Property Tax Increase Could be Lowest in Decade as Village Starts Budget Talks

Excluding the village official anticipate Shorewood's tax levy growing 1.8 percent under a proposed budget — the smallest increase in a decade.

In a workshop Monday, officials started discussing balancing the village’s budget after $207,000 in cuts to state aid from Gov. Scott Walker’s 2011-13 budget bill. Shorewood, however, will start out in the black with more than $230,000 in savings from workers — except for some police employees — contributing 12 percent to the cost of their health care premiums and 6 percent toward their pensions — all provisions outlined in the Act 10, or the budget repair bill.

"The governor giveth and the governor taketh away, as they say," Village Manager Chris Swartz joked.

Shorewood anticipates an increase in the tax levy by $181,519 — or 1.8 percent, which would add about $37 to the tax bill of a home assessed at $300,000.

Among the largest expenses for next year are $9 million in major road reconstruction and sewer projects.

However, in addition to budget repair bill savings, Shorewood will cut costs after with other North Shore communities, which would save $27,000 from last year. And, the village estimates saving $12,000 after agreeing to contract out to Bayside.

"When you are dealing with a more than $207,000 cut in state aid, these things start to add up," Swartz said.

Additionally, the reorganization of a Planning and Development department within the village, resulting in two inspectors who can process residential building, electrical, plumbing and HVAC inspections, rather than contracting out for the electrical, plumbing and HVAC inspections, is expected to save the village $38,000.

With most of the summer, officials removed funding for lifeguards, but now anticipate replacing the $15,000 in this year's budget for lifeguards for next year.

Shorewood police would get a new squad car for next year, at a cost of $42,000, and replacing police radios would cost $42,000. Village would also spend $139,000 for new fire department equipment.

Swartz said some village buildings need roof and other repairs — officials allocated $128,000 infrastructure repairs under the proposed budget. Replacing public works vehicles and other equipment are estimated to cost $281,000.

Swartz said Police Chief David Banaszynski pulled out the needed replacement of a second squad car from the budget in order to maintain funding for all police department employee positions.

Additional requests, which were not included in the proposed budget, include repairs to the exterior of the Village Hall building columns, a new security fence at Public Works building and replacement of the roof on the scout cabin at Hubbard Park.

Additionally, the village will start putting $40,000 in the budget to fund retirement benefits other than pensions.

"They don't have to give us a year's notice, so they could be retire anytime," Finance Director Stephanie Walker said.

If not fixed, the assessment error could dramatically change the look of Shorewood's tax levy. Property owners could have to shell out an estimated $2 million extra on next year’s bill, or $442 more on a home assessed at $300,000, based on this year's tax rate. The money would then roll over for 2013, where property owners would pay $2 million less.

Officials say the error will be incorporated into the budget process as they move along.

A finalized budget is expected to reach the Village Board on Oct. 24.