Arlington Heights, IL — Over the course of nearly a decade, more than $1.1 million quietly leaked out of Arlington Heights’ public funds, and no one noticed. A simple coding mistake by the Illinois Department of Revenue (IDOR) sent sales tax money from a popular local restaurant to the wrong suburb. And while the error started at the state level, the real issue may be how little was done locally to stop it.
It took eight years, one dismissed lawsuit, and at least $70,000 in legal bills for the village to acknowledge what happened. But even after the dust settled, there was no internal review, no apology, and no policy fix. Instead, Village Manager Randy Recklaus got a raise, a $10,000 performance bonus, and a multi-year contract extension. All while Arlington Heights taxpayers were left footing the bill.
A Tax Error Hiding in Plain Sight
The problem began in June 2011 when Cooper’s Hawk Winery & Restaurant opened in Arlington Heights. But when the business registered with the state, IDOR mistakenly entered its location as Rolling Meadows. That one clerical error sent an estimated $160,000 in sales tax revenue each year to the wrong town.
And it went on like that until March 2020.
By then, nearly $1.3 million had been diverted. Under Illinois law, Arlington Heights could only recover six months’ worth of lost revenue. The village received a one-time reimbursement of $109,000. Rolling Meadows, which legally didn’t have to return the excess funds, chose not to.
So What Went Wrong?
IDOR issues regular reports that help municipalities verify the tax status of local businesses. Cooper’s Hawk showed up on one of these reports in 2011, but was listed under Rolling Meadows. Arlington Heights received that report and never flagged the mistake. According to IDOR, silence counted as confirmation.
For years, the village didn’t cross-check state data against its own business license records or local tax receipts. That only began in 2020, after the damage had been done.
A Legal Hail Mary That Didn’t Land
In 2022, Arlington Heights sued Rolling Meadows to claw back the money. They even turned down a $130,000 settlement offer. The lawsuit was dismissed with prejudice by the Cook County Circuit Court. The court ruled it had no authority to override IDOR’s allocation decisions. The Illinois Supreme Court later agreed.
Meanwhile, the village spent over $70,000 on legal fees, most of it in a single month in early 2024.
Raises, Bonuses, and No Accountability
And here’s where it stings for residents. While the village lost out on more than a million dollars — and spent tens of thousands more trying to get it back — the village manager was getting consistent raises well above the norm.
Since 2018, Randy Recklaus has received the following annual raises:
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2024: 6 percent raise, $10,000 bonus
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2023: 7 percent raise
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2022: 7 percent raise
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2021: 5 percent raise
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2020: 5 percent raise
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2019: 4 percent raise
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2018: 4.5 percent raise
All while the tax error went undetected under his leadership.
In December 2024 — right before the local election — Recklaus’s contract was extended through 2028. No public apology. No audit. No structural changes. Just a bonus and a renewed deal.
When approached by a Cardinal News reporter in April 2025 for comment, Recklaus declined to answer specific questions about the village’s failure to catch the error or whether any changes had been made since. Instead, he pointed to a previous Daily Herald article and said, “The Illinois Department of Revenue did put measures in effect to keep them from making that error again.” He made no mention of what, if anything, Arlington Heights has done to improve its own oversight.
Why Now?
If you’re wondering why we’re just now publishing this piece, it’s not because the documents weren’t available — it’s because accessing them took time. Without official press credentials, we were subject to a 21-business-day response window under public records laws, which significantly delayed our ability to obtain key information from the Village of Arlington Heights.
A new mayor and several newly seated board members have taken office following the local election. This article does not include comments from the current administration, as our investigation focuses on decisions made prior to their term.
The Bottom Line
Taxpayers in Arlington Heights are left holding the bag:
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$1.06 million in unrecovered tax revenue
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Over $70,000 in legal expenses
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Zero internal reforms
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Zero admissions of fault
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A raise and a bonus for the official in charge during the entire error
It’s not just about the money. It’s the lack of accountability, the silence, the shrug, and Recklaus refusing to take responsibility while trying to shift the blame onto Rolling Meadows, even though the law was crystal clear. They couldn’t accept that. Instead of facing the truth, they poured more gas on the fire and hoped it would somehow fix things.
The real question isn’t how the mistake happened. We’ve known that for years. The real question is why Recklaus was never held responsible, and instead was rewarded with a raise and a bonus.
