Council Advances Tax Hikes, Water Rate Increase
Evanston's City Council voted 7-2 on Monday to reintroduce budget tax increases and advance a 25% water rate hike ahead of a Nov. 23 budget vote.
Updated on Nov. 11, 2026 in Utilities
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Evanston City Council voted 7-2 on Monday, Nov. 10, to reintroduce a budget amendment raising several taxes in the proposed FY 2027 budget, including doubling the amusement tax on streaming services and the natural gas tax. Councilmembers also voted 7-2 to advance a measure raising the water rate by 25%, with Alds. Parielle Davis (7th) and Clare Kelly (1st) voting against both.
Why it matters
The natural gas tax increase is intended to support goals in the city's Climate Action and Resilience Plan, while the water rate is set to cover expenses and revenues. The rate hike is expected to negatively affect residents, and an average household could see an estimated $135 annual increase in combined water and sewer charges.
The proposed amendment would double the amusement tax on streaming services from 5% to 10% and raise the administrative charge for exempt property transactions from $100 to $500. The water rate increase would add an estimated $135 per year for an average household using about 86,000 gallons annually, and the final budget remains subject to the Nov. 23 vote.
The players
Evanston City Council
The nine-member legislative body of the City of Evanston, Illinois, which sets the city budget, tax rates, and utility charges.
ComEd
Commonwealth Edison, the electric utility serving northern Illinois, which offers financial relief grants of up to $2,000 for income-eligible households.
The details
The amendment also doubles the natural gas tax and raises rideshare taxes, with the increases applying to group and solo trips. Water rates are set through a bimonthly base charge plus a consumption-based rate under a custom services model that accounts for all expenses and revenues. Council unanimously approved a resolution designating a portion of Orrington Avenue as "Rabbi Dov Hillel Klein Way."
Timeline
Monday, Nov. 10, 2026: City Council votes 7-2 on the tax amendment and the 25% water rate measure.
Nov. 23, 2026: Council scheduled to vote on the proposed budget.
Roadmap
The natural gas tax increase is designed to advance the goals of Evanston's Climate Action and Resilience Plan, tying revenue from fossil fuel use directly to climate policy. The city expects residents to offset the higher tax by reducing natural gas use through city assistance programs.
Streaming subscribers would pay double the amusement tax, and rideshare riders would face higher per-trip charges under the amendment. Households using about 86,000 gallons annually could see roughly $135 more per year in combined water and sewer charges if the rate increase is approved.
The takeaway
Residents should watch the Nov. 23 budget vote, since the streaming, rideshare, gas, and water charges could all change together. Households may want to review ComEd relief grants of up to $2,000 if they qualify for assistance.
What happens next
Council is set to vote on the proposed budget on Nov. 23, 2026, when the tax amendment and water rate measure will be finalized.
Further reading
Explore more on Evanston utilities and how local rate changes affect household bills.
Source note: This article includes information reported by The Daily Northwestern.
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Should Evanston raise taxes and utility rates to fund city budget priorities?
