Tax Levy Increase

Resolution to increase Town Tax Levy Limit

November 5, 2013

Dear Town residents and property owners,

For a number of years the Town has been operating on a very tight budget. While the bills are being paid and essential services have been maintained, we have not kept up with much of our routine road maintenance. We are reaching a critical stage in the life of our roads where they will deteriorate rapidly if we don’t step up our annual maintenance levels.

As a result of budget issues at the State level we have experienced a steady decline in State Shared Revenue and our State General Transportation Aids have not increased for the last four years. This has occurred at the same time that the cost of blacktop paving and maintenance has increased over 200%. In order to properly maintain the 65 miles of roads in the Town we need to address 2 to 2.5 miles of road each year on average. What we are proposing is to make major repairs on approximately 1 mile or more of road each year as well as crack fill and sealcoat another mile or more of road. The actual amount will vary somewhat based upon the condition of the road. By doing this we will be in a much better position to keep our transportation system at current levels. Today, resurfacing costs approximately $85,000 per mile which is what the proposed levy increase is based upon. Resurfacing is the single biggest item that has not been done for a number of years. The planned seal coating and crack filling will be covered by the previous budgeted dollars.

The Town Board is seeking an increase over our 2013 levy limit (collected in 2014), of $85,000. This proposed increase would be used for the purpose of ongoing highway maintenance. Specifically next year we would complete resurfacing work on Polifka Road, seal coat portions of Thunder and Berringer Roads, and crack fill as much as practical. In 2015 a portion of Stone Road would be resurfaced and we would plan to work on Reif Mills Road after that.

In July the law that required townships of our size to initiate a referendum to increase their levy limit was modified to allow a majority vote at a meeting of the electors in order to exceed the levy limit. Our current levy limit increase is .172% or $309.

The exact language that is required on the resolution can be a bit confusing however the fact is that the proposed increase will ONLY affect the town tax portion of your tax bill. On a home valued at $100,000 the proposed increase will be $47.19.

The Town of Kossuth currently has the lowest Town tax rate in Manitowoc County (excluding Two Creeks).

If this increase is approved the Town will continue to have the lowest Town tax rate in Manitowoc County (excluding Two Creeks).

Town Board of Kossuth