http://wednesdayjournalonline.com/main.asp?Search=1&ArticleID=9832&SectionID=1&SubSectionID=1&S=1
2008 OP budget finalized
Property tax increase, water hike make the final cut
By MARTY STEMPNIAK
All the decisions were pretty much finalized. All that remained was adopting the 2008 budget, which the Oak Park village board did last Thursday.
Included were a 3-percent property tax increase (generating $300,000), 25 percent water hike ($2.06 million), 12 percent garbage removal fee increase (roughly $470,000) and a 2-cent per gallon addition to the village gas tax ($400,000)-all in an effort to close gaps in the village's various funds.
The village was able to balance its $89 million operating budget by increasing taxes and fees together with cutting various services and positions for next year, totaling about $3.6 million.
The village is also cutting $250,000 out of the brick streets program and exploring the idea of blocks paying for the streets through special "self-taxing" services areas.
However, the village board still faces difficult choices for 2009. A $3-million deficit in the parking fund-caused by debt to build garages, costs and a lack of revenue-was remedied by a one-time payout from the on-street parking fund. Parking services, total, has a $7 million deficit for 2008 after that payment.
Right now, the general fund has a balance of $460,000, a 1-percent "rainy day" fund balance, and the board and staff must figure out a way to remedy what could likely be a deficit in the 2009 parking fund.
The board held off on proposed rate additions and increases in village garages. The parking fund is the only fund in deficit for 2008-$360,000 in the red. The board will make a decision on rates after the first quarter of 2008 when staff brings forward information on how the increases would affect businesses, as well as how similar villages deal with parking issues.
The board did approve a $5 fee at the Oak Park and River Forest High School garage for all special events. The fee will be applied on a 90-day trial basis. Staff predicts the fee could raise $75,000 in revenues per year.
The village is levying $24,444,411 in property taxes for next year, Chief Financial Officer Craig Lesner said.
Letters to the editor
http://wednesdayjournalonline.com/main.asp?Search=1&ArticleID=9801&SectionID=3&SubSectionID=17&S=1
12/18/2007 10:00:00 PM
OP board raises taxes, readers raise hell
Along with these tax increases, is there any benefit to the citizens?
Jean Heyes
Oak Park
The Oak Park village board has just made traditionally less desirable areas such as Galewood, Forest Park, Lagrange Park, and Berwyn much more attractive to home buyers. For upscale home buyers, Lagrange, Riverside, and River Forest are now more desirable. Congratulations, Oak Park village board, you've effectively killed the golden goose!
If I were in a decision-making position on the board, I'd be looking to cooperate quickly with Berwyn on the Roosevelt Road development projects. South Oak Parkers only have to look a few blocks south to find a city run by competent managers who get things done right without bleeding its residents dry.
John McCarthy
Berwyn
We moved out of Oak Park last summer to buy our first house. I love Oak Park and had lived here for several years, but the property taxes were a large part of our decision to look elsewhere. Now, as rising taxes and mismanagement of funds and village-owned real estate continues, I can only shake my head in amazement. In my new community, our property taxes are less, our new elementary and high school are well funded by a recent referendum and when I go outside in my new neighborhood, the streets and sidewalks are clear and ice-free and the free parking and local shops are filled with holiday shoppers. I point this out, not to gloat, but to say: Oak Park village board, look at some of the other towns around you! They are managing to make these things work without shooting their own property tax cash cow in the foot. It can be done-so why can't Oak Park seem to do it? I really just don't get it, but I have to admit to being relieved I don't have to worry about it affecting my taxes. Good Luck DOOPers.
Bronwyn Wright
Wednesday Journal employee
I agree with not spending money we don't have, but business district improvements like the Marion Street reconversion is paid for with tax increment financing (TIF) funds, money that cannot be used for general operating.
I think the village is doing an admirable job of keeping expenses contained and our tax increases at a minimun.
Karen Herman DeMuro
These increases will hit older homeowners the hardest. What seems like a modest cost increase to the board will be the tipping point for many whose incomes or economic means do not keep pace with inflation.
Henry Kranz
I just returned from attempting to shop on Marion Street. Isn't it better to spend my holiday dollars where I live? Nothing was open except the bread store and the wine store, who were very busy. How much did the various forms of Marion Street cost taxpayers? Will I ever go out of my way to shop in Downtown Oak Park again? Like one of the other commentators, I too have purchased my last gallon of gas in Oak Park. I have not objected to the higher price I pay to support a locally owned business but I cannont fathom paying more to support an incompetent village board.
Duane L. Cole
Why did we need to spend $5 million for Marion Street if the village did not have a balanced budget to begin with? Did the same people who decided we should heat the street decide we need to lay off people and cut services? Maybe someone should have thought about taxpayers heating their homes before forcing them to pay for heating the street.
Mary Colchamiro
Well, it's official. Dense development doesn't lower taxes and now we have to pay the piper. No one ever had to take my word for it; they just had to read all the published studies that said this wouldn't work from institutions like Harvard and others of their ilk. But why listen to them when we had our own experts: Mike Chen, Joanne Trapani and Carl Swenson? At least they are still around to take the heat about all this.
But the good news is we will be through paying for all the money we gave to these developers in only another 30 years!
Why didn't other communities like ours jump on this bandwagon? I wonder ... they just must not be as smart as us.
Paul Hamer
I understand people's frustration with any fee or tax increases-we all have our own personal budgets to monitor. But the board was faced with closing a $3 million gap in the parking fund and a similar gap in the general fund. I watched the process of their agonizing over what to cut and where to modestly increase, and I can assure you it was done with thoughtfulness and with the goal of restoring fiscal health to the village-while not cutting essential services. I hope we can all absorb the very modest increases while acknowledging the benefits of a good bond rating for the village and continued solid services provided by village staff. As public servants, I think they-and each and every one of them-exercised good judgment and performed admirably as public servants. This is why we elected them-to make the tough decisions. I applaud their efforts!
Gail Moran
Yep. The Village Managers Association promised during the April campaign to "get Oak Park moving again." All the folks who got suckered in by that message learned its meaning: Arrogant "we've got to cut the budget" talk when higher fees and more taxes were in the works all along. Yes, let's get Oak Park moving again, to keep its rank as the most highly taxed community in Illinois. You got what you voted for, including electrically heated bluestone sidewalks. But there's another election in only 15 months.
Les Golden
Oak Park village staff felt the burden of a tough budget year and now it's the public's turn? I don't understand that. I thought the village operates with the public's money, which is generated by taxes, parking tickets, etc., and the village is responsible for spending the taxpayers' money wisely so taxpayers don't have to be burdened by wasteful spending.
In theory, that means employees of the village are working for the taxpayers.
If there is any burden at the village, it's when people get laid off or village employees take reductions in their salaries. I know budgets can take a turn for the worse when something unexpected comes up, like a town needs two miles of new sewer pipe installed that went undetected for several years and there are many other things, but I'm not aware of anything like that happening in Oak Park.
I'm sure when there is a surplus of money, new positions get created to spend that money, so the first place to start cutting are programs that were created to spend money which is no longer available for positions created not out of necessity but out of the need to spend surplus money.
I know government doesn't operate with the profit mentality, but it doesn't need to operate in the red and expect taxpayers to make up for the losses.
Bill Maxwell
The trustees must not want middle income people in Oak Park. I am feeling pushed out by the fees and taxes but also stuck because of the slow real estate market. This will raise my share over $400. I'm already doing without movies, dinners out and other fun. I don't know what else to cut. But I will for sure be buying my gas in Forest Park or Berwyn.
Helen Kossler
It is unfair to characterize the property tax increase as an "unexpected last moment plan." It was in the manager's recommendations presented at the Oct. 15 board meeting-very early in the budget process. The board wanted to delay discussing a tax increase until after they had aggressively tackled the expense side of budget.
David McCammond-Watts
My family and I are being pushed out of Oak Park. At this rate, my kids will never see what all my money has been spent on (i.e. schools). We will need to move before they can even attend kindergarten. I also will be buying my gas in Forest Park and elsewhere instead of the gas station two blocks from my house! I am so disgusted with this village and its spending habits.
Kelly Soprych
Too bad the Marion Street project couldn't be returned like a bad Christmas present; the problem would be gone and there would be $5 million in the bank.
James Taglia
I find it amazing that Oak Park is raising fees on gas and property given the current economic situation. If you take a look at the big picture for the village, it is not very hard to see that money isn't being spent properly. Whatever happened to financial responsibility? Has anyone questioned why all of a sudden the village has a financial crisis? People who run the village are put in that position and trusted that they will plan and budget ahead to avoid these situations. The answer isn't to just raise fees on everything; that won't resolve the problem. What will the village do when they face a crisis like this again? The cost to live in Oak Park is getting almost worse than River Forest.
Sean Ristau
Speaking as the co-owner of a newer townhome with a tax bill that just passed the "magical" thousand-dollar-per-month mark, I feel well qualified to comment on taxes. We in Oak Park live in a community like no other. Our great schools, strong services, ideal location, the unusual experience of living in a place devoted to the arts, and to bridging social divides, all make our community unique. But along with many others, I've worried about our village's economic diversity. Right now, We're experiencing a real estate phenomenon here which, in an unprecedented manner, may make our village a more affordable place for some to purchase homes (at least temporarily.) Won't it be interesting to see if we can also reap the benefit of lack of gain, or even some reduction, in the value of our homes in the upcoming triennial reassessment?
Bob Walsh
The tax increases are becoming ridiculous. While Marion Street will (hopefully) end up being worthwhile, right now it doesn't seem too smart to have spent $5 million when the village can't balance a budget.
Take a look at what Forest Park is doing, and the boom they are creating on Madison. Keep raising the taxes, I predict a flight from Oak Park that will only further erode the tax base.
David Gulbransen
Having lived in Oak Park for 14 years, I have voted on a number of property tax referenda, and voted yes on most of them. I moved to the village knowing that high taxes were levied in exchange for strong local services and a robust local government, and was happy with that social contract. In my household, I was for years the one rebutting reflexive criticisms of the property tax bill.
However, the village governments (village hall and the schools) long ago stopped holding up their end of that bargain. However much longer I choose to live here (which will not be forever and may not be much longer at all), I will never again vote for any tax increase or for any local candidates who think that the village is fiscally sensible. Honestly, we passed the point of "are you kidding me?" quite a while ago.
And the technical truth that TIF funds cannot be used for operating expenses completely misses a major point. Were property tax revenues not still being diverted into the downtown TIF pool to be spent on preposterous boondoggles such as Marion Street and the Whiteco subsidy, a village with such high property tax rates would not be needing to freeze staff salaries and raise other taxes and fees.
Paul Botts