Arlington Heights Board of Trustees Approve Allocation of $12.4 million Budget Surplus

March 14, 2023
General Fund Surplus 3.14.23 At the Village of Arlington Heights Committee of the Whole Meeting on Monday, March 13th, the Village Board approved staff recommendations for distribution of the 2022 General Fund surplus of $12.4 million.

The Village’s 2022 General Fund surplus was a result of conservative expenditure projections, as well as higher than anticipated tax revenue from Food & Beverage, Home-Rule Sales, Sales, Income, Replacement, and Interest Income. It is not anticipated that ongoing revenue gains will continue at this pace in future years. Therefore, recommendations are focused on one-time capital projects that have been identified by Department Heads, unfunded mandates, and a $1.6 million of property tax relief for residents.

A 2022 year-end budget amendment will be placed on the March 20, 2023 Village Board Agenda, to distribute the Village’s $12.4 million General Fund surplus to the following funds:
• $100,000 to the Capital Projects Fund
• $500,000 to the Municipal Parking Fund, due to decreased commuting and ridership
• $2,000,000 to the Fleet Fund, due to increased costs of vehicle purchases
• $3,000,000 to the Lead Service Line Replacement Fund, to address an unfunded mandate
• $1,200,000 to the Water & Sewer Fund, an approved Capital Project
• $1,600,000 of 2022 General Fund Surplus Monies Used to Abate the Village’s 2022 Tax Levy Payable in 2023. This will temporarily reduce every taxpayer’s property tax bill payable this year
• $2 million to the Firefighters’ Pension Fund to offset recent market declines
• $2 million to the Police Pension Fund due to offset recent market declines

As listed above, the Village plans to allocate $1.6 million to the Village’s 2022 Tax Levy Payable in 2023, to help reduce the amount of property taxes paid by residents this year. The effect of this abatement on an average homeowner with a $375,000 home value would be a savings of about $50.

“The Village is fortunate to be in such a strong financial shape, and fortunate that we are in a position to ease the tax burden on our residents and businesses somewhat during these uncertain times,” said Mayor Tom Hayes.

2024 Vehicle Stickers and Dog Tags Under Consideration
Additionally, Staff recommended the elimination of Village vehicle stickers and dog licenses in 2024 and beyond, pending any unforeseen dramatic reduction in Village revenues. Residents who have not yet purchased their 2023 Vehicle Stickers are still required to do so. Formal recommendations will be included as part of the annual budget planning process, starting with the 2024 Budget Ceiling discussion at the June 2023 Committee-of-the-Whole Meeting. Learn more about the budget visit