For the Record

Sept. 10, 2020
Dave Niemeyer Headshot (small)
Although we’ve made great progress in combating the spread of COVID-19 here in Tinley Park, we’re unfortunately still feeling its impact. Whether it’s the continuing risk it poses to public health or the negative effect it’s had on everyone’s wallet, it seems we’re not quite out of the woods yet. Thankfully, the Village planned ahead and had money in reserve for an emergency such as this. As a result, things aren’t quite as dire as they could’ve been.
 
Back in April, in anticipation of the financial impact that COVID-19 would have on Tinley Park, the Village devised a spending plan to reduce the 2021 budget by $6.7 million. We did this through eliminating, deferring or resizing projects and nonessential services, deferring new hiring and other operating expenditures, eliminating training, reducing overtime and reorganizing staffing. At the time we didn’t know how severely the pandemic would affect the Village. Based on conservative estimates, we anticipated total revenue loss to be $14 million.
 
Through August, underperforming revenues are down about $3.6 million from last year. This includes sales taxes (municipal 1 percent and home rule), which is down $1.1 million. Amusement tax is a total loss of $1.2 million due to the music theater canceling its schedule. Video gaming was disconnected through June, which cost the Village about $150,000. Other revenue streams are down as well; motor fuel tax fell by about $120,000, the hotel tax by about $640,000, and the commuter parking revenues by $260,000. As of this writing, our General Fund is down about $2.6 million from this time last year.
 
On the bright side, our Use Tax is up about $133,000, and the New Motor Fuel Transportation Renewal Fund is up around $321,000, meaning our revenue loss is closer to $3.1 million. We’ll continue to monitor our finances on a monthly basis to ensure we’re continuing to operate within our means.
 
Keep in mind that these losses occurred during the months the Village was shut down due to quarantine, so we should see revenues start to normalize this month. If we stay the course with our current spending plan, I’m confident we’ll start to see the numbers begin to creep back into the black in no time.
 
Residents can do their part by remembering to wear face coverings and maintaining safe social distances while they’re out and about. If we all work together, we can prevent Tinley Park from reverting to an earlier, more restrictive phase of the State’s Restore Illinois plan that would put further stress on our finances.
 
As always, please feel free to contact me at dniemeyer@tinleypark.org if you have any questions or concerns.

Niemeyer Signature