As the city of Naperville entered the budgeting process for the 2011 fiscal year, the City Council and staff faced a projected $14.1 million budget deficit. The Chamber issued a landmark report outlining its position on the various revenue and austerity proposals under consideration by the city.

The Chamber strongly opposed the institution of a local sales tax, in any increment, to solve the city’s budget challenges. Under existing law, the city receives a portion of the sales tax levied by the state. The Chamber made the case that the city was facing a temporary decline in sales tax receipts and revenues would increase as the economy recovered.

The City Council did not pursue the institution of a sales tax and instead enacted a broad set of cuts and implemented additional user fees and other measures to close the budget deficit.

Figures released by the Illinois Department of Revenue indicate Naperville’s sales tax receipts have continued to rise from the previous year. At current growth levels, the Chamber estimates Naperville’s sales tax receipts will surpass prerecession levels by 2012.

The city of Naperville issued budget estimates projecting a structural deficit of up to $26 million by fiscal year 2016. The Chamber will continue to actively monitor and review all budgetary developments.