Tomah Council OKs 2022 budget

The Tomah City Council set the 2022 tax levy Tuesday night.

The tax levy to finance the $5,091,147 budget for 2022 is $650 for the owner of  $100,000 assessed property value. The tax rate for the Tomah Lake District was set at $23 for the owner of $100,000 assessed property value.

Tomah City Administrator Brad Hanson did note that Tomah’s three tax increment districts (TID 8, 9 and 10) did receive a budget infusion of $10,000 each in the 2022 budget. City leaders will continue to promote development in TID 10, which includes property around the Tomah Health campus and Gundersen Clinic.

During the budget process, a discrepancy was noted that was outlined in a press release. Per the release:

During the recent budget preparation process, it was discovered by the City of Tomah’s new Treasurer, Molly Powell, along with City Administrator Brad Hanson, that the 2020 Levy Limit Worksheet submitted to the Wisconsin Department of Revenue (DOR) was not accurate.

The amount listed on the Worksheet for debt service in comparison to the budget amount for debt service was overinflated. The result was a higher levy. The Treasurer obtained copies of levy worksheets from the DOR which were submitted by previous City staff in prior years going as far back as 2013 and it appears that there are additional years in which the same method was used.

Upon discovery of this issue, the City has been in contact with its auditors, insurance company, financial consultants, and the Wisconsin Department of Revenue. It has been confirmed that all funds levied were accounted for and used solely to meet City needs.

Further, no action can, nor will need to be, taken for past budgetary years. For the immediate budget year, City reserve funds will be used to supplement the 2022 budget and the taxpayers will realize a levy decrease by approximately $1.50 per $1,000.00 of assessed property value. Going forward, the City will need to recover about $250,000 for the 2023 and 2024 budgets.

While it is anticipated the recovery process will take three budgetary years, the amount of time will depend upon inflation and net new construction. The City Council and staff are committed to taking action to ensure that this issue never happens again.

This will include working on finding alternative and additional revenue sources; focusing on economic development and new construction opportunities; identifying areas of budgetary savings/solutions; implementing policies and practices to increase financial transparency to the public, city officials and staff, as well as specific policies focused on the training and procedures associated with the annual Levy Limit Worksheet submission.

It is important to note that three significant management positions in the City of Tomah administration have changed in the last eighteen (18) months, namely, the City Administrator, City Clerk and City Treasurer. While change can be difficult, the City has been afforded the opportunity to review and work to improve upon past methods and processes of City Hall. Of priority to the City Council and staff is, and will continue to be, the proper maintenance and efficient use of the public’s purse.

Also on the agenda the council was updated about activities at Fort McCoy from Col. Michael Poss, who also spoke to the Tomah School Board on Monday night. The primary point of interest noted, the present population of Afghanistan evacuees at Fort McCoy is approximately 10,000, Poss said. The job of processing families is ongoing to all 50 states, he added

Other council action:

• Approved changing the Tomah Senior Center position from an hourly position to a salaried position. Before Pam Buchda was hired as Senior Center director, the position was salaried.

It is the sole hourly paid position among city department supervisors. The intent for the change to salary wage is a morale boost and to be consistent with other department director positions in pay structure. With the added 2% cost of living increase for 2022, the salary for the position is $54,225.60.

• Passed a resolution for 2022 cost of living adjustment for nonunion represented city staff. Approved is a 2% recommended cost of living adjustment for the 2022 budget.
• Approved a resolution for a bid from Gerke Excavating of $620,555 for phase one improvements and boat launch at Winnebago Park. Funds will come from the city’s economic development fund ($80,000), donation ($50,000), Lake Committee ($91,000), park space fees ($33,000) and a Wisconsin DNR recreational boater’s facility grant ($242,304). The remaining $125,000 is expenditure in the 2022 budget.
• Approved a resolution to approve the usage of American Rescue Plan Act (ARPA) funds in the amount of up to $20,000 for the purchase and maintenance of a new city website, and authorize the city clerk to select a vendor that best meets the needs to create the site.
• Approved a resolution to use $30,000 from ARPA funds to purchase an ATV/UTV to assist with emergency service needs.
• Approved a resolution to consider a separate steel bid to purchase steel for the proposed Tomah emergency service building.

Hanson said the city will apply for a $1.5 million loan from the State Trust Fund for the steel bid. The council approved to move forward with the project on the North Glendale Avenue site with the return of positive soil boring test results.

The resolution is to allow Keller Inc., to bid out steel cost for purchase before an anticipated increase expected in early January. According to information provided, the anticipated time frame to receive materials is 32 weeks from time of order. Steel is estimated at 10% to 15% of the overall project cost.

Tomah Public Safety director Tim Adler said construction on the site will not start until the 2022 work season. Tentative completion is slated for the spring of 2023.

In related action, the council approved in the same resolution to begin the design process for the Flare Avenue ball field complex project. The intent is to move on the ball field complex in the same time frame as the emergency services building (ESB).

As part of the ESB project, one ball field on North Glendale Avenue will be lost, to be replaced as part of the Flare Avenue complex. Tentative plans call for three ball fields on the Flare Avenue site with parking, concession stand and utilities.

Tomah City Clerk Becki Weyer reminds the public the 2022 spring election will include a race for mayor and council seats 2, 4, 6 and 8. Nomination papers can be taken out starting Dec. 1. Deadline to return to the city clerk’s office is Jan. 4 at 5 p.m.