He wants officials to beg in
referendums…none of this local decision making stuff, doing the peoples business.
Racine City Hall has to work around the state wide tax cap
by borrowing, instead of paying cash like before, for basic services.
Journal Times: Tax cap? Borrow more -- Racine uses short-term borrowing as a way around tax levy limits. Police cars, garbage trucks, lawn mowers, water pumps. City Hall used to pay for these big-ticket items with the annual tax levy. Next year it’s putting them on the charge card. Officials say the move is the only way they see of getting around new tax cap laws that all but bar cities and villages from raising taxes for operations unless they experience a significant increase in development. Of the $2.8 million increase in the 2013 tax levy, nearly all of it is slated to go to debt service.And Vos thinks that’s gaming his system. Aww.
And it isn’t the only municipality that’s doing so. Brad Viegut, director for financial advising firm Robert W. Baird & Co., told aldermen last month that he has worked with several communities that are moving costs to debt service because of the tax caps. “(Racine) is not unique in taking this approach,” he said.
Escaping a bind or skirting the law? The latest limits only allow cities or villages to raise taxes for operations if they see a notable increase in net new construction.
Officials say the maneuver has helped the city avoid service cuts by freeing up tax dollars, but if you ask state Rep. Robin Vos, R-Rochester, he’ll tell you that what the city is really doing is skirting the law … Vos has long been a supporter of tax caps and has co-authored tax cap legislation.
“It’s unfortunate that local elected officials are choosing to go around the intent of the law,” he said. “If they wanted to spend more money, then they should go to the taxpayers in a referendum.”
Curt Witynski, assistant director for the nonpartisan League of Wisconsin Municipalities, said that when lawmakers impose “arbitrary limits,” local leaders are naturally going to hunt for solutions. “Eventually people have to make adjustments and use the tools they have to work with,” he said.
No comments:
Post a Comment