Wheeling plans 11% tax levy hike to close budget gap
In a move they say will help put an end to eight years of budget deficits, Wheeling officials are expected to back an 11.2 percent hike in next year's property tax levy.
The increase would mean a $93 increase for homeowners with an average property tax bill of $7,000, village Finance Director Michael Mondschain said.
"The village is responsible for limiting increases to the tax levy, but it's gotten to a point after doing this eight years in a row that an increase is necessary to reverse that deficit budget trend," Mondschain said.
The levy increase would bring an additional $1.4 million to the village and help Wheeling pass a balanced budget for the first time since 2008.
"We want a balanced budget without cutting staff and core services," Village President Dean Argiris said. "We've been taking millions out of our reserves every year to pay the deficit and we can't afford to do that anymore."
The proposed levy hike, which will be presented to the village board Monday, Nov. 23, is down from an initial proposal that called for a $1.76 million increase.
Mondschain says dipping into general fund reserves every year has had a negative impact on the village.
"As we've significantly drawn down on our fund balance, we've been downgraded in our bond rating," he said.
In an August budget preview, Mondschain and Village Manager Jon Sfondilis said the village's budget deficit problem has to do with revenue, not expenditures. Mondschain says Wheeling has taken measures to reduce spending since 2008, but they have nowhere else to cut.
Without a tax levy increase for the next five years, Mondschain said in August, the village's general fund reserves would fall to a negative $2.9 million by 2020.
Like other taxing bodies, Argiris said Wheeling needs to make sure the village has a financial plan in order without knowing what to expect in state funding because of the budget stalemate in Springfield.
The board will vote Monday to determine the amount of the levy, then hold a public hearing on the levy Dec. 21. Trustees are scheduled to give the levy final approval after the public hearing.