Arlington Hts. closes books with $4 million surplus
When it comes to budgets, this is a nice problem to have, according to Arlington Heights Village Manager Bill Dixon.
Officials found themselves with a $4 million general fund surplus when the village's fiscal year ended on April 30. The general fund pays for most village services, with about 77 percent slated for employees' wages and benefits.
"This is a good news issue," Dixon told village trustees at Monday's board meeting.
The surplus is due to several items that brought in more money than expected.
The first is that more people applied for building permits -- which brought in an additional $1 million. The second is interest on village investments brought in an extra $750,000, said Tom Kuehne, director of the village's finance department.
Other smaller fees such as false alarm fees and drunken driving fees also performed better than expected, he said.
The $4 million is not going back to the taxpayers or into a rainy day fund. In fact, it's already been redirected into three areas.
About $1 million will go to resurfacing an additional 2.5 miles of residential streets next summer.
Another $2 million will go into the village's workers compensation and liability fund. In the past two years, the village has settled several expensive claims from workers. That fund now has $950,000 and should have between $1.5 and $2 million, Kuehne said.
About $850,000 will be set aside in an account for future projects, such as a parking lot. The redevelopment fund will never expire although the village board could later vote to spend the money on other things, Kuehne said.
"There is nothing the village is looking to purchase right now," he said.
Trustee Norm Breyer questioned village officials about the surplus at the board meeting but left satisfied with Kuehne's answers.
"As long as we realize this fund isn't an open check book so to speak, I don't have a problem with this," he said.
Village President Arlene Mulder said the village hasn't seen a surplus like this in years.
"It's rare, and we're very fortunate," she said. "We will handle it wisely."
For the 2007-08 budget year, Kuehne said he is projecting a $200,000 surplus.