Grafton, Wisconsin Development News

Village Outlines Comprehensive Budgeting Process, Financial Principles, and Key Timelines

The municipal budgeting process was explained, highlighting its purpose as a financial plan to align resources with priorities, ensure accountability, and provide transparency. Key principles include balanced budgets, transparency, accountability, and a long-term perspective. The budget is guided by state law (balanced budget, debt limits, TID regulations, levy limits, expenditure restraint program), GASB standards, professionalism, and GAAP. Budget stresses include property tax levy limits, health and liability insurance premiums, WRS contribution rates, unfunded mandates, CPI, and aging infrastructure. Revenue sources identified are property taxes, state aids (shared revenue, highway aids, personal property aid, recycling grant, fire dues), permits and licenses, charges for services (recycling, engineering, planning, senior fees, inspections), and other revenues (investment earnings, PILOT, TID increment). Expenditures are broken down by fund use: general government, public safety, public works, community enrichment services, conservation and development, capital outlay, debt service, and proprietary funds. The document also details the process of increasing the tax levy through net new construction, levy carry forward, referendum, and TID closure, with changes in TID closure rules significantly impacting potential revenue. The current property tax levy is under $1 million, resulting in a tax rate of $4.94 per thousand, equating to $2,700 in village taxes for a $419,000 property. The impact of net new construction on the budget has a one-year lag. Tax bills are distributed with 56% to the general fund, 25% to fire/EMS, 9% to capital projects, 6% to the library, and 3% to debt service. A timeline for the budget process is provided, from initial instructions in June to budget adoption and tax rate establishment in November. The distinction between requested and executive budgets is explained, with the executive budget being finalized by a budget team.