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Council hears general-fund update: staff outlines $0.8M–$1.1M shortfall and options including grocery tax or sales-tax increase
Summary
Finance Director Nikki Giles briefed the council on updated 2025 receipts, proposed 2026 expenditures and a projected budget gap; staff outlined cuts, one-time options and revenue choices (grocery tax or home-rule sales tax) and warned of an Oct. 1 filing deadline for full grocery-tax collection in 2026.
City staff told the West Chicago City Council on Sept. 15 that revenue developments have improved some categories but state actions and lost red-light camera income have left the general fund facing a structural gap going into 2026.
Finance Director Nikki Giles said several revenue lines came in stronger than projected — telecommunications, use tax and a ComEd utility tax overage — and that sales tax receipts for August and September outperformed earlier estimates. Despite that, she said actions at the state level and the loss of red-light-camera revenue leave the city facing a potential $1.1 million deficit in initial projections before staff reductions and other savings.
"So as it looks like right now, we could potentially be under budget... million dollars, 362,549," Giles said, summarizing revised 2025 estimates. She added that staff tightened requests and revised assumptions to narrow an initial $1.1 million deficit to roughly $823,000, and then to a scenario nearer $560,000 after more significant service cuts.
Staff presented both expenditure reductions (training, special-project reserves, capital-equipment-replacement contributions) and revenue options. A municipal grocery tax would be expected to generate about $425,000; a home-rule sales-tax increase could bring roughly $1.2 million but would raise the city’s overall tax rate above many peers.
"If we wanted to go ahead with either of those revenue options, we would have to make a decision, have that postmarked before October 1 so that we could collect them in their full amount in 2026," Giles told the council.
Alderman Dimas suggested a hybrid approach: submit a grocery-tax ordinance in time to meet the Department of Revenue deadline but defer implementation so the city could capture full-year revenue in 2026 if needed. Council members debated using 2025 surplus as a short-term bridge, the risks of relying on one-time funds, and the possibility red-light revenues might return in 2027.
What’s next: Staff will continue to refine estimates and return with options. Council did not enact taxes at the Sept. 15 meeting but later approved a revised grocery-tax ordinance for possible future use (see separate item).
