Evanston Budget Proposal Included Property Tax Hike
City Manager Luke Stowe has proposed a 2027 budget featuring an 8.9% property tax increase to fund local infrastructure.
Updated on Oct. 6, 2026 in Inflation
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Evanston City Manager Luke Stowe has proposed a $349 million budget for 2027, which includes an 8.9% property tax increase. The proposal comes as the city has exhausted the reserve funds previously used to subsidize tax hikes.
Why it matters
The tax increase is necessary to address rising costs for employee salaries and capital infrastructure improvements. With reserves depleted, the city is turning to new revenue streams from taxes on streaming, rideshare, and natural gas usage.
The proposed 2027 budget includes an 8.9% property tax increase, costing $180 more for a home valued at $481,000. It also outlines a 25% hike in water rates following a 23% increase in 2025.
The players
Luke Stowe
Luke Stowe is the City Manager of Evanston who is responsible for drafting and proposing the municipal budget.
Evanston City Council
The Evanston City Council serves as the local governing body tasked with debating and voting on final budget approval.
The details
The city aims to generate $8.1 million in new general fund revenue through various fee hikes, including a 5-cent bag tax and a 5% increase in waste pickup fees. Additionally, officials expect $2.5 million in new sales tax revenue from events at Ryan Field to support $86.3 million in capital improvement projects.
Timeline
Water rates increased by 23% in 2025.
The 2027 budget was released on October 6, 2026.
The Finance and Budget Committee will discuss the proposal on October 7, 2026.
The City Council will discuss the budget on October 12, 2026.
The proposed budget is for the 2027 fiscal year.
Macro View
Evanston's budget strategy reflects a broader trend of municipalities exhausting one-time COVID-era reserves to manage operational costs. This mirrors historical cycles where local governments must pivot toward permanent tax increases once emergency subsidies expire.
Homeowners in Evanston can expect their property tax bill to rise by approximately $180 based on a median home value of $481,000. Additionally, residents will see higher monthly expenses due to the proposed 25% increase in water rates and increased fees for waste pickup.
The takeaway
Residents should prepare for higher municipal service costs as the city transitions away from using reserve funds to balance its books. Tracking the upcoming City Council debates will be essential for understanding which fee increases reach final approval.
Further reading
For more context on local economic shifts, visit Inflation.
Source note: This article includes information reported by Evanston Now.
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