Council approves budget with tax increase; Alderman suggests eliminating costs for new building

By Michael S. Hoey

SLN Staff

The Delavan Common Council approved its 2013 budget at a special meeting Nov. 20. The budget was unchanged from the one presented during a public hearing the week before.

The tax levy was set at $5.3 million, and the mill rate was set at $9.31 per $1,000 of equalized property value. While the tax levy did not rise the mill rate increased from $9.12 per $1,000 in 2012. That will result in an increase of $28.98 per $150,000 of property value, or $1,368 for the owner of a $150,000 home on the city portion of his tax bill.

As he did during the public hearing, Alderman Gary Stebnitz opposed the budget and pushed to eliminate $100,000 allocated to fund engineering and design costs for a new building meant to consolidate the parks and public works departments in one location on Richmond Road. Stebnitz also wanted $850,000 forecast for 2014 to construct the building to be taken out of the budget.

Stebnitz said many individuals and businesses in the private sector are putting off making improvements until the economy improves and said the city should do the same. He also asked if the city really needs the building and, if so, whether it can be built at a lower cost. Stebnitz commended the council for committing to pay for future capital projects with money it has rather than borrowing, but he said he does not want to see taxes increased to make that happen.

Alderman Bruce DeWitt said the budget is tight and revenues are down, which will result in a small tax increase this year. He said the council has done a good job maintaining the tax levy with no increases considering the city’s assessed property values have declined $90 million since 2009. He said the tax rate is going up because of the decline in property value, not because anyone wants to raise taxes.

“If we continue on this plan, we can improve the roads, services to the city, keep the levy the same and reduce debt,” DeWitt said. “We are on the right path over the next five years to be in very good financial shape.”

Alderman Ryan Schroeder agreed no one wants to raise taxes but larger increases are likely in the future if necessary improvements are not made now. He said he was not persuaded to lower the levy now because he doesn’t see the city gaining anything by it.

“It will be better to have a small adjustment now than a big one later,” he said.

Stebnitz’s motion to take the $100,000 out of the 2013 budget failed 4-1. DeWitt’s motion to approve the budget passed 4-1 with Stebnitz opposed.

 

Vacant council seat

The council agreed to accept letters of interest from people who want to fill the Second District council seat vacated by Dave Kilkenny, who resigned effective Nov. 12. The council agreed to accepts letters until Dec. 7 and select a new alderman Dec. 11.

The council will allow those who submit letters to speak at the council meeting before a selection is made. The replacement will serve on the council until the April election and may run for the seat but is not required to.

Former alderman John Finley offered to serve out the remainder of Kilkenny’s term free of charge and promised not to run in the April election.

Resident Chris Philips, who intends to run for the seat in April, said he believes appointing someone is a waste of time since that person will only serve a couple of months before the April election. Philips said he thinks the council is doing fine as it is.

Mayor Mel Nieuwenhuis said the vacancy goes beyond just council meetings. Kilkenny has also been missing several committee meetings. He also said the appointed alderman will serve as many as five months since whoever is elected in April will not be sworn in until May.

Alderman Mary O’Connor supported making an appointment because half of the Second District is currently unrepresented on the council.

“The taxpayers deserve representation,” she said.

 

Police agreement

      The council authorized Administrator Denise Pieroni to begin negotiations with the Village of Darien on an intergovernmental agreement for the city to provide police services for the village beginning Jan. 1. The village received proposals from the city and the Walworth County Sheriff’s Department to provide 24-hour-a-day, seven-day-a-week police coverage in early November and chose to pursue the city’s proposal Nov. 19.

“We are starting down the road toward sharing services,” DeWitt said. “It is not a burden on our taxpayers.”

Stebnitz agreed.

“This is what we have been looking for for some time with shared services,” he said. “Both communities are benefitting, and it is the way of the future.”

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