
Finance & Budget Committee Chair Reiches: Ensuring Fiscal Stability for Evanston
Shari Reiches, a prominent leader, is well known for her pivotal role as chair of Evanston’s Finance & Budget Committee. As part of her leadership, the committee focuses on maintaining fiscal soundness within the city’s financial operations. The committee convenes monthly, with the next meeting scheduled for February 11 at 5 p.m.
Reiches: A Multifaceted Accomplishment
Reiches co-founded Rappaport Reiches Capital Management two decades ago, a firm that now boasts a significant portfolio exceeding a billion dollars. She is also an acclaimed author, known for her book, Maximize Your Return on Life — Invest Your Time and Money in What You Value Most. Reiches regularly contributes financial insights to various media outlets and actively volunteers in her community.
Her past roles include vice chair of the Illinois State Board of Investments (ISBI), with a tenure initiated by an appointment from Governor Bruce Rauner in 2015. Mayor Daniel Biss acknowledged Reiches’ extensive financial expertise by nominating her for one of the Finance & Budget Committee’s lay leader positions.
The Role & Objectives of the Finance & Budget Committee
The committee addresses financial management, budgetary reporting, municipal investments, and the oversight of public safety pension boards, among other responsibilities. Key objectives for the fiscal year 2024-2025 include:
- Identifying additional revenue streams
- Reviewing expenses and capital improvement plans
- Establishing a comprehensive debt plan
- Assessing pension status
- Implementing benchmarking data
“The Finance & Budget Committee provides guidance and advice to the City Council,” Reiches states. “Our primary aim is policy development that sustains its efficacy beyond our terms.”
Pension Policy: A Key Achievement
Reiches emphasizes policy creation, citing the successful implementation of a comprehensive pension policy. Under her leadership, Evanston adopted a strategy to fully fund its pension liabilities by 2040, surpassing the state-required 90% funding by 2045.
“Our new policy has financially benefited Evanston, with increased pension funding of $10 million over 2020,” she elaborates. “It’s a proactive fiscal management approach.”
The committee plans annual meetings with the Evanston police and fire pension boards to continually assess pension plan performance.
Addressing Non-Budgeted Expenditures
Unexpected financial opportunities necessitate policies to manage expenditures exceeding $500,000. Recent example: the city’s $2.6 million acquisition of Little Beans Café. Such expenditures bypassed prior Budget & Finance Committee oversight, leading to the establishment of a non-budgeted expenditure policy.
“Our committee reviews significant expenses to alleviate city council’s load and ensure thorough evaluations,” Reiches explains.
Navigating Evanston’s Debt Landscape
Debt management is a significant concern for the committee as the city plans to incur additional liabilities. The strategic plan involves understanding new debt alongside future expenses within the comprehensive budget context. A debt management plan discussion is scheduled for January 2025.
The committee reviewed debt data against peer communities like Skokie and Arlington Heights. An analysis prepared for a January meeting outlines GO Bond principal retirement plans from 2025 through 2044.
Establishing a Sustainable Debt Level
To manage fiscal constraints, the committee suggests determining an affordable debt threshold to guide project funding. This strategy aims to prevent budget overspending.
“Our main expenses involve capital improvements and deferred maintenance,” Reiches notes. “Infrastructure upgrades, such as century-old water pipes, are critical concerns.”
Ensuring Effective Budget Management
The Finance & Budget Committee endeavors to curb budget overruns. The city’s finance team alerts the committee if expenses exceed 10% above budgeted amounts. Cost-cutting strategies are a focal point for 2025.
Reiches lauds the committee’s synergy with the City Council, describing it as “supportive” and commending a recent budgetary award received for fiscal year 2024.
Strategic Vision for a Prosperous Evanston
“We’re here for the strategic perspective and not micromanagement,” Reiches articulates. “By providing in-depth data, we aid Aldermen in forming fiscally prudent decisions.”
Quoting her father, Reiches reflects, “We can have anything we want, but we can’t have everything we want.” Her foresight aims for a future where Evanston’s financial foundation remains robust and sustainable, ensuring infrastructural upgrades and funded pensions by 2040.
The committee’s continuous efforts align with the goal of maintaining Evanston’s fiscal health, benefiting future residents and stakeholders alike.
Source: https://evanstonroundtable.com/2025/01/20/finance-committee-recommendations/
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