Slight rise in levy
By Robert Cloud
The city of New London has proposed a 2024 budget with a tax levy increase of just over 1%.
In 2023, New London’s general operating levy was $2.98 million. The proposed operating levy for 2024 is $3 million.
The city will have a debt service levy of $1.05 million.
In his 2024 Budget Message presented to a Committee of the Whole meeting on Nov. 1, City Administrator Chad Hoerth noted the good news that new construction has added $5.3 million to New London’s total assessed property values.
“The not-so-good news is that this amount of additional value only allows an increase of the city’s levy by $32,279,” according to Hoerth. “When compared to the general fund tax levy of about $3 million, this only allows the city to raise the tax levy by about 1%, providing compound challenges when annual inflation year after year is anywhere from 2-8%.”
Hoerth stressed the importance of steady growth because “state law only allows the city to increase the general fund levy based on net new construction.”
New London’s total general fund operational expenses for 2024 are budgeted to increase by 4.55% or $384,138 out of a total budget of $8.8 million.
“Most of this increase is attributable to supply and energy increases due to rising inflation as well as an effort to maintain wages for retention and recruitment efforts,” Hoerth said in his message.
Total operating revenue is expected to increase $454,221 to $5.4 million.
“The bulk of this net increase to revenue is due to additional State Shared Revenue funding of $446,008 from 2023, totaling $2.6 million,” Hoerth said. “However, a loss of $118,621 in revenue is anticipated from a $87,960 decrease in utility payments in lieu of taxes and a $30,661 decrease in state highway aids.”
Under the proposed budget, New London homeowners in Waupaca County could see their city property tax rate rise from $9.91 to $10.25 per $1,000 of value.
This will result in a $68.29 tax increase on a $200,000 home.
Outagamie County taxpayers could see their tax rate increase from $9.87 to $10.20 per $1,000, resulting in an increase of $67.16 for a $200,000 home.
The New London Common Council will hold a public hearing on the city’s 2024 budget at 5 p.m. Tuesday, Nov. 28.