We Lose Even When We Win

Cities try to Avoid Tax Levy Limits

just in case

By LISA SINK
[email protected]

Posted: June 24, 2005

Rushing to beat any property tax limits imposed by the state, local governments across Wisconsin have voted to authorize more than $335 million in potential future borrowing for capital improvements and economic development.

And Milwaukee aldermen may vote next week to borrow as much as $336 million through 2008 - debt they say would not be subject to tax levy limits.

The maneuvering angered some Republican lawmakers who say it undercuts their efforts to control local taxes.

"It's disappointing to see local governments trying to get around it," state Rep. Scott Jensen (R-Town of Brookfield) said.

"I'm sure they're frustrated with the legislation, but we are responding to our constituents," he said. "The voters have expressed . . . their frustration with property taxes and their desire to have some relief, and the state Legislature has responded."

But municipal leaders said the state was forcing their hand because the GOP's proposed three-year property tax "freeze" would hurt their ability to borrow for everything from road and sewer repairs to new garbage trucks and fire stations.

"We're just trying to find a way to get around irresponsible legislation," Rich Eggleston of the Wisconsin Alliance of Cities said.

Under the Republican state budget plan, local governments could increase their tax levies only to reflect the rate of new construction in their communities, which has averaged 2.6% statewide in recent years. Any additional tax levy increase - including borrowing to finance big-ticket capital improvement projects - would have to be approved by voters in a referendum.

Many communities said they likely would never borrow as much as they called for in the preliminary resolutions.