Cloud looms over Arlington Heights budget
Arlington Heights is budgeting for the upcoming year with a $180.35 million spending plan, but the ongoing state budget stalemate continues to "loom over all of us," village officials said Monday.
The village board and staff met Monday night for the first of their 2017 budget meetings to go line by line on proposed village department spending next year. But discussion also centered on the threat of the state raiding municipal coffers to help pay its bills.
In Arlington Heights, 43 percent of general fund revenues pass through, or are shared by, the state.
There's always the threat of some of that money being withheld temporarily - which has happened before - or even permanently, said Village Manager Randy Recklaus.
If that occurs, the village would first look to make changes to its capital project plans. At some point, it might have to seek to raise new revenues to cover losses, Recklaus said.
But the village also has a healthy $28 million reserve fund balance, he said.
"We still have work to do here and a town to run, and residents expect things of us and don't feel we can put everything to a halt," Recklaus said. "We need to continue to do our jobs, despite that looming over us."
Village President Tom Hayes said he almost regretted publicizing that the village's reserve fund balance is equal to 39 percent of general fund expenditures - above the 25 percent level recommended under best practices.
"There are some who think municipalities, because of their financial strength, can help pay for some of the state's financial woes," Hayes said.
Finance Director Tom Kuehne said the current level of reserves is a moderate level, since some towns are above 50 percent.
Trustee Mike Sidor asked Kuehne if there was anything that kept him awake at night.
"If everything stayed constant the way it is right now, we're fine," Kuehne said. "But when you look at what the state is going through, they're spending a lot more money than they're taking in, and something is going to happen eventually and it's going to affect everyone in the state. That keeps me awake at night."
Along with the budget, village officials are proposing a 1.38 percent tax levy hike to cover a $2.7 million increase in street infrastructure spending next year. For the owner of a $300,000 home, that would mean an increase of about $19 on the village's portion of property tax bills.
The village board's review of the proposed budget continues at 7 p.m. Wednesday in the board room on the third floor of village hall, 33 S. Arlington Heights Road. A third meeting, if needed, will be held Thursday.