The Village Board approved the 2020 budget as proposed during their November 18 meeting. Click here to view the budget. Here are some budget basics to help you understand the adopted budget and its impact.
Property tax levy. The property tax levy in 2020 will be $11,648,361. This is a 1.42% increase from 2019. The Village tax levy goes towards operational and personnel costs, debt, and general capital projects related to infrastructure and equipment.
Computing your property taxes. In order to compute your property taxes, you need two things: (1) assessed valuation of your property and (2) the mill rate. A mill rate is the tax payable per $1,000 of your assessed value. In simpler terms, the mill rate is used to divide up the Village tax levy to each property based on its assessed valuation. The Village's mill rate for 2020 will be 7.42. This means that for every $1,000 a property is worth, the property will be imposed $7.42 in taxes. The mill rate is being reduced by 5.3% mostly due to the fact the total assessed valuation of the Village went up just over 7% during the assessment process. It is important to recognize that the mill rate and a property's assessed valuation both impact one's final property tax computation.
A homeowner with an assessed value of $300,000 and approximately a 7% increase in their assessment will see about a $24 increase in their property taxes for the Village portion. Those that didn't experience an increase in their assessment will see a reduction in their property taxes for the Village portion due to the Village reducing the mill rate.
Composition of tax bill. There are a few taxing agencies that make up the composition of the tax bill. The Village portion is only roughly 27% of your total property tax bill. The other taxing authorities include the school district (44%), Milwaukee County (18%), MMSD (6%), and MATC (5%).
Themes of the 2020 budget. Police (32%), Other Public Safety such as Fire and Dispatch (27%), and Public Works (23%) continue to be the three main budgetary expenditure areas. Shorewood and other municipalities continue to rely mainly on property taxes due to municipalities lacking the ability to generate other funding sources such as sales tax as well as not receiving shared revenue from the State of Wisconsin at totals seen a decade ago. Property taxes make up 70% of all revenue for Shorewood while intergovernmental revenue, license and permits, fines, PILOT revenues, and charges for service make up a good amount of the other 30%.
Some of the new capital funding includes a police squad car, mill and overlay project for the SE quadrant, reconstruction of streets in the Larkin-Marion neighborhood, and other DPW heavy equipment replacement. There is no anticipated rate increase for the Water Utility. The Sewer Utility will experience a rate increase of 18% in anticipation of substantial sewer infrastructure enhancements.
Please expect to receive your tax bills some time in December. If you have any questions about taxes, please don't hesitate to reach out at firstname.lastname@example.org or give me a call at 414-847-2701.