Wheaton hoping cuts will produce budget surplus

With budget talks set to begin next week, Wheaton officials say suggested spending cuts, along with a utility tax increase, should be enough to eliminate a projected $1.5 million deficit.

In fact, the city could end up with a spending plan for the 2010-11 fiscal year that includes an anticipated $425,000 surplus.

"We do not run a deficit budget," Mayor Michael Gresk said Monday. "Springfield does. Washington, D.C. does. Municipalities don't. We can't."

The $425,000 difference between revenues and expenses would be in the city's $35.3 million general fund, which pays for salaries and operating expenses during the fiscal year.

Wheaton City Council members have until the end of April to approve the town's roughly $80 million budget, which takes effect May 1.

But first, the council will sponsor a series of budget workshops at city hall, 303 W. Wesley St. The sessions are planned for 9 a.m. April 10, 7 p.m. April 12 and 9 a.m. April 17. A public hearing on the budget is planned for 7 p.m. April 26 at city hall.

One issue expected to be discussed during the April 12 session is a proposal to cut $300,000 in property tax funding for Wheaton Public Library.

City officials already have agreed to increase the local tax on electricity and natural gas to generate nearly $900,000 in additional revenue for the city, which eliminated 17 positions in January to save about $1.16 million.

The utility tax changes take effect with bills issued on or after May 1. Wheaton's electricity tax will climb from 4 percent to 5 percent. The city's 2-cent-per-therm tax on natural gas will increase to 3 cents.

The mayor said the entire budget process has been "painful."

"I would like to think that we are done cutting," Gresk said. "It's all dependent on what Springfield tells us."

Gresk was referring to Gov. Pat Quinn's proposal to reduce municipalities' share of the state income tax. If Quinn's plan to cut municipalities' share of state income tax from 10 percent to 7 percent is approved, Wheaton officials estimate the city would lose roughly $1.3 million a year.