On the General Election ballot on Tuesday, April 1, 2025, resident taxpayers for the City of Green Lake will be asked a referendum question on whether or not the City should be allowed to exceed its property tax levy limit for the purpose of maintaining or expanding public safety protection services. 

To help Green Lake residents better understand this important referendum, the City of Green Lake is emailing a weekly purposeful series of educational information which will lead you to the reason for the referendum. Our goal is to keep everyone informed and ensure transparency about this municipal financial matter.

Here is the 1st email of the series if you missed it.

WEEK ONE EMAIL

Mayor Radis and Adam Ruechel, the City’s municipal financial consultant with 

Baird, will host an open meeting during which you can ask questions and have 

more clarity on the need for the referendum. We encourage you to attend 

and to invite your Green Lake friends and neighbors to join you.

How did the City of Green Lake get into this position?

Inflation rates of 3.2% in 2024 and a fifteen-year average of 2.59% have impacted the City’s operating and capital expenses. In contrast the allowable levy limit increase of 1.71% in 2024 and a fifteen-year average levy limit allowable increase of 0.97% imposed by the State has not kept up with inflation rates resulting in the city having to increase the debt service limit to meet operating expenses. 

Currently the City’s levy limit of $1,126,901 does not meet existing and future operations, repair and replacement of city assets. 

The city had a general fund budget deficit of $402,568 in 2023 and is estimated to have budget deficits of $284,420 in 2024 and $728,635 in 2025. In 2023 and 2024 general fund reserves and short-term borrowing were utilized to cover the deficits. In 2024 efforts have been made to shift borrowing to a longer-term financing plan to better match the useful life of the capital projects. In 2025 the deficit of $728,635 is projected to be covered by a onetime transfer of funds from other accounts and general fund reserves. 

It is projected at the end of 2025 the general fund reserve balance will be $314,474 or 14.16% of general fund expenditures. 

Bond Rating agencies, financial consultants, and auditors recommend a general fund reserve balance to be between 25-40% of general fund expenditures. In 2025 general fund expenditures are estimated to be $2,220,908 which would require a fund balance reserve range of $555,227-$888,363. 

If the budget shortfall process continues the general fund will be depleted as early as 2026 and leaves the only options remaining of cutting staff/essential services or requesting a referendum.

What is the cost to the taxpayer if the referendum passes?

Below is an example of a tax bill for a home assessed at $250,000.

If the referendum were to pass the city portion of the tax rate would increase from $4.46 to an approx. $7.50 resulting in an increase of $759.38.  If the City of Green Lake had not implemented shifting borrowing to a longer-term financing plan in 2024 and kept the tax rate at $6.12 the increase on a home valued at $250,000 is estimated to be $344.82 or 22.5%.  

Below is a table showing the tax implications for various home values.

City tax notifications are sent out in December of each year for the following calendar year; ex. 2025 tax notification is for 2026 fiscal year.  

The 64.476% levy increase is for 2026, to get the city at the appropriate operating levy limit. The operating levy going forward in future years would be limited to the increase in net new construction unless put to the voters through a referendum. (Per Wisconsin Statues)

Stay tuned for more information next week.