Proposed 2014 Budget Includes Levy Decrease

The proposed South Milwaukee budget has been published, and it once again keeps property tax increases responsibly low while maintaining the city services we expect. In fact, it calls for a property tax levy decrease.

The details:

• The proposed budget calls for a 1.16% increase in expenditures from the 2013 budget, to more than $18.6 million. With this small increase, we will again receive an “expenditure restraint” payment from the state in 2014, budgeted at more than $371,000.
• Revenues are anticipated to increase 1.85% to more than $8.7 million.
• The property tax levy is expected to decrease 0.14%, to $10.5 million. This is, of course, below the state-imposed levy limit increase, which is set at 0.642% for 2014 due to the limited amount of new local construction growth from 2012 to 2013. This limit excludes debt service payments – and because the city’s debt payment decreased for debt issued after 2005, the city’s 2014 levy will be less than the 2013 levy. There is also no “buy down” of the levy planned for next year, which we have used in the past.
• We expect state aids to remain constant in 2014 from 2013 – good news, but you’ll recall that many state aids were cut in previous state budgets … and never restored. One example: funding for recycling programs.
• The executive budget keeps staffing the same and includes a 1.66% salary increase for civil service (AFSCME) and a 3.0% salary increase for non-represented employees. The AFSCME increase is the maximum increase allowed by law for unionized general employees with labor contracts that expire December 31, per guidance from the Wisconsin Employment Relations Commission. You will note the police union contract includes a 3% increase effective January 1, and the fire union contract includes a 2% increase effective January 1 and 1% increase effective July 1.
• Health insurance premiums are expected to decrease slightly. Wisconsin Retirement System rates will increase.
• And the proposed has some good news for local grade school students. Eight thousand dollars were added to the police department overtime budget to allow for the bicycle safety program to be offered to the fifth-grade classes that missed the program two years ago, when the program was suspended for a year due to manpower shortages. This program is generally done in the spring for third graders. 

So, what will this all mean for your tax bill? We won’t know that until tax rates are determined in coming weeks. I’ll keep you posted. And don’t forget that the city makes up just one portion of your tax bill. The biggest portion funds schools.

You also have a chance to weigh in on the city budget. A public hearing is set for Nov. 25, with the city council meeting the next night consider passage. I hope you can join us for those meetings … and post your comments below.