RESOLUTION NO. 10625-041806

BY:  _______________________________

A RESOLUTION URGING THE STATE LEGISLATURE TO REJECT THE

TAXPAYER PROTECTION AMENDMENT (TP AMENDMENT) (SJR 63/AJR 77)

WHEREAS, Sen. Glen Grothman (R-West Bend) and Rep. Jeff Woods (R-Chippewa Falls) have introduced companion joint resolutions (SJR 63/AJR 77), referred to as the Taxpayer Protection Amendment (TP Amendment), that would insert revenue limits on state and local governments into the Wisconsin State Constitution; and

WHEREAS, the proposed constitutional amendment limits a municipality's annual growth in revenue from property taxes and fees to the lesser of the average rate of inflation over the last three years or the annual percentage increase in state personal income plus 60 percent of the percentage increase in property values related to new construction within the municipality; and

WHEREAS, the TP Amendment would severely restrict the City of Oak Creek’s ability to foster and serve new economic development because the growth formula is capped at 60% rather than 100% of new construction and the revenue limits apply to debt service levies and TIF levies; and

WHEREAS, the TP Amendment interferes with the elected Common Council’s control over municipal taxing and spending decisions and undermines Wisconsin's tradition of representative democracy; and

WHEREAS, the proposal won't reduce property taxes because it severely restricts other forms of revenue, like storm water utility fees, building permit fees, license fees, and impact fees that reduce the property tax cost of essential services and that fairly assess the cost of services according to use; and

WHEREAS, the TP Amendment fails to recognize that Wisconsin municipalities are a diverse group with great variation in economic conditions, tax base and reliance on shared revenues; and

WHEREAS, by applying the same revenue limits on all communities regardless of local conditions, the TP Amendment unfairly penalizes poorer communities as well as those that have been particularly frugal and efficient in recent years; and

WHEREAS, it will be difficult to modify the revenue limits in the future making it impossible to respond quickly to emergencies; and

WHEREAS, the City of Oak Creek’s elected officials have consistently demonstrated their commitment to controlling spending and reducing the property tax burden on homeowners and share the Legislature's concerns about high property taxes in this state; and

WHEREAS, we are particularly concerned that homeowners bear over 70% of the statewide property tax burden; and

WHEREAS, we believe that there are better ways to lessen the residential property tax burden than inserting revenue limits into the constitution, including:

Working with local governments to develop and enact proposals fundamentally reforming how local government is structured and financed in this state.

Reducing the number and scope of property tax exemptions created for special interests. Increases in property tax exemptions have unfairly shifted more of the burden for paying for municipal services onto homeowners. In 1970, residential owners paid 50% of all property taxes in Wisconsin. Today, they pay over 70%.

Providing municipal officials with the flexible tools they need for controlling property taxes locally.

Increasing state funding of shared revenue.

NOW, THEREFORE, BE IT RESOLVED, that the City of Oak Creek opposes the TP Amendment and urges the Legislature to reject SJR 63/AJR 77 and instead work with municipalities to accomplish real property tax relief for homeowners.

BE IT FURTHER RESOLVED that the City Clerk is hereby directed to transmit a copy of this resolution to Representative Mark Honadel and Senator Jeff Plale.

Presented and adopted this 18th day of April, 2006.

                                                                                                ____________________________

                                                                                                President, Common Council

Approved this 19th day of April, 2006.

                                                                                                ____________________________

                                                                                                Mayor

ATTEST:

______________________________

City Clerk                                                                                Vote:    Ayes   _____   Noes  _____