Wheaton raises sales tax amid objectors
If you listened quietly Monday night, you could hear the sound of a little "cha-ching" in the fall Wheaton air when the sales tax grew just a little bigger.
Wheaton City Council members voted 6 to 1 to boost the tax to 1 percent from its current 0.5 percent in a bid to offset a projected $4.3 million budget deficit next year.
The change, which takes effect at the cash registers Jan. 1, is estimated to produce, at best, $1.8 million for the city. Because the tax clearly doesn't plug the entire budget hole, the council will embark on round two of its budgeting process next: cuts.
Mayor Michael Gresk told the crowd at Monday's special meeting that while upcoming cuts could be "rather Draconian," he believes "in the long run we'll be able to maintain a level of service in our community that we can live with."
The change moves Wheaton's total sales tax to 8.25 percent, a shift from the existing 7.75 percent tax. It does not apply to purchases of groceries, cars or medicine.
Nearly all the residents and business owners who spoke at the meeting objected to the tax hike, with many asking to see cuts either before or alongside the increase as part of an overall package.
Resident Jeanne Ives suggested the city look at other ways of raising revenue, such as a utility tax that would be spread out across all users in Wheaton.
Scott Price, with Toms-Price Home Furnishings, asked the council to reconsider its planned vote, which officials said was necessary to comply with an Oct. 1 deadline for filing any sales tax changes with the state. Without that paperwork, the increase would not go into effect in January.
"Delay the vote until you have time to come back to the citizenry with cuts," he said.
Council member Dave Johnson stressed that numerous cuts already were made in the past five years, including keeping key city jobs open, extending the shelf-life of equipment and deferring scheduled maintenance.
"We cannot continue to cut and cut while maintaining services," he said.
Phil Suess was the council's lone objector.
He argued that a sales tax hike was shaky in that its potential benefit was impossible to predict, especially when it would deter people from shopping in Wheaton.
"We ought to be working with people to give them a reason to come here and spend money," Seuss said.