Arlington Heights' 2014 property tax levy not increasing

Arlington Heights residents will see no increase to the village's tax levy next year as the village prepares for a change to its fiscal year.

The village board on Monday approved the 2014 tax levy, which will apply to a one-time shortened fiscal year that will run from May 1, 2015, to Dec. 31, 2015. Starting in 2016 the village will operate on a calendar-based fiscal year, said Finance Director Tom Kuehne.

The total amount for the village levy will come out to $45,021,154, according to village documents.

"A big part of this is because of the change in our fiscal year," Kuehne said. "It's nothing staff has magically done to make these numbers better."

Due to the shortened year, some village costs, but not all, will be lower, leading to a projected one-time budget surplus of $2 million, Kuehne said.

The board has directed the village to put that $2 million toward renovating the four public parking garages in Arlington Heights.

Also helpful toward getting a zero percent levy increase, Kuehne said, sales tax revenues have been rebounding since the recession.

Of a resident's annual property tax bill, the village receives about 11 percent, while area schools receive about 66 percent, the library receives about 5 percent and other taxing bodies make up the rest. The Arlington Heights Memorial Library will also have no increase levy this year.

"This is all very much about balance," new Village Manager Randy Recklaus said. "This is an overall picture of where we are today and what our needs are going to be on an ongoing basis in the future."

Trustee Bert Rosenberg, an accountant and often fiscal hawk on the board, pointed out that while he was happy the tax levy did not increase, the village is still facing a number of expensive projects in the next few years that will need to be paid for somehow.

"We still have an uphill battle for things we're going to have to fund and figure out how to pay for," Rosenberg said. "We're going to be up against it with some new expenditures, but I really think we're doing the right thing here with the zero percent."

He cited the new police station, fixes to long-term flooding issues and others among the upcoming expenses for the village.

"I think the residents are going to appreciate it a lot," said Trustee Jim Tinaglia of the zero levy. Several other trustees praised staff members on the levy before its approval.

"It's something we can't do every year, but we're happy to do so now," Kuehne said.