The Arlington Heights Village Board on Dec. 1 approved the village’s 2026 budget, adopting a tax-levy ordinance that raises the village portion of property taxes by 2.29% and passing related budget and abatement ordinances.

Village Manager Rekhlais and Finance Director Melissa Gallagher told the board the proposed budget reflects a multi-department, year-long process and strikes a balance between preserving reserves and covering rising costs. Staff said the increase — which the staff summarized as an $892,000 rise in the village portion of the levy and a roughly $39 annual increase on a $450,000 home for the village share — is driven largely by pension contribution growth for fire and police and by higher unit costs for capital work.

Gallagher presented scenarios showing the long-term effect of a one-year levy decision. Staff said a modest levy now could avoid a larger, more disruptive increase later, noting that delaying the levy could deplete reserves by an estimated $11 million over 10 years under one scenario. Trustees also heard that unit resurfacing costs have climbed about 66% in five years and water‑side unit costs rose approximately 109% since 2022 — factors staff said limit the village’s ability to defer work without escalating future costs.

Trustees debated whether to use one-time reserves instead of the levy. Trustee Zick urged considering a 0% levy for 2026, citing an improved projected year-end surplus; other trustees — including Trustees Bertucci, Santa Maria, Dunnington and Manganaro — argued the modest increase is prudent given pension obligations, infrastructure needs and uncertainty in grant and state funding.

Several residents spoke during the public hearing. Some urged the board to hold the line on taxes or rebate surpluses; others backed the budget, citing actuarial pension obligations and the risks of deferring necessary spending. A member of the public also questioned an annual village subsidy to the Metropolis Theater and asked the board to review that contribution in future discussions.

Following the hearing, the board voted to: (a) adopt the village and Arlington Heights Memorial Library 2025 tax-levy ordinance for 2026 (motion by Trustee Schwingbeck; second Trustee Santa Maria; Trustee Manganaro voted Nay; all others Yes), (b) approve an abatement ordinance to pay principal and interest on $9.53 million in general obligation bonds, series 2018 (mover Trustee Bertucci; carried), and (c) adopt the budget and appropriations ordinance for 2026 (mover Trustee Dunnington; carried).

The village manager and finance director said staff will continue to monitor revenue trends, grant availability and cost pressures and return to the board with any required adjustments. The budget becomes the guiding financial plan for departmental operations and capital improvements for the coming year.