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 budget for the year before payment did not increase over the prior year’s budget by more than an inflation factor plus a valuation factor (s. 79.05, Wis. Stats.); and
Whereas, A municipality that approves a referendum to increase the property tax levy is likely to be penalized by the loss of ERP aid; and
Whereas, The City of Milwaukee has received $8.7 million annually in ERP aid for the last four years, which would be jeopardized by a voter-approved referendum to increase the City of Milwaukee’s property tax levy; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the City of Milwaukee 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; and, be it
Further Resolved, That Common Council Resolution File Number 141090 is amended by inserting the following item in the document attached to the file and identified as “2015-2016 State Legislative Package Proposals”:
|
Common Council |
Fiscal Stability, Efficiency |
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. |
Requestor
Drafter
LRB165679-2
Dana Zelazny
08/03/2016