West Bend - The largest cut in state shared revenue payments to municipalities in Ozaukee and Washington counties, and the 16th largest statewide, under Gov. Scott Walker's proposed 2011-13 budget will be borne by West Bend.
The city will receive $535,421 less in shared revenue payments in 2012 than it did this year, under the proposed state budget. Shared revenue payments generally are used to help communities reduce property tax levies.
Savings that will come from city employees contributing more to pensions amount to $498,000 in 2012, or $37,421 less than the shared revenue cut, according to the Legislative Fiscal Bureau.
But the city will not reap the full amount of those savings in its general fund budget financed by property taxes, City Administrator Dennis Melvin said. Some of the employees work for the city's water and sewer utilities so any savings will impact customer rates paying for those separate utility budgets, not the property tax rate.
A few weeks ago, Melvin thought shared revenue cuts might be manageable when state officials were discussing reductions in the range of 8.8% to 15%, he said.
The 40.7% cut handed to West Bend surprised him and he is preparing a memo for the City Council and city department heads informing them that cuts in all state aid categories "have become much less manageable," he said. "This will be much more challenging to us."
Thursday, March 17, 2011
Thank you Glenn Grothman...
West Bend would shoulder one of the biggest state cuts - JSOnline
Posted by Mpeterson