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City Tax Rate Forecasting Growth of 1.7% in 2021
This release reflects the proposed budget as of October 27, 2020. The budget is expected to be finalized in late November. For information on the final budget visit: www.platteville.org/administration/page/finance.
The proposed budget for 2021 will result in a growth of the City’s portion of the assessed mill rate from $7.884 to an estimated $8.023, an increase of 1.77%. The increase in mill rate reflects a projected $173,000 impact on revenue sources in 2021 due to the COVID-19 pandemic along with a decrease in State Aid of $53,000. With this mill rate, a house valued at $150,000 would see the city portion of their property taxes increase by $20.85 from $1,182.60 to $1,203.45 or roughly $1.74 per month. The overall city tax levy will increase by 2.6%.
City Manager Adam Ruechel notes the increase in needed property tax revenues is less than anticipated. “Our long-range financial plan indicated growth in the tax levy of $308,000. However, certain factors allowed the City to keep the increase below $200,000. The City’s health insurance rates are remaining flat in 2021 and the usual levy support for the Taxi/Bus Fund is being supplemented with Grant Funding. Also, the anticipated levy support for TID 6 debt service has been postponed to 2022 due to some reimbursements to the TIF district.” Ruechel added, “Common Council members voiced concerns about a tax increase being difficult for residents to burden because of the varying impacts of COVID-19. In an effort to assist the Common Council in meeting their concerns staff worked to reduce the proposed mill rate increase while attempting to accomplish the goals indicated by staff and the City of Platteville strategic plan to move the city forward.”
The 2021 City Total Operating Budget is showing a 32.0% increase over the prior year. The main two areas within the budget responsible for this increase is the Taxi/Bus Fund and the Capital Fund. Due to COVID-19 the Taxi/Bus fund is receiving an increase in grant funded support over previous years. The proposed 2021 Capital Improvement Plan (CIP) reflects an investment of over six million dollars in City infrastructure and equipment. Approximately $3.7 million of the proposed CIP budget would come from grants or other funding sources. Business Highway 151 Safety Improvement Project is one example where the city is projected to receive a Department of Transportation Grant of $1,426,512. The Hanmer Robbins School Building Roof Replacement is another project with the potential to receive up to $241,240 from county funded support. Finally, the City is also anticipating receiving $735,000 in federal airport funded support for a ten-unit hanger construction project to accommodate more clients who would base their aircraft operations in platteville.
Included in the CIP Budget is the proposed reconstruction of Dewey Street, Park and campground improvements, a museum safety fence replacement, replacement of a police department squad car, City Hall exterior maintenance, IT network equipment updates, bus and taxi vehicle replacements and replacements of several pieces of aging Street Department equipment.
The City Council is expected to vote on the proposed budget in late November 2020.