Oak Park seeks $43 million tax hike to cover pensions and operations

Oak Park village officials have proposed a 7.94% increase to the village portion of the property tax levy for fiscal year 2027. The adjustment would push the total levy past $43 million, an increase of more than $3 million compared to the previous year.

The proposed budget covers village operations, debt service, and contributions to police and fire pension funds. Capital projects, such as the construction of a new police station, are excluded from this levy and will instead be financed through bond issuances. The village also plans to install 8.3 miles of bike lanes and bike boulevards under its current Bike Plan.

The general fund, which serves as the core operating budget, is projected to include $86.3 million in spending. This figure includes one-time expenses and is supplemented by an estimated $7 million in revenue from the cannabis tax, home rule sales tax, infrastructure maintenance fees, and the local operation gasoline tax. Total proposed expenditures for the operating budget, excluding capital funds, stand at $180.5 million, against $175.9 million in proposed revenues.

Deputy Chief Financial Officer Louis Hall-Makarewicz explained the shift toward long-term financing. “You’re asking people to pay upfront for something that they might not benefit from throughout its lifespan,” Hall-Makarewicz said. The village intends to replace pay-as-you-go funding for routine maintenance with a bond financing strategy, aligning with a financing plan approved by the Village Board in the summer.

The village’s share of the total property tax bill is approximately 15%. For every dollar collected, 15.09 cents goes to the village, 4.53 cents goes to the Oak Park Public Library, and 80.38 cents is allocated to other taxing districts. These other districts include the elementary and high school districts, Park District, Cook County, Triton College, Oak Park Township, and other nearby governments.

Personnel changes accompany the budget proposal. The village plans to convert the temporary positions of environmental health manager and health education manager into permanent roles. It also aims to create three positions for its E.C.H.O program, which provides compassionate responses to non-emergency calls for service. New hiring efforts include three parking compliance specialists and a property maintenance inspection staff member.

The Village Board is expected to make a final decision on the proposed budget on Dec. 8. A full breakdown of the financial overview is available on the village’s website, where an embedded AI chatbot has been added to answer resident questions about the proposal.