Posted: Nov. 11, 2009

Mequon — A divided Common Council on Tuesday approved a 2010 budget that calls for a 4.4 percent increase in the city's property tax levy.

Aldermen were split on whether to put off some spending to keep a lid on property taxes or whether doing so would hurt the city in the long run.

In the end, Mayor Christine Nuernberg cast the tie-breaking vote that put the council's approval on a $20.43 million budget that is 15.1 percent more than this year's budget, although that increase includes money borrowed in 2009 for projects in 2010.

If that borrowed money is removed from the budget, the increase is 3.6 percent.

The budget will be supported by a $13.15 million tax levy.

The tax rate will drop from $3.40 to $3.07 per $1,000 of assessed value because of a citywide reassessment done this year. The average property value increased by 18 percent as a result of the revaluation. City officials estimate the owner of a home now valued at $354,000 will see a $67 increase in property taxes.

Prior spending an issue

While noting accomplishments during 2009, particularly the utility work in the Town Center area, the purchase of the water utility, a plan to repair roads and a plan to streamline emergency medical services, Nuernberg she said she believes the council has gone too far in its attempts over the last nine years to keep taxes low.

"Frugality has sometimes cost us money," she said. "For a number of years we did not levy enough to maintain roads. For every dollar we borrow, we pay 20 cents in debt service, and we are now paying $1.5 million for debt service."

Five years ago, she noted, former Police Chief Doyle Barker told the council he believed the department should have 40 officers.

"This year we are budgeting for 36 officers, with no discussion on whether that is good or bad or the consequences," she said.

The budget calls for hiring an additional officer later in the year but Nuernberg questioned whether the 2011 budget would have the levy capacity to maintain that position.

Nuernberg, who has worked on 12 city budgets, said this year's spending plan is so tight that there is no contingency fund and suggested adding $100,000. If the money is not spent, it could be put into the general fund reserves, bringing them back to 10 percent of the operating budget. The city received a warning from Moody's Investor Services because of the drop in its reserves this year.

Not the time to raise taxes?

The suggestion to add money to the budget fell on deaf ears, and Alderman Dan Abendroth, noting he has worked on 24 city budgets, made a case for those who voted against the budget.

"Every year we try to trim things, and we hear the sky is falling we are not providing adequate services," he said. "Somehow we have provided them every year."

Abendroth said he could not ignore the recession, saying the last thing people need is an increase in their taxes.

"I feel the tax increase produces a negative outlook for future city development," he said.

Aldermen John Wirth and Mark Seider joined Abendroth to vote against the budget. Supporting it were aldermen Ken Zganjar, Dale Mayr, John Hawkins and Dan Gannon. Alderwoman Pam Adams was absent, which created a tie vote that had to be broken by the mayor.