Council Approves Higher Tax Increase

Final Budget Meeting Set for Nov. 26

Marshfield, WI (OnFocus) The Common Council approved a three percent tax rate increase at its Tuesday budget meeting, more than the two percent originally proposed during the city budget process.

The initial proposed increase was from 9.26 percent to 9.45 percent per $100,000 in assessed property value. The approved three percent increase now brings that number to over 9.54 percent, which means the taxpayer will pay $954 per $100,000 assessed value.

City Administrator Steve Barg said the two percent increase was proposed as a “politically palatable” figure and there was not a “silver bullet” to fix the budget. Regardless of the Council’s ultimate decision, City staff would continue looking into budget trimming, finding revenue, and working on the debt structure, he said.

If it were possible, the number to balance the 2020 budget would be 10.04 percent, said Finance Director Ron Aumann. However, tax levy increases are tied to net new construction and the levy limit is 9.74.

At the proposed 9.45 percent rate, the City still faced a $825,000 annual budget shortfall. Staff are anticipating it will take 3-5 years to resolve the issue.

From 2005-2018, the total increase in the tax rate was just under four percent, said Barg. If the City had steadily increased that number, the rate would currently have been more comparable to neighboring communities.

General fund expenses are anticipated by City staff to increase three percent each year due to natural price increases, from staff costs to utilities. “If you have a natural three percent growth and you’re holding the levy down, that’s where you’re going to have a gap,” said Aumann.

Alderman Chris Jockheck, who made the motion to increase the tax levy to three percent, said, “I would encourage us to understand that it’s going to be tight for a number of years, and we need to increase that, and that’s being responsible.”

“The situation we’re facing now developed over six years. It’s not going to be fixed in a year,” said Alderman Tom Witzel. “If we went with the two percent that was proposed, we’re looking at another increase next year, and I would assume it would be at least that amount again.”

The motion to increase the tax rate to three percent passed 6-4.

A public hearing and final vote for the proposed 2020 budget will be held Tuesday, Nov. 26 at 6 p.m. at City Hall.

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