Covering nonrecurring expenditures with reserves for the second year in a row allowed River Forest officials to present a balanced general fund budget for Fiscal Year 2025 at the April 8 Village Board meeting.
Estimated total revenues for FY2025 are $20,505,784, up from $19,299,655 in FY2024. Estimated total expenditures for FY2025 are $20,922,908, up from $20,116,778 in FY2024. A deficit of $417,124 is due to $450,461 in nonrecurring expenditures that will be covered by reserves. The budget shows a surplus of $33,517.
The fiscal year starts May 1 and ends April 30, 2025.
Rosemary McAdams, finance director, who presented the budget with Matt Walsh, village administrator, said the village “remains in a strong financial position.”
Concerns were expressed over the possible loss of sales tax revenue if Gov. J.B. Pritzker’s proposal to eliminate the state sales tax on groceries is approved by the state legislature.
Trustee Respicio Vazquez said he found the potential loss, estimated by McAdams to be $1 million annually to be “concerning.”
He speculated that such a loss would require a stronger push for economic development. Walsh said ongoing conversations with staff members are leaning toward deferring purchases in the short term.
Village President Cathy Adduci said the Illinois Municipal League and others are lobbying against eliminating the sales tax on groceries.
She also said some in Springfield are speculating that increases in revenue from gaming and cannabis dispensaries will offset any loss from eliminating the sales tax on groceries, but that will not help River Forest because the village does not allow video gaming and does not have a cannabis dispensary.
Although the 1% grocery sales tax is a state tax, the money collected from grocery receipts within a jurisdiction is transferred to local governments.
The budget presentation was followed by a public hearing at which no residents commented.
Estimated property tax, income tax and other revenues are all up for FY2025 but estimated state sales tax and non-home rule sales tax revenues are down. McAdams said income tax estimates are higher because of the rebounding labor market and “extraordinary” corporate income tax collections. She also termed the sales tax estimates as “conservative.”
Property tax revenue is estimated at $7,627,767 for FY2025, up $7,007,350 in FY2024; state sales tax revenue is estimated at $2,348,762 for FY2025, down from $2,376,327 for FY2024; non-home rule sales tax revenue is estimated at $1,052,477 for FY2025, down from $1,059,449 for FY2024; income tax revenue is estimated at $2,003,607 for FY2025, up from $1,820,822 for FY2024; and other revenue is estimated at $7,473,171 for FY2025, up from $7,035,707 for FY2024.
McAdams explained the 8.85% increase in property tax revenues is based on a 4% increase in the 2023 levy, less than allowed by Illinois tax cap laws. The Property Tax Extension Limitation Law limits tax levy increases for non-home rule municipalities such as River Forest to 5% or the level of the consumer price index, whichever is lower. For 2023, the CPI is 6.5%. The taxes from the 2023 levy are collected in 2024.
Revenue from ambulance fees continues to increase due to the village entering into an intergovernmental agreement with the Illinois Department of Healthcare and Family Services to participate in the Illinois Ground Emergency Medical Transport Program.
Estimated salaries and benefits and contractual expenditures in the general fund are up for FY2025 but commodities expenditures are down.
Salaries and benefits expenditures are estimated at $14,336,604 for FY2025, up from $13,941,957 for FY2024; contractual services expenditures are estimated at $5,184,998 for FY2025, up from $4,291,903 for FY2024; and commodities expenses are estimated at $545,898 for FY2025, down from $710,912 for FY2024. At 68.5% of the budgeted expenditures, salaries and benefits continue to be the largest expenditure. Walsh explained the commodities expenditure was higher last year due to the one-time purchase of police body cameras.
Capital improvement expenditures include $65,407 for a new police squad car; $1 million for six new public works vehicles; and $235,417 for new fire department ambulance. Also included is $2 million for the lead service line replacement program. McAdams explained that she expects $1 million to be budgeted for the program in future years but noted village officials are seeking low-interest loans and grants to assist with the funding.
Infrastructure improvements were partially funded by a $100,000 Cook County grant to reconstruct existing sidewalks and crosswalks in the village that have been identified as not compliant with Americans with Disabilities Act regulations and a $736,279 Rebuild Illinois grant that will be used to resurface streets.
“We’re always looking for grants to fund our infrastructure improvements,” McAdams said.
The Rebuild Illinois grant funds were issued in six disbursements of $122,713 over a three-year period concluding in FY2023. The project will be similar to the village’s annual street improvement project but must be accounted for separately. Funds not expended by July 1, 2025, will be forfeited.
Streets to be resurfaced are Gale Avenue from Washington Boulevard to Madison Street, Park Avenue from Hawthorne Avenue to Washington and from Augusta Street to Chicago Avenue, Iowa Street from Thatcher Avenue to Keystone Avenue, Franklin Avenue from Augusta to Chicago, Ashland Avenue from Division Street to Augusta and Clinton Place from Augusta to Chicago.
Police and fire pension expenditures are expected to increase slightly in FY2025. The police pension contribution will increase 1.29% from $1,921,246 in FY2024 to $1,994,533 in FY2025 and the fire pension contribution will increase 1.10% from $1,786,476 in FY2024 to $1,806,128 in FY2025. In addition, officials previously expressed the hope that the recent consolidation of roughly 650 local pension funds for suburban and downstate police officers and firefighters into two statewide funds would lead to higher investment returns and lower future pension contributions.
A 35.34% increase in the West Suburban Consolidated Dispatch Center expenditure follows a 22% increase in last year’s budget. Walsh explained that the increase from $275,285 in FY2024 to $372,584 in FY2025, which followed an increase from $224,144 in FY2023, was due to the decrease in participating agencies. When Forest Park joined WSCDC in 2017, there were five agencies sharing the cost. Since then, Elmwood Park and Park Ridge dropped out, leaving River Forest sharing expenses with Forest Park and Oak Park. He said WSCDC officials have been trying to attract other communities to join and share expenses.
“Despite challenges, village finances are in a strong position,” Walsh said, thanking McAdams, other department heads and staff members for their contributions to the budget.
“I know it’s a lot of work and a lot of detail,” Adduci said in thanking Walsh and his staff.
Adoption of the budget is expected at the Monday, April 24, village board meeting.
