Arlington Heights board adopts modest 2.29% levy and approves 2026 budget after public hearing

The Arlington Heights Village Board voted to adopt a 2.29% increase in the village property tax levy and approved the 2026 budget and appropriations ordinance following a public hearing on Dec. 1, 2025.

Village Manager Reklaus and Finance Director Melissa Gallagher presented the proposed plan during the hearing, saying the budget is a multi-fund, balanced package that reflects rising costs and strategic priorities. Gallagher told the board the village’s general fund accounts for roughly 43% of village activity and that the proposed levy increase would translate to about $39 annually for a $450,000 home — “just about $3 per month,” she said.

Manager Reklaus and Gallagher emphasized three drivers behind staff’s recommendation: long-term pension contributions, steep increases in unit costs for infrastructure (they cited a 66% increase in resurfacing costs over five years and a 109% increase on the water side since 2022), and fading one-time grant revenues that had helped in prior years. They also noted the village used roughly $37 million in reserves between 2017 and 2024 for capital and pension funding and that delaying modest levy increases could force larger hikes later.

Trustees debated the choice. Trustee Zick pressed staff about whether the village could hold a 0% levy this year and rely on reserves, citing a recent positive swing in projections and saying, “we can take this out of our general fund” if the board wanted to avoid a tax increase. Several trustees, including Bertucci and Dunnington, argued for the modest increase to avoid potential larger increases in future years and to preserve services and morale in village departments.

Public comment reflected the division. Several residents urged caution about tax increases and questioned recurring village contributions to local entities; others defended the proposal as fiscally prudent to maintain services such as police, fire and ambulance coverage.

After closing the public hearing, the board approved three related ordinances by roll call: the tax levy ordinance for the village and Arlington Heights Memorial Library, an abatement ordinance directing $694,150 toward interest and principal on 2018 general obligation bonds, and the budget and appropriations ordinance for the 2026 fiscal year. Quorum was recorded and each motion carried by majority vote.

The board’s vote ends the required public hearing process and places the adopted levy and budget into effect for the 2026 fiscal year; staff said details for capital projects and reserve uses will continue to be tracked and reported to the board.