Lifetime Citizen Portal Access — AI Briefings, Alerts & Unlimited Follows
Forest Park auditor issues clean opinion but flags liquidity and pension shortfalls
Loading...
Summary
Auditors gave an unmodified opinion for fiscal 2025 but noted a roughly $1.3 million drop in the general fund and a large unrestricted net position deficit tied to pension liabilities; council members pressed for revenue options ahead of the budget season.
Joe Louden, a principal at auditor Lauterbach & Eamon, told the Village Council of Forest Park that the firm’s audit for fiscal year 2025 resulted in an unmodified opinion: “which is unmodified, and this is the cleanest and highest form of assurance that we can provide to the village.” Louden summarized required communications and highlighted three documents the village received: a SAS 114 letter (no disagreements reported), the Annual Financial Report and a management letter with practice recommendations.
The audit showed a decrease in the general fund balance of about $1.3 million, leaving an ending general fund balance of approximately $252,000. Louden also highlighted a $7.7 million increase in the water fund’s net position, bringing that fund’s net position to about $39 million.
Commissioner Maxim pressed for context, noting that an increase in net position does not necessarily mean improved operating stability. She relayed Director Olmstead’s assessment — shared with the council — that the net position gains were driven largely by capital-asset additions and actuarial adjustments to pension liabilities and that “this does not show an improvement in financial stability.” Maxim emphasized the continuing problem of an unrestricted net position shortfall; she quoted the report that “the unrestricted net position still is a 115,000,000 deficit,” and warned that the village lacks resources for day-to-day operations without new revenues.
Louden and Director Olmstead told commissioners that governmental activities statements incorporate long-term liabilities such as police and fire pension obligations and that capital assets increase net position without improving operating liquidity. Louden recommended continued budget discipline and restoring pension funding to improve the village’s fiscal outlook.
The auditor’s management letter included a current-year recommendation on IT security awareness and monitoring; other prior recommendations mentioned in the packet covered capital asset policy, outstanding check write-offs and pension funding management. Louden said management had provided responses to prior comments and noted two upcoming GASB standards with a 04/30/2027 implementation date.
Why it matters: council members said the audit underlines the need for multiple new revenue sources ahead of the spring budget meetings. Commissioner Maxim again urged consideration of measures such as a places-of-eating tax and other revenue options to address long-term pension liabilities and limited reserves. The council forwarded those budget discussions to upcoming committee meetings.
