Property Tax Levies Throughout Region Increased Modestly In 2011

According to a leading policy organization, municipalities such as Greenfield are having to charge higher taxes, a concept that has homeowners wringing their collective hands.

The Public Policy Forum reported recently that the southeast Wisconsin seven county region experienced a 1.5 percent increase in taxes which was accompanied by a 6 percent increase in aggregate gross tax rate for and .

The increases force homeowners to be asking simple, yet financially significant questions about the value they are receiving from their municipality.

"Where is this money going? Why?" said Greg Karcher, a Greenfield homeowner. "How is it going to benefit me, my family, my neighbors and my neighborhood?"

Karcher added he enjoys the municipal services that Greenfield provides for his money.

"But who's back pocket is getting fatter because our taxes are going up," he said. "Where is this money going?"

The forum's report indicates the relatively small property tax increase may be beneficial news for taxpayers, but it "also may raise questions regarding the capacity of the property tax to support desired levels of local government services.” 

During a recent city finance committee meeting, Greenfield policy makers discussed a raise in taxes. The city's top financial official told aldermen that the city can increase the levy $104,795, according to meeting minutes.

Mayor Michael Neitzke, according to the minutes, is "inclined not to support increasing the levy."

Even if the city does not increase the levy, property taxes for individual property owners may increase because values of certain properties continue to decline.  

"There is obviously much more pressure on elected officials to increase the rate when the values are declining," said Rob Henken, president of the Public Policy Forum. "That is a tough call for them."

According to the Public Policy Forum, the rate for municipalities and school districts in the region increased from $20.36 to $21.58 per $1,000 in 2011.

Even with the increase, it is a decline in services that drives the frustration for homeowners like Karcher.

"They are cutting all of these things and that is what gets me kind of angry," said Karcher, a father of three, who focuses a lot of his attention as a taxpayer on the school district.