Arlington Heights budget down 13 percent next year

Finances look better for the village of Arlington Heights, with next year’s proposed $137.5 million budget representing a 13 percent decrease in spending, thanks mostly to the refinancing of bonds issued in 2004 to remodel the public works garage and build a new main fire station.

The village is not seeking a property tax increase for the fiscal year that starts May 1, and sales tax revenue is on the rise, with staff predicting it will increase 1 percent next year.

Employees probably will receive 2 percent raises after a year without pay hikes, and there should be no layoffs, said Village Manager Bill Dixon.

The village board began budget reviews Wednesday and will hold more meetings on the spending plan at 7:30 p.m. March 12, 15 and 21.

Over the last decade the village has reduced staff by 46 positions, or 10 percent, including layoffs and program cuts. Other cost-saving measures enacted by the village include this year’s pay freeze and using equipment longer before purchasing replacements.

The 2 percent raises that Dixon expects across the board mirror those negotiated by police and fire unions.

The proposed budget has a new $2 million fund to start removal and replacement of trees infected by the emerald ash borer. Eventually replacing the 13,000 ash trees on parkways will cost about $11.5 million, staff has estimated, and the village plans to sell bonds in 2013 or 2014 to raise that amount.

The village is not planning to spend any money helping residents treat parkway ash trees, but Dixon hinted earlier this week that could change during the budget talks.

“Some board members have shown some interest in seeing if there’s a way to assist homeowners,” he said.

The emerald ash borer fund will be discussed Thursday, March 15, as part of the Public Works meeting, which will be held in the Commissions Room on the second floor of Village Hall.

Flooding has been another serious problem for homeowners, especially after the heavy rains of July 23. The proposed budget calls for $350,000 to study the sewer system, how it functioned during that storm and to develop cost-effective recommendations to improve the system.

Another major item is the police station, which will need $1.4 million in improvements over the next five years, including brickwork and windows, officials say. Staff expects to present a long-term plan in August for eventually replacing the station, said Dixon.