New Oak Forest Budget Sees Water Rate Hike, $300K Shortfall

OAK FOREST, IL — The Oak Forest City Council approved the budget for the upcoming fiscal year, and it includes a water rate increase and a revenue shortfall of almost $300,000. Officials say a drop in state money is the reason for the deficit, according to the Daily Southtown.

The city will need to dip into its reserves to cover the loss of 10 percent of state income tax revenue, the report stated. That loss — which totals $295,000 less than last year's state contributions — requires the city to make up for a $294,000 deficit between projected income and spending, the report added.

Oak Forest officials weren't able to eliminate the shortfall through raising property taxes or other measures because of the late notice from the state, the report stated. The city wasn't informed about the 10 percent loss until March, the report added.

One revenue stream in the budget Oak Forest officials looked to increase before knowing about the shortfall was the city's water and sewer rate. Residents will see a 2.9 percent hike in the fresh water fees, and sewage collection will see a 3 cent increase to $1.91 per 1,000 gallons of metered water, the Tribune reports.

The city is raising its rates for fresh water by 2.8 percent to cover the costs of increases being passed along by Oak Lawn and Chicago, which supply Oak Forest with water from Lake Michigan, Julian said.Wastewater collection fees will increase by 3 cents to $1.91 per 1,000 gallons of metered water. Julian said most Oak Forest residents generate about 20,000 gallons per year.

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Image via City of Oak Forest