Wheaton looks for ways to fill budget holes

Wheaton abandoned vehicle stickers years ago after running into numerous administrative problems, but city council members might resurrect the program.

Talk of reinstating the vehicle sticker program came this week as the council reviewed a list ways to generate much-needed revenue.

A proposal to increase the utility tax on natural gas and electricity also could be considered in coming months as council members search for ways to eliminate a projected $1.5 million deficit in their 2010-2011 budget.

"I think there is an urgency here," Councilman Phil Suess said.

Despite increasing Wheaton's sales tax and eliminating $3 million in expenses last year, council members learned the city might end the fiscal year on April 30 with a deficit of about $958,000.

Part of the reason is because key sources of revenue, such as the income tax, are generating far less money than anticipated. For example, revenue collected from the sales tax is about $600,000 below projections, officials said.

Meanwhile, the city's total costs for wages and pensions are expected to increase about $1.5 million next year.

"We need to reduce the level of our work force in order to get a handle on some of our expenditures because so much of our general fund expenditures now go to personnel-related expenses," City Manager Don Rose said. "Some of those expenses are beyond our control, such as the pension amounts."

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

During this week's discussion, council members dismissed proposals for a local gasoline tax, a food and beverage tax and an amusement/entertainment tax.

While there is some resistance to vehicle stickers and a utility tax hike, there wasn't enough opposition to kill either idea.

Suess said the city is too reliant on property taxes. Increasing the utility tax could help the city avoid higher property taxes, he said.

"I think this is a broad-based tax that is applicable to everyone in the community who utilizes city services," Suess said.

Increasing the tax on both electricity and natural gas could generate an extra $860,000 a year for the city, officials estimate.

Requiring residents to get a $25 vehicle sticker could generate $900,000 a year, according to estimates.

Councilman Tom Mouhelis said he would support the return of vehicle stickers as long as it's a tiered system. For example, senior citizens would pay half the price.

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

"I think there would be a lot of support in the community for this, for this purpose," Councilman Howard Levine said.

Councilman Todd Scalzo said he opposes reinstating the vehicle sticker program because of the administrative requirements associated with it. There's also no guarantee residents will buy the stickers.

Still, Mayor Michael Gresk said the idea should stay "on the table" until a final decision about the budget is made early next year.

"I am enthusiastic about the concept to tie it to roads," Gresk said. "I think it also justifies it to the general population of why you're doing this. We are doing this so we can keep on our 20-year cycle (for road repairs)."