VILLAGE OF MENOMONEE FALLS 2019 PROPOSED BUDGET OVERVIEW

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Benedict Jones
5 years ago
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1 VILLAGE OF MENOMONEE FALLS 2019 PROPOSED BUDGET OVERVIEW

2 Village Tax Levy & Overall The Village is allowed by state law to increase tax levy revenue by the increase in value due to new construction ($560K for 2019). State mandated levy reduction for new personal property exemption $560,000 - $325,000 = $235,000 Still unable to claim any new growth for 2019! Slight decrease in levy necessary Total proposed tax levy $23,475,000 Distributed to all needs, General Fund, Library, and Storm Water Utility Operating budget decrease of 0.4% -$100,000

3 Personal Property Tax Law s 2017 WI Act 59 exempted certain personal property from taxation starting on January 1, 2018 Loss of $67 million in tax base Responsible for 2019 levy decrease New Personal Property Aid (State shared revenue) Aid locked-in at 2018 value ($325,000) with no index for inflation

4 New Construction (Waukesha County) (in millions) Rank Municipality Equal. Value New Const. Percent Rank Municipality Equal. Value New Const. Percent 1 Village of Menomonee Falls 4, % 20 Town of Oconomowoc 1, % 2 City of Brookfield 6, % 21 Town of Genesee % 3 City of Oconomowoc 2, % 22 Village of Merton % 4 City of Pewaukee 3, % 23 Town of Vernon % 5 City of Muskego 2, % 24 Village of Chenequa % 6 City of New Berlin 5, % 25 Town of Ottawa % 7 City of Waukesha 6, % 26 Town of Eagle % 8 Town of Brookfield 1, % 27 Town of Mukwonago % 9 Village of Sussex 1, % 28 Village of North Prairie % 10 Village of Hartland 1, % 29 Village of Pewaukee % 11 Town of Delafield 1, % 30 Village of Lannon % 12 Town of Lisbon 1, % 31 Village of Eagle % 13 Town of Merton 1, % 32 Village of Oconomowoc Lake % 14 City of Delafield 1, % 33 Village of Nashotah % 15 Village of Summit % 34 Village of Wales % 16 Village of Mukwonago % 35 Village of Butler % 17 Village of Elm Grove 1, % 36 Village of Dousman % 18 Village of Big Bend % 37 Village of Lac La Belle % 19 Town of Waukesha 1, %

5 Distribution of Tax Levy 2017 for for 2019 $ % General Fund 18,493,000 18,437,000 (56,000) (0.3%) Debt Service 2,357,000 2,375,000 18, % Library 1,732,000 1,732, Storm Water 931, , Totals 23,513,000 23,475,000 (38,000) (0.2%)

VILLAGE TAX RATE (PER $1,000 OF ASSESSED VALUE) 6.12 2017 2018 vs $5.23 $5.23 5.

6 VILLAGE TAX RATE (PER $1,000 OF ASSESSED VALUE) vs $5.23 $ (bill year) Levy decrease necessary to set the tax rate at $5.23 (per thousand) for 2018.

7 Village Funds Each fund is accounted for separately and is self-balancing as if it were its own entity. For example; a TID fund is accounted for separately from the General Fund or any other fund for that matter Some funds are mandatory (such as the General Fund) Others are voluntary (such as the Municipal Facilities & Equipment Fund) Certain funds are business-like in nature and are accounted for like a business. The Village has three business-like or enterprise funds: Water Utility Sewer Utility Storm Utility

8 Fund Revenue Source/Use Summary FUND EXPENDITURES MAJOR REVENUE(S) Governmental Funds General Fund Police, Fire, EMS, Public Works, Development, Admin, (all Gen Gov) Tax Levy, State Revenues Garbage/Recycling Garbage, Recycling User fees, Tax Levy Library Library operations/maintenance Tax Levy Tax Incremental Districts Enterprise Funds Street and utility infrastructure as well as development grants/assistance Water Utility Utility operations User fees Sewer Utility Utility operations User fees Storm Utility Utility operations Tax Levy TID-generated tax increment (from property value increment)

9 General Fund Revenue Summary % $ % Taxes General $ 18,493,000 $ 18,437,000 67% $ (56,000) (0.3%) Intergovernmental 3,176,100 3,157,100 12% (19,000) (0.6%) Public Charges 1,498,200 1,523,705 6% 25, % Water Utility taxes 1,400,000 1,370,000 5% (30,000) (2.1%) Licenses/Permits 1,034, ,600 3% (123,700) (12.0%) Fines/Penalties 573, ,400 2% 2, % Other 1,220,600 1,323,600 5% 103, % $ 27,395,200 $ 27,297,405 $ (97,795) (0.4%) New Personal Property Aid ($325K) offset by removal of police grant ($255K) and decrease in local road aid ($90K)

10 General Fund Expenditures by Function % $ % Public Safety $ 15,719,300 $ 15,469,100 55% $ (250,200) (1.6%) Public Works 4,360,400 4,506,900 17% 146, % General Gov. 4,290,800 4,315,900 16% 25, % Development 1,282,900 1,230,900 5% (52,000) (4.1%) Recreation 984,800 1,001,800 4% 17, % Transfers out 757, ,805 3% 15, % $ 27,395,200 $ 27,297,405 $ (97,795) (0.4%) Includes $255,000 reduction for removal of police grant

11 General Fund Expenditures by Classification % $ % Personnel $ 17,535,000 $ 17,220,700 63% $ (314,300) (1.8%) Other operating 5,630,000 5,721,800 21% 91, % Contracts 1,840,200 1,921,600 7% 81, % Capital 1,633,000 1,660,500 6% 27, % Transfer out 757, ,805 3% 15, % $ 27,395,200 $ 27,297,405 $ (97,795) (0.4%) Includes $255,000 reduction for removal of police grant

12 Personnel Full-Time Equivalents Part-time Full-time General Government (0.1) Emergency Dispatch Police (3.0) Fire/EMS Public Works Culture and Recreation Development (2.1) Total General Fund (5.0) Library Water Utility * Sewer Utility * Total Other Funds Total Full-Time Equivalents (4.4) Note: Positions paid with a stipend (such as trustees and election workers) are not included above. * Employees with duties split between the Water and Sewer Utilities are counted in the Water Utility.

13 Municipal Facilities & Equipment Fund Funding for major municipal facility infrastructure, such as: Surveillance equipment upgrade - $150,000 Internal loans for equipment purchases, such as: 2 Plow Trucks - $420,000 Major source of revenues Tipping Fees approximately $3 million per year Significant projected cash reserves in future years Future internal infrastructure loan program Interest savings

14 Garbage/Recycling Fund $ % Revenues Fees $ 1,244,000 $ 1,261,500 $ 17, % State aids 80,000 80, Other 50,000 16,000 (34,000) * 1,374,000 1,357,500 (16,500) (1.2%) Expenses Garbage 1,488,800 1,549,000 60, % Recycling 547, ,800 26, % 2,036,000 2,122,800 86, % Net loss $ (662,000) $ (765,300) $ (103,300) 15.6% Transfers-in General Fund $ 662,000 $ 772,800 $ 110, %

15 Library Operations & Maintenance $ % Revenues Property taxes $ 1,732,000 $ 1,732,000 $ - - Other revenues 107, ,300 46, % 1,839,181 1,885,300 46, % Expenses Operations 1,552,281 1,680, , % Maintenance 286, ,000 (7,900) (2.8%) 1,839,181 1,959,800 $ 120, %

16 Water Utility $ Operating revenues $ 7,079,900 $ 7,015,000 $ (64,900) Operating expenses (6,986,715) (7,145,500) (158,785) Operating income (loss) 93,185 (130,500) (223,685) Other income (expense) 531, ,700 (143,800) Net income (loss) 624, ,200 (367,485) Add back depreciation 1,680,000 1,770,000 90,000 Approx. cash income (loss) $ 2,304,685 $ 2,027,200 $ (277,485) Water Utility rates are controlled by the WI Public Service Commission (PSC). Current rates appear to give the utility reasonable financial results.

17 Sanitary Sewer Utility $ Operating revenues $ 8,560,000 $ 9,513,000 $ 953,000 Operating expenses (10,852,650) (10,726,000) 126,650 Operating income (loss) (2,292,650) (1,213,000) 1,079,650 Other income (expense) 634, ,200 (133,750) Net income (loss) (1,657,700) (711,800) 945,900 Add back depreciation 1,410,000 1,380,000 (30,000) Approx. cash income (loss) $ (247,700) $ 668,200 $ 915,900 MMSD capital charges are essentially inelastic relative to sewer consumption. Conservation has outpaced increases in consumption from new growth. 6% Rate increases in 2018 and 2019 are improving the financial stability of the Utility. Annual rate increases of 3% are recommended for years 2020 to 2023 (per study)

18 Sanitary Sewer Rate Increase Proposed 6% rate increase effective 2019 Quarterly Rate per 1,000 gallons - Increase $6.60 to $7.00 Quarterly Connection Charge - Increase $66.76 to $70.77 Impact on average resident s quarterly bill Increase of $8 (based on 10,000 gallons) Additional future rate increases Reserve capacity for annual capital MMSD payment

19 Sanitary Sewer Quarterly Bill History $160 Average Customer 10,000 Gallons Usage $140 $120 $100 $80 $60 $40 $20 $ Cost of 10,000 Gal. Connection Charge Total Bill

20 Storm Water Utility $ Operating revenues $ 975,500 $ 975,000 $ (500) Operating expenses (1,408,840) (1,472,000) (63,160) Operating income (loss) (433,340) (497,000) (63,660) Other income (expense) (93,400) (84,700) 8,700 Net income (loss) (526,740) (581,700) (54,960) Add back depreciation 665, ,000 75,000 Approx. cash income (loss) $ 138,260 $ 158,300 $ 20,040 The Storm Utility was created with the intention of charging user fees like the other utility enterprise funds; however, this never happened, and now current state law makes it very difficult to switch to a user fee basis. The Storm Utility is currently funded by tax levy. Stricter and costlier DNR water quality standards put pressure on us to increase the tax levy.

21 Long-Term Debt Outstanding (in millions) Revenue Source 12/31/17 12/31/18 % $ % Tax Increment $ 54.6 $ % $ (2.0) (3.7%) Tax levy % (0.5) (3.0%) Tipping Fees % (2.8) (13.5%) Utility Service Charges % % Special Assessments % (0.2) (66.7%) $ $ 96.1 $ (5.1) (5.0%) The Village is well within its legal G.O. debt limit of $255 million

22 SUMMARY New personal property tax exemption forced budget cuts in order to deal with inflationary costs Village General Operating budget decreased 0.4% Village tax levy decrease of 0.2% Tax Rate to remain at $5.23 per $1,000 assessed value Solid Waste charge for refuse collection and recycling special charge on the tax bill - $ (No increase on 2018 tax bill)

exñéüà Regional Region s largest cities rank low in property tax burden, defying conventional wisdom Thanks to research funder Study author

exñéüà Regional Region s largest cities rank low in property tax burden, defying conventional wisdom Thanks to research funder Study author Regional Volume Three Number Nine July 2006 exñéüà Thanks to research funder Study author Jeffrey Schmidt Researcher Jeffrey C. Browne President Anneliese Dickman, J.D. Research Director Ryan Horton Researcher