2011 Property Taxes:  How are my tax dollars spent?

Each year; following the mailing of property tax bills, the City is frequently asked the question:  "Where do my taxes go?"  This question may best be answered in two parts; one that addresses the total tax bill and another that considers the City's use of taxes.

All too often the question seems to stem from a misconception that it is the City that sets the total tax levy and receive the full amount of taxes paid.  While it is true that the City serves as the collection agent for property taxes, its portion of the tax bill is approximately 30%.  The balance of taxes is distributed to the other four taxing jurisdictions, namely; Elkhorn Area School District; Walworth County; Gateway Technical; and State of Wisconsin.  The chart below illustrates the share of the tax levy for each of the various taxing bodies.

The second approach to the question "Where do my taxes go?" unfortunately offers a less direct answer.  As generally presented by tax payers, the question seems to assume that taxes are levied and allocated by service or function.  In practice the levy is treated as a non-specific revenue source that bridges the gap between non-tax based revenue and the total funding necessary to support service delivery.  Aside from certain direct levies for such purposes as Debt Service, Matheson Memorial Library, and Self-Insured Accounts; property tax dollars used to support police, fire, public works, parks, recreation, and other General Fund operations are simply not segregated by function.  After allocating dedicated revenues and state aids, the levy is applied in approximately the following percentages:  Police (55%); General Government (13.1%); Public Works (4.5%); Parks/Recreation/Forestry (16.2%); Municipal Court (1/8%); Financial Management (2.4%); and Buildings & Plant (4.1%)