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File #: 160519    Version:
Type: Resolution Status: Passed
File created: 7/26/2016 In control: COMMON COUNCIL
On agenda: Final action: 10/11/2016
Effective date:    
Title: Substitute resolution directing the Department of Administration - Intergovernmental Relations Division to seek introduction and passage of legislation granting relief from the penalties within the Expenditure Restraint Payment program to municipalities that raise their levy limits through referendum.
Sponsors: ALD. WITKOWSKI, ALD. BOHL
Indexes: INTERGOVERNMENTAL RELATIONS, TAXATION
Attachments: 1. 165679-160519 RES SUBA IRD ERP relief.pdf, 2. 165679-160519 RES SUBA IRD ERP relief.pdf
Number
160519
Version
SUBSTITUTE 1
Reference

Sponsor
ALD. WITKOWSKI AND BOHL
Title
Substitute resolution directing the Department of Administration - Intergovernmental Relations Division to seek introduction and passage of legislation granting relief from the penalties within the Expenditure Restraint Payment program to municipalities that raise their levy limits through referendum.
Analysis
State law permits a municipality to increase the property tax levy above the allowable limits if the governing body of the municipality adopts a resolution to that effect and the resolution is approved by voters at a referendum. However, a municipality that approves a referendum to increase the property tax levy is likely to be penalized by the loss of aid from the State’s Expenditure Restraint Program. This resolution directs the Department of Administration - Intergovernmental Relations Division to seek introduction and passage of legislation granting relief from the penalties within the Expenditure Restraint Program to municipalities that raise their levy limits through referendum.
Body
Whereas, Since 2005, State law has prohibited municipalities from increasing the property tax levy over the amount levied in the prior year by more than the percentage increase in equalized value from net new construction, with some exceptions and modifications (s. 66.0602, Wis. Stat.); and

Whereas, State law permits a municipality to increase the property tax levy above the allowable limits if the governing body of the municipality adopts a resolution to that effect and the resolution is approved by voters at a referendum (s. 66.0602(4), Wis. Stats.); and

Whereas, The State of Wisconsin provides unrestricted aid to municipalities that limit growth in spending through the Expenditure Restraint Program (ERP), established in 1991; and

Whereas, A municipality qualifies for ERP aid if the municipality’s municipal-purpose tax rate is in excess of 5 mills and if the municipality’s ...

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