Regarding Property Taxes

Property Taxes

Dear fellow community members,

We’ve been fielding questions this month at the Village Hall regarding property taxes. There is some confusion regarding our assessment, which I can understand. Taxes and assessments can be frustrating and complicated. Once elected to the Village Board, it was my responsibility to become knowledgeable about this topic. As I learned, I realized that as a taxpayer I had many misconceptions about property taxes, which is why I want to share some of my new-found knowledge with you. 

The Village needed to conduct a reassessment in 2022 to stay in compliance with WI State Statue 70.05 which requires assessments to be within 10% of market value every five years. The last reassessment in the Village was done in 2010. You can imagine how much values have changed over the last twelve years. However, an increase in assessed value does not automatically mean higher taxes. The purpose of an assessment is to ensure equity among property valuations so that the tax burden is distributed fairly. While some property tax bills increased, there were some that decreased. 

The Village of Ellsworth cannot increase taxes. Per state law, we can only increase our levy by the percentage increase in equalized value from net new construction. In other words, our levy is increased by the additional property taxes paid by new development. In 2022, the Village had net new construction in the amount of $2,009,500. This increased our levy revenue by $51,861.

Municipalities can bond (borrow) for money to pay for capital expenses. The Village of Ellsworth borrowed $320,000 in 2022 to pay for items such as public works equipment and street maintenance and repair. This debt payment is reflected in your property tax bill ($12 per $100,000 of home value). 

Should we be concerned by high property taxes? As a taxpayer, I know I am! Not only do high taxes put a strain on our pocketbooks, but they can also deter people who might otherwise move here. However, we need to be sure we’re focusing on the right problems so that we can put our energy into finding the right solutions.

Are we spending too much? I’m proud of the work the Village Board did on the 2023 budget. In a time of unprecedented inflation and increased costs of goods and services, we were able to decrease our budget by 1.18% from the previous year. The cost to run a municipality is expensive. The only way to lessen that burden is to spread the cost among more taxpayers. 

How can we avert property tax increases? The only way to sustainably fund a municipality is by ensuring there is enough development to pay for the cost increases in infrastructure and services. When you see vacant lots in Crossing Meadows, the Highlands, Southgate, or anywhere in the Village, there is not enough development for the tax base to cover the costs associated with the infrastructure and services in those areas. 

When you see a property in Ellsworth get torn down (even if it’s blighted) and then left undeveloped, this negatively impacts all of us by increasing our share of the tax base. When a 2.5-acre property like the Old Junior High is only paying $2500 in property taxes each year, that is shifting more of the tax base to the rest of the residents. 

We have 250 vacant lots in our Village. 19% of the property in Ellsworth is tax exempt. We have blighted properties that are not paying their fair share of property taxes. These issues are concerning to me and as a taxpayer should also be concerning to you. It means more of the property tax burden falls to you and me. 

These are challenges we will need to overcome as a community. At the village, we are looking closely at these issues and working to find solutions. It’s an incredibly long game; however, it’s the best approach to financial sustainability in the Village of Ellsworth for today and in the future. 

Thank you for your support of our community, 
 
Rebecca Beissel
President, Village of Ellsworth