employees over a five year
period. She stated that many employees draw down huge salaries as a result
of longevity and that there are more senior than junior employees in the
City. She suggested taxes are not bearable and are going in the wrong
direction and urged Council action.
Cynthia Phillips, a resident of Evanston, stated support for the
Victim/Witness Youth Outreach program, and noted that she and her children
had been helped by the program for a year and a half. She questioned
whether or not it is possible to prioritize a child's life. She detailed
instances in which the Victim/Witness Youth Outreach personnel helped her
family and stated her appreciation for their caring approach and outreach
efforts when there was nowhere else to turn.
Judith Ramseyer, resident and social worker at St. Francis Hospital Child
and Adult Guidance Center, stated her support for the Victim/Witness Youth
Outreach program and noted that she has worked with many families which have
been helped by the program. She stated support for the staff and their good
work and that the Victim/Witness Youth Outreach program is unduplicated in
the City of Evanston in terms of outreach, prevention and networking. She
also noted helpful personal family experience provided by the Victim/Witness
Youth Outreach program, stated that the program is unique and urged that the
Council not let this program be lost in its efforts to reduce the budget.
Gerald Murphy, Chamber of Commerce, stated that the Chamber's Real Estate
Taxation Committee will meet on Tuesday, October 23, 1990 and on October
25, At that time a published report was to be made available regarding the
Chamber's statement on the taxes. He noted that in February, 1990 the
Chamber presented a report regarding costs of City services and number of
employees. He noted that the City Manager responded in a report that breaks
out programs in ten cost centers, including Sanitation, Forestry, Ecology,
Parking, Victim/Witness, Arts, Parking Control, Health and Human Services
and Planning. Compared to other communities, including Arlington Heights,
Elgin, Aurora, Schaumburg, Skokie, Oak Park, Evanston's number of employees
was significantly higher.
He suggested that the City's parking program be reexamined regarding
overtime versus meter violations and that reports from merchants indicate
that shopping has dropped on Saturdays due to meter enforcement and
enforcement of meter infractions which appear to be driving away shoppers.
Regarding wage scales and average number of employees which the Chamber
studied in a recent Cook County report, he suggested that labor costs in the
City of Evanston are very high and that possibilities exist for some
positions to be reclassified as temporary or scaled down. Murphy suggested
that a 10% cut in City spending would result in a 34% property tax
reduction. He then stated that the Chamber and individual businesses are
willing to offer their expertise to the City in its effort to reduce taxes
and urged the Council to take action so that the City does not become a tax
island versus a tax haven.
MINUTES OF THE BUDGET POLICY COMMITTEE
Meeting of October 17, I990............ Page Six
Norene Perrone, Psychologist at St. Francis Hospital, stated that she
works part-time as a consultant to the Victim/Witness staff. In the spring
of 1989 she spoke to a panel for the Commission on Accreditation for Law
Enforcement Agencies and was able to point to the excellent record of
service provided by the Victim/Witness staff which includes a total of 53
years of service in work with youth. She stated that dropping this program
would be a serious mistake.
Barbara Shultz, Cuok County Juvenile Court, stated that she has worked
with youth for 25 years in the north and northwest suburban area. She
stated that no other organization works with and follows through in this
work like the Victim/Witness Youth Outreach program and stated firm support
for the program and urged the Council to maintain it.
Joan Bentley, resident, spoke on behalf of the Victim/Witness Youth
Outreach program and suggested that cutting it would hurt youth. She
described her experiences as a -teenager when she was helped by the social
worker in the Victim/Witness Youth Outreach program, and as a result of that
person's assistance she was able to come through a very rough period in her
life. She urged the Council to maintain the program and suggested that cuts
in youth outreach would create many more problems in the community. She
stated that kids need someone to talk to and someone who can be there for
them and that keeping this program for youth in Evanston is vitally
important.
CONC(USION OF PUBLIC HEARING
Alderman Coilens thanked all who spoke and asked that those who provided
information which included various data to please provide copies for the
Council members.
The meeting adjourned at approximately I0:00 P.M.
Sally Rodhl e
Assistant to the City Manager
cc: Bruce Zimmerman, Acting City Manager
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