Sensitive to the economic conditions facing their constituents, city of Beaver Dam alderpersons were determined to keep tax increases to a minimum.
And while most agreed the 2010 document that went before the city council Monday night wasn’t perfect, each alderperson threw their support behind a budget which will increase taxes 2.76 percent.
“I want to express my gratitude to all the directors and department heads for their excellent cooperation,” Mayor Tom Kennedy said. “I am pleased to report that this budget does not in any way mortgage the city’s future by decisions that have short-term benefits for which our citizens will pay greatly later. Nor does it rob the general fund to balance spending or a lack of revenues… Our city services will not be compromised, or be lesser than compared to last year. Rather, our government services to the community will be better.”
The unanimously approved budget contains $13.31 million in expenses and a tax levy of $7.64 million, an increase of 4.5 percent over the 2009 levy.
More than $13 million in new construction offset a slight decrease in residential property values as the city’s total equalized property value increased .7 percent to $1.18 billion.
The estimated equalized tax rate moved up .25 per $1,000 of assessed value from $6.64 to $6.89, or 3.78 percent.
With the slight increase in total assessed value, the bottom line for taxpayers is that the owner of an average $130,000 property will see their taxes go up $24, or 2.76 percent.
“The current tough economic climate has presented some extra challenges and perhaps some unpopular decisions regarding this budget, but I believe it is a fair and equal balance between personnel, equipment and anticipated project costs,” administrative committee chairperson Don Neuert said. “We will pass a budget that passes on the least amount of fiscal burden to our residents.”
At the start of the budget process, alderpersons reviewed a preliminary document which represented a 12.5 percent increase over the tax levy adopted for 2009.
Simply meeting state-imposed levy limit and expenditure restraints would still have left the city with a 9-percent raise in the tax levy.
Administrative committee members said they would not support a levy increase of more than 5 percent, and Mayor Kennedy worked with each individual department head to make the necessary cuts.
More than $435,000 in capital outlay requests were cut or adjusted during a series of meetings between Kennedy and city department heads, and the administrative committee eventually voted to set a wage freeze on non-represented employees and employees represented by the American Federation of State, County and Municipal Employees Local 157 (AFSCME), who don’t have a contract for 2010. These two moves eliminated $104,000 from the tax levy.
dbaulch@capitalnewspapers.com