City to Continue Budget Session Monday

The City Council and City of Wheaton staff will meet for their second of three budget workshop meetings Monday night. They held their first Saturday morning.

The projected budget estimates revenues to increase $3.3 million while estimating expenses to increase by $500,000. However, Rose said the economy, state funding and petroleum costs are big “wildcards.”

City Manager, Donald Rose said, “The budget in general is in good shape for this year—but remember this is only a snapshot in time and circumstances could drastically change in the next six months.”

Property taxes make up 33 percent of Wheaton’s revenues. Personnel related costs total 45.7 percent of Wheaton’s expenditures. Nearly $8.5 million is currently allocated towards capital improvements such as road construction, sewers, sidewalk repair, and water tower painting.

Rose acknowledged $500,000 in funding through the IL Capital Program is “in jeopardy” as the passage of this program is being attacked as unconstitutional in the court system. The recent Illinois income tax increase may also affect Wheaton’s distribution of funds. In addition, Wheaton’s census figures will reduce state tax distribution.

Another area of concern is the Healthcare Reform Bill, which will likely increase healthcare costs for employers. The City of Wheaton has 230 full-time employees.

Other issues related to the future of city finances include:

• Rose said the “current Capital Equipment Replacement Fund is outdated and needs a higher level of funding.” The funding level is estimated to be approximately $600,000 per year, up from the current level of up to $300,000 per year.
• The Annual Road Program also requires expenditures in excess of the draft budget. “We do have a number of challenges down the line,” Rose added.
• Sanitary Sewer Capacity Assurance Program
• Stormwater Management Program
• Union contracts: four union contracts expire Apr. 30, 2011 and one expires Apr. 30, 2012. The budget for 2011 and 2012 will depend on negotiations with the unions.
• Economy: increased inflation is likely; gas prices are rising and may slow economic recovery; natural gas and electricity prices may also rise.
• Revenues: recent state legislation increasing the income tax rate may negatively affect municipalities; New census figures will diminish the state Income Tax ($200,000), Use Tax ($25,000) and Motor Fuel Tax ($65,000).
• Waterworks fund: Projected to have a deficit balance within the next two years; the DuPage Water Commission’s bond rating recently went down and rates will likely increase in the near future with the expiration of their Sales Tax in 2016.

Councilman Prendiville said, “Wheaton has done a lot with less. Residents are generally very happy with the services they are provided.”

The next Budget Workshop Session is at 7 p.m. Monday in the Council Chambers of City Hall, 303 W. Wesley St.