Oak Park property owners face a proposed 7.94% increase in the village's property tax levy under the fiscal year 2027 budget issued Oct. 29.

The village's finance committee began the first of three consecutive weekly departmental budget hearings Thursday, Oct. 29, as reported by the Wednesday Journal. The full village board is expected to vote on a final budget Dec. 8.

As we reported Oct. 28, the proposed budget calls for about $86.3 million in general fund expenditures and just over $43 million in property taxes.

Chief Financial Officer Kevin Bueso called the upcoming year an "inflection point" for the village and said transparency with residents on financial budgeting is important.

Several factors are pushing the levy higher, according to Bueso and Village Manager Kevin Jackson. They include a commitment to fully funding police and fire pensions by 2040, the expiration of pandemic-era American Rescue Plan Act (ARPA) funds, continued investment in capital improvement projects, and increased spending on technology and the village's IT Strategic Plan.

The end of ARPA money means the village must absorb programs those federal dollars paid for into its general fund operating budget. That includes two public health positions and three alternative police response roles in the E.C.H.O. program, which stands for Engaging Communities for Healthy Outcomes.

Revenue shuffle offsets a steeper hike

Without a restructuring of revenue sources, the levy increase would have been about 13%, according to Bueso. To bring it down, the village is reassigning just under $7 million in other tax revenues to the general fund for day-to-day operations. Those revenues previously funded smaller routine capital maintenance and improvements.

For 2027, the village plans to bridge the gap from moving those revenues with surplus from its enterprise fund. Bueso said the village is still developing a policy framework for dedicating year-end surplus to such projects while maintaining reserves.

The proposed budget also shifts sustainability staff salaries and benefits into the general fund. The village board had previously directed about $2.7 million from general fund reserves toward sustainability, covering salaries, benefits and grants. Moving the staff costs frees up the reserved funding entirely for grants.

Tax rate drops even as levy rises

Bueso said the property tax rate is actually decreasing, from 1.7% to about 1.58%, because the equalized assessed value of Oak Park properties rose an estimated 17%.

The levy still goes up. It represents the total dollar amount collected from property owners.

The village's share of property taxes is relatively small. Bueso said for every property tax dollar collected, the village receives about 15 cents. The public libraries get about 4.5 cents. The rest goes to school districts, the park district, Cook County and other taxing bodies. Of the village's 15 cents, only about six cents funds the operating budget.

Trustee pushes back

Trustee James Taglia said he has reservations about the steep increase and wants to find ways to reduce it.

"Oak Park has a big heart, but that comes with a big expense," Taglia said. "I don't think anyone wants to cut any services, but I do think that there are ways we can economize."

Village President Vicki Scaman said she welcomes community engagement as the board works through the budget. Scaman said she has had one of the lowest levy percentage increases since her term began in 2021 and is hopeful the board can identify areas to lower the levy before cuts become necessary.

What comes next

The finance committee will hold two more weekly hearings for departments to present their budgets. A Truth in Taxation public hearing is scheduled for Nov. 17 because the proposed levy exceeds the 5% increase threshold. The village board will hear a budget presentation Dec. 1 and is expected to vote Dec. 8.