Wheeling budget projects levy hike, deficit

Even with a 5.25 percent tax levy increase, the proposed 2012 village of Wheeling budget projects a $2.6 million deficit next year, making trustees’ hopes of keeping property taxes down one they’ll be hard-pressed to accomplish this year.

Village staff released the $70.3 million budget proposal this week in advance of trustees’ budget workshop, a public meeting Saturday to discuss next year’s spending plan and financials.

Officials blame the deficit, which could continue for years, on a combination of rising personnel and health insurance costs and a decline in sales tax revenues.

Village Manager Jon Sfondilis said salaries, pensions, and contractual services that include health care, will go up a combined $1.4 million. The increase comes despite the village having eliminated 38 positions over the past three years.

“That’s a pretty substantial reduction in personnel without any loss of services for the residents and businesses of the village,” Sfondilis said.

The proposed 5.25 percent levy hike is consistent with increases from the past few years, officials said.

One option for reducing the deficit would be increasing the tax levy by 7.5 percent, which would add another $238,595 to village coffers over the proposed 5.25 percent hike.

But at a village board meeting earlier this month, Trustee Dave Vogel asked fellow board members to agree not to increase the levy on property owners.

“I realize we are going to be told we need at least a 5 percent increase to cover debt obligations,” Vogel said. “But my feeling is that we are going to have to find that 5 percent somewhere else.”

Other options include using revenue from the capital projects fund to pay for debt service and using revenue from the motor fuel tax to fund public works salaries.

The village still is paying off debt from bonds that funded a new fire headquarters, new public works building, new village hall and renovated police department.

Sfondilis said the board agreed to an annual 5.25 percent levy increase in 2006, before the economy turned, to pay off the debt.

“We haven’t had any tax levy increases to offset the change in economy,” he said.

According to Sfondilis, choosing not to raise the levy would mean one of two things for the village: either accept a larger deficit and draw from its reserves to pay for it, or reduce the level of services to residents.

The budget workshop meeting begins at 8:30 a.m. Saturday, Oct. 29, at village hall, 2 Community Blvd.