Village Proposes 2018 Budget of $183.325 Million

Village Proposes 2018 Budget of $183.325 Million
Posted on 11/02/2017

The Village’s proposed 2018 Budget, which runs from January 1, 2018 through December 31, 2018, is $183.325 Million. The total expenditures for all operating, capital and other funds proposed for 2018, not including the Arlington Heights Memorial Library, amounts to a decrease of 2.1% or $3.9 million over last year’s budget.

This decrease is primarily attributable to the following capital expenditures:

  • 2017 was the last year for the Emerald Ash Borer (EAB) program which included removal and replacement of 13,000 parkway ash trees over a seven year period. Last year’s budget included $6 million in EAB expenditures which are no longer budgeted in the proposed 2018 budget.

  • For 2018, other capital costs, including parking garage renovations, water capital projects, and fleet replacement costs will be lower than the prior year. These lower capital costs in 2018 are offset by the new $2.3 million storm water control projects budgeted in 2018. These changes result in a net decrease of $485,000 in other capital costs.

Total expenditures for 2018 exceed total budgeted revenues due to proceeds from the 2016 bond issue used for the construction of the new Police Station. The bond revenue was recognized in 2016, but is being spent in 2017 and 2018. Budgeted construction costs for the Police Station in 2018 are nearly $14 million out of the total projected costs of $27.9 million to complete the new station.

The proposed 2017 property tax levy for the Village and Library, which is incorporated in the proposed 2018 Budget, shows a 2.61% increase. This proposed tax levy is payable in 2018.  For a homeowner with property valued at $300,000 it is estimated that there will be an approximate increase of $33 for the Village’s portion of the property tax bill. The estimated $33 increase will be used to offset lower sales, income, and telecommunication tax receipts.  Sales and income tax receipts have historically represented the Village’s annual growth revenues.   

Since the 2011 levy year, four out of six of the previous Village property tax levies included 0% increases for operations. The two most recent budgets actually decreased the portion of the levy attributable to operations, with 100% of the increases going towards funding higher levels of road improvements.  

For the 2018 Fiscal Year, the Village will plan a number of initiatives to help stabilize its revenue base by exploring new revenue sources and continue to update existing revenues to help offset flattening sales and income tax revenues.  

There were a number of Village staff position changes this past year that led a decrease in the Village’s personnel count by 1.5 positions in the proposed 2018 Budget.  This now reflects a decrease of 46 positions, or nearly a 10% decrease since Fiscal Year 2009.

The Village’s proposed 2018 Budget continues to focus on covering the costs of maintaining our basic infrastructure and public safety needs. If the Village deferred any funding on critical maintenance programs, the Village could face escalating costs in future years.

The proposed 2018 Budget also includes funding for various capital projects including:

  • $6 million for the Street Resurfacing Program (this is an ongoing program to resurface or rehabilitate existing deteriorated street pavement and curbs).
  • $1.8 million for the Street Rehabilitation Program (reconstruction of significantly deteriorated pavement, curbs and concrete panels).

 Significant flood control projects included in the proposed 2018 Budget:

  • $300,000 for Backyard Draining Improvements (public drainage improvements involving the public right-of-way)
  • $500,000 for Storm Water Rehabilitation/replacement Program of the Village’s system (a multi-year program that includes lightly cleaning, televising and analyzing the condition of the Village’s system.)  
  • $1,050,000 for the Enhanced Overhead Sewer Program (program that offers a rebate to single-family homeowners of the direct costs of converting an existing gravity sewer system to an overhead system.)
  • $2,100,000 for Street Ponding Campbell/Sigwalt (installation of large storm pipes in the area to help prevent street and surface flooding.)

The Village Board’s review of the proposed 2018 Budget will begin Monday, November 13 at 7 p.m. in the Board Room located on the third floor of Village Hall, 33 S. Arlington Heights Road. A second meeting will be held on Wednesday, November 15 at 7 p.m. and if needed, a third meeting will be held on Thursday, November 16. All meetings will be held at 7 p.m. in the Board Room.