Evanston, an affluent suburb just north of Chicago, is considering raising property taxes up to 5% in an effort to cover a $140 million pension fund shortfall.
As officials began debating the 2009 budget this week, the city’s finance director reportedly advocated raising property taxes nearly 5%, taking $5 million out of the general fund, and cutting spending while avoiding layoffs to balance the budget.
In addition to the pension shortfall, which has been an issue for years, Evanston is facing a nearly 40% decline in revenue from real estate transfer taxes, according to reports. The City Council is expected to adopt a 2009 budget by Feb. 9.
