NEENAH – Removing Neenah’s Transportation Assessment Replacement Fee (TARF) from the city’s 2025 budget will result in a significant tax increase for homeowners.
Neenah implemented the TARF in 2019 to help pay for street reconstruction and sidewalk infill projects. It replaced unpopular special assessments that periodically hit property owners with bills totaling thousands of dollars.
In October, Wisconsin Manufacturers & Commerce filed a claim against Neenah, arguing that the TARF is an illegal tax under recent court precedent.
The Common Council on Tuesday removed TARF from the budget to avoid a lawsuit by WMC. As a replacement, it increased the debt service tax by $825,000, the amount the TARF would have generated by 2025.
After the move, the council unanimously approved the 2025 budget.
The tax bill for the owner of a $275,000 home will increase by $124 next year: $44 for budget increases, $40 to replace the residential TARF and $40 to absorb some of the TARF that has been toe was paid for by corporations and tax-exempt organizations such as churches and hospitals. and schools.
“This is no joke,” Chief Financial Officer Vicky Rasmussen told The Post-Crescent. “The residents are definitely hit harder. Tax-exempt people don’t pay anything for it, even if they also use the roads.”
How do other communities pay for street reconstruction?
Appleton, Chilton, Green Bay, Kaukauna, New London and Oshkosh have opted for a wheel tax to replace or partially offset special assessments.
Neenah’s TARF is based on the impervious surface of a property. It was preferred as a fairer option because all property owners, even tax-exempt ones, paid some of the costs.
The unit rate for a typical homeowner is $40. The annual cost for large businesses can consist of multiple unit costs but is limited to $3,600.
Rasmussen said TIDI Products, for example, paid $3,600 under the TARF. Next year it will pay $2,000, and the $1,600 gap will shift to other property taxpayers.
What else does the Neenah budget include?
The budget provides a 4.5% wage increase (1.5% in January and 3% in July) for non-union workers in the city and a 28.5% increase in health insurance costs due to high utilization and inflation. Neenah will return to a self-funded health insurance plan in an effort to minimize costs.
Department directors requested six new full-time positions — four for Neenah-Menasha Fire Rescue, one for the Public Works Department and one for the Neenah Public Library — but Mayor Jane Lang and the council did not fund any of them.
A proposal from Councilman William Pollnow Jr. to increase the salary for newly elected council members by 5%, from $5,280 to $5,544, failed on a 4-5 vote.
“The 5% is more than what we give anyone else here at City Hall,” said Council Member Lee Hillstrom. “I just can’t do that.”
How much does the city spend?
The budget totals $81 million. That is an increase of 6.4%.
What will it cost me?
The tax levy needed to support the budget is $21.5 million, an increase of 5.4%.
The assessed tax rate will increase 6.8% to $7.02 per $1,000 of assessment. The owner of a $275,000 home will pay $1,931 in property taxes for city services next year. That’s an increase of $124.
The total will be offset somewhat by the elimination of the $40 TARF, which was paid through utility bills.
The budget increases other reimbursements. Neenah’s annual stormwater fee will increase from $84 to $90 per equivalent unit of runoff, and the city’s annual recycling fee will increase from $42 to $47.
When will I receive the bill?
Rasmussen said property tax bills will be mailed out in the first half of December.
The levee wall at Doty Park in Neenah needs to be repaired or replaced.
What are the most important investment projects?
The budget includes $21.5 million for capital projects, of which $18.1 million will be financed by loans. That’s well above the 10-year average of $11.2 million in annual loans.
Notable capital expenditures include:
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$3.1 million to stabilize and improve Doty Park’s shoreline. Neenah received a $1 million grant from the Wisconsin Department of Natural Resources to partially offset the costs.
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$3 million to complete the first phase of a $6 million renovation of Fire Station 31 at 1080 Breezewood Lane. The station also houses the health clinic for city employees and a server room for the Information Systems Department.
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$2.4 million to pay for the city’s share of the reconstruction of South Commercial Street between Winneconne Avenue and Stanley Street. The project will cost an estimated $9.3 million, with $6.9 million coming from federal funds administered by the Wisconsin Department of Transportation.
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$1 million to develop Arrowhead Park. The money will be carried over from previous budgets.
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$611,000 to pay for Neenah’s share of a $1 million improvement to the Neenah-Menasha Fire Rescue training tower. Menasha will be responsible for $389,000. The cities received a $500,000 grant from Winnebago County to partially offset the costs.
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$500,000 to install a 12-inch water main across the Fox River to serve Doty Island. The new main will be installed on the Wayne Bryan (Oak Street) Bridge and will eventually replace two older mains on the riverbed.
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$500,000 to develop stormwater ponds.
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$489,000 to pay for Neenah’s share of an $800,000 heavy-duty rescue vehicle for Neenah-Menasha Fire Rescue. Menasha will pay $311,000.
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$475,000 to replace City Hall windows and entry doors.
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$400,000 to rebuild the tennis courts at Southview Park.
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$130,000 to add sidewalks to both sides of Bruce Street between Alexander Drive and Castle Oak Drive.
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$100,000 to begin development of Carpenter Preserve.
The council cut several projects from the budget, including $1.4 million for the reconstruction of Bergstrom Road between Breezewood Lane and Winnebago County G. The paving is rated as poor.
The city also cut $65,000 from sidewalk construction on Alexander Drive after residents argued the sidewalks were not needed or wanted.
Contact Duke Behnke at 920-993-7176 or dbehnke@gannett.com. Follow him on X, formerly Twitter, at @DukeBehnke.
This article originally appeared on Appleton Post-Crescent: Neenah homeowners hit over removal of disputed transportation charges
