Marshfield Common Council Approves Three Percent Tax Rate Increase
Thursday, October 31st, 2019 -- 9:36 AM
(Focus on Marshfield) -The Common Council approved a three percent tax rate increase at its Tuesday budget meeting, more than the two percent originally proposed during the city budget process.The initial proposed increase was from 9.26 percent to 9.45 percent per $100,000 in assessed property value. The approved three percent increase now brings that number to over 9.54 percent, which means the taxpayer will pay $955 per $100,000 assessed value. City Administrator Steve Barg said the two percent increase was proposed as a “politically palatable” figure and there was not a “silver bullet” to fix the budget. Regardless of the Council’s ultimate decision, City staff would continue looking into budget trimming, finding revenue, and working on the debt structure, he said. If it were possible, the number to balance the 2020 budget would be 10.04 percent, said Finance Director Ron Aumann. However, tax levy increases are tied to net new construction and the levy limit is 9.74.
At the proposed 9.45 percent rate, the City still faced a $825,000 annual budget shortfall. The three percent increase puts that number at an estimated $675,000. Staff are anticipating it will take 3-5 years to resolve the issue. From 2005-2018, the total increase in the tax rate was just under four percent, said Barg. If the City had steadily increased that number, the rate would currently have been more comparable to neighboring communities. The motion to increase the tax rate to three percent passed 6-4. A public hearing and final vote for the proposed 2020 budget will be held Tuesday, Nov. 26 at 6 p.m. at City Hall.
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