Arlington Hts. water rate may rise

Arlington Heights residents should only expect a slight property tax increase next year.

This is pretty typical.

What isn't typical is for the first time in 10 years, the village's water and sewer tax is also expected to increase.

Trustees and Village President Arlene Mulder heard from Thomas Kuehne, the village finance director and treasurer, at a committee meeting on Tuesday. No official votes were taken at the meeting.

The water and sewer tax has remained steady despite several major projects over the past few years, including installing the automated meter reading system and the Lynnwood utility system, Kuehne said.

"We're charging people what it costs us," said Mulder about the water and sewer fund. "It's not like we're making a profit."

To increase the fund, trustees supported a 4.25 percent increase in the water and sewer tax for the next two years. This would cost the average Arlington Heights homeowner an additional $30 per year.

Arlington Heights resident Phil Walter wanted some more information on the water and sewer tax, which he called "the village's piggy bank."

"When you needed money for the village hall, you pulled $2 million from that fund," Walter said.

Kuehne confirmed Walter's $2 million figure, but said it was justified for a $30 million building. The village's auditors would've allowed $3 million, Kuehne said.

Arlington Heights operates on a May 1 to April 30 fiscal year. The village board also heard that next year's general fund will increase by more than $3 million. This fiscal year, the owner of an Arlington Heights home with the market value of $340,000 paid about $800 in village taxes. If approved, the new levy jump would have homeowner with a $355,000 home paying $827 in village taxes, Kuehne said.

These latest figures are for the tax bills payable in March and September 2008.

The village's general fund is expected to increase from about $58 million this year to about $61.5 million next year. The general fund pays for most village services, but about 79 percent is slated for wages and benefits.

Village property taxes comprise about 10 percent of a total resident's tax bill. The library is about 5 percent.