Evanston Water Rates Rise 25% Under Budget Plan
Businesses in Evanston should plan for higher utility and property tax costs if the proposed FY2027 budget passes as drafted.
Updated on Nov. 3, 2026 in Utilities
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Do you support the city's proposed 8.9% property tax increase in Evanston?
Evanston City Council held a special public hearing Monday on a proposed 8.9% property tax levy increase in its Fiscal Year 2027 budget, drawing criticism from residents and councilmembers. The hearing was required under Illinois' Truth in Taxation law because the proposed annual increase exceeds 5%, and the proposal also includes a 25% water rate hike for local ratepayers.
Why it matters
The proposed budget carries a $6.1 million operating gap that the city plans to cover from reserves, and the water rate increase directly raises utility costs for businesses in the city. Operators should track how the levy and rate changes flow through to their property and utility bills.
The proposed levy increase of 8.9% is nearly double the 5% threshold that triggers a mandatory public hearing under Illinois law. The proposed water rates rise 25%, and the budget carries a $6.1 million operating gap.
The players
Evanston City Council
The elected legislative body of the City of Evanston, responsible for adopting the municipal budget and setting property tax levies and utility rates.
Hitesh Desai
Chief financial officer of the City of Evanston, overseeing the city's budget preparation and fiscal operations.
The details
Illinois' Truth in Taxation law requires a public hearing whenever a proposed annual tax increase exceeds 5%, which is why the city scheduled Monday's special meeting. The $6.1 million operating gap in the proposed Fiscal Year 2027 budget will be covered from city reserves rather than new revenue. The city may also consider a referendum to adjust the proposed Real Estate Transfer Tax.
Timeline
Monday: Special City Council meeting and public hearing on the proposed tax levy increase
Market Landscape
Under Illinois' Truth in Taxation law, any proposed annual levy increase above 5% requires a public hearing, so Evanston's 8.9% proposal sits well above the statutory trigger. Utility rate increases such as the proposed 25% water hike are a recurring pressure point for municipal budgets across the state.
Business owners in Evanston should factor the proposed 25% water rate increase into near-term utility cost forecasts. Operators with property holdings in the city should also budget for the possible 8.9% levy increase, pending the council's final action.
The takeaway
Operators should watch whether the council adopts the levy and water rate proposals as written, since the $6.1 million gap is being filled from reserves rather than new revenue. Calendar the outcome of any Real Estate Transfer Tax referendum, as it could shift commercial property transaction costs.
Further reading
For background on how water and utility rates are set, see more Utilities coverage on We are Main Street.
Source note: This article includes information reported by The Daily Northwestern.
Live Poll
Do you support the city's proposed 8.9% property tax increase in Evanston?
