Administrative costs – expenses related to the operation of government – will be one of the areas on the table when elected officials from River Forest village and township governments sit down and talk about collaboration on July 14.
It is an area that bears examining, says a senior policy analyst with the Better Government Association (BGA), a government watchdog organization.
“If units of government are seeking ways to trim costs and save taxpayer dollars, administrative costs are the most ripe area for potential consolidation and collaboration,” said Alden Loury of the BGA. “There can certainly be cost savings if governments can sit down and take a hard look at what they’re spending and where there may be potential overlap with other units of government.”
Whether there are areas of potential overlap will be a focus of the discussion. Based on the recently approved township budget totaling $674,973, more than 40 percent of the agency’s spending is targeted specifically to cover administrative costs. Some of those costs are spent within the local township while others help cover administrative costs of township services which are provided directly by Oak Park Township.
While township government is the smallest unit of local government, that percentage is higher than any other local government in River Forest.
Administrative costs are found in the Town Fund, the funding source for nearly all of the township’s programs and services, and costs to operate the township are up nearly 9 percent over last year.
Overall, the $271,944 set aside for administrative costs will pay for, among other things:
- The salaries and benefits of one full-time employee and six part-time employees at a cost of $174,379. That includes the manager of the Civic Center Authority building, supervisor, clerk, and assessor, mental health administrator, assessor, an assistant in the assessor’s office. Benefits include Social Security and IMRF.
- Legal fees are budgeted at $27,000. A large piece of that — a flat fee of $15,000 – was negotiated to cover the cost of battling a proposal in Springfield which would have allowed a referendum on merging township and village government in River Forest. That bill, proposed by local state Rep. Chris Welch, has been shelved at least temporarily. The remainder of the legal budget is set at $12,000, Supervisor Carla Sloan said.
- Communications is a line item of $22,230. This is a recent line item aimed at helping explain the township’s ongoing services to the community and to oppose the merger effort. Matt Baron, a local public relations professional, was signed on for a period to cover Feb. 18 to June 1. His contract was extended at the township’s June meeting until March 31, 2015, the end of the fiscal year.
The remainder of administrative expenses are for among other things: telephone, audit services, website, printing and publishing, computer software and services, office furniture and computers, travel and lodging.
Administration also is locked in to the funding of the senior and youth programs which are largely outsourced to Oak Park Township where River Forest has less direct control. Just over 16 percent of the $104,429 that pays for senior services is in administrative costs. As many as 10 different services are provided to River Forest residents by Oak Park Township.
Numbers of clients for each service differs. As examples, 23 residents received 2,757 home-delivered meals between April and December 2013. Approximately 28 residents took 429 one-way bus trips during the same time period. And 41 residents received 323.5 hours of service for such assistance as budgeting, bill paying, understanding benefits and processing applications for energy assistance, according to statistics provided by Oak Park Township. River Forest covers the cost of Blue Cab rides and other programs. Total costs for senior programs are $109,129, a nearly 10 percent increase over last year.
About 44 percent of the nearly $86,000 that goes to Oak Park Township to cover the costs of youth programs is wrapped up in administrative and staff costs. Oak Park provides several services including the Youth Interventionist Program, which focuses on helping youth at risk for involvement in gangs and drugs. In 2013, 11 River Forest families were involved in this effort.
River Forest Township runs three of its own programs — I-Search, provides scholarships and the Connections program. New this year is a $1,500 grant to the Holiday Food and Gift Basket to help defray some of its costs. The program also is provided office space and support. Overall cost of youth programs this year is expected to be $102,400. That is up from last year in part because funding for Face It, a drug and alcohol program was moved to youth services from mental health, Sloan said.
Funding for mental health programs declined about 9 percent over last year.
The town fund is expected to run a deficit of $53,412 in this fiscal year. The deficit will be covered by cash reserves in the Town Fund. By the end of the fiscal year on March 30, 2015, River Forest Township’s Town Fund is expected to show cash reserves totaling $595,646, equivalent to almost one year’s worth of operating expenses.
In the rest of the township’s budget, $17,200 goes to general assistance, a 9 percent decline. There presently are no residents receiving general assistance, one of the only two services that townships have to provide by state law.
Approximately $44,000 is set aside in a capital fund for the River Forest Civic Center Authority. The authority has oversight over the Madison Street building, also known as the Community Center. Dick Chappelle, the executive director of the Community Center, also took on the responsibilities of building manager in 2000.
