Mount Pleasant 2012 Budget Will Include Decreases

The 2012 budget cycle is not going to be an easy one.

Like most municipalties in Wisconsin, Mount Pleasant faces a budget hole that needs to be filled. With state aid reduced and tax revenues down, village employees and trustees need to prepare a budget that delivers services in least painful way possible.

According to Vicki Matter, lead accountant, between highway/transportation aid and state shared revenue, the village needs to fill a $300,000 hole. Instead of receiving the same $1.6 million from 2011, Mount Pleasant will get about $1.3 million in 2012; with just over $1 million in the highway/transportation fund and $300,000 in state shared revenue.

"Costs rise and revenues, including the aid we get from the state, are down, too," she said. "We're trying to be as creative as possible to make cutting services the very last resort."

After reviewing a list of ideas, suggestions and guidelines as prepared by village staff and a brief discussion, the Village Board at the Sept. 12 meeting instructed employees to deliver a budget that cuts operational costs by five percent. Additionally, village staff will price out line items so trustees can use those numbers to help determine the value of some expenditures and whether or not they fit in the budget.

Some trustees wanted staff to compile figures at 7.5 percent decreases, but Trustee Sonny Havn said that was too steep.

"Some of our employees haven't had raises in four years, and you want them to cut costs by seven-and-a-half percent?" Havn asked. "How can that be done and we be okay with that?"

But Trustee Gary Feest pointed out that the math should be simple: money going out should be less than the money coming into the village.

"If we can't pay for it, then we can't have it," he said. "I know the heat will come down for that."

Matter confirmed that 7.5 percent decreases would be extremely hard also because of the levy freeze imposed by Governor Scott Walker's 2011-2013 state budget. Municipalities can only raise their levies by one percent as long as they have an equal amount of new development, and Mount Pleasant does not meet those requirements.

"We have to be careful, too, because whatever the board decides for the levy, we're stuck with it for a few years," she added. "And that could be very difficult because costs continue to rise. We're going to need to look for revenue in addition to the levy."

Planning Director Ron Meyer warned the board about being too conservative.

"Frugal communities are being penalized," he said. "We are a growing community with a growing need for services. That means costs go up so we have to plan for that."

Village residents Robert Strausser and Mike Devine added their comments to the discussion as well.

"Employees who haven't gotten a raise for three years should get a raise," Strausser said. "But every other expense should be closely examined."

Devine questioned the village's methodology.

"Cut from what?" he asked. "The value of the village is down so why not just keep things the same? We paid it last year so we can pay it now, but don't scare village employees like this."

Some suggestions put forth to save money include:

• Creating new department revenue by contracting out as is already done with building inspections for Sturtevant and plumbing inspections for Caledonia;

• More accurately price out fuel and salt costs to reflect current expenditures ($3.50/gallon and $60.35/ton, respectively);

• Push off projects that will not cost more because of delay;

• Change poll workers to a flat contracted rate to reduce payroll processing and eliminate payroll taxes and fees; and

• Reduce the boundaries of the tax incremental financing district (TID) to bring the development at Highways 31 and 11 so that assessment gets added to the general levy. Meyer is checking on the rules for whether or not this is allowed under TID rules.

Board budget work meetings are scheduled for the first two weeks of October. Matter said trustees will have budgets by the end of September and information will include a brief outlook into 2013 and 2014 as requested by Village President Carolyn Milkie.