Mayor: Wheaton's budget woes will continue for years

Wheaton likely will deal with budget shortfalls for several years, Mayor Michael Gresk said Thursday during his State of the City address.

"Three to four years, if we're lucky," Gresk said.

The mayor told an audience of Wheaton Chamber of Commerce members and local officials that the projected deficit of at least $1.5 million in the city's 2010-11 budget will result in a reduction of services for residents. The city eliminated 17 positions last week to save about $1.16 million.

Gresk said the city's overall work force has been reduced by 13 percent since December 2008. City employees who remain are expected to do more with less because of budget cuts.

Wheaton's financial woes can be traced, in part, to steep declines in revenues from sources such as sales taxes.

Even though the city's property tax levy will be increased by nearly 7 percent, additional sources of revenue are needed, Gresk said.

For example, council members are considering whether to reinstate the vehicle sticker program or increase the utility tax on natural gas and electricity. A final decision on both ideas is expected before the next fiscal year begins May 1.

"While these are not popular decisions with the public - and they're certainly not the choice the council would like to be making at this time - these actions demonstrate the serious financial challenge the city's facing," Gresk said.

Despite the grim economic climate, the city is moving forward on two long-sought projects. The reconstruction of the aging bridge that carries Wesley Street over the Union Pacific Railroad tracks is expected to be completed in November. And proposed flood-control improvements for North Main Street are set to begin this year.

When asked about the former Hubble Middle School in downtown Wheaton, Gresk said a redevelopment plan is expected to be completed by November or December. But that doesn't mean the 22-acre site at Main Street and Roosevelt Road will be redeveloped any time soon.

"It's not a good time to sell real estate," said Gresk, adding it will be up to Wheaton Warrenville Unit District 200 to decide when it wants to sell the property.

Another downtown building that could be standing empty for a while is the former Jewel Food Store.

Because Jewel-Osco is asking potential buyers to pay $4 million for the 19,500-square-foot building along Willow Avenue, Gresk said he isn't optimistic the property will sell.

At one time, city officials said they were confident a replacement grocer wouldn't be difficult to find. Now Gresk says he doubts the grocers who have expressed interest could afford the asking price.

And the city is in no position to try to acquire the property. "If we did, where would we get the money to buy it?" he said. "We just laid off another 17 people."