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HomeMy WebLinkAboutMINUTES-1990-02-05-1990E 1 1 �j CITY COUNCIL OF E V4 K ��-0 tip' k CO. February 5, 1990 A SPECIAL MEETING of the City Council was held on Monday evening, February 5, 1990, at 7:42 P.M. in accordance with the Mayor's call of January 8, 1990, for the purpose of taking public testimony on the proposed 1990-91 City Budget. ROLL CALL - PRESENT: A quorum being present. ABSENT: Alderman Rainey. Alderman Korshak Alderman Morton Alderman Washington Alderman Wold Alderman Nelson Alderman Wollin Alderman Collens TARDY: Aldermen Rudy and Brady. PRESIDING: Mayor Joan W. Barr. Alderman Lanyon Alderman Feldman Alderman Warshaw Alderman Juliar Alderman Paden Alderman Drummer Alderman Davis Alderman Esch Mayor Joan W. Barr introduced Stephen B. Engleman, Evanston Township Assessor. Mr. Engleman said he would like to try and clear up some misconceptions that have become apparent as his office has answered questions about the reassessment for approximately 1,200 people in the last two weeks. He said that people are concerned because they had seen substantial increases in their assessments. He explained that the substantial increases in assessed value were due dramatic increases in the value of property in Evanston since the last reassessment in 1984. He stressed that even though the assessed value had increased by 50%, 75% or 100%, it did not mean that taxes would go up at the same rate. He explained that there was no direct relation between assessed value and taxes, that taxes depended upon the total dollar amount requested by the various taxing bodies. If there had been no reassessment, taxes would have gone up this year in any case, because the taxing bodies are requesting more money. He explained that the increase the City was requesting would be reflected as an approximately 1% increase in a property owner's overall tax bill. He explained that the two school boards, which account for about 60% of the property tax dollar, are each asking for approximately a 12% increase in the amount of money they are requesting. The City and the two school districts will account for about a 7.5% increase in the overall tax bill. Cook County, which represents 8% of the tax dollar, is requesting a 30% increase in the amount of money it will be requesting. He pointed out that most of that increase would be visited on the newly reassessed areas of Cook County such as Evanston. He suggested that people take an active interest in the candidates currently running for Cook County positions and their positions on taxes. He stressed that he hoped people would come away from this meeting with the understanding that taxes are not going to go up the same percentage as the reassessments. He said that the last day to file a complaint about an assessment is February 21 and that his office was available to help. At this time Alderman Brady was present. Mayor Barr called the Public Hearing to order at 7:47 pm. �9� -2- February 5, 1990 Docket 1-lA-90: Proposed 1990-91 Budget - Consideration of the Proposed Budget for the City of Evanston for the fiscal year 1990-91. A copy of the City Manager's recommended Budget was distributed on December 29, 1989. Budget work sessions were held on January 13, 20, and 27, 1989 at 9:00 A.M., and a Public Hearing on the Budget was scheduled for February 5, 1990 at 7:30 P.M. CITIZEN COMMENT: James Kiefer, 2505 Orrington, a long-term Evanston resident, questioned why the City has as many employees as it does; said that the expenditure for new street lights was unnecessary and that most residents had not wanted them; spoke against using money for the Research Park; suggested that Northwestern University be charged for damage done to Central Street and Sheridan Road by their construction vehicles. Bea Danielson, 2419 Payne, said that she felt City government was unresponsive; suggested that we go back to a full-time Mayor system; suggested that one Alderman be elected per ward (to serve full time). Timothy Schoolmaster, 1454 Elmwood, President of the Police Pension Board, asked those people present who are supporting his position to stand (about a half dozen people stood); spoke about Police Pension Funding requirements; expressed concern about the City's commitment to fully funding the Police Pension Fund; asked the City to levy $2.91 million for the pension this year; said that pension benefits are mandated by the law and questioned certain budget choices made by the City this year; questioned whether there would be adequate funds available to meet the needs of retirees in the future. At this time Alderman Rudy was present. Ken Kutella, 1454 Elmwood, President of the Police Union, spoke about the Police Pension Fund; said the attitude toward the Pension Fund affected all City employees; said he didn't advocate raising taxes, but asked that various Funds be redirected to the Pension Fund; said that the City owed it to the employees. George Cyrus, 2929 Central, President of the Chamber Budget Review Committee, urged everyone to join together to think creatively to keep taxes down; urged Council to reduce the budget by 8.3%, which would reduce it somewhere by $1.1 to $1.5 million; suggested Council send a message to the community that "someone cares" by reducing taxes; urged Council to work to link the Surcharge to property tax reduction; also suggested that Council use the funds from the sale of 1800 Sherman for tax relief instead of for the Research Park or Library construction; suggested the other alternative of using miscellaneous operating revenue (MOR) to fund expenses. Mary Beth Jones, 2951 Central, a member of the Chamber Budget Review Committee, urged Council to lobby for tax relief before the State Legislature and the Cook County Board; urged that they particularly lobby for a change in the school aid formula. Gerry Murphy, 807 Davis, Executive Director of the Chamber of Commerce, said that in polling their members they discovered that the number one directive from the community was to do something about property taxes and state finance issues concerning schools; compared the numbers of City of Evanston employees with the median number employees in the eleven largest suburbs of Chicago; suggested that a large amount of money could be saved by reducing employees; offered to place the Chamber's copy of the Cook County Bureau of Administration Position Classification Study in the Aldermanic Library; said he wasn't promoting layoffs, but a phasing out of personnel as retirements and separations occur. 1 69Z -3- February 5, 1990 14 Alison Barkley, 2414 Hartzell, President of the Chamber of Commerce, said that the Chamber suggested that Evanston consider hiring a professional consulting firm to review the City's operations and staffing and to analyze efficiences, workforce and to make suggestions for spending reductions in the area of personnel; suggested the use of a firm from outside of Evanston to eliminate bias; suggested that a consultant be used to do a personnel study before one is hired to study municipal generation of electricity; said that the City had added many services at the request of its residents over the years, but that.tonight the residents were saying take a look and see what we can cut back; said that the business community is willing to contribute to such a management and workforce study; she offered the Chamber's help to identify those businesses that would be willing to help the City pay for a personnel study; suggested that keeping the workforce in line with the City's needs would help alleviate the City's need for future spending; said that the Chamber of Commerce would be happy to meet with representatives of the City staff and Council to discuss the proposal. Bruce Theobald, 2773 Bernard Place, talked about fair housing expenses incurred by the City offered to share the information with anyone interested; discussed the history of the City's Fair Housing Suit against -his real estate company; discussed problems in the Eire Department and with the Police Pension Fund; said all this takes him back to the history of the Roman Empire and Emperor Nero. Alderman Juliar said that, in addition to obtaining information about the City's legal expenses related to fair housing, they could also obtain the federal court charges lodged against Mr. Theobald from the City. Jim Matykiewicz, 602 Lake, Evanston Property Owner's Association, talked about the effect increased assessments has on rents; said that the vacancy rate in Evanston has increased gradually and that rent increases have been slowed; said Evanston was a less desirable place to live because of high taxes; said most of Council was not serious about property tax relief; discussed the $500,000 in Township Funds that were set aside for rental subsidies; said property owners were going to get tenants involved in protesting tax increases. Linda Buch, 1110 Hull Terrace, said that the Evanston City government sets the tone for the City and has a broader impact than its 25% share of the property tax reflects; questioned why there were arguments on budget line items; suggested that Council look creatively at other sources of revenue; said that we needed the Research Park to generate revenue; suggested that Council look to the future and deal with vision; discussed accountability. Liz Headley, 2146 Ewing, expressed concern about property taxes; asked the Aldermen to cut taxes; asked the Aldermen to talk to the community to find out what they want (addressing her comments particularly to Alderman Nelson); said that everyone needed to work -together to run the City on a more professional level; suggested that the City look at restructuring. Alderman Nelson raised a Point of Personal Privilege saying that this was the first time in his 13 years on the Council that more than five people had attended a Budget Hearing and that he was pleased they were here. He said he had worked to keep City expenses down during his 13 years on the Council, but until the current budget policy was in place (of which he was the author), the rate of tax increases in Evanston.was beyond the rate of inflation by 200%. For the last six years, when this audience was not present, the Council has been able to keep tax increases below the rate of inflation. He said he resented the implication that some of the Council members had been asleep and said that he appreciated the fact that the citizens had woken up. He appreciated the fact that they had come and urged them to come back again many times. He further urged everyone to vote in municipal elections, which traditionally have had some of the lowest turnouts of any elections. Ron Kysiak, Administrative head Research Park Inc. (RPI), said he had worked inside government for 15 years and understood the problems with allocation of scarce resources; urged Council to use the funds from the sale of 1800 Sherman as an investment in the future of the community; said that the infrastructure improvements in the Research Park area would create an environment which would encourage developers to reinvest in the community; said that if Council invested those funds, it would validate the investment already made in the Research Park and in the long run reduce the tax burden to the homeowner. Z9Z 4 -4- February 5, 1990 Dick Stilleeman, 2330 Park Place, urged that Council cut its bloated budget; questioned budget increases to the maximum allowable under budget guidelines; said there was no attempt to set spending priorities to keep the budget level or to decrease it; suggested that a continuation budget was a burden which many citizens and businesses could not afford; suggested that Aldermen become involved in the budget process as early as August; compared the number of City employees in Skokie and Evanston and compared Skokie's General Fund with Evanston's General Fund; compared Evanston's property tax levy and non -property tax levies and those of Skokies; discussed employee salaries and suggested his reading of the figures indicated that there were surprising salary increases; compared expenditures in the Evanston Personnel Department and Fire Department with Skokie's Personnel and Fire Department; discussed Library spending in both communities; questioned why there was an extra payday in the 1990-91 budget and urged the City to eliminate it and give the money back to the taxpayers in the form of a tax reduction; suggested that the City get its priorities straight, cut spending and lower taxes. James Hart, 11 Milburn Park, said a budget increase of 8.3% was over the inflation rate and over the income level of the average taxpayer; said that the public sector does not have a monopoly on doing good; suggested that the City has not done a very efficient job with welfare and education; suggested the Council make changes in the budget that shows faith in its citizens. Joel Platt, 2607 Colfax, said he is a General Counsel for a large corporation which struggled to reduce expenses, not increase them; suggested that the Council was not trying as hard as it could to reduce expenses; said he would be willing to put his substantial money behind someone who will run against an Alderman who voted to increase the budget. Frank R. Thienpoint, 2210 McDaniel, said he was a long-term resident of Evanston; said most of his points had already been covered, but questioned why there was so much fat in the City budget and asked why the City needed twice as many employees as other communities; urged people to tell their neighbors that the City had twice as many employees as other cities; questioned whether the City operated on a zero -based budget (the Mayor replied that it did and when further questioned said that a lot of inaccurate statements had been made this evening); explained the zero -based budget; urged people to call their neighbors to suggest a house cleaning on the City Council; discussed Fire stations; urged the City to flood Ackerman Park for a skating rink; urged Council to take a look at the budget and find out what was needed and what wasn't. Paula Kiefer, 2305 Orrington, said the room was divided into two groups, the City officials and the citizens and said that the City officials owed the citizens true representation of their interests and ought to do what the citizens say. Lawrence Peterson, 1 Calvin Circle, a resident of Evanston since 1932 discussed his community involvement and his history in the community; urged that the City use the $1.375 million the City received for the sale of 1800 Sherman to pay off the bonds for the Church/Chicago Garage. Chris Preston, speaking for Daniel Shapiro, protested the high taxes in Evanston and said that everyone will be forced to move out because of the taxes; urged everyone to call his or her Alderman. Harry Dershin, 2606 Hartzell, a resident of northwest Evanston, said he and his neighbors were not aware of how the property taxes were dispersed; said that the property tax formula was regressive; people are now aware of how the property tax system works and will make their voices known at the polls because the process has to be changed. Bernie Schmidt, 2765 Crawford, a builder in Evanston, said that everytime he goes to sell something he has built, people are appalled at the taxes; urged Council to cut the budget so taxes would be cut and if they didn't, they would hear about it at the polls. Alderman Collens said that she and Alderman Wollin would welcome calls from Ms. Preston and other constituents. She expressed dismay and puzzlement at the angry mood of the audience. She said she felt she could speak for all of her colleagues, who also would like to hear from people who wanted to share information and ideas. She said that this meeting was an opportunity for people to vent their anger, but felt it would be more constructive if citizens and elected officials could sit down and share ideas and not just insult each other. 1 1 199 # . -5- February 5, 1990 Mayor Barr declared the Public Hearing to be over at 9:45 pm. At this time, Council took an eight minute recess. When the Council reconvened, Alderman Nelson moved that Council recess into Closed Session to consider pending or probable litigation. Seconded by Alderman Collens. Roll Call. Voting aye - Korshak, Morton, Washington, Wold, Nelson, Wollin, Collens, Lanyon, Feldman, Warshaw, Rudy, Julian, Paden, Davis and Brady. Voting nay - none. (Aldermen Drummer and Esch were out of the room at this time.) Motion carried. (15-0) The Council so recessed at 9:53 pm and reconvened into open session at 11:05 pm. Mayor Barr announced that the next discussion on the budget would take place at the next regular Council on February 12. Alderman Korshak rose and said he wished to discuss the testimony the Council had received at the Public Hearing. He expressed deep concern about the limited understanding that his fellow citizens had about the assessment process and taxes. He said that even after Mr. Engleman's excellent presentation at the beginning of the meeting, it was not clear to them. However he said that he felt the Chamber of Commerce had misrepresentated the facts, and he suggested that the City prepare a reply to the Chamber. In response to a suggestion from Mayor Barr, he said he felt that the letter sent by City Manager Asprooth to Mr. Murphy (and placed on the Alderman's desks that evening) had been too restrained in light of the Chamber's presentation this evening. He urged that a letter be sent to the Chamber (and released to the public) which more fully explained the vehemence of the Council's objections. Discussion among Alderman Wold, Mayor Barr, Aldermen Feldman, Rudy, City Manager Asprooth, Aldermen Morton, Nelson, Juliar, Collens, Warshaw, Esch, Davis, Washington and Paden concerning the following: the Chamber should have had a better knowledge of the facts they used; the correct facts need to be made available to the community; we should explore the possibility of placing a Guest Essay in the Evanston Review; the factual information that the Chamber was disseminating was incorrect and the Council should make it clear to them and to the public what the correct information is; you can't blame the public for their feelings when they are reacting^inaccurate information; questioning whether any Aldermen had been called by citizens interested in information; comparing the number of Evanston personnel with a "median" is inappropriate; the Chamber should be made aware of the Council's displeasure; while most of the testimony represented the opinion of the Executive Vice President of the Chamber, the other Chamber members present did not disassociate themselves from that testimony; we should look carefully at Mr. Cyrus's testimony to see if we can act on any of his suggestions; the Chamber made an offer to help fund a management study; a management study has been suggested by Alderman Korshak several times in the last decade; such a study will cost a great deal and the results will be mixed --showing where we are short of staff, as well as where we might be long on staff; Evanston Inventure has made a similar offer (to help fund such a study); there were also errors in fact in statements made by those who were not Chamber members; flyers prepared by the Chamber were reproduced and distributed by citizens at train stations; let's not develop a "bunker mentality"; we have to act as statesmen as a group and not get too emotional; we have been attacked by many different groups from left, right and center, so lets don't make this a crusade; reporting that a group called Evanstonians for Property Tax Reform was recruiting citizens to attend an orientation meeting at the Chamber at 6:00 pm this evening; questioning whether anyone knew anything about that group; calling the Council's attention to the package of information that the Chamber had distributed which erroneously reported the increase to the property tax levy that will be needed this year; suggesting that the entire Chamber Budget Committee did not know about the testimony planned for this evening; reported receiving a telephone call recruiting her to come testify before the Council this evening, not knowing that she is an Alderman; suggesting that this be taken up at the City/Chamber Liaison Committee meeting; suggesting that the Guest Essay in the Review respond only with the facts; comparison with Oak Park should be included in the response; when we are responding with the facts, will we also recognize that we are getting a message from our citizens about taxes; when we get involved in making cuts we have to consider the whole, and not react to groups advocating protection of their pet programs; we have to make some hard decisions about the budget; many people are telling us that they M �3 -6- February 5, 1990 are going to have to leave Evanston if taxes go up much more; people are responding with fear because they think their taxes are going up in the same proportion as their assessments; we also have to address the problem of the equalizer; when we address the errors, we must recognize the concern of citizens; requesting when we respond to the Chamber, we also include a reply to Mr. Stillerman's comments; suggesting that when we draft our reply we should emphasize that the City's portion of the tax bill will only increase property taxes by 1%; suggesting that Council members talk to friends on the Chamber to make them aware of what happened here tonight; there's nothing wrong with mentioning the Chamber in our Guest Essay; requesting that the City Manager put the information together and that we move adjournment. Mayor Barr summarized her understanding of the Council's discussion. She said it was her understanding that she should request space in the Evanston Review for a Guest Essay, a copy of which would be distributed to Aldermen this week -end. No further formal response will be sent to the Chamber beyond City Manager Asprooth's letter that was sent today. These matters will be discussed in the City/Chamber Liaison Committee and all Aldermen are asked to discuss this evening's testimony with Chamber Board members whom they know. There being no further business, Mayor Barr asked for a motion to adjourn. The Council so moved and the meeting adjourned at 11:38 P.M. KIRSTEN F. DAVIS CITY CLERK 1 1 E*9 Z