Arlington Heights Trustees Trim Tax Levy Down to 1.2 Percent Increase

One week after the village board unanimously approved plans for a 1.92 percent tax levy increase, trustees decided to raise property taxes in Arlington Heights by a slightly smaller number.

Trustees trimmed .72 of a percentage point off the original proposal to approve a 1.2 percent tax levy increase Monday night. 

 “It’s certainly more prudent,” said Trustee Carol Blackwood, “And of course 1.2 percent is better than 1.92 percent.”

With an increase of 1.2 percent and a home valued at $300,000, the average Arlington Heights homeowner will see a $12 increase to their 2013 property tax bill, officials said. –That’s nearly half the cost of the $20 increase trustees unanimously approved at the Committee of the Whole meeting Nov. 15.

The village’s share of the property tax bill is 11.5 percent; the increase only applies to the village’s portion, not the entire property tax bill. 

“It’s the will of the people,” said Trustee Joseph Farwell, “We’ve heard their cries and we’ve felt them in our own homes as well.”

After board members used the last week to reflect on their vote and get reaction from residents, trustees returned to Village Hall Monday ready to cut back the tax levy increase.

 “The response has been ‘absolutely not, do not touch real estate taxes,’” said Blackwell, “But at the same time we do have obligations.”

While no one wanted to see property taxes increase, officials said a 0 percent would have created a deficit of more than a half a million dollars by the end of the next fiscal year. –A 1.2 percent tax levy increase brings that number to zero and balances the budget.

“My concern is it is taking a little bit of a risk,” Trustee Tom Hayes said, “I don’t want to make it closer to zero this year to have it jump to 3 or 4 percent next year.”

In the original 1.92 percent proposal the board planned for , but that is the .72 percent that was cut from the tax levy.

“This is just keeping up with costs,” Farwell said, “Not increasing reserves.”

A surplus to increase reserves in the general fund was built into the previous proposal to help the village’s bond rating. Showing a profit or more money in the reserve funds leads to better ratings which in turn, lead to lower interest rates.

Arlington Heights currently holds an AA-plus U.S. credit rating; AAA is the highest rate possible. Board members said the village's high credit rating has allowed Arlington Heights to save millions through lower interest rates.

Trustees believe the 1.2 percent tax levy increase is necesarry to cover costs and protect the village's credit rating.  

The village board unanimously voted to approve the 1.2 percent tax levy increase Monday night. Trustees said the balanced budget was the most fair and balanced way to issue the increase.

“It’s a reasonable, educated risk,” Hayes said, “I’m confident it’s a good risk that’s based on our current financial state and trends across the country.”