Coronavirus Creating Significant Financial Losses In Orland Park

ORLAND PARK, IL — Nearly two months into the coronavirus pandemic, the financial impact of the crisis has already begun to be felt locally in Orland Park. While there hasn't been any specific numbers released, and predicting the residual effect of the pandemic will be even more difficult, officials can already tell the financial impact could run deep and create significant losses.

"We are estimating a double digit decline," said Annmarie Mampe, finance director for the village of Orland Park.

This decline could be more significant in Orland Park than other towns of its size. That's primarily in the area of sales tax revenue, Mampe said.

"We've already basically lost two months worth of revenue from the (Orland Square) mall being closed and the restaurants being closed," Mampe said. "A lot of them (restaurants) have curbside pickup, but I don't think people are visiting as much and that's not going to make up enough of the difference."

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In addition to the loss coming from the mall closure and the decline in revenue from the nearly 200 restaurants in Orland Park, a significant hit is also coming from the car sales industry.

"Driving up and down 159th Street you can find pretty much any make and model of vehicle," Mampe said. "Some of that is Tinley Park, but there are a great number of dealerships in Orland that have been affected as well."

"They are still selling cars under a modified business plan, but we are thinking that is slowing down significantly also," Mampe said.

The Darvin furniture store in Orland Park, which has been closed since March, is another big revenue generator that's adding to the projected loss of sales tax revenue she said.

GPS data has been used to track visits to areas of the village that normally bring in the most sales tax and those numbers since March "have been virtually non-existent."

"And we are not going to make up that revenue, either," Mampe said. "It's not like people are going to start spending double once everything is opened back up. Especially with unemployment the way it is and people not being able to spend as much money."

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The loss of property tax revenue as a result of the pandemic is expected to be less intense than the hit taken from the loss of the sales tax revenue, Mampe said, because although many property tax payments will be collected much later than usual, "they will be collected eventually."

Income tax losses will also be felt, Mampe said, pointing to an unemployment number that's risen to the area of 20 percent amid the pandemic.

"Income is going to be down too," she said, adding that lower income tax collections could create a residual effect for multiple years to come.

Sales tax and income tax combined make up more than 50 percent of the revenue in Orland Park, according to Mampe.

So what is the village going to do to offset some of these financial losses, many of which have yet to be seen and impossible to estimate?

For one, the village has eliminated about $1 million worth of planned capital projects this year alone Mampe said. Budget cuts are also occurring in the form of staffing changes, with Mampe saying the village will "likely reduce our force even more than we have in the last few years."

Mampe, whose been the finance director in Orland Park for the past 17 years and who Mayor Keith Pekau says is set to retire from her role shortly, said the village is "looking at it daily" and "doing some longterm financial forecasting" in hopes of soon having a more precise estimate at the losses caused by the pandemic.