The Cook County Clerk has a standing policy to add a 5% loss factor to the debt service levy, and a 3% loss factor to all other fund tax levies of government agencies in Cook County, unless directed otherwise by the government agency.  The purpose of adding a loss factor to an agency's tax levies, is to offset the loss in tax collections due to appeals or other tax actions, thereby providing taxing districts the ability to collect the amount levied.

For a number of years, the Village of Arlington Heights has used a 1% loss factor for all tax levies.  However, the Village has only received an average of 98.4% of its tax levy over the past ten years.  Through a Northwest Municipal Conference survey, it showed that most communities use a 2% or 3% loss factor.  To ensure that the Village's tax collections match its levies more closely, it is recommended that the loss factor applied by Cook County be revised to 2% for all Village levies, starting with the 2023 levy payable in 2024 and all subsequent levies.

RECOMMENDATION

It is recommended that the Village Board approve the Resolution Instructing the Cook County Clerk to Use a 2% Loss Factor in Calculating the 2023 and Subsequent Years Tax Levy Extensions.