2022 Proposed Budget and Opportunity for Questions

Village's 2022 Proposed Budget Reflects 0% Tax Levy Increase
Posted on 10/28/2021

The Village’s proposed 2022 Budget reflects a 0% property tax levy increase, which meets a Strategic Priority of the Village Board to keep any proposed property tax increase as low as possible. The $191.5 million budget includes a decrease of 4.6%, or $9.2 million, from last year’s total expenditures for all of the Village’s operating, capital and other funds. The Village’s fiscal year runs from January 1, 2022 through December 31, 2022.

The 0% increase in the property tax levy and reduction in expenditures are due to a variety of factors, including:
Sales and Home-Rule Sales Tax receipts reflecting an 11% to 12% increase from the 2021 Budget;
Income Tax receipts reflecting a 21% increase from the 2021 Budget;
A decrease in the Village’s Northwest Central Dispatch annual assessment of $84,900 from the 2021 Budget;
Cannabis related sales taxes meeting or exceeding expected figures;
Reductions in Legal Department expenditures with the elimination of the In-House Counsel position and the shifting of DUI enforcement from the Village Prosecutor to the State’s Attorney.

The proposed 2022 Budget plans continued investment in the Village’s Stormwater System including the Burr Oak / Burning Tree / Berkley / Hintz Road Area ($2,672,000). The Village will also be continuing with the ongoing Backyard Drainage Improvements ($400,000) project and the Storm Sewer Rehabilitation/Replacement Program ($500,000).

The Budget also continues to focus on maintaining our roads and water systems with funding included for various capital projects including:

Street Program ($5,600,000 – Capital Projects Fund) – This is an ongoing program to resurface or rehabilitate existing deteriorated street pavement and curbs.
Watermain Replacement Program ($4,100,000 – Water & Sewer Fund) – This is an ongoing project to replacement aging watermain infrastructure. The proposed $4,100,000 annual expenditure is enough to replace an industry standard of 1% of the Village’s overall watermains.
Street Rehabilitation Program ($4,000,000 – MFT Fund) – This is an ongoing street rehabilitation program consisting of the reconstruction of significantly deteriorated street pavement, curbs, and concrete panels. 

Ask Questions About Proposed Budget (Scroll down for Q&As) 
We invite residents to review our proposed 2022 Budget, which represents the Village’s plan for allocating its resources. Anyone who would like to ask questions regarding the proposed budget, please email [email protected]. All questions from the public will be included on a list of formal responses to these questions, which staff will begin to post on the Village’s website by November 5th.  Additional questions and answers beyond this date will be included as they are received.

The Village Board’s review of the proposed 2022 Budget will begin Monday, November 8 at 7 p.m. in the Board Room located on the third floor of Village Hall, 33 S. Arlington Heights Road. A second meeting will be held on Wednesday, November 10 at 7 p.m. and if needed, a third meeting will be held on Tuesday, November 16. All meetings will be held at 7 p.m. in the Board Room.

Click here to review Budget Variances by Department (a document listing and explaining budget variances by Department for the proposed 2022 Budget.)

Questions and Answers From Community Regarding Budget as of Nov. 9, 2021

Anyone who would like to ask questions regarding the proposed budget, please email [email protected]Updates will be shared below as they are received. 

1. In regards to backyard drainage, has anyone proposed a rebate for installing a professionally-designed rain garden to prevent water from burdening the storm system at all? I believe Glenview has had this program for quite some time.
The Village is continually looking at ways to effectively manage stormwater. Current codes are under review for how to incorporate Best Management Practices (BMP’s) for stormwater, including items like rain gardens, permeable pavers and bioswales for single family homes. The Village currently has an overhead sewer rebate program, and consideration of a BMP rebate program will be part of the review process.

2. Al Fresco area food and budget tax:  I’d like more information about this proposed tax, so will this be addressed when we discuss Al Fresco in December? If so I don’t need a response at this time.
This will be discussed further at a meeting in December.

3. Pages 26 and 27:  The ending fund balance for 2022 is different between the two pages by $300,000.  Why is that?  Am I missing something?  Also, on these two pages, there are different years at the top of the columns so maybe there’s a typo?
Page 26 is the correct figure; the projected ending fund balance for 2022 is $32,722,474. We added an additional $300,000 to our 2021 projected actual state income tax revenue and for some reason it did not refresh on page 27.

4. Page 82:  Why is there a large increase in past due/in collection for ambulance services?
The reason for the large increase in Past Due/In-Collections category for Ambulance Billing on Page 82 is in 2020 we had 136 more accounts past due.  The increase of 136 accounts in 2020 at a $1500 fee, amounts to a $204,000 increase over the prior year.  

5. Pages 197, 267, and 277:  All of this has to do with the streets and sidewalk repair, specifically the paver brick replacement program.  Does this funding include work to be done in the central business district north of the tracks?  I noticed today that there are broken and sunken bricks on Miner alongside the North parking garage, and they’re especially sunk alongside the curb. Definitely a potential trip hazard!
Road and sidewalk funding is not specific to any location but is available for projects throughout the community based on assessment.  The Brick paver program was created to improve the downtown sidewalks and ramps as they had not been focused on since the original design.  This program is also based on assessment and is for the entire downtown, both North and South of the tracks. The recent change to Special Needs ramps throughout our community has significantly affected our ability to improve the brick sidewalks.  Every intersection touched, leads to about $10,000 + of ramp improvements unplanned at the inception of the program. Additionally, this is the first report the Village has received of the trip hazard at this location, and an inspector was sent out the morning of November 8th. A contractor will repair the area this year.

6. I believe that the use of village vehicle stickers is not only bad for the environment, but it also wastes the time and resources of the village staff. What is the amount of revenue that these stickers bring in? Consider the revenue from the parking tickets for residents that don’t comply, as well as the money that comes in from the sticker purchases. Could that revenue be added back to the budget by increasing the roads/maintenance tax for each resident that files taxes in Arlington Heights?

Think of the years upon years of thousands of plastic stickers ending up landfills that will never decompose…the amount of gas that is used while parking enforcement officers idle their vehicles to write tickets for not complying…the envelopes, paper, fuel, manpower, etc to mail out the stickers…the manpower to monitor the usage of the stickers.
Just think of what could be accomplished if this program was replaced by a simple increase of $20 or so per taxpayer in the village. If a proposed .5% tax will bring in a possible $90,000 to cover alfresco costs, just think how easy it would be to set an example for other communities, and eliminate this program.

Arlington heights is among many towns that still use vehicle stickers, but other nearby communities have already moved away from their usage. Elk Grove Village does not use vehicle stickers. Can we learn from their business model, and do better? Thank you for considering.

Thank you for reaching out. Seeking to identify, explore, and implement sustainable green initiatives is one of the Village’s 9 Strategic Priorities for 2022 to 23. We do look closely at all of our revenue sources to see what impact they have on individuals and families and the community as a whole. While there are certainly pros and cons to the Vehicle Sticker program, it is a significant source or revenue for the Village, generating over $1.3 Million per year. If it were to be eliminated, the only way to generate that type of revenue would be to raise property taxes, which would impact every taxpayer in the community. However, we believe that the sticker program- which is essentially a tax on vehicles is fair.

If every family in Arlington Heights gave up their vehicles, the Village government would have a lot less work to do. Much of our time and effort relates to building, maintaining, and repairing our roads and parking garages, enforcing traffic laws, and responding to and preventing traffic accidents. For these reasons, we believe charging a fee per car is an equitable way to offset some Village costs. It can be argued that a family with three vehicles does place a greater burden on Village services than one with one car. 

We are aware that many other communities have given up their vehicle sticker tax. As I said there are certainly pros and cons. It is something that we have explored in the past as well. However, at this time, the Village Board does wish to maintain it, given the revenue it generates and the desire to keep the Village’s portion of the property tax bill as low as possible. The Village Board is very proud that this will be third year in a row without a Village property tax increase. While the Village only represents 12% of your property tax bill, we want to make sure we are doing our part to provide services at a competitive cost.