A Daily Dilemma

I think that most people want to be considered ethical persons. Any critical self examination would seem to reveal that most of us haven’t even noticed that we faced a moral dilemma. We probably couldn’t even articulate what we are responsible for to be considered ethical persons. This means that often we do not even realize we are faced with an ethical situation; we move through our lives missing the moment and the opportunity. I can honestly say that I have lived through many moral dilemmas without the slightest knowledge of it. It took one clear and defining event to open the door to a different level of “moral knowing.” I lived my life under the misconception that ethical/unethical behavior, like justice, was clear and easy to see. Ethical dilemmas do not always have a right solution. Reasonable people can disagree on the solution or that there is even an ethical issue in the dilemma.
Barlow, Jordan, and Hendrix (2003) suggest a fundamental part of character is “moral knowing.” (p. 566) Moral knowing includes knowing when a situation is one which demands an ethical examination. Moral knowing is being able to rationally recognize the ethical issues involved in your decision or action; it is the acknowledgment of dilemma. If you can consistently do this, then, you have achieved the first step to being an ethical person. This “knowing” is only the first step, however. The next step would be to move beyond the knowing and actually do something about it. Now you have to be able to define your purpose, know your moral principles, and be able to maturely take action and appropriately predict the consequences of the action.
http://papers.peterstinson.com/2005_07_01_archive.html

"If we can't hold it, where will you find men who can?"

During my recent trip to Gettysburg - there was only small mention of the Wisconsin units related to the first day. A little research turned up this information - sounded more like the Iron Brigade.
http://www.civilwarhome.com/doubledaygettysburg.htm

Pretty impressive.

Equipment Issues

Few businesses are the lifetime owners of a vehicle. At some point a vehicle becomes unacceptable with regard to cost and reliability. The ideal time for disposal is just before regular problems start. Determining where this point is requires intense fleet management. The Fleet manager must understand the vehicle, the types of uses and conditions the vehicle faces, record the preventive maintenance, and regularly run analysis of the vehicle’s condition. Short of having a staff to run fleet maintenance, a manager must rely on the experience of others. Many small cities buy a vehicle for the entire lifecycle of the vehicle; a well-managed city will use the same criteria that businesses use and the experiences of other municipalities. City Council’s require the services costs to be as low as possible and the reliability as high as possible. Without investing significant dollars into fleet management because our fleet is not large enough to justify the expenses, but trying to capture cost saving and improve reliability means keeping the vehicles on a turnover schedule.
Studies and even common sense indicate that costs are influenced by age, miles, loads carried, terrain, weather, type of use, driving habits, maintenance policies and quality of maintenance performed. Each municipality can claim to have rather unique conditions for their vehicles and equipment, but the generalized experiences provide enough benefit to utilize the knowledge and resulting systems.
The City of Lake Mills currently only utilizes a mid-lifecycle disposal plan with Police squad cars. A car should have a normal lifecycle of less than ten years. Standard practice is to turnover the vehicles in three to five years based on cost, reliability and conditions. A squad car generally faces very harsh conditions for a vehicle and needs high reliability. The four-year turnover plan is the middle option based on good preventive maintenance practices without fleet records and conditions analysis. The practice is cost effective based on the size of our fleet and meets the needs defined for this department.
The City currently does not use this approach for all their vehicles and equipment. The request for such schedules is fiscally responsible and encourages better management practices.

Leadership Questions

I'm back from the east and made it with little problem. I made all connections like clock work. Traveling always stresses me because the first casualty of travel is the plan.

I'm now going to state my feelings about the discussions of leadership. Bobby Lee didn't get where he was at by not having effective leadership skills - including communication. I think the mission had been laid out and there was no going back (hail mary play). If Longstreet knew this - than he should have redirected his suggestions to accommodate the goal. I highly doubt that Bobby Lee had not listen to his other officers comments regarding the decision - although he probably realized they were stuck in group think.

I think health for many of the southern leaders was an issue and Bobby Lee and J. Davis knew it. Lee was on the long road to heart failure, A. P. Hill had all kinds of sicknesses and Ewell was worst and had lost a leg. With what we learned about Gettysburg after the battle - health and economic conditions in eastern Virginia must have been miserable.

The mounting southern casualties probably weighed heavy on Davis and Lee. My opinion is that the desire to have that one battle that ended the war was the driving force in all the decisions. Once the plan die with the major engagement at Gettysburg - Lee felt that God had selected the place for the fight - not who would win - that was up to his boys.

Lee thought God selected the site -but I think that Meade was the beneficiary of decisions made by Buford, Reynolds, Howard and Hancock. Once Buford forced Heth to fight to get to Gettysburg - the north had the advantage and the south failed to grab several chances to get the advantage back. Buford made the decision and Reynolds, Howard and Hancock made decisions to protect the ground and the opportunity was now Meade's.

This Week

I will be in historic Gettysburg this week. I'm attending the ICMA Gettysburg Leadership Institute with 30 other senior managers. This small group will meet to study the leadership lessons of Gettysburg, and join colleagues in an exploration of personal leadership, organizational effectiveness, disaster management, and the lessons of history. Much of the program takes place on the battlefield itself.

New Issue

Time to brush up some skills I haven't used for a long time.

Time to Start the Budget

The budget or one year focus makes the flow of current financial resources a natural derivative for determining what to include in the governmental funds. Cash, temporary investments, supplies, and accounts payable are all short term and therefore included in governmental funds. Long term items are excluded unless part of the long term item comes due during the budget period and must be paid in cash. The fund financial reports then allow for financial analysis based on budget compliance. In the private sector, there are groups of ratios used to determine a business’s liquidity, solvency and profitability. A municipality can review its liquidity and solvency but does not have a profitability section; however, analysis of the unreserved fund balance, serves a similar purpose.
The endorsement given to the liquidity approach goes with the propensity in municipal government to promise now and pay later. Balanced budgets do not halt this tendency because the budgets are operated on a cash oriented basis. That is to say, if only a small part of the promise or none at all needs to be paid this year, then only the amount demanded is legally due and needs to be included in the budget. In fact, municipalities can use borrowing in the financial statements to balance spending. The business model does not allow borrowing to increase equity (income) to offset spending.

A Word To The Wise

Most of us have been attempting to communicate with others as long as we can remember; but, now I have come to understand that the fascinating process of transmitting information from one to another is very complex. In any type of idea transmission, some of the "meaning" is lost in the simple conveyance of the message from the sender to receiver.
The choice of words or language in which a sender encodes a message will influence the quality of communication. Because language is a symbolic representation of a phenomenon, room for interpretation and distortion of the meaning exists. Meaning has to be given to words and many factors affect how an individual will attribute meaning to particular words. It is important to note that no two people will attribute the exact same meaning to the same words. [1]
The art of debate is for each individual a value laden process that is ripe for communication errors. It is critical to know that misunderstandings will occur. We need to understand and be aware of the potential sources of errors and constantly counteract these tendencies by making a conscientious effort to make sure that our meaning is understood.
[1] Retrieved 10/10/08 from http://web.cba.neu.edu/~ewertheim/interper/commun.htm

Favorite Quote

The Man in the Arena
It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of the deeds could have done better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly; who errs and comes short again and again; because there is not effort without error and shortcomings; but who strives to do the deed; who knows the great enthusiasm, the great devotion, who spends himself in a worthy cause, who at the best knows in the end triumph of high achievement and at the worst, if he fails, at least he fails while daring greatly. So that his place shall never be with those cold timid souls who know neither victory nor defeat.
Theodore Roosevelt, April 23, 1910

Really, You Can

There appears to be a total lack of trust in our government systems and there has to be some level of trust for any public management to be successful. The lack of trust in any organizational system conflicts with the risk taking and initiative needed to be effective managers. I love Marc Zegan’s quote about "rule‑obsessed organizations turn the timid into cowards and the bold into outlaws.” The point is that any government system, whether traditional public administration or New Public Management really relies on trust to function effectively and that there will need to be a change in the theoretical mindset of Americans.

Street Tree Issues or Pavement Issues

Street trees serve many purposes in an urban environment. They improve the environmental quality; economic, physical and social health of the community and foster civic pride.
The City’s street system is a major engine in the local economy. Its service and performance can shape our local economic growth. For decades we have been in the cycle of build, rehabilitate and rebuild. With shrinking budgets and more demands from users, management must pay more attention to pavement preservation.
Street trees and street systems provide many benefits to the city and there are areas where they conflict with each other. This report discusses the issues and some of the options for improving pavement preservation and maintaining a vibrant urban forest. Realistically, conflicts will always be present to some degree. Tolerations of conflicts are necessary if street trees and vehicles are going to exist with us. The resolution of conflicts through management practices can enhance the benefits and reduce the negatives.
What Is a Street Tree Easement?
“Street tree easement" refers to the twelve (12) or eight (8) foot zone behind the sidewalk or curb if no sidewalk exists used for street trees. "Street tree" means any tree planted and/or maintained by the city, or recorded as a street tree, adjacent to a street or within a right-of-way or within the street tree easement.
Typically, street trees are located between the sidewalk and the curb. If a tree is located in an easement on the resident’s side of the sidewalk, a measurement is made by City staff to determine if it is within the City’s planting easement. If the tree is within the easement, the city would plant and maintain trees by scheduling an appointment with the property owner. If the tree is outside the City’s easement, it would be the property owner’s responsibility to maintain.
“Right-of-Way” refers to a public way dedicated to the public for the intended use.
“Public Utility” refers to a public utility (Investor Owned, Municipally Owned) that is generally a company or agency that provides and sells electricity, water, gas, telephone, cable TV, sewer or natural gas to homes and businesses.
ESTABLISHING CONTEXT
The primary purpose of road right-of-way is for public travel. The city that owns the right-of-way has some responsibility to see that utilities are installed in a way that minimizes traffic safety issues and does not unnecessarily hinder travel on the right-of-way. In addition these local governments own and maintain the street improvements such as pavement, curb, drainage structures and sidewalks. It is important that damage to these facilities is minimized and, when they are damaged, that they are repaired properly to obtain the maximum service life.
It is important to recognize the difference between utility easements and right-of-way. Wisconsin State Statutes gives the city authority over the right-of-way. The definition of right-of-way in this statute does not include “easements obtained by utilities or private easements in platted subdivisions or tracts.”
Most cities utility easements are dedicated when a subdivision plat is filed for a new development. The cities usually think of these utility easements as public utility easements, of which they have jurisdiction. However, the jurisdiction over the easement may be dependent on the exact wording on the subdivision plat.
Because Lake Mills’ utilities are under the street pavement, settlement can result in and around utility trenches causing uneven pavement surfaces, driver annoyance, and further maintenance. The utilities are located under the pavement because of design requirements and to avoid conflicts with street trees planted in the portion of the right of way between the sidewalk and curb. To reduce pavement maintenance costs and maintain a vibrant urban forest – many communities use street tree easements. This option allows utilities to locate on the terrace and the city can still provide an urban forest.
Utility construction under pavements and utility repair cuts made in completed pavement sections for electric, water and wastewater utilities, and drainage pipes under roadways are one of the main factors in pavement performance. Utility installations and repairs disturb the original base course and subgrade soils below the pavement. Once the utility is installed or repaired and in place, the utility trench is backfilled and surfaced with a pavement.
Utility installation and repairs under the pavement affect the performance of the existing pavement, as settlement and/or heave occurs in the backfill materials of the restoration. If the backfill materials used are not suitable for the site conditions and not properly installed, the materials will begin to settle relative to the original pavement. Utility installation and repairs have the greatest damaging impact on newly paved streets and therefore reduce roadway life considerably (Department of Public Works 1998). Longitudinal trenches made between the sidewalk and curb will reduce settlement and heaving issues. There will still be transverse trenches in the right of way – but they will be reduced by approximately fifty percent (50%).
Tree roots can also cause infrastructure damage such as sidewalk, sewer and pavement damage. Instances of pipes being broken by the growth of roots are rare, but blockage of damaged pipes is not uncommon. As roots enlarge, they may occasionally break the pipes and enter the cracks. More commonly, the pipes fail (especially at the joints) due to age or slight movement of the soil, allowing roots to invade. Moisture and nutrients released from ruptures can stimulate root growth toward the break in the pipe. Once a root enters a sewer pipe, the conditions of aeration, moisture, and nutrients are quite favorable for rapid growth. Species that are naturally found in wet areas such as poplars, willows, and silver maples, are commonly associated with clogged pipes. Blocked sewers usually must be cleared mechanically. Mechanical routing may be needed on an annual basis. Registered chemical treatments are available. The main advantage of these products is that they can be placed into the sewer as foam for more effective contact with roots; however, it is essential to follow label directions. The only permanent solution to the problem, however, is to replace ruptured pipes. Modern materials and joints should prevent most problems in the future.
If trees are too close to pavement, or if compacted soil forces large roots to grow very near the soil surface, roots can eventually lift pavement. When roots encounter a paved area, the only entry is often a gap between the soil and pavement. Future problems can be prevented at the time of planting by using smaller plants, providing a minimum distance of 4 feet between the tree and the pavement, or using mechanical barriers to prevent roots from growing under the pavement. Remedies for lifted pavements around mature trees often involve either moving the pavement away from the tree or pruning off the problem roots. Barriers are often installed after the roots are cut to prevent re-growth of the roots and recurrence of the pavement lifting. Cutting off the problem roots often causes stress and instability. Trees without sufficient root support can be blown over more easily in a storm.
Trees are also a large contributor to stormwater phosphate loading, flooding and yard waste materials. The most common and asked for solution to tree/infrastructure damage is the removal of a tree. Trees are a valuable community asset and provide many benefits, which include shading our streets and homes, blocking and screening winter winds thus lowering heating costs, raising property values, filtering pollutants and neighborhood beatification. Many tree benefits are taken for granted and their loss is often not felt until the tree has been removed.
The best approach to improving pavement preservation is preventing street tree/utility line conflicts from arising in the first place. Where practical, new utility lines should be constructed to avoid potential conflicts with pavement. Location and selection of appropriately sized trees prior to planting is critical to the trees’ successful co-existence with utility lines. This option is available to anyone involved with landscape design and installation - city planners, landscape designers and contractors, arborists, and private homeowners. Proper selection and planting of trees near utility lines can improve the appearance of the landscape, prevent safety hazards, improve utility service reliability, and reduce maintenance expenses for utility companies.
Taking the time to actually consider whether the community would be better served with one option or the other is a strong step forward. Obviously, costs aren’t the only issues that drive government decisions – but at least we have evaluated the options and intelligently set our standards.
ALTERNATIVES
Alternative 1 – No change. The City continue as it currently does with locating water, sewer and stormwater utilities under the pavement and electric utilities in rear yard easements.
Alternative 2 – Adopt a policy that requires the dedication of street tree easements and change city standard specifications to allow for the location of utilities in the terrace.
Alternative 3 – Adopt a policy that changes city standard specifications to allow for the location of utilities in backyard easements.
Alternative 4 – Adopt a policy that stops requiring the planting of street trees and change city standard specifications to allow for the location of utilities in the terrace.
Alternative 5 – Council develops their own procedure or utilizes combination of proposed alternatives.
Project the Outcomes
Alternative #1. No change. The City currently locates water, sewer and stormwater utilities under the pavement and electric utilities in rear yard easements.
The vast majority of Wisconsin communities locate their utilities under the pavement. The depth of facility placement required because of frost, narrow right of ways and the extensive use of asphalt pavement may be the reason for this standard.
Alternative #2. Adopt a policy that requires the dedication of street tree easements and change city standard specifications to allow for the location of longitudinal utilities in the terrace.
Today, we must consider better ways to manage our pavements that are cost effective and meet the increasing demands from the public. Placing the utilities in the terrace can provide longer lasting pavements, higher serviceability levels, and decreased maintenance costs.
The lifecycle difference between urban pavements and rural pavements can be attributed to the presence of buried utilities, the confined work space associated with installing and servicing utility appurtenances, pavement design (geometry) and traffic loading. Many utility cuts are made and many appurtenances (manholes, valve chambers and other “iron works”) are placed in urban and semi urban roads by utility companies.
Poor performance of pavements over and around utility trenches on local streets often causes unnecessary maintenance problems due to improper backfill placement (e.g., undercompacted, too wet, too dry). The cost of repairing pavements as a result of poorly performing utility installations and repairs can be reduced with an understanding of proper material selection and construction practices. Current utility installations and repairs practices vary widely across Wisconsin, which results in a range of maintenance problems.
A study in New York City showed that utility locations accounted for more than 85 percent of pavement defects. The result of this study was a recommendation to strictly enforced quality control requirements for pavement utility cuts and a first-class system for coordinating installation of underground utilities with roadway resurfacing programs. The latter will help prevent poor communication that can sometimes result in tearing up a road that one crew resurfaced in July for another crew to make utility improvements in August. A Canadian study indicates that road lifecycles are reduced by more than 30% by underground utilities.
The use of street tree easements allows for the selection of larger trees which is consistently preferred in surveys. Street trees are generally selected to fit into small terraces or under overhead utilities. Front yard tree easements generally have fewer restrictions based on roadway design, chemical tolerance and utility placement. Larger trees provide more shade to cool pavement and houses; they create a more enclosed feeling; have more visual impact; assist in traffic claming and increase property values.
Alternative #3. Adopt a policy that changes city standard specifications to allow for the location of utilities in backyard easements.
Today, we must consider better ways to manage our pavements in a cost effective manner and meet the increasing demands from the public. Placing the utilities in the terrace can provide longer lasting pavements, higher serviceability levels, and increase system performance.
This option eliminates issues with pavement and street trees. However, property owners have a tendency to clutter easements with personal facilities that significantly reduce ease of access; digging in backyards generates lots of mud and there is a bigger chance of utility damage from private digging with locates.
Alternative #4. Adopt a policy that stops requiring the planting of street trees and change city standard specifications to allow for the location of utilities in the terrace.
Although we must consider better ways to manage our pavements, it shouldn’t eliminate the option of having an urban forest. Again, tolerating the negative aspects of utilities and street trees allows us enjoy a larger range of benefits from these features of our community.
Street trees can be safety problems; damage pavement, sidewalks and curbs; interfere with overhead and underground utilities; and obscure signage.
Alternative #5. Council develops their own procedure or utilizes combination of proposed alternatives.
This memo was prepared in two days and was not the most significant issue that was being dealt with at the time. There are going to be issues that haven’t been researched and I’m sure that I haven’t even thought of all the possible outcomes at this time.
CONSEQUENCES
Ever since the first underground utilities were conceived the designers and planners of these facilities struggled with thought of where should we put these things. The simplest solution was the most direct route between point A and point B, a straight line. Our forefathers in utility planning had no idea what demands would be placed on public streets by growth in the underground utility industry.
The application of this change would have minimal and slow affect on the existing street trees and utilities of the city. The process would involve new subdivisions and site plans. There are currently no new subdivisions or site plans that this would affect. The process would not be applied to existing areas unless there were area restrictions based on facility design and right of way width.
Managing trees in an easement on private property sounds like a difficult proposition, however, most people consider the terrace their property and the forester works with the residents just like the tree was on there property. The end result is that there would be no substantial change to the method of managing street trees.
The cost of repairing utility lines would be reduced substantially. Leaking valve boxes, mains and corporations now require asphalt cuts, removal, careful backfill selection and compaction, and asphalt patching. Leaking, plugged or damaged sanitary sewers and storm sewers require the same type of costly repairs. The terrace only needs to meet landscaping requirements.
National, utilities are generally located as follows:
Mainline sewers were generally located in the center of the right-of-way.
High maintenance utilities such as gas mains and water mains were generally located outside the roadway pavements. If they need to be in the roadway area they are located in the curb lane. This is probably to limit the impact on vehicular traffic.
Transmission facilities that are not usually tapped and require a higher degree of protection and are therefore designed to be deeper than distribution facilities.
Street drainage intake structures are located in the roadway immediately adjoin the curb.
Street lighting and traffic control facilities are generally located in the sidewalk area immediately behind the road curb of improved streets. In unimproved streets they are generally further away from the road pavement.
Underground telephone, electric, and cable are generally located near the right-of-way line. If they need to be in the roadway area they are located in the curb lane.
This is probably to limit the impact on vehicular traffic.
A “clear zone” is defined by the American Association of State Highway and Transportation Officials’ (AASHTO) Roadside Design Guide as the total roadside border area, starting at the edge of the traveled way, available for safe use by errant vehicles. The clear zone aids designers of road or street projects so that rigid items within the clear zone, such as bridge rails, are required to have breakaway features or be protected by guardrail. The AASHTO A Policy on Geometric Design of Highways and Streets (Green Book) enumerates a clear zone value for two functional classes of highways. For local roads and streets, a minimum clear zone of 7 to 10 feet is considered desirable on sections without curb. A 10-foot minimum clear zone is recommended on collectors without curbs. The general discussion on Cross-Section Elements also indicates that a clear zone of 10 feet should be provided for low-speed rural collectors and rural local roads.
Errant vehicles routinely travel outside the clear zone, so it is always a good policy to locate rigid objects as far away from the road as possible. The Federal Highway Administration (FHWA) policy is that utility facilities should be located as close to the right-of-way line as feasible. The Green Book, AASHTO Highway Safety Design and Operations Guide, 1997 (Yellow Book) and the AASHTO A Guide for Accommodating
Utilities within Highway Right-of-way, state that utilities should be located as close to the right-of-way line as feasible. The Yellow Book, recognizing that crashes are over-represented on urban arterials and collectors, says this means as far as practical behind the face of outer curbs; and where feasible, behind the sidewalks. Local agencies should insist that utilities be placed as close as possible to the right-of-way line to enhance safety and to reduce conflicts with maintenance operations. Fire hydrants are a special feature that have a place in the clear zone and are discussed in a subsequent section.
CONCLUSION
In city streets the right-of-way is usually narrow and the utility corridor is effectively from the edge of the road to the right-of-way line. The city should consider establishing utility corridors where practical.
There is limited room within the right-of-way for all the utility companies, and no utility should occupy more room than necessary. On occasion a utility company will need to upgrade their line to increase capacity or replace an obsolete line. In this case the old line should be abandoned when the new line is placed into service. Some agencies have required the old line to be removed. This is an expensive process that should be discussed with the utility on a case-by-case basis.
The Board may want to propose that facilities should be located to the satisfaction of the City. This would mean that to enhance traffic safety the City would adopt the maximum clear zone available within the existing right-of-way, all utilities should be located as close as possible to the right-of-way line. On relocations for construction projects on the side of the road where a power pole line is planned, the parallel installation of buried utilities shall not be closer than 4 feet to the right-of-way line; at locations for above-ground facilities, the line would deflect to the right-of-way line so the above-ground facility could be placed at the right-of-way line. In subdivisions with platted utility easements, the facilities should be located in the utility easement if room is available. To allow room for all utilities, lines owned by the same utility company will not be allowed on both sides of the road, so if a line is upgraded the old line will have to be abandoned.

A Little About Property Taxes

PROPERTY TAXES
The public generally understands that municipal activities are different than private sector businesses. Most members of the public do not understand the depth of the differences. The public sector in the U.S. evolved because the private and non-profit sectors could not satisfy all community needs. Municipalities started to provide services that were deemed necessary by the majority of the public because these services were not effectively provided by the private sector since generating a profit was difficult.
So, municipalities exist to provide goods and/or services related to real or perceived market, distribution, or competitive failures. Public goods are goods or services that can be consumed by several individuals simultaneously without diminishing the value of consumption to any one of the individuals. This key characteristic of public goods, that multiple individuals can consume the same good without diminishing its value, is termed non-rivalry. Nonrivalry is what most strongly distinguishes public goods from private goods. A pure public good also has the characteristic of non-excludability, that is, an individual cannot be prevented from consuming the good whether or not the individual pays for it. For example, fresh air, a public park, a beautiful view, and street lighting. Municipalities can and normally do provide goods and/or services that aren’t necessarily pure public goods[1].
The size and diversity of the service population and the scope of the service roles assigned to respective governments creates their operating challenge. In large part, the political impact of demography and economic changes are filtered through the assignment of functions among governments and the respective power of the affected groups to influence policy and the related services.
Over the last twenty years, the demographic change that is of the greatest consequence for municipalities has been the growth in new residential and commercial building activity. This activity had been the largest factor in the increased demand for public construction and services to newcomers. Residential units typically resulted in the greatest amount of growth in maintenance and service costs for municipalities.
The population growth trend in the second half of the twentieth century had been toward suburbanization and, more recently, a renewed growth in smaller cities. As a nation we actually hit the high-water mark of "big city" urban living in the 1960’s when about 35% of the urban population lived in cities with over 250,000 populations. As of 1990, that percentage fell to about 29%. Since the 1960s national population growth has been in suburban areas and smaller cities, particularly in the metropolitan areas that grew up around the central city areas. This scattering of population throughout metropolitan regions has had consequences for transportation spending, especially highways. It also brought higher levels of community spending to meet a host of state and federal environmental mandates that have increased the costs of development.
A new trend has been termed gentrification. Although originally socially driven, urban redevelopment is becoming economically driven. Urban gentrification, is a term applied to that part of the urban housing cycle in which physically deteriorated neighborhoods in large cities attract an influx of investment and undergo physical renovation and an increase in property market values. Gentrification has benefits for urban renewal, such as renewed investment in physically deteriorating locales, improved access to lending capital for low-income mortgage seekers as their property values increase, increased rates of lending to minority and first-time home purchasers to invest in the now-appreciating area and improved physical conditions for renters. Gentrification has been linked to reductions in crime rates, increased property values, increased revenue to local governments from property taxes, and renewed community activism.
Homebuyers have been evaluating the trade off between urban/suburban for years - the further away from metropolitan centers a home is located the better the price/livability balance is likely to be. There are exceptions to this, of course, but generally consumers have been willing or maybe forced to exchange time for location, frequently commuting 40 or more miles each day between a nice home in the suburbs to their job in the city or in another far-flung suburb. With the seriously possibility of $4 to $5 per gallon gas becoming a long-term possibility, homebuyers will find the price/commute trade-off is no longer feasible. This could drive down the price of housing in far-flung suburbs and put an additional premium on homes that are close in or with access to public transit systems. These issues are going to drive social changes that effect the revenue/expense positions of cities.
Because cities are site-specific, they respond to changing paces and patterns of development and decline in their area. They may through their taxing and regulatory powers try to influence the location decisions of firms and individuals as the latter navigate the constantly changing waters of economic activity and social change. Cities provide services within their borders to residents, businesses, and those vacationing there, doing business or simply passing through. Many cities must work harder to provide these services because they have smaller tax bases, larger dependent populations, less income and wealth, or because of their natural features (like harsh weather or sparse populations). They also differ according to the resources potentially at their command to meet service needs because of endowments of natural resources, economic activity and again the wealth and income of residents.
All these issues require thought and action by local decision-makers. But the biggest factor in explaining local demand for services typically is that of family incomes. People with more money and especially more money tied up in their biggest asset, their residential property, typically want higher levels of local public services. Paying for them can be another matter, but sorting that out too is a matter of state and local decision making.
Practical Capacity
Decision-makers basically deal with two definitions of the capacity of a physical system which produces a product of goods or services. One is that the capacity is equal to the maximum quantity of output which the system can produce, considering only physical limitations on production. For example, one might be interested in the capacity of a system of power plants to produce electric power. This output level is of course limited by both the number and size of generators and the availability of fuel. This definition of capacity focuses solely on maximizing the output, and ignores other factors which may make achievement of such an output unlikely or undesireable. For example, in some systems marginal costs may become very large when output approaches this capacity. This concept of capacity is often termed ultimate capacity.
The other basic definition of capacity recognizes that the cost may be far too large at the ultimate capacity for such a level of output to be practically or economically attainable. This suggests the other basic definition of capacity: the maximum output at which cost does not exceed a maximum acceptable value. This concept is termed economic capacity in economics literature and practical capacity in the engineering literature. The term cost is deliberately left vague, for the specific measure used varies with the situation, in some cases being average cost, in others marginal cost, etc.
These definitions all refer to the quantity of output of the system of interest. This naturally raises the question of how the output of an entire system is to be defined. In most cases where capacity has been estimated, there is usually defined – or assumed -- a single, homogeneous output of the system being considered. For example, in the case of a manufactured product, the quantity of output would be simply a count of that particular product produced. If there is only one product, or if the variations in the product are rather minor, such that one measurement can be applied to all of the different products, then there is no difficulty in defining a single measure of output. This is the case for the individual components of systems for which capacity is often estimated, as described previously. But in the case of an entire city system, the output is very heterogeneous, encompassing many links as well as other elements of the system. This necessitates a discussion of the system output in detail.
If we consider a city system from the perspective of a physical system, the product of that system probably is most appropriately considered as the delivery of things -- services or objects -- from one provider to an appropriate beneficiary. Thus, at the micro level of a service delivery by a provider of a single service, such as zoning, the product of the city system would be a change in zoning on the individual’s property. Along with this change in zoning come a number of concomitant changes. One is a change in all the possible future uses of the property. Usually, associated with zoning will be some other changes, some of which may reflect the reason for which the zoning is affected. For example, in the case of commercial zoning, it usually results in an increase in the value of the property and surrounding properties, offsetting the cost to society of affecting the previous uses. In addition, other features may change which make the zoning more or less desirable, such as possible deterioration or improving of buildings as a result of the zoning. Thus there may occur changes in the state or condition of the property as a result of a government service delivery.
Similarly, the delivery of pothole repair will have features of ultimate, practically or economically attainable capacity. Waiting until there are enough potholes to justify the mobilization of a load of hotmix and two employees and a truck for a period long enough to make practical and relatively economical a non-routine task. Other issues may be involved in timing delivery of a service. A pothole at the edge of asphalt and concrete may need a special concrete repair method. Employee work and vacation schedules contribute to the ultimate service delivery. The hotmix must be used when it is above 220 degrees and as a result is only useful for a day. The purchase of less than a half ton of asphalt at a time becomes an expensive proposition. All these issues affect the timing of the service delivery. The basic definition of capacity recognizes that the cost may be far too large at the ultimate capacity for such a level of output to be practically or economically attainable.
From the viewpoint of the city system as a whole, the problem is that the output is heterogeneous, that is, there are many products. Each service is truly unique in some aspects although many of these may be unimportant in terms of overall measures of output or capacity. If categories of attributes can be specified such that every service can be classified into one category, then the output could be described by a measure giving the quantity of services in each category. Basically, the delivery of most municipal goods and services would have problems generating a profit because they are difficult to produce economically.
Fiscal Capacity
Municipalities are individuals joining together to cooperatively purchase goods and services. As discussed earlier, municipalities have different levels of resources and the level and mix of goods and services that can be provided in response to demand is constrained in part by the revenues available or fiscal capacity, to meet the demand. At the municipal level, general state non-targeted aids and property taxes are the primary sources of revenue. Together they accounted for nearly 60% of total revenue for Wisconsin cities[2]. State aids take two forms, general targeted aids, such as road maintenance aids, and general non-targeted aid in the form of state shared revenues. State shared revenues follows the model of the old Federal Revenue Sharing program of the 1970s and 1980s. In essence a direct transfer from the state to local government is made with “no strings attached.” Wisconsin’s state revenue program is an aid programs that accounts for 24 percent of all revenues for Wisconsin municipalities[3].
Revenue System
Any discussion of municipal fiscal capacity or level of services must start with the local revenue system and the much maligned but heavily used property tax. Most cities depend at least in part on property tax revenues to provide funding for their services. The property tax is characteristically the municipal discretionary tax of choice. Originally the idea was for the governing body to tote up all the spending that needed to be done (levy) and then, taking the assessed value of property from the previous year, to set a tax rate that generated the year’s needed revenues. The various tax limitations have put constraints on that exercise, but the property tax still plays a significant role in most municipalities.
The property tax is also a legacy of the days when tax obligations were backed by collateral that could be seen, enumerated, and seized in satisfaction of obligations. In view of the many linkages between basic municipal services, land-use controls, and property values, the grass-roots reliance on the property tax is historic and rooted in our system of governance. And, who knows, if the rise of internet sales and international commerce becomes as impressive as some believe, then the property tax (and utility charges) may become the last dependable, unavoidable tax standing.
The property tax has been unfairly flagellated because of over-reliance, poor administration and public misconceptions. The State legislature is constantly shifting the tax burden through tax breaks which only result in increases in the taxes of other property owners, declining state aids which are making cities even more property tax reliant and the constant changing of property tax regulation makes administration of the system difficult for cities even if they have highly qualified staffs[4]. These issues focus attention on the property tax, but the real problem is our revenue system lacks the diversity that builds a good tax system.
The property tax is the largest source of state and local tax revenue in Wisconsin. Local governments levy 99% of the tax, and the remaining 1% is collected by the state. Prior to 1900, the property tax was the state government’s largest tax. As the state’s economy has diversified, state government has come to rely on other tax sources and established various aid programs to reduce local reliance on the property tax.
Property Tax Concepts
Ad Valorem Tax (in Latin: to the value added) refers to property taxes levied by local governments. The property tax involves three key concepts. The thing that is taxed--is the assessed value of property. The total revenue collected is called the levy. The local property tax rate depends on the amount of taxes levied by local governments (municipalities, school districts, technical college districts, and special purpose districts) and the total value of taxable property in the jurisdiction. The property tax rate is calculated by dividing the levy by the assessed value in each jurisdiction each year.
The assessed value of a property is than multiplied by the combined rate (municipalities, school districts, technical college districts, and special purpose districts) which produces a tax amount which is the fair share of the total property tax levy. The amount of tax that a property owner pays is based on two factors: the value of the property owned by the taxpayer and the local property tax rate. A local assessor determines the value of each individual’s property. Multiplying the value by the rate produces the amount of taxes levied on each property. A portion of the tax is paid by the state through state tax credits and the remainder is paid by the owner.
Assessed values are the property values determined for individual parcels of property by the local assessor. Equalized value is the state-determined full market value of all property within each jurisdiction. Equalized values provide a means of comparing different jurisdictions, even if they are assessed at different percentages of market value. Dividing the total assessed value by the equalized value produces a district’s assessment ratio. All taxable property is classified as either real estate or personal property.
The property tax levy is the total amount of revenue that a local unit will collect through the property tax in one year. The gross levy is the total amount of taxes billed including the portion paid by the state through state tax credits. The net levy is the gross levy minus the state credits.
The mill rate is the rate of taxation expressed in terms of dollars of property tax per $1,000 of value. For example, a tax rate of .02400 or 2.4% is equal to 24 mills or $24.00 per $1,000 of value.
Rates usually change each year, and are different in every tax collecting jurisdiction.
Assessed Valuation
Assessed valuation is the value of property against which an ad valorem tax is levied, usually a percentage of "true" or "market" value. In Wisconsin, the Department of Revenue annually publishes an "Equalized Value" report that establishes the real estate value in each municipality for debt purposes.
The assessed valuation of residential and commercial properties is determined by the City Assessor. The assessed valuation of individual properties is adjusted when property changes occur such as improvements, property sale, annexation, new construction, demolition or a city-wide revaluation. The objective of a citywide revaluation is to adjust all property values to fair market value.
Most assessors value property at some fraction of market value, despite a statutory requirement that property be assessed at full value. A series of court cases, dating back to the nineteenth century, has interpreted the statutes to allow assessed values at a fraction of market value, provided the same fraction applies to all property in the taxation district. As a result, local assessors can assess property at a level below market value without violating the state constitution’s requirement of uniform taxation.
When an Average Assessment Ratio is considerably above or below 100% (or 1.0), a community-wide reassessment should be forthcoming. State law requires average assessment ratios to be within 10% of market value, that is, between 90% and 110% once every 4 years. This requirement promotes tax fairness. When community assessments are not regularly updated to reflect changes in the real estate market, unfair taxation can result. As properties increase in value at different rates, some property owners will pay too much in tax and others will pay too little.
The State develops the average assessment ratio by doing an equalized valuation study. The equalized valuation of properties changes annually. The equalized valuation is intended to represent fair market valuation annually because municipalities do not revalue annually. The equalization ratio is used to determine the total current market value of all taxable property within the city.
A school district in Wisconsin does not have direct taxing authority. They bill the municipalities lying within the district and the municipality collects their property taxes. In essence, our local school district sends tax bills to only six taxpayers, the six municipalities (City of Lake Mills and all or portions of the Towns of Lake Mills, Milford, Waterloo, Aztalan and Oakland) lying within the boundaries of the School District of Lake Mills. The amount of school district taxes levied by each municipality is based on the portion of each municipality’s property value in relation to the total property value of the district. These property values will vary based on the last revaluation by each municipality.
The Department of Revenue determines the equalized value of all property in each municipality, but generally does not determine the value of individual parcels. Equalized value is determined based on an evaluation of recent sales data, which is then applied to similar type properties in the entire municipality. The sales data used is for sales that took place a year ago. Therefore, the values certified by the Department of Revenue may not accurately reflect current market conditions for a given municipality or area in a municipality.
The Department of Revenue values take into consideration new development, changes in classification, sales prices and other factors. A community could experience property valuation increase due to more individuals or companies having a desire to locate there (popularity) or a scarcity of available developable property. An increase in values, without additional development, means property values increase due to inflation.
The ratio is calculated by dividing the total yearly assessed value for properties that sold by the total of the sale prices for that year. The DOR findings demonstrate whether the “Aggregate Ratio” for all valid sales occurring in a year is within the State’s standard range of 90% to 110%. Ratio’s outside that range are acceptable but trigger the start of a time period in which a city-wide revaluation must occur.
Only sales that the State considers “valid” are used to create the ratio. The DOR may label a sale as “not valid” for various reasons including but not limited to 1) being between related parties, 2) a foreclosure sale, or 3) the assessment was for a house under construction.
The Department of Revenue determines the equalized value of all property in each municipality, but generally does not determine the value of individual parcels. Equalized value is determined based on an evaluation of recent sales data, which is then applied to similar type properties in the entire municipality. The sales data used is for sales that took place a year ago. Therefore, the values certified by the Department of Revenue may not accurately reflect current market conditions for a given municipality or area in a municipality.
Notwithstanding, equalized value is important in determining the total tax burden for a municipality. The Department of Revenue values take into consideration new development, changes in classification, sales prices and other factors. A community could experience property valuation increase due to more individuals or companies having a desire to locate there (popularity) or a scarcity of available developable property. An increase in values, without additional development, means property values increase due to inflation. In this circumstance current property owners will feel the impact of the full burden of any property tax levy increase. On the other hand, if the increase in values is due entirely to property development, then the new property tax payers will pay for any property tax increase. Typically, property value increases are a combination of inflation and property development.
The result of the equalization allows for comparison of equalized rates across Wisconsin municipalities and allows the state to promote tax fairness.
Property Tax Levy
The property tax levy is the total amount of revenue that a local unit will collect through the property tax in one year. The gross levy is the total amount of taxes billed including the portion paid by the state through state tax credits. The net levy is the gross levy minus the state credits. The mill rate is the rate of taxation expressed in terms of dollars of property tax per $1,000 of value. For example, a tax rate of .02400 or 2.4% is equal to 24 mills or $24.00 per $1,000 of value. The levy is the direct result of the annual budget process. Each fall, cities would determine the amount of their property tax levy by first budgeting their expenditures for the following year and then reducing that total by anticipated amounts from other revenue sources.
The Lake Mills budget starts in May with the City Manager preparing a draft budget that is than sent to the Department Heads for review. The Department Heads send comments and corrections to the City Manager and the corrected draft is reviewed at the second Department Heads’ meeting in July. This meeting begins the development of a budget supported by all Department Heads for the City Manager to submit. A final review is completed at the second Department Heads’ meeting in August and is then prepared for submittal to the City Council at their first meeting in September. These Department Head meetings focus on expenditures for the departments and revenues are constantly reviewed by the City Manager and Clerk-Treasurer up until submittal to the Council and refinement after submittal based on state information.
The property tax was considered a residual revenue source. The remaining amount represented the property tax levy. Currently, all non-property tax revenues are estimated and subtracted from the levy. With property tax caps in place, the property tax revenues are estimated and fees are adjusted to cover the remnant levy and or services and goods are cut.
The Council may hold up to three work sessions where they review additions/deletions to the City Manager’s Budget. When they have completed their changes, the budget ordinance is prepared and there are three readings and a public hearing at the second October and both November Council Meetings with passage at the second November Council meeting.
The passed ordinance is submitted to the County.
The amount of change in the annual property tax that is paid by the individual taxpayer will likely not be the same as the overall change in the tax levy for a municipality. There are a number of additional factors that enter into the calculation.
Property Tax Rate
The amount of tax that a property owner pays is based on two factors: the value of the property owned by the taxpayer and the local property tax rate. A local assessor determines the value of each individual’s property. The local property tax rate depends on the amount of taxes levied by local jurisdictions (municipalities, counties, school districts, technical college districts, and special purpose districts) and the total value of taxable property in the jurisdiction. Multiplying the value by the rate produces the amount of taxes levied on each property. A portion of the tax is paid by the state through state tax credits and the remainder is paid by the owner.
Property is valued at two levels within the state. First, local assessors determine the assessed values for individual properties, except for manufacturing property, in each municipality. Assessed values are used for apportioning property taxes on tax bills to individual property owners within municipalities. Second, the state Department of Revenue (DOR) estimates the full market or equalized value of all property in each district. Equalized values are used to apportion the levies of overlying districts (for example, schools and counties) to the municipalities within them and also to distribute certain types of state aid. The state values are needed because municipalities assess property at varying percentages of market value.
The Net Assessed Value Rate is calculated by adding each taxing jurisdiction’s mill rate less the state credit.
The County aggregates the overlying districts levies and totals the combined tax levy for city residents. The combined rate for the city is calculated by dividing the combine levy by the total assessed value. The combined rate is then applied against the property owner’s assessed value to generate the property taxes owed. The County than produce tax bills that is distributed to each municipality for mailing.
The Property Tax Shift
Tax shift or Tax swap is a change in taxation that eliminates or reduces one or several taxes and establishes or increases others while keeping the overall revenue the same. The term can refer to desired shifts, such as towards Pigovian taxes (typically sin taxes and ecotaxes) as well as (perceived or real) undesired shifts, such as a shift from multi-state corporations to small businesses and families.
John Muir is right. "Tug on any one thing and find it connected to everything else in the universe." Tug on the property tax and find it connected to someone else’s change in taxes. Millions of dollars in property tax breaks may cost local governments’ badly-needed revenue but more often result in increases in the taxes of other property owners. If the state mandates a homestead exemption equal to $20,000 of assessed value, for example, then the local government loses $20,000 multiplied by its nominal tax rate for every eligible property or else must raise this rate (or find revenue somewhere else).
The property tax has long been the mainstay of the local tax system in the United States, and it is a highly visible and hence unpopular tax, at least for homeowners. For many decades, therefore, state public official have searched for and often implemented programs to provide relief from local property taxes.
The more familiar property tax reforms have failed to address this many-headed hydra at its root. Since1970 taxes increased more rapidly on commercial and residential property than on manufacturing and other property. As a result, residential and commercial property have borne increasing shares of the tax burden, while decreasing shares have been borne by manufacturing and other property. Several factors explain the shift in tax shares.
Category
1970
2003
Residential
50.6%
69.2%
Commercial
19.4%
21.4%
Manufacturing
17.7%
4.1%
Agriculture
10.4%
2.9%
Forest/swamp/waste
0.6%
2.3%
Other
1.2%
0.1%

State-initiated property tax relief programs fall into five broad categories. The first and most visible type of program in recent years is a property tax limitation, which cuts local property tax rates or limits their growth without identifying, let alone supplying, alternative revenue sources.
The second type of program, which is the type most commonly associated with the phrase property tax relief, explicitly replaces local property tax revenue with some form of state revenue. In other words, this type of program explicitly shifts the burden of the state-local tax system from the local level to the state level. Examples of this type include circuit breakers and homestead exemptions with state reimbursement.
The third type of program, state aid to local governments, also shifts the tax burden from the local to the state level, but does not specify any particular drop in local revenues or local property taxes. Nevertheless, many studies have shown that state aid programs lead to reductions in property tax rates and hence to property tax relief.
The fourth type of program is a state takeover of some previous local spending responsibilities. State takeover of some county functions, for example, raises the need for state revenue, but lowers the need for county taxes, including property taxes.
Finally, the fifth type of program is a change in the rules governing local revenue systems. A state can allow its local governments to use a payroll tax, for example, an option that enables them to cut property taxes. A mandated homestead exemption with no state reimbursement could also be placed in this category, and a classification scheme that allows a local government to charge a higher effective tax rate on business property can provide some residential property tax relief.
In Wisconsin, the shift has occurred because some types of property have been exempted through state law changes. Manufacturers’ machinery and equipment (M&E) was exempted in 1974. In 1977, the Legislature chose to gradually exempt farmers’ livestock and commercial and manufacturing inventories by assessing them at increasingly lower percentages of full value until they became entirely exempt in 1981. The exemption for computers and related equipment took effect in 1999 and removed $2.3 billion in tax base. At the time of their enactment, these three exemptions collectively represented 18% of the remaining statewide taxable value. Some of the reduction in agricultural taxes between 1995(96) and 2001(02) was caused by phasing-in use value assessment for agricultural land.
The M & E exemption was adopted in 1974, and it helped contribute to a drop in the percentage paid by manufacturing property between 1970 and 1975. Still, the share paid by manufacturing property has continued to decline since 1975, even after the M & E exemption was implemented.

1970
1975
2003
Manufacturing
17.7%
9.4%
4.1%

For commercial property, the inventories exemption was phased in between 1977 and 1981. This caused a drop in the percentage paid by commercial property between 1970 and 1980. However, the share paid by commercial property has increased since 1980.

1970
1975
2003
Commercial
19.4%
19.0%
21.4%

For agricultural property, the use-value assessment was phased in between 1995 and 2003. This helped contribute to a drop in the percentage paid by agricultural property between 1995 and 2003. Nevertheless, the share paid by agricultural property had been declining between 1970 and 1995, even before use value was adopted.

1970
1975
2003
Agricultural
10.4%
6.7%
2.9%

Under prior law, agricultural land was assessed at full market value. Under current' law, as implemented, parcels of agricultural land were assessed on both January 1, 1996 and on January 1, 1997 at their January 1, 1995 level of assessment.
Since the taxable value of agricultural land did not increase on January 1, 1996 nor on January 1, 1997, property taxes were shifted from agricultural land to other classes of property, state equalization aids were also reallocated and state forestry taxes were lower than under prior law. The property tax shift also affect state costs for tax credit programs and state tax revenues. In addition, the state and municipalities incur costs to implement the new assessment system.
The local fiscal effect of this property tax shifts that the equalized value of agricultural land was $9 .02 billion on January 1, 1995. Assuming that the value would grow by 5.9% in 1996 and 1997, as it did in 1995, agricultural land assessments would be $0.53 billion (5 .9% x $9 .02 billion) lower in 1996, and $1 .1.0 billion [(1 .059 x 1 .059 x $9.02 billion) - $9 .02 billion] lower in 1997 than under prior law. Assuming a net statewide tax rate of $23 per $1,000 of value, $12.2 million ($0.53 billion x 0.:023) in property taxes would be shifted from agricultural land to other classes of property in 1996, and $25 .3 million .($1 .10 billion x 0.023) would be shifted in 1997. The Department of Revenue estimated property taxes on agricultural land would be 5.57% less and property taxes on other classes of property would be 0 .25% higher in 1996 than under prior law. In 1997, property taxes on agricultural land would be 10.89% less, and property taxes on other classes of property would be 0.48% higher than under prior law.
A second factor is that property has been added or removed from the tax rolls since 1970. The majority of new construction has been for residential and commercial uses. As that tax base has been added, residential and commercial taxpayers have borne an increasing percentage of total taxes. Other properties have been demolished or converted to other uses. This accounts for some of the reduction in the percent of taxes borne by manufacturing property. Similarly, farmland has been converted to other uses as the number of farms has declined from about 110,000 in 1970 to 77,000 in 2001.
During this 30-year period, residential property values increased at a faster rate then other classes of property in Wisconsin and this also increased the amount of property taxes that homeowners paid. It’s important to note that the share of property taxes paid by commercial property has also risen as the economy has moved to a more service-oriented economy. Manufacturing property and agricultural property have paid a declining share of property taxes as those sectors have accounted for a smaller share of overall economic activity over the same period.
Finally, economic conditions explain some of the shifts. For example, national economic conditions associated with recessionary periods caused some reductions in manufacturing, commercial, and agricultural tax base during the 1980s. As a result, taxes on that property either declined or grew at a slower rate.
Net tax levies and rates include reductions for credits that were not extended to all property owners: personal property tax relief (PPTR) for owners of Line A personal property in 1970(71) through 1980(81) and the lottery credit for property used as the owner’s principal residence in 1995(96) , 2000(01), and 2001(02).
The result is that although taxpayers actually pay almost $10.00 net less per $1000 in 2001 than they did in 1970, the tax burden has shifted so that the average residential/commercial taxpayer is paying substantially more and the agricultural/industrial taxpayer is paying less in property taxes in 2001 than 1970. If you believe in paying for what you use, than this is an appropriate adjustment. Industrial, Agriculture and Commercial uses have always subsidized residential uses, but now at a lower rate than in 1970.
Conclusion
Taxpayer dissatisfaction with increasing property taxes and local governments’ struggles to maintain services with declining revenues may compel politicians and decision-makers to take a closer look at the actual costs and benefits of these preferential property tax treatments of land. Funding for other, more effective land use tools may depend, in these times of fiscal austerity, on analyzing honestly the tax expenditure costs of tax relief in contrast to other more direct expenditures.
In Wisconsin, the business sector pays 35% of all state taxes, according to data from Ernst & Young, the large accounting firm. The nationwide average contribution by business to state taxes is 40%, compared with Wisconsin’s 35%.[5] It’s the same story for local taxes. In Wisconsin, the business sector pays 47% of all local taxes, according to Ernst & Young. The nationwide average contribution by business to local taxes is 52%, compared with Wisconsin’s 47%.
Governance encompasses the many and ever changing sets of relationships between the people who make up the government and the interest of citizens, who interact with public institutions both as individuals and as participants with mutual interests. Decision-makers need to recognize there is a lot of complexity involved in the legislative and administrative processes that determine what services citizens want and how to provide them on a day-to-day basis. Most of our standard communications is already difficult because there are major potentials for message transmission error. The choice of words or language in which a sender encodes a message will influence the quality of communication. It is important to note that no two people will attribute the exact same meaning to the same words. More often than not - and most of us are quite unaware of the process - our mind tries very hard to fit impressions and stimuli into a framework of expectations. We resist any attempts to make us 'change our mind'.
The city as a creature of the state legislature is subject to state regulation at anytime. The state tax changes shift our levy from one set of taxpayers to another. We respond to actions beyond our immediate control to provide continued goods and services with limited fiscal options.
[1] Almost no good or service is completely non-rival. On the other hand, many goods are not completely rival either. Hence, non-rivalry as a characteristic of a public good is a relative, not an absolute concept.
[2] A city is a type of municipality.
[3] Municipalities in Wisconsin include Cities, Villages, Towns and Counties.
[4] Wisconsin has fewer Finance Directors per municipality than most other states.
[5] Total State and local Business Taxes: 50-State Estimates for Fiscal Year 2006, by Robert Cline, Tom Neubig and Andrew Phillips.

Council Policy Debate

Policy-making is a Council’s main function. Policy is defined as a plan or course of action, as of a government, political party, or business, intended to influence and determine decisions, actions, and other matters. A course of action, guiding principle, or procedure considered expedient, prudent, or advantageous. Policymaking is defined as high-level development of policy, especially official government policy that is concerned with policy, not administration.[1]
Policy-making is a values laden process that must deal with emotional issues that may generate unpleasant, self-serving and nonproductive behavior among council members which results in unproductive discussion. As a consequence of these emotional issues, the council, may not have full opportunity to hear all the evidence the governance process needs to proceed in an orderly and effective decision process. Policy decisions should occur after a proper and deliberate and full airing -- with all points of view fully debated and considered within the scope of our bounded rational capacity.
Debate is a critical part of the legislative process that helps us determine what policy changes we should embrace and/or reject. It attempts to justify changing the way people think and their related actions. Effective open debate during council meetings helps inform the public of the issue. Debate occurs daily in legislatures around the world, the Board meetings at the school, and at your dinner table. The procedures for these debates may differ, but the process is the same. People engage in a discussion that will determine whether a particular change is going to be used or not. The Council debated privacy issues and sump pump Inspections, school faculty meetings debate school policies and you debate with family members about domestic matters.
The debate process, which for the Council, must play out during public meetings, requires all interested parties be able to hear the council debate in an appropriate and civil manner. The process is used to generate ideas which may become options used in the evidence gathering process or may become evidence for an option. Each debate focuses on a topic, the subject of the debate. The topic may also be referred to as the “motion” or “resolution.” The purpose of having a formal topic is to limit the debate. Arguments and issues that are not relevant to the topic are irrelevant to the debate.
The method of formal debate, as set out in the Lake Mills Charter Ordinance, is one of the main methods council members have at their disposal to communicate with the council. It’s a very structured method of communication, with all ordinances, resolutions, memorials or other communications required to be in writing, contain a brief statement of their content, indicating the name of the presenting member, and, prior to their consideration by the council, be delivered to the clerk. At the first permitted opportunity, the clerk shall read and record each by title at a meeting of the council. Any council member may require at any time the reading in full of any matter while it is before the council.
Since the City Council is relatively small compared with other organizations using Robert’s Rules, some of the procedural formality can be dispensed with. The Council tends to use Informal debate which includes all discussion methods available. It has no time limit on an individual speaker, no research is presented to support positions and Roberts Rules of Order is only followed loosely, but it provides the council with more a fluid discussion on specific issues. Council members aren’t formally recognized by the presiding officer, but may begin their remarks as soon as the other council member has finished their comments. The presiding officer occasionally may have to decide on who may have the floor next. However, motions to close or limit debate may be entertained. Informal discussion of a subject is permitted while no motion is pending. It is normally expected, however, that discussion will follow a motion on the floor.
The presiding officer during formal debate will require a motion and second to start debate on an agenda item. Once the item has received a motion and second, the moving council member must then be recognized by the presiding officer before being allowed to address the council. The council member shall then address the presiding officer and keep all remarks to the question under discussion.
Decisions of the council generally fall into three categories: 1) those regarding projects or facilities; 2) those with respect to services, and 3) those relating to the need for regulations affecting the health, safety or welfare of the municipality’s residents.
The council member’s remarks should incorporate the process of making decisions with respect to any of these three principal areas of municipal activity which can be divided into six stages:[2]
“Need. The process whereby it is determined that something needs to be done. Such determination is usually based on an awareness of community conditions.
“Solutions. The process of determining which government is responsible, what resources are available, what the scope of responsibility is, and the manner in which an answer to the problem should be formulated.
“Projects. The development of plans for specific allocations of resources to specified agencies to undertake given actions for specified purposes.
“Approval. The official act by which action is authorized and resources are allocated.
“Administration. The action of management in issuing directives, supervising activities, reviewing results, and making required adjustments.
“Evaluation. The process of reporting and reviewing, whereby the policy-makers may determine the success or failure of the programs, in whole or in part, in meeting the needs defined in the first stage.”
Effective decision-making is the result of having sufficient data to provide the basis for making rational choices between alternative courses of action. Effective decision-making also requires a refining, sifting and winnowing of the issues and data, the creation of an atmosphere conducive to making decisions in an unhurried and judicious manner and the weighing of potential consequences of alternative decisions or courses of action.
The value laden democratic policy-making process can at times be messy and extremely stressful. Communication under normal circumstances is a difficult process and becomes more difficult during emotionally charged public debates. The meaning of each word associated with a value is independently assigned by each individual based on personal experiences and assuming they are using the word the same as you may lead to misinterpretation of the debate and final report. Elected Officials need to display consistent standards while also being sensitive to the need to compromise because:[3]
Good government is about values – not the right answer.
Value conflicts require compromise and negotiation.
This means the need to promote inclusion and goal accomplishment.
Alignment is crucial
Issues can be more satisfactorily addressed to the extent that there are clear and accepted processes for considering options and reaching the compromise position. Ultimately, all good public policy is the result of community participation, political vision and the ability to compromise.
The council member upon whose motion is subject to debate is first entitled to the floor, and is entitled to close debate after each member who wishes to speak has been allowed to do so.
There are points where another council member may wish to terminate the debate and can move the previous question. The presiding officer shall then announce the question as, "Shall the question before the council now be put?" If two-thirds of the members present vote in the affirmative, the question before the council shall be taken without further debate. The council then votes, first on any pending amendments and then on the main question.
In most instances, the affirmative vote of a majority of the members elected to Council present at a regular or special meeting at which a quorum is present and voting shall be necessary to adopt any ordinance, resolution, or pass other matters presented to the Council. Three members constitute a quorum.
The fundamental job of a governing body member is to make policy decisions for his or her municipality. Unless decisions are based on full, relevant and accurate information and with a clear objective in view, the results are likely to be mediocre at best and meaningless at worst. In fact, in view of the part-time, temporary involvement of most local governing body officials in Wisconsin, the political pressures under which local decisions must be made and the frequent lack of up-to-date, accurate, verifiable information available to these decision-makers, the process has worked surprisingly well.
In the world of public policy debate, it is human nature to look for simple solutions to complex problems; there must be a magic bullet which solves all our problems. Politicians who proclaim to have that magic bullet draw attention over those who offer more complex policy options.
Policies have been known to come into and out of vogue depending on the political winds of the time. It is common for political leaders and influential decision makers to seek out validation of their preconceived notions. Tell me what you want to hear and I can find a theory to support it. Great care must be taken whenever simple solutions to complex problems are presented as the answer.
As policy-makers, none can predict the end results of our decisions. Nor can anyone identify or recognize all available options in context, even if there were the time and financial resources to pursue them. What policy-makers do have is the insight gained from our experience to accurately identify the values that will come into conflict, deal honestly with social constructs (those of others and of our own making) and to bring in appropriate stakeholders, all the while reserving the right to exercise professional judgment, and be willing to change and adjust in the future.
[1] Dictionary. The American Heritage® Dictionary of the English Language, Fourth Edition Copyright © 2007, 2000 by Houghton Mifflin Company. Updated in 2007. Published by Houghton Mifflin Company.
[2] Wright, J. Ward, and Benson, Virginia, “Your Local Economy: Does City Hall Play a Role?”, Nation’s Cities, September 1972, p. 45.
[3] Nalbandian, John. High Performance Government.

ELECTION OF COUNCIL PRESIDENT AND VICE PRESIDENT

Under Wis. Stat.64.07, the new City Council first meets on the third Tuesday in April. The first meeting is an organizational meeting. Practice varies among municipalities, but this meeting generally has a ceremonial aspect as the new body takes over from the old and may be a time when procedural matters, such as election of officers, are dealt with.
Electors residing in wards elect Council representatives. Council representatives then elect a Council President and Vice-President. Section 1-5B-1-A-1 of the Lake Mills Municipal Code states that the City Council shall, at its first regular meeting, or at an organizational meeting if one is called for that purpose, elect from its members a President and Vice-President. The City Council President, or in his/her absence, the City Council Vice-President shall preside at all City Council meetings.
Annually, the Lake Mills City Council selects one of its members to serve as Council President and one to serve as Vice-President. The reorganization typically takes place at the second meeting in April.
The City Manager opens the meeting and declares that the next item of business shall be the selection of a President for the upcoming year. The City Manager declares that nominations are in order for the position of Council President. The City Manager accepts nominations; a second to the nomination is necessary. If there are no further nominations, the City Manager will request a motion and second to close the nominations and call for a roll call vote. If more than one nomination, a vote will be taken in the order of the nomination. Following the vote(s), the City Clerk declares the President elected.
Once the new President is elected the City Manager turns the meeting over to the new President who declares that the next item of business shall be the selection of a Vice President for the upcoming year.
This year Ed Grunden was elected Council President and Joe Van Tassel Vice President.