Arlington Heights budget down 4.3 percent

The proposed Arlington Heights budget of $135 million for the fiscal year starting May 1 is down 4.3 percent from the current year, but the $64 million general fund is up 2.4 percent.

The village board will discuss the budget department by department in special meetings over the next few weeks before a public hearing and budget adoption in April.

The rise in the general fund is due to police and fire pensions and an increase in health insurance costs that actually turned out to be smaller than expected, said Thomas Kuehne, director of finance.

The proposed budget does not take money from the village’s reserve fund, unlike the two previous years when a total of $4.5 million was withdrawn.

Last month, 13 employees retired voluntarily in exchange for two years of free health insurance. The village is not replacing 4.5 positions for an annual savings of $485,000, including benefits. In addition, $113,000 will be saved because others have been replaced at lower salaries. The estimated $61,000 to pay for this program comes from the village’s health insurance fund.

One person in information technology was laid off, and two vacancies will not be filled, said the budget report from village Manager Bill Dixon.

The village has 46 fewer employees than three years ago. Previous years saw more extensive layoffs than this one foresees, as well as ending some programs such as the Teen Center and Too Good for Drugs.

Other reductions in the proposed budget include capital spending and debt service costs.

While 0 percent has been budgeted for salary increases, it is not known what collective bargaining with police and fire unions will bring this year, said Dixon.

Step increases based on longevity are included in the budget, said Kuehne, but that will only affect one-third of the 427 staff positions.

The village’s income continues to decline with decreases in revenue from income, telecommunications and hotel taxes as well as drops in building permit fees and interest payments.

The board increased the utility tax on electricity and natural gas from 3 percent to 5 percent starting last month. A 5 percent increase in water and sewer charges each year for five years was instituted last year.

The village board’s first meeting on the budget was March 2. Future meetings are at 7:30 p.m. March 10, 14 and 16 at village hall, 33 S. Arlington Heights Road.

The proposed budget is posted on the web at vah.com.