Wheaton already facing new budget woes

A little more than three months into Wheaton's fiscal year, city officials already are talking about the possible need to cut spending or increase taxes next year.

The preliminary discussions started after city council members were informed revenues aren't growing enough to support Wheaton's existing level of employees.

The city's total costs for wages and pensions are expected to increase by about $1.5 million next year, according to preliminary estimates. At the same time, revenues are projected to drop or stay the same.

So despite addressing a $4 million shortfall in this year's budget, Wheaton already is expected to face a projected $1.5 million deficit in the 2010-2011 spending plan.

"It's sobering," Mayor Mike Gresk said. "For the second year in a row, we're talking about the new budget barely 90 days into the current budget. That should speak volumes to the seriousness of this discussion."

Last year, council members addressed a shortfall by increasing Wheaton's sales tax and slashing $3 million in expenses, including canceling $1.3 million in capital projects and eliminating 17 full-time positions.

The next fiscal year begins May 1, 2010.

In the meantime, Wheaton is expected to consider spending cuts before seeking alternate sources of revenue.

"I think it's important to look at cuts first," Gresk said. "But I also know that we have a certain level of service that the people of Wheaton have come to enjoy and expect."

The question is how many city jobs can be eliminated before residents see a dramatic reduction in services.

If Wheaton can't cut its way out of the financial hole, higher taxes and new fees are a possibility.

The revenue-generating options Wheaton officials are expected to review include a local gasoline tax, a food and beverage tax and an amusement/entertainment tax. A proposal to increase the utility tax on natural gas and electricity also could be considered.

And even though Wheaton abandoned vehicle stickers years ago after running into numerous administrative problems, council members might consider resurrecting the program.

While a variety of tax options are on the table, Gresk said the one least likely to happen would be a property tax increase. "I don't see that happening," he said.

It's also doubtful council members would permit video poker machines in town to help boost the city's coffers.

A new state law allows the machines at restaurants with liquor licenses. But it's up to individual communities to decide whether to allow the gambling devices.

"I don't see it fitting the character of Wheaton," Gresk said. "And I think it would be more trouble than it's worth."