Wheaton mayor says 'huge cuts' needed, tax hike won't fix shortfall

Wheaton officials say higher property taxes alone won't be enough to make up for a projected $1.5 million shortfall in the city's budget.

Mayor Michael Gresk said "huge cuts" still must be made, despite council members agreeing to increase the city's property tax levy by almost 7 percent.

"There are going to be more cuts, and they are going to be painful," said Gresk, adding there will be a noticeable reduction in services.

The city council on Monday night approved the higher levy, which is the share of the budget paid for by property owners. Councilman Phil Suess was the only council member who voted against it.

Wheaton's tax levy request has been set at $18.1 million, including $3.5 million for debt service. That total is nearly 7 percent more than what the city could collect this year.

The new levy increases Wheaton's rate from roughly 76 cents per $100 of assessed valuation to about 79 cents. As a result, the owner of a $300,000 house will pay about $28 more per year to the city.

Last week, a group of residents complained Wheaton shouldn't use higher property taxes to solve its financial problems.

Council members responded by saying factors beyond the city's control - mostly the rising cost of wages and pensions - contributed to the projected $1.5 million deficit in the 2010-11 budget.

At the same time, officials said revenues from the income and sales taxes have noticeably declined compared to last year.

"We will still spend less money this year than we spent last year," Gresk said. "It's the revenue side of the equation that's falling apart here."

Even with the extra property tax dollars, the council still is exploring a variety of cuts and other sources of revenue before the next fiscal year begins May 1.

"We have cut," Gresk said. "We'll cut again."

Meanwhile, Councilman Howard Levine took a moment Monday night to publicly debunk a concern raised by a Wheaton Chamber of Commerce representative.

Levine said the council isn't planning to impose any new taxes that would bear solely on local businesses. In fact, council members last week dismissed proposals for a local gasoline tax, a food and beverage tax and an amusement/entertainment tax.

"There are no taxes that the city of Wheaton is currently contemplating that would fall solely on local business," Levine said.

Instead, council members will consider the possibility of reinstating the vehicle sticker program or increasing the utility tax on natural gas and electricity to generate much-needed revenue.