Politics & Government
Oak Forest Budget Takes Another 'Surprising' Hit
Readjustment of anticipated income taxes from the state of Illinois show a decrease of about 10 percent, officials said Wednesday, April 20.
City of Oak Forest officials received news of yet another 2011–2012 budget pinch Wednesday, April 20 after Finance Director Colleen Julian announced state income tax revenue would not generate as much money as planned.
"This was a surprise from the state of Illinois," Julian said. "We had hoped that when they gave us the information in January that the revenues were on the rebound... we'll just keep a close eye on it and hopefully, if they have to readjust it, they'll adjust upward."
Changes in the figures mean the city won't see $153,000—money that would have contributed to the general fund's surplus. Now the general fund will have a $342,000 surplus.
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The news came as officials were already struggling with an estimated fund balance of about $1.6 million. An ideal fund balance would be closer to $3.5 million.
The city budget for next fiscal year must be adopted by April 30.
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Increase in Metra parking fees
City aldermen agreed to increase Metra commuter parking fees from $1 to $1.25 to help sustain the commuter parking lot.
"Part of the responsibility of the decision-makers is to make sure there are fees -- revenue—to support certain functions," Julian said. "That's why there was quite a discussion about it. [If] the fees don't cover the expenses, we need an increase."
Revenues from the parking lot have gone down signficantly, she added.
Five out of the six aldermen support the increase; Alderman Laura Clemons did not raise her hand during the unofficial poll of the council.
Clemons pointed out during the meeting that nearby muncipalities that had raised fees also had new train stations and facilities.
"Raising fees a quarter won't pay for a new station," Julian replied, though she noted Clemons' point that increased fees for stations with those kind of improvements creates a "perceived value."
However, increasing the fee "is not popular, but it's the responsible thing to do," the finance director said.
Waiting for the unions
The overall budget is balanced, for now. The figures Julian submitted to city aldermen Wednesday assumes local unions will agree to proposed concessions: a pay freeze, 10 furlough days and increased employee share of health care costs.
However, the unions have not officially accepted the proposal.
"We need to hear [from the unions] by April 30," Julian said. "If not, we'll have to make adjustments accordingly."
Those adjustments could include eliminating city full or part-time positions.
Plans to negotiate with the union for the next fiscal year came last December after city officials determined Oak Forest taxpayers could not sustain property tax increases, Julian said. Instead, officials had to reduce expenses or face a 23 percent increase in property taxes, she explained.
"Therefore, we requested the concessions from the unions as an effort for everybody to help out and provide the relief that taxpayers need," Julian said.
Gary Kasper, president of Local 3039 Oak Forest Firemen Union, said he can't make any guarantees that his organization, which represents 24 full-time firefighters, will agree to the terms.
Kasper said the union took concession for this year's fiscal budget and has been in talks with city officials for next year's budget.
"It is unfortunate what's going on and we want to do our part," Kasper said. "I make no guarantees."
The union will meet Monday, April 25 to discuss the issue, he said.
"We all completely understand what we need to do to try to help out the residents in the city," Kasper said.