Naperville sees red ahead despite some recovery

Slightly rebounding sales tax revenues combined with increased hotel tax revenues and more property sales have Naperville financial planners optimistic for a balanced budget in 2011.

Projected flat revenues, steadily decreasing home values and increased debt, however, could mean a $2.3 to $4.8 million deficit in fiscal year 2012, and gaps as large as $18.3 million through 2014.

City officials are searching for as much as $5 million more fat to trim and looking for new revenue sources.

Council members began the months-long budget process Tuesday night with a sobering presentation from finance Director Karen DeAngelis.

"We are seeing signs of economic, at least stabilization, maybe even recovery, and this is a hugely different picture than what we saw last year," she said. "However, the revenue budget is too optimistic as the state's cash flow woes continue and the state unemployment rate lowers the per capita income tax."

So with the long-term picture looking bleak, councilmen will be surveyed Friday on several new revenue sources to make up the deficits projected just two and three years out.

Some of their choices include again increasing the local gas tax, boosting the refuse pickup fee, increasing the local utility tax and increasing the city's ambulance fee by $200 across each Medicare fee category.

None of those fee additions or increases was popular with councilmen. Councilman Paul Hinterlong suggested that looking at fees before making more cuts is "putting the cart before the horse."

Councilman Dick Furstenau agreed and called on the city's bargaining units to help by seeking lower increases or freezes.

"I'm not going to agree for any more taxes or fees until we take a look at what's going on the side of reductions because they're there," he said.

Councilman James Boyajian said he would like to see DeAngelis cut $5 million from city funds before any fee additions or increases are put on the table.

Survey results will be discussed at an Oct. 25 workshop, along with a three-year plan and overtime and training budgets.