Trustees Consider Sending a Message to Walker

Whitefish Bay’s landlocked geography and its significant infrastructure needs put the village in a tricky situation if Gov. Scott Walker’s proposed two-year  budget is passed.

Walker's budget proposal cuts state aid to local municipalities and bars local governments from raising property taxes, except as occurs with new construction.

The village, however, has little room for growth, and is poised to lose as much as $400,000 in state aid, according to Interim Village Manager Matt Schuenke. 

With no room to build in the village, trustees considered a resolution opposing the governor's proposed two-year budget Monday, but decided to hold off and revisit the resolution after some rewording.

Schuenke estimates the village could lose much as $400,000 in state aid under Walker’s larger plan to cut $96 million in shared revenue and 10 percent in transportation aid to local governments. The loss in state aid cannot be made up through increased property taxes, as Walker’s budget prohibits municipalities from raising taxes, except through new construction.

Whitefish Bay’s draft resolution outlines why the village would be adversely affected by the budget, noting the village is built-out and landlocked with no open space for growth and limited new construction capabilities.

Schuenke said the village’s net new construction accounts for, on average, a 0.5 percent annual increase in equalized village property value.

The resolution also notes the extreme basement backups and flooding the village experienced in 2010, and the village’s need to invest in water systems, sanitary sewers, storm sewers and other public improvements to address those infrastructure problems.

The resolution states the biennium budget “severely limits the ability of the Village of Whitefish Bay to manage its general operations and provide capital improvement projects to maintain and replace infrastructure as well as implement future capital improvements to mitigate against basement backups and flooding …”

Shorewood recently passed a similar opposing Walker’s budget repair bill.

Sanitary sewer improvements, such as laterals and sewer mains, are not affected by the budget proposal, as they are funded through a sanitary sewer user fee, said Village Attorney Chris Jaekels.

Other storm water improvements, such as those included in a study conducted by consultant Crispell Snyder, would be funded through the village's general fund.

The village could create a storm water utility district, which Jaekels said likely would not require a referendum.

Trustee Thomas Fehring said the proposed resolution felt similar to a kid complaining about a cut in allowance while the child's parents struggle to pay their mortgage.

“I think the better response from the kids would be, ‘Well, jeez, dad and mom, how about I take on a paper route or cut the lawn to raise my own allowance,' rather than complain to the parents,” he said.

Village President Kathleen Pritchard said the village has been fiscally responsible and is in a position of needing to pay more for infrastructure improvements, similar to a mortgage payment.

“The mortgage problem as you describe it has been put on us in a way that affects us differently than a lot of other communities,” Pritchard said.

Fehring also suggested the resolution include a solution for Sen. Alberta Darling (R-River Hills) and other legislators to consider.

“Maybe what we ought to do is, rather than just say we’re opposed to this budget, (we) request that the proposed budget provisions be amended to at least give us the ability to increase our tax revenues to reflect the underlying rate of inflation or something. Give us some ability,” Fehring said. “If we can do that, at least we get a dialogue going on this.”

Trustee Jay Miller said he would like to see language in the resolution that focuses on allowing more local control over local funds.

Trustee Richard Foster said he supported the resolution.

“This budget will hurt us,” Foster said. “As village trustees, we took an oath to do what’s best for our village, and if this budget is going to harm our village … then I think we ought to say something.”

Resident Jim Loebl said he would support the board’s decision to join roughly 200 other municipalities that already have passed similar resolutions.

 “I just feel this could significantly affect property values in Bay,” he said. “There could be detriment to public school districts.”

While some trustees said a resolution may not alter the course of the budget, it would at least send a message, said Trustee Julie Siegel, chair of the Finance and Claims Committee that presented the resolution.

“I think the intent of the resolution is just to get our voices heard in Madison,” she said.

The Village Board asked village staff to draft a new resolution that addresses trustees' concerns.