MONROE - Monroe could become the first municipality in Wisconsin to create a transportation utility for the purpose of funding its streets and sidewalks.
Mayor Ron Marsh presented the idea for the future of Monroe's street and sidewalk construction and repair to members of the City Council in a special meeting Tuesday night.
Calling for a transportation utility similar to the city's storm water utility, Marsh told aldermen it was "one way you could ease out of the assessment-type program and still satisfy those who have paid in the past."
The storm water utility was established in 2006 as a means of managing storm water and imposing charges for the recovery of costs connected with such storm water management.
Marsh said committees could set up a "flat fee" program as they see fit. The program would tax all 4,500 parcels in the city of Monroe, could be prorated based on parcel size and could include a discount for those who already have paid the city for mandated sidewalks and street construction adjacent to their properties.
"The kicker is proving that the person paying the fees benefits," Marsh said about setting up the utility.
Developing the program would not be simple, however, and would take an estimated one and a half years.
"This is not a quick-fix cure," Marsh said. "We have to look at the whole city, not just a a small segment of the city. Everybody has to be treated equally," he said.
To set up the program, Marsh proposed the amount now earmarked for street reconstruction and repairs be used. That amount would be about $360,000, based on the average of the past four years, 2008 excluded.
"In that way we are showing the taxpayers of our city that we are not double dipping," Marsh said.
With a utility program, the city's budget would not include costs for street and sidewalks, which would decrease the tax levy. Marsh did not have exact figures for a tax levy based on the adjustment.
"We've got to show citizens we're not moving money around, we're not playing a shell game," Marsh said.
The transportation utility idea would go through at least three committees: Board of Public Works, Finance & Taxation Committee and Judiciary and Ordinance Review Committee.
"All of you would be involved based on the committees you're on," Marsh told aldermen.
City Attorney Rex Ewald said moving "from an assessment procedure to a general fund payment procedure," creates a "shift of the burden."
Ewald explained that tax-exempt entities such as the school district and the county do not pay taxes to the general fund. They do pay special assessments.
"If you make a shift to a general fund, you are actually making a shift in the burden. You're relieving the county taxpayers, you're relieving the school district taxpayers, you're relieving the very tax-exempt entities from a burden they would pay under assessment," Ewald said.
Should the city go forward with the utility plan, Ewald said further research would confirm tax-exempt groups would pay into a utility, resulting in no shift of burden.
Residents of 16th Avenue suggested a general fund procedure as an alternative to assessments at a public hearing May 6. The assessments for 16th Avenue reconstruction were too burdensome, said residents who addressed the council at the public hearing.
In a letter to Marsh, Ewald said the creation of a municipal utility for the purpose of constructing and maintaining streets, curbs, gutters and sidewalks was "legally feasible."
Ewald also noted " ... no other municipality in Wisconsin has successfully created a utility for this purpose. ... Oconomowoc initiated such an effort and later abandoned it in the face of pressure from the public."
Mayor Ron Marsh presented the idea for the future of Monroe's street and sidewalk construction and repair to members of the City Council in a special meeting Tuesday night.
Calling for a transportation utility similar to the city's storm water utility, Marsh told aldermen it was "one way you could ease out of the assessment-type program and still satisfy those who have paid in the past."
The storm water utility was established in 2006 as a means of managing storm water and imposing charges for the recovery of costs connected with such storm water management.
Marsh said committees could set up a "flat fee" program as they see fit. The program would tax all 4,500 parcels in the city of Monroe, could be prorated based on parcel size and could include a discount for those who already have paid the city for mandated sidewalks and street construction adjacent to their properties.
"The kicker is proving that the person paying the fees benefits," Marsh said about setting up the utility.
Developing the program would not be simple, however, and would take an estimated one and a half years.
"This is not a quick-fix cure," Marsh said. "We have to look at the whole city, not just a a small segment of the city. Everybody has to be treated equally," he said.
To set up the program, Marsh proposed the amount now earmarked for street reconstruction and repairs be used. That amount would be about $360,000, based on the average of the past four years, 2008 excluded.
"In that way we are showing the taxpayers of our city that we are not double dipping," Marsh said.
With a utility program, the city's budget would not include costs for street and sidewalks, which would decrease the tax levy. Marsh did not have exact figures for a tax levy based on the adjustment.
"We've got to show citizens we're not moving money around, we're not playing a shell game," Marsh said.
The transportation utility idea would go through at least three committees: Board of Public Works, Finance & Taxation Committee and Judiciary and Ordinance Review Committee.
"All of you would be involved based on the committees you're on," Marsh told aldermen.
City Attorney Rex Ewald said moving "from an assessment procedure to a general fund payment procedure," creates a "shift of the burden."
Ewald explained that tax-exempt entities such as the school district and the county do not pay taxes to the general fund. They do pay special assessments.
"If you make a shift to a general fund, you are actually making a shift in the burden. You're relieving the county taxpayers, you're relieving the school district taxpayers, you're relieving the very tax-exempt entities from a burden they would pay under assessment," Ewald said.
Should the city go forward with the utility plan, Ewald said further research would confirm tax-exempt groups would pay into a utility, resulting in no shift of burden.
Residents of 16th Avenue suggested a general fund procedure as an alternative to assessments at a public hearing May 6. The assessments for 16th Avenue reconstruction were too burdensome, said residents who addressed the council at the public hearing.
In a letter to Marsh, Ewald said the creation of a municipal utility for the purpose of constructing and maintaining streets, curbs, gutters and sidewalks was "legally feasible."
Ewald also noted " ... no other municipality in Wisconsin has successfully created a utility for this purpose. ... Oconomowoc initiated such an effort and later abandoned it in the face of pressure from the public."