Oak Lawn avoids property tax hike

But village decides to increase water rates for residents

The Oak Lawn Village Board unanimously approved a $207.8 million budget for next year which includes an increase in water rates.

About $75 million of the budget approved Tuesday is for the water department, which besides maintaining the pipes and providing water to Oak Lawn residents sells water to other communities.

Oak Lawn is raising the water rates for residents to address an operating deficit, the staff reported.

Effective Jan. 1, the cost will go up from $6.77 to $7 per thousand gallons for the first 9,000 gallons a home uses.

That’s a 3.3% increase. For 9,001 gallons to 30,000 gallons used in a quarter, the cost will rise 7 % from $6.87 per thousand gallons to $7.35 per thousand gallons.

Anyone using more than that in a three-month period, will pay $7.70 per thousand gallons, up from $6.97, for water use above 30,000 gallons. The minimum quarterly charge for residents also will go up from $60.93 to $63.

Oak Lawn will adjust the rates it charges other towns for water, based on a review of its water service agreements.

The village gets the water it sells from Chicago and expects the city to raise its water rates by 5% on June 1. Oak Lawn will pass along the increase at that time to all its water customers.

The 2023 budget allocates $24.8 million for Police Department operations, which is nearly $1 million more than what is expected to be spent this year; $6.18 million for police pensions; $20.6 million for the Fire

Department, which would be $794,000 more than the projected 2022 expenses; and $5.56 million for firefighter pensions.

In 2022, the village budgeted $446,800 for police overtime, but is on pace to spend nearly double that, $870,694, by year’s end, due to officers having an on-the-job injury, being on family medical leave or covering protests or other events.

The 2023 budget has $658,500 for police overtime.

Because the income tax and sales tax collected in 2022 exceeded what was budgeted, village officials said they had extra money to contribute to the police and firefighter pensions this year, above and beyond what the state requires.

The village expects it’s share of the state income tax will reach nearly $8.8 million by the end of this year, which would be nearly $2 million or 29% more than the $6.8 million budgeted.

Village officials used this year’s surplus in sales and state income tax to increase their pension contributions by $2 million. The village put an additional $1 million for a total of $6.8 million in the police pension fund and added $960,000 for a total of $6.25 million to the firefighters’ pension.

Village Trustee Alex Olejniczak said the board wants to show the police force and firefighters that the village appreciates the important work they do.

“We ... are putting $2 million more than we are required to show the faith and our dedication to our people who take care of us everyday,” Olejniczak said. “We are making sure we fund their pension to make sure they have what they worked a lifetime for, that they can look forward to that.”

Anticipating a recession in 2023, village officials do not expect to receive as much income tax next year.