CITY NEWSLETTER

Preparation of the 2008 City budget was much more difficult than previous City budgets, in that the Wisconsin Legislature and the Governor failed to agree on a State budget until early November. Although the State Constitution requires a budget by the Legislature no later than the first of July, the Legislature was able to seemingly ignore their responsibilities until the very last minute. Their indecisiveness, and ultimately their late decision on such items as municipal shared revenue, transportation assistance, tax levy limitations and other general budgeting and accounting regulations, effectively delayed not only the City's budget, but all county, city, village and school district budgets throughout the State of Wisconsin.

Ultimately, the Legislature did adopt a budget, which was altered by the Governor through the use of his line item veto. The final State budget maintains the 14 year freeze on municipal shared revenue and maintains municipal tax levy limitations.

For 2008 the municipal tax levy limit was set at 3.86%, or the percentage increase in equalized value due to net new construction, whichever was greater. For Glendale, the net new construction was 12.98%, one of the highest net new construction values of any community in Southeastern Wisconsin. This was largely due to the construction of the Bayshore Town Center.

Although theoretically under the levy limit law, Glendale could have increased its levy limit by 12.9%, the City chose to develop a budget that remained eligible for the more restrictive expenditure restraint program. Under this voluntary program, if a community maintains its general fund spending levels at or below an adjusted Consumer Price Index, that community would be eligible to receive a financial incentive from the State in the following year.

On a more positive side, this past year the City witnessed the near completion of the Bayshore Town Center. This massive redevelopment project, which the City is an equity partner, will continue to have a major impact on the City for years to come. Bayshore literally is transforming the City's image into a place where people want to go and be seen. Unfortunately, unlike most states throughout the country, Wisconsin prohibits its communities from enacting an optional local sales tax. If Glendale had this authority and proceeded to implement a 1% sales tax, the projected amount generated within the City would reduce the City's property tax levy by almost 40%.

One area that the City takes great pride, is its annual Capital Improvement Program. The City's infrastructure, its streets, its utilities, its landscaped medians and street lighting, have never been knowingly deferred for future years' consideration, unlike other communities. The City will continue to improve its infrastructure in an attempt to retain Glendale's image as a place to do business and a place to call home. In 2009, the City will complete the Crestwood Subdivision street reconstruction program and will begin construction of the infrastructure necessary for a recreational park that will be owned and operated by Cardinal Stritch University, but available to Glendale residents.

The 2008 budget for operations and maintenance is $12,166,682, an increase of $498,040 or 4.26%. The total City budget, without TIF but including Debt Service and Special Revenue Funds, is $18,468,374, an increase of $801,785, or 4.5%.

The total tax levy, including the tax levy requirement for operations and maintenance, Special Revenue funding and Debt Service for 2008 is $11,349,186, an increase of $564,537 or 5.2%. The tax rate for 2008 is projected to be $6.57 per $1,000 of assessed valuation. This is an increase of $.18 or 2.82%.