Wheaton considering utility tax increases to address budget woes

The Wheaton City Council is poised to vote on a proposed increase to its local tax on electricity and natural gas as part of an effort to address a projected $1.5 million deficit in the city's 2010-11 budget.

Two ordinances that would boost the taxes were presented Monday night on first reading. If approved during a final vote in two weeks, the changes would take effect with bills issued on or after May 1.

Increasing the utility tax is estimated to cost the average Wheaton household about $37 more a year, officials said. Meanwhile, it would generate nearly $900,000 in additional revenue for the city, which eliminated 17 positions in January to save about $1.16 million.

However, the council is expected to be divided when it comes to the vote on the utility tax. In January, it took a 4-3 vote simply to draft the ordinances.

At that time, council members John Prendiville, Howard Levine and Liz Corry said they oppose the increase. Corry, for example, expressed concern that other taxing bodies, including the park district and Wheaton Warrenville Unit District 200, will pass on the cost of their higher utility bills to residents.

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

It's also one of the few tax increase proposals officials are considering that would directly benefit the city's general fund.

There has been some discussion of resurrecting Wheaton's vehicle sticker program. Requiring residents to get a $25 vehicle sticker could generate $900,000 a year, according to estimates.

But council members have said they would like to see the money collected from vehicle sticker sales spent only on road improvement projects.