MONROE - On Wednesday, Monroe aldermen will decide whether to use a program to prioritize city budget items as part of an effort to reduce the tax levy while saving more money for future projects.
Alderman Reid Stangel noted one of the program's benefits is transparency.
"We need to have a good basis for removing some of those services," Stangel said.
Priority Based Budgeting had been considered by council members before, but aldermen deemed the program's cost, at about $42,000, too high.
City Administrator Phil Rath presented information to the Finance and Taxation Committee last week, highlighting the program. Expenses would include $20,000 to establish the Resource X database, with an additional $15,000 annually for maintenance. Rath said under the agreement, the annual fee wouldn't increase over the course of three years, and would drop if the company found it could provide services for less.
In the past, the city neglected to save capital for projects such as the overhaul of the Wastewater Treatment Plant or the demolition of the municipal downtown parking ramp. By removing certain services through the use of priority based budgeting, the city could build savings to cover the cost of future renovations or construction.
"This is basically taking what we do and flipping it on its head," Rath said.
Examples of how not to budget, according to a Center for Priority Based Budgeting presentation that Rath shared, include the "robbing Peter to pay Paul" method; borrowing; delaying maintenance or replacement of assets; or using accounting tricks. An example is the city uses money from the Cheese Days fund in odd years for other expenses and then replaces the money during the following year's budget process. The city has also had to borrow money for the demolition of the downtown parking ramp and upcoming reconstruction of 8th Street.
The priority-based method of budgeting examines the cost of each service in every department and its subsequent, possibly less visible, expense across all affected departments. Council members choose the criteria of importance. For instance, in the area of community safety, the city could also identify programs in which costs outweigh impact, providing the possibility of their elimination if ranked low enough.
Mayor Louis Armstrong said the process would help shift each department away from self-preservation priorities and make unbiased decisions regarding services. Alderwoman Brooke Bauman agreed.
"This is fact-based rather than being put forward by a specific person with their own agenda," Bauman said.
The plan is to prevent borrowing for large projects by saving money, and reduce tax rates for residents in the process. Currently, Rath said, Monroe has one of the highest tax rates throughout Wisconsin at $10.81 compared to other municipalities averaging a levy of $8.40. Council members will evaluate the recommendation on Wednesday to decide whether the database will be used to decide the 2018 budget.
Alderman Reid Stangel noted one of the program's benefits is transparency.
"We need to have a good basis for removing some of those services," Stangel said.
Priority Based Budgeting had been considered by council members before, but aldermen deemed the program's cost, at about $42,000, too high.
City Administrator Phil Rath presented information to the Finance and Taxation Committee last week, highlighting the program. Expenses would include $20,000 to establish the Resource X database, with an additional $15,000 annually for maintenance. Rath said under the agreement, the annual fee wouldn't increase over the course of three years, and would drop if the company found it could provide services for less.
In the past, the city neglected to save capital for projects such as the overhaul of the Wastewater Treatment Plant or the demolition of the municipal downtown parking ramp. By removing certain services through the use of priority based budgeting, the city could build savings to cover the cost of future renovations or construction.
"This is basically taking what we do and flipping it on its head," Rath said.
Examples of how not to budget, according to a Center for Priority Based Budgeting presentation that Rath shared, include the "robbing Peter to pay Paul" method; borrowing; delaying maintenance or replacement of assets; or using accounting tricks. An example is the city uses money from the Cheese Days fund in odd years for other expenses and then replaces the money during the following year's budget process. The city has also had to borrow money for the demolition of the downtown parking ramp and upcoming reconstruction of 8th Street.
The priority-based method of budgeting examines the cost of each service in every department and its subsequent, possibly less visible, expense across all affected departments. Council members choose the criteria of importance. For instance, in the area of community safety, the city could also identify programs in which costs outweigh impact, providing the possibility of their elimination if ranked low enough.
Mayor Louis Armstrong said the process would help shift each department away from self-preservation priorities and make unbiased decisions regarding services. Alderwoman Brooke Bauman agreed.
"This is fact-based rather than being put forward by a specific person with their own agenda," Bauman said.
The plan is to prevent borrowing for large projects by saving money, and reduce tax rates for residents in the process. Currently, Rath said, Monroe has one of the highest tax rates throughout Wisconsin at $10.81 compared to other municipalities averaging a levy of $8.40. Council members will evaluate the recommendation on Wednesday to decide whether the database will be used to decide the 2018 budget.