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Forest Park staff warn FY2027 draft budget would widen deficits by $3.7 million
Summary
Village staff presented the FY2027 draft budget and warned it projects a $3.7 million operating loss that would push the village into an ending fund deficit exceeding $5 million unless revenues or expenditures change.
Village staff presented the draft FY2027 budget at a July 22 workshop and warned that, under current assumptions, the village would face a materially larger operating deficit next year.
Director Olmstead summarized revenue and expense assumptions and told the council the draft shows “a loss of about $3,700,000,” which he said would “bring our ending fund balance to a deficit of, over $5,000,000” if unaddressed. Olmstead noted the village closed 2026 projecting an approximate $1,600,000 deficit and emphasized staff monitor revenues and expenses throughout the year so not all budgeted items are necessarily spent.
The staff presentation identified limited revenue growth from local sources (a modest CPI increase and small property-tax gains), shifts in state sales/use tax accounting for online purchases, and specific lease risks — including a cell-tower lease expected to terminate in August 2026 — that will reduce miscellaneous revenue. Olmstead added that several funds (water, VIP, MFT) have healthy reserves that can cover planned infrastructure work but said the general fund faces structural pressures from rising costs and pension obligations.
Councilors asked about options to close the gap, including looking for new revenue sources, reassigning restricted funds where permitted, or reducing planned expenditures. Staff said the draft budget will be used as the basis for an appropriations ordinance at the next council meeting and that some contingencies and purchases can be delayed or reduced during the year.
