Forest Park Passes Audit but Faces Ongoing Financial Challenges

Village commissioner proposes new restaurant tax to boost revenue as expenses continue to outpace income

Published on Feb. 17, 2026

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Despite passing its most recent financial audit, officials in Forest Park, Illinois say the village has not shown improvement in its overall financial stability. The village's general fund decreased by $1.3 million in 2025, leaving just $252,000 in the fund balance. While the water fund saw a $7.7 million increase, the village's finance director warned this was largely due to one-time occurrences rather than sustainable revenue sources. Commissioners are now considering a 2% tax on food and beverages at local restaurants, which could generate an estimated $1 million in annual revenue, as they look to address the village's ongoing budget deficits.

Why it matters

Forest Park's financial troubles highlight the challenges many municipalities face in balancing budgets and funding critical services and infrastructure. With pension obligations and long-term debt weighing heavily, the village is under pressure to find new revenue streams beyond property taxes, which make up the majority of its income but are largely earmarked for pension contributions. The potential restaurant tax is one option being explored, though it faces pushback from some who don't want the burden to fall solely on residents.

The details

According to the 2025 audit presented by accounting firm Lauterbach and Amen, Forest Park's general fund decreased by $1.3 million, leaving just $252,000 in the fund balance. However, the village's water fund saw a $7.7 million increase, bringing its ending net position to $39 million. Finance Director Letitia Olmsted warned that the water fund increase was largely due to one-time occurrences rather than sustainable revenue sources, and that the village still needs to be financially cautious due to underfunded pensions and long-term debt. Commissioner Maria Maxham emphasized that revenues in 2026 are not expected to offset rising expenditures, which are budgeted to increase by 0.5%.

  • The 2025 financial audit was presented at a February 9, 2026 council meeting.
  • The village plans to hold another open meeting in the spring of 2026 to further discuss its budget goals.

The players

Maria Maxham

A commissioner in Forest Park who has emphasized the need for the village to increase its revenue streams, including by reconsidering a proposed 2% tax on food and beverages at local restaurants.

Letitia Olmsted

The finance director for the Village of Forest Park, who warned that the village's financial situation remains precarious despite passing its latest audit.

Joe Laudont

A principal at the accounting firm Lauterbach and Amen, which conducted the audit of Forest Park's 2025 finances.

Rory Hoskins

The mayor of Forest Park, who noted that the village expects to receive around $1 million per year in reimbursements from the new Northern Illinois Transit Authority for first responder calls to the CTA station.

Jessica Voogd

A commissioner in Forest Park who expressed concern about placing the burden of generating new revenue solely on residents, and said a restaurant tax could help raise money from non-residents who dine in the village.

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What they’re saying

“In my opinion, this does not show an improvement in financial stability.”

— Letitia Olmsted, Finance Director (Email to Commissioner Maria Maxham)

“I am nothing short of begging you guys to establish the places of eating tax.”

— Maria Maxham, Commissioner (Forest Park Village Council Meeting)

“I'm a strong proponent of not wanting all of the responsibility of creating new revenue to fall on the backs of residents.”

— Jessica Voogd, Commissioner (Forest Park Village Council Meeting)

What’s next

The village plans to hold another open meeting in the spring of 2026 to further discuss its budget goals and potential new revenue sources, including the proposed restaurant tax.

The takeaway

Forest Park's ongoing financial challenges underscore the difficult decisions many municipalities face in balancing budgets, funding critical services, and identifying sustainable revenue streams beyond property taxes. As the village explores options like a restaurant tax, it will need to carefully weigh the impacts on local businesses and residents against the need to address its structural deficits.