Wheaton gets to work on its reduced budget

Late last year, Wheaton officials increased taxes and dramatically cut expenses to avoid deficit spending.

The city eliminated a projected $4 million shortfall and now has a balanced-budget proposal for the 2009-2010 fiscal year. On Saturday morning, city council members will have their first workshop session on the roughly $75.7 million spending plan. While it doesn't reverse any of the more than $3 million in cost reductions the council approved, the budget plan doesn't call for additional cuts.

"I certainly don't want to say everything is fine," City Manager Don Rose said. "I think it's manageable at the moment, but we need to - as we have for about the last year and a half - be cognizant of the economic conditions."

Originally, city officials were predicting a multimillion-dollar deficit in Wheaton's $34.9 million general fund, which pays for such things as employee salaries and operating expenses.

Council members responded by trimming expenses. That included canceling $1.3 million in capital projects and eliminating the equivalent of 17 full-time positions. The Center for History also lost $225,000 in funding that the city used to give it every year. To beef up revenues, the city approved a sales tax increase. Rose said the hike is expected to net Wheaton about $1.5 million more yearly. It's also estimated that the city will receive an additional $660,000 in property taxes this year.

Still, the city's general fund only has about $500,000 more in revenue than expenses.

Rose attributed that to the sluggish economy resulting in less revenue in other areas.

For example, money collected from the state income tax slipped by about $600,000 compared to what the city received last year.

A tentative adoption date for the spending plan has been set for April 20. If approved at that time, the budget will take effect May 1.