2019 Proposed Budget

Village's Proposed Budget for 2019
Posted on 10/29/2018

The Village’s proposed 2019 Budget, which runs from January 1, 2019 through December 31, 2019, is $176.2 Million. The total expenditures for all operating, capital and other funds proposed for 2019, not including the Arlington Heights Memorial Library, amounts to a decrease of 9.5% or $18.6 million over last year’s budget.

This decrease is primarily attributable to the net effect of the following capital expenditures:

1.  Last year’s 2018 Budget included $27 million for the construction of the new Police Station that was accounted for in the Public Building Fund. Only $1.3 million towards this project is included in the 2019 Budget, which leads to a total decrease of $25.8 million.

2.  Other 2019 capital costs that show a net increase in comparison to the 2018 Budget, include additional Hickory/Kensington TIF infrastructure improvements and increased spending on storm water control and water system projects. The Proposed 2019 Budget for capital projects in these funds are about $5 million higher than they were in 2018.

Total budgeted expenditures for 2019 exceed total revenues due primarily to the use of reserve funds to pay for multi-year infrastructure projects. These projects include downtown streetscape improvements, Rand Road corridor improvements, and LED streetlight conversions in the Capital Projects Fund. 

In 2019, the Village will also be spending down a portion of the proceeds from the 2018 bond issue on Storm Water Control projects including the enhanced overhead sewer program, the Cypress detention basin, and the Area 4 – street ponding project at Campbell and Sigwalt Streets. A number of vehicles are also scheduled for replacement through the Village’s Fleet Fund. Through this internal service fund the Village pays for vehicle replacements by charging departments an annual depreciation charge.

The proposed 2018 property tax levy for the Village and Library, which is incorporated in the proposed 2019 Budget, shows a 1.70% increase.  This proposed tax levy is payable in 2019. For a homeowner with property valued at $300,000 it is estimated that there will be an approximate increase of $19 for the Village’s portion of the property tax bill. The estimated $19 increase will be used to offset flattening sales and decreasing telecommunications tax revenues. 

In 2018, 85 staff positions were filled in the Village. The Village’s overall personnel count still reflects a decrease of 46 positions, or nearly a 10% decrease since Fiscal Year 2009.

The Village’s proposed 2019 Budget continues to focus on maintaining our roads, providing a drainage system that mitigates flooding in the community, and maintaining its buildings and facilities required for essential services. If the Village deferred any funding on these critical maintenance programs, the Village could face escalating costs in future years.

The proposed 2019 Budget also includes funding for various capital projects including:

Street Program ($6,100,000 – Capital Projects Fund) – This is an ongoing program to resurface or rehabilitate existing deteriorated street pavement and curbs.

Street Rehabilitation Program ($1,800,000 – MFT Fund) – This is an ongoing street rehabilitation program consisting of the reconstruction of significantly deteriorated street pavement, curbs, and concrete panels.

Some of the other major projects included in the proposed 2019 Capital Projects Fund budget are:

Operational Equipment – Fire Department ($455,000) – Equipment expenses are higher than normal due to the replacement of 60 self-contained breathing units. The total cost of these units is $461,000, but the Foreign Fire Insurance Board has agreed to cover $88,000 of the replacement cost for a net cost to the Village of $373,000. These units have a lifespan of about 10 years.

Algonquin Road and New Wilke Road Intersection Improvement ($200,000) – This project includes intersection improvements, signal upgrades, changes to lane widths, and ADA accessibility.

Sidewalk & Curb Replacement ($385,000) and Brick Paver Maintenance ($807,000) – This program covers the Village’s ongoing efforts to repair possible trip hazards, and to reduce the Village’s liability exposure to trips and falls. The Downtown brick paver areas have not seen significant work since they were installed a number of years ago.

Participate in Village's Budget Process

We invite residents to review our proposed 2019 Budget, which represents the Village’s plan for allocating its resources. Anyone who would like to ask questions regarding the proposed budget, please email budget@vah.com by November 6. Answers to all questions received by the deadline of November 6 will be posted on the Home Page of vah.com on Thursday, November 8.

The Village Board’s review of the proposed 2019 Budget will begin Wednesday, November 14 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 Thursday, November 15 at 7 p.m. and if needed, a third meeting will be held on Tuesday, November 20. 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 2019 Budget.)