2016-1369 . I► ,
FILE RESOLUTION NO. 2016 -1369
A resolution urging the Governor and Legislature to review the methodology for
distributing state shared revenue to municipalities and implement changes resulting in a
more fair and equitable distribution of state shared revenue.
WHEREAS, state shared revenue is the City of Janesville's second largest General Fund
revenue source and is therefore vital to our ability to provide public services such as public
safety protection; infrastructure; and park and recreational opportunities to our citizens; and
WHEREAS, in 2004, the State Legislature "froze" the formula that annually adjusted state
shared revenue allocations to municipalities based on changes in equalized value and
population growth; and
WHEREAS, the Janesville community has undergone significant changes since 2004, including
the loss of the City's largest employer, GM, slow equalized value growth, and moderate
population growth; and
WHEREAS, according to the Wisconsin Taxpayers Alliance publication MunicipalFactsl6, the
City of Janesville receives the third lowest state shared revenue per resident among our
fourteen peer municipalities; and
WHEREAS, the City of Janesville receives only $80 per resident in state shared revenue and
our peer cities receive an average of $179 per resident, or 125% more than Janesville; and
WHEREAS, if the City of Janesville received the average state shared revenue per resident of
our peer cities, Janesville would receive approximately an additional $6.3 million annually; and
WHEREAS, this state shared revenue inequity is even more disconcerting considering that the
City of Janesville has been a fiscally - responsible steward of taxpayer dollars with the third
lowest property tax rate and fourth lowest property taxes per capita among our fourteen peer
communities; and
WHEREAS, the City of Janesville receives the lowest combined state shared revenue and
property taxes per resident among our fourteen peer communities; and
WHEREAS, the City of Janesville receives only $591 per resident in combined state shared
revenue and property taxes and our peer cities receive an average of $778 per resident, or 31%
more than Janesville; and
WHEREAS, if the City of Janesville received the average combined state shared revenue and
property taxes per resident of our peer cities, Janesville would receive approximately an
additional $11.9 million annually; and
WHEREAS, the City of Janesville receives the lowest combined state shared revenue and
property taxes per resident of all Wisconsin communities with a population greater than 30,000,
who receive an average of $747 per resident, or 26% more than Janesville; and; and
WHEREAS, property taxes and state shared revenue are inversely related, meaning
communities who receive greater state shared revenue can afford to have lower property taxes
,
while communities who receive little state shared revenue often have higher property taxes to
make up the difference; and
WHEREAS, Janesville's ability to increase property taxes or other revenues to make up for
state shared revenue shortfalls is restricted by the State of Wisconsin by limiting municipalities'
local control on fiscal matters; and
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Janesville urges
the Governor and Legislature to review the methodology for distributing state shared revenue to
municipalities and implement changes resulting in a more fair and equitable distribution of state
shared revenue to comparably -sized municipalities. Furthermore, the Common Council directs
the City Clerk- Treasurer to send a copy of this resolution to Governor Scott Walker and our
State Legislators.
ADOPTED: November 28, 2016 Motion by: Jorgensen
Second by: Liebert
APPROVED: Councilmember Aye Nay Pass Absent
„ / / Deupree X
��. Gruber X
Mark A. F eitag, City Manager Jorgensen X
Liebert X
ATTE . / Marklein X
Tidwell X
/j..`' 2■Irtiar Williams X
T. Godek, City C erk- Treasurer
APPROVED AS TO FORM:
/1a10(/W
Wald Klimczyk, City Attorney
Proposed by: Council President Liebert and Council
Vice President Jorgensen
Prepared by: City Manager's Office