Municipal budgeting and finance are important topics that every resident should be informed about, though managing the village’s finances differs from household budgeting and spending.
We want to provide some context to the budgeting process that was not included in the Review’s reporting, despite several points being raised at the village’s budget meeting.
The budget reflects all reasonably anticipated expenses for the given fiscal year. It does not say what the village will spend. It is a management tool for village staff and the council.
Without these placeholders, budgeted at the full amount, the council cannot act in the best interest of the village. We aim to be the best stewards for Forest Park’s future, and we maximize grants and other sources of funds in our decision-making, using recommendations from experts and staff. As in prior years, just because legal authority exists does not mean we use it. Currently, approximately $9 million in (deficit) authority is budgeted for known infrastructure and current projects, and $6 million is an operating deficit in FY2026.
The state of Illinois’ Commission on Government Forecasting and Accountability as well as the Illinois Municipal League publish forecasts and provide briefings to help us understand how to manage our local finances. Among other data, these forecasts suggest that the state is likely to use FY24 cash flow standards to pay its bills. This means that the cash flow management procedures Forest Park uses, currently $2 million from TIF, a legal procedure, while not optimal, might be necessary in the short term.
A budget deficit is concerning, but it is being managed. The above information explains the origin of $11M of the $15M budgeted deficit: the village anticipates grants, loans, and funding for projects in progress, and cash flows from the state and federal government persist.
We are focused on making wise decisions with our colleagues when authorizing projects and are prioritizing funding for the $4M budgeted operating deficit. We do not “say no just to say no.”
We are not the loudest voices in the room. We do our homework and focus on our department’s policies and the priorities of the village. We are solutions-focused, and when we’ve needed information or guidance, we seek it out. We have been rolling up our sleeves regarding our village’s financial future. We will work with village staff and our colleagues on the council to advance ideas that were introduced in the budget meeting in July when they are fully developed.
Our village directors and Finance Director Leticia Olmsted have done an exceptional job in managing our operating budget and reducing our structural deficit. We are fortunate to have staff who are excellent caretakers of our village resources.
We appreciate the opportunity to share these topics about village finances to further engage residents in our village’s financial future. As always, we are available to engage with residents and business owners on any topic of interest.
Commissioner Michelle Melin-Rogovin
Streets and Public Improvements, Public Works
Commissioner Jessica Voogd
Public Property, Public Works