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by Kevin Zimmermann
While most were delighted to put the year 2020 behind them in anticipation of better times in 2021, it’s not so easy to get past the old year when it comes to the City Budget.
On Friday, City Administrator Todd Wolf submitted the 2021 Adopted Program Budget, which is committed to advancing the City’s Strategic Plan and its 2021 Action Items. The document outlines how more than $118 million will be spent in the coming year, an increase of more than $8-1/2 million over 2020.
Since property taxes make up the largest revenue source, new construction growth of $84.2 million seems like good news, but the vast majority of that is happening in Tax Incremental Districts which defer collection of taxes, keeping that potential money unavailable to fund general operations, capital, and debt-related expenditures for now.
The pandemic caused its own pressures on the budget. Mayor Mike Vandersteen told us in December that when some of the largest manufacturers had to close down for a month or two, water sales dropped by over a half million dollars. And without that water being used, another quarter-million or so was lost in wastewater treatment plant revenues. Postponement of the Ryder Cup tournament and the nearly-inconsequential Democratic National Convention in Milwaukee – both of which were hoped would generate abundant revenue – along with the general downturn in tourism, cut into the City’s Room Tax.
On top of that, another $600,000 loss was experienced in utility aid payments when Alliant Energy shut down Edgewater Generating Units 3 and 4 in the previous year.
Mayor Vandersteen said that it was fortunate for 2020 that some extra money had been put into the contingency fund, helping somewhat to weather the pandemic storm. But for 2021, after accounting for state-imposed caps on the tax levy, budget writers recommended that the tax levy increase 3.86%. And for the average Sheboygan homeowner, that will mean an increase of 15-cents per $1,000 in assessed property valuation.
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