Oak Lawn village trustees thanked village administrators Tuesday for their work on a balanced budget to take effect Jan. 1, approved 6-0, that projects a total of $277 million in expenses and $256 million in revenues, which includes a 4.7% village property tax levy increase.
“We do it year after year, and I think it gets taken for granted because we do such a good job. You look on the news at what’s going on in the city of Chicago, and you look at the village of Oak Lawn: Where would you rather live?” Trustee Ralph Soch asked, referencing the conflict between Chicago Mayor Brandon Johnson and aldermen.
“It was a difficult budget,” Village Manager Thomas Phelan. “We started six, eight weeks ago with an $8 million projected deficit, and through a coordinated effort with all our department heads and chiefs worked very hard to focus on needs, not wants.”
Phelan said village staff prioritized “cutting down as much as they could” considering future economic uncertainty and “all the political drama and fighting” nationally.
“A lot of what we pay is labor, and you really can’t cut that — lot of it’s driven by collective bargaining agreements,” Phelan said. “But there was a great effort.”
The budget projects Oak Lawn will take in about $1,300 less in revenues than expenditures in 2026, with funding help coming from increased water rates and a board vote earlier this year to continue the state’s 1% grocery tax that generates an estimated $2.2 million annually.
The village;s library board plans to levy $5.9 million in property taxes while the village levies $15.1 million, according to village documents. Together, homeowners can expect an overall tax levy increase of 4.4% compared to 2025.
Overall charges for village services are expected to reach about $14 million in 2026, representing a 3.7% increase from last year, according to village documents.
The Village Board voted Tuesday to increase water rates 6.8%, effective Jan. 1, from the last set rate in June 2025, charging $8.61 per 1,000 gallons for up to 9,000 gallons.
Those who use between 9,001 and 30,000 gallons will be charged a rate of $8.96 per 1,000 gallons, and those who use more than 30,000 gallons will be charged $9.31 per 1,000 gallons.
Village finance officials declined to be interviewed but in a statement said the village raised water rates in response to proposed state legislation to require all lead service lines be replaced by 2044. The village expects to fund the $20 million lead service line replacement project with an interest-free loan, and the water rate increases will fund a repayment plan for the first year.
As of June 2025, Chicago charges its residents $4.89 per 1,000 gallons, according to the city’s website. Orland Park will charge residents $10.49 per 1,000 gallons for the first 7,000 gallons in 2026.
Canceled contract
The board also voted to cancel a contract with Lisle-based Earthwerks Land Improvement & Development Corp., which village officials said began work on a landscaping project before receiving permission to do so.
Earthwerks began constructing a berm at the Palos Hills Golf Course to cover a water transmission line Nov. 6, and the village said it instructed the company to stop the work Nov. 7.
Company owner Daniel Davies expressed surprise Oak Lawn officials planned to cancel its contract after having worked successfully with the village in the past.
“We got going for multiple reasons — we were fully stopped,” Davies said. “If you have to cancel our contract for something that’s in the best interest of the village of Oak Lawn, I can completely understand that. I’ve been doing this for 30 years, but I haven’t had a phone call in almost a month to give us any direction.”
Phelan disputed some of the contractor’s claims, saying Earthwerks threatened to sue the village before a contract had been signed.
“So the village itself has to do what’s right and make sure that we’re looking out for our individual needs,” Phelan said.
Village documents state the village received a letter from Earthwerks’ attorney Nov. 14 saying the village “implicitly approved” an early start on the project and that it was stopped improperly. The letter also stated the village owed the company $300,000 in costs, according to the village.
“Since the Village received a legal letter just as the project started, management recommends terminating our relationship with Earthwerks and find an alternative contractor,” the village stated in a summary of its request to end the contract.
Another settlement
Two weeks after settling two lawsuits costing the village almost $900,000, one of which accused a police officer of beating a 17-year-old before he was arrested, the board approved an additional $150,000 settlement Tuesday.
The lawsuit brought by Hilda and Estaban Cervantes alleged that Alexander Robles, an Oak Lawn police officer at the time, crashed into their vehicle after attempting a U-turn in February 2024, according to the lawsuit.
The collision between Robles’ police car and the Cervantes’ vehicle led to both Estaban and Hilda Cervantes sustaining “severe and permanent injuries” that prevented them from their usual activities, losing wages and racking up “large sums of money for medical care and services,” the lawsuit states.
In exchange for the settlement money, Estaban and Hilda Cervantes agreed to take responsibility for medical and attorney’s fees and release the village from all liability claims, according to the agreement.
ostevens@chicagotribune.com
