BUDGET-IN- BRIEF 2018

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1 BUDGET-IN- BRIEF 2018 January December 2018 Introduction The Budget-in-Brief is a summary document. Please refer to the County s website ( for the full budget document. Washington County, created in 1836, operates under a County Administrator who is appointed by the governing body and responsible for the administrative functions of the County. The governing body is comprised of 26 elected non-partisan County Board Supervisors, each serving 2-year terms. The County serves a population of approximately 133,000 and encompasses an area of 436 square miles. Our Vision As trusted stewards of Washington County s future, we provide innovative and cost effective core public services. Our Mission Washington County is a collaborative leader in providing efficient and effective public services for the well-being of our citizens. This budget is another excellent step toward financial sustainability for the County.... County Departments continue to drive innovation, use technology to improve efficiency, and seek collaborative efforts to control spending. - County Administrator Joshua Schoemann Contents Introduction Budget Summary and Highlights Revenues and Expenditures Tax Levy County Debt Board of Supervisors Washington County, WI Courthouse

2 County Parks Budget Summary Washington County s 2018 Adopted Budget totals $127.5 million; a $0.7 million (1.93%) increase from the 2017 budget. This budget supports full-time equivalent (FTE) staff, while the tax rate decreases to $2.49 per $1,000 of equalized valuation. The budget leverages the results of our fiscal discipline and economic growth, while not harming our long-term financial future by making financial decisions that may prove unsustainable. Budget Highlights The actions taken in the 2018 Budget represent a continuing plan for fiscal sustainability and the County s commitment to delivering high quality services, while keeping tax rates low. Below is a summary of the budget goals and objectives. Reduced tax rate The 2018 budget reduces the tax rate for the 5th consecutive year and is the lowest tax rate in nearly half a century. Reduced budget deficit / use of fund balance Historically, the County has planned (budgeted) to use equity as a revenue source to fund budgeted expenditures. This is called a budget deficit and is not a recommended practice. During the last several years, the County s goals include reducing the budget deficit. The 2018 budget reduces it to below $1 million which is the lowest it has been in two decades. Health Insurance Fund Stability For the first time in the better part of the past decade, health insurance costs are anticipated to remain stable. The 2018 budget is projected to add to the Health Insurance fund balance at year-end and is further expected to meet reserves goal (County policy sets a reserve goal of $2.6 million based on anticipated claims). This significant accomplishment was achieved while providing increased services to plan enrollees through an on-site health clinic and a minimal premium increase of 0.5% for long-term enrollees. Fund Strategic Priorities 2018 includes funding for 2 significant priorities employee compensation and collaboration initiatives. To keep pace with an ever changing labor market, and to make an investment towards retaining and attracting quality employees, a 2% cost of living increase is included and in an effort to remain competitive, the budget includes savings toward a compensation plan study and implementation. Additionally, since 2013, the Board has advocated for shared services with surrounding counties and our local municipalities. In a continuing effort to analyze and plan for these opportunities, this budget includes funds for a study of collaboration or consolidation possibilities. Implement Parks Fiscal Sustainability Plan The 2018 budget includes the first year of implementation of a plan designed to eventually make the County parks independent from the tax levy. Year one of this plan includes new revenues from park entrance fees.

3 County Revenue & Expenditure Summary An overview of the sources and uses of money that support Washington County.

4 Your County Property Tax Levy Property taxes constitute the largest revenue source for the County. The Washington County tax levy is comprised of three components in 2018: Change General County Tax Levy $ 35,341,777 $ 34,738,233 $ 603, % General County Tax Rate (0.0875) -3.39% General County Equalized Value 14,192,751,000 13,477,083, ,667, % Federated Library Tax Levy $ 1,642,617 $ 1,642,617 $ % Federated Library Tax Rate (0.0131) -5.47% Federated Library Equalized Value 7,253,339,200 6,856,401, ,937, % County Bridge Aid Tax Levy $ 100,000 $ - $ 100,000 N/A County Bridge Aid Tax Rate N/A County Bridge Aid Equalized Value 4,965,801,500 4,700,367, ,434, % County Tax Levies Wisconsin State Statute limits tax levy increases to the percentage increase in property values attributed to net new construction. New construction accounted for 1.54% ($532,024) of levy increase in The remaining 0.2% ($70,520) increase is for changes in debt service requirements (which are exempt from levy limits). The Federated Library levy impacts communities without a library and is used to fund library services within the County. This levy has remained the same for the fourth consecutive year. County Bridge Aids was last levied in 2010 (for the 2011 budget) and impacts towns within the County. The levy provides for a cost-sharing program for large bridge and culvert projects in the towns. Equalized Values Equalized Value is a state estimated value of all taxable real and personal property in each taxing district in the aggregate (i.e. it is a sum of estimates and not individual appraised values). Local assessors list and value each taxable property in their municipalities. Those values are used by the local clerks to determine the property s share of taxes. Since each municipality has a separate assessor and do revaluations in different years, the state sets annual equalized values for use by overlapping tax districts (such as the County). This value creates a level playing field so that property owners in each municipality pays their fair share of the county levy regardless of how the local assessor sets values. The Average Assessment Ratio on your tax bill indicates how close the municipality s assessed values come to the state equalized value. County Tax Rates The tax rate represents the amount of taxes the county needs to collect for every $1,000 in equalized property value in order to pay for the programs and services budgeted. Property tax levy limits and increased property values since the Great Recession (2009) have contributed to declining tax rates. So although the total County general tax levy increased from the prior budget, the County s general tax rate decreased (due to a 5.31% overall increase in equalized property values). A tax rate is a quotient of the levy and property values if property values rise faster than the levy, tax rates go down when the levy goes up. Airgas Safety Gehl Foods AMHC (American Mobile Home Menards Communities) Aurora Medical Group Paradise Development Group Cabela's Gehl Company Top Ten Taxpayers (in alphabetical order) The Gables of Germantown West Bend Mutual Insurance

5 Your Tax Bill The County s share is just one component of your tax bill. Municipalities, school districts, technical colleges, libraries, and other special districts also have the ability to levy property taxes. The County receives 15 cents of each property tax dollar collected; the rest goes to schools, municipalities, and other taxing districts. Why do some properties see an increase in County taxes if the rate has decreased? The following explanation of how the County tax is distributed to properties will help answer this common question. The first step is for the County to set the County levy (the amount the County collects). This levy is then apportioned to the municipalities based on the state-provided equalized values (the combined property values of all properties). Once the municipality is apportioned their total share of County levy, they allocate that levy to the properties based on the property s assessed value. So if a municipality s equalized value is higher than other municipalities total equalized value, more County tax is apportioned and subsequently allocated to property owners. Additionally, if a property s assessed value increased, this too causes an increased tax allocation. County s Public Agency Center

6 County Debt Summary The County will be debt free by the end of 2028 and levy-supported debt (2009 Notes) is paid off in Board of Supervisors Kristine Deiss District 1 Roger Kist District 2 Christopher Bossert District 3 Michael Miller District 4 Michael Bassill District 5 Denis Kelling District 6 Jeffrey Geib District 7 Brian Krebs District 8 Gerald Schulz District 9 Michael Otten District 10 Michael Parsons District 11 Joseph Gonnering District 12 Robert Hartwig District 13 Raymond Heidtke District 14 Marilyn Merten District 15 County Debt Trends Based on final 2016 financial statements, the County s debt per capital is $72.54 the lowest of all surrounding counties (Dodge, Fond du Lac, Ozaukee, Sheboygan, and Waukesha). As noted below, our debt levels are consistently well below the state debt limits and our use of that debt margin continues to decline annually. In 2017, debt is 0.05% of equalized value and we are using 1.09% of statutory debt limit ($730 million). Rick Gundrum (Chairman) - District 16 Timothy Michalak District 17 Thomas Niebler District 18 John Bulawa District 19 Mark McCune District 20 Donald Kriefall District 21 Rock Brandner District 22 Daniel Goetz District 23 Peter Sorce District 24 Jeffrey Schleif District 25 Dawn Eyre District 26 Contact Us: (262) (800) Visit us on the web at