Wheaton may boost utility tax for $900,000 additional revenue

Wheaton officials are considering raising the city tax on electricity and natural gas to generate about $900,000 in additional revenue next year.

In a 4-3 vote this week, city council members agreed to draft the necessary ordinances to boost the taxes. A final vote is still to come.

If approved, the utility tax increase is expected to cost the average Wheaton resident about $37 more a year, officials estimate. It also would help the city address a projected $1.5 million deficit in its 2010-11 budget.

Councilman Tom Mouhelis said he is willing to support the utility tax increase if it prevents the city from laying off more people. This month, the city eliminated 17 positions to save about $1.16 million.

"I do not want to lay off anyone else," Mouhelis said Wednesday.

Council members John Prendiville, Howard Levine and Liz Corry say they oppose the increase.

Corry expressed concern that other taxing bodies, such as the park district and school district, will pass on the cost of their higher utility bills to residents.

"I think the $37 a year is a nice, tidy number," Corry said. "But it's a bit fuzzy when you're talking about high-volume institutional uses like the schools and the park district. They have large institutional buildings they have to heat and cool and keep lit up. They are going to have to pass that along to us."

Still, Mayor Michael Gresk said the tax is fair because everyone in town has to pay it.

"I think it's important that our not-for-profits in town, which are not on the tax rolls, participate in the burden of the expenses that run the city," he said.

Councilman Phil Suess agreed, saying the city needs to reduce its reliance on the property tax. He said the city needs to diversify its sources of revenue.

Whether that means resurrecting Wheaton's vehicle sticker program remains to be seen. The city council is expected to talk about that idea in coming weeks.

Requiring residents to get a $25 vehicle sticker could generate $900,000 a year, according to estimates. Previously, some council members said they would like to see the money collected from vehicle sticker sales spent on road improvement projects.

Wheaton officials say they face a budget shortfall because of decreases in key funding sources. For example, revenue collected from the sales tax is about $600,000 below projections.