TID closure means more money for other city needs

The city of Medford general fund budget will get a $100,000 boost thanks to the retirement of Tax Incremental Districts (TIDs) 12 and 8.

In TIDs the property taxes on improvements in the district which would normally be divided between the city, county, school district and technical college district are kept by the city to pay for debt service on infrastructure improvements such as roads and utilities and other development costs. TID 12 was created in 2000 and was, by far, the city’s most successful district anchored by the Marathon Cheese plant and serving as a springboard for other area development.

With the closure of the district, the money that was being set aside for debt service and projects now gets divided between the overlying taxing districts as with other parcels.

In presenting the general fund budget to the city council committee of the whole meeting Monday, city coordinator Joe Harris explained that this is projected to bring about another $100,000 of property tax revenue to the city’s general fund raising the general property taxes from $896,849 in the current year budget to $999,567 budgeted for 2023. This figure is based on the city’s tax rate remaining unchanged.

The city portion of the tax rate will be impacted by the change in equalized and assessed values. The city is projected to see a jump in equalized value this year with the Kwik Trip stores on the tax roles and other improvements although a final amount has not been set by the state.

The city of Medford budget, like all municipal governments, is divided with a portion for construction, a portion for debt service, and the general fund which covers all general operations from parks to police. The city also runs a number of utilities which operate as special revenue funds covering their costs through rates and fees set to users, budgets for the utilities were reviewed and approved at the August 16 city council meeting.

At Monday’s meeting, Harris as well as other city department heads presented the proposed budgets. Overall the budget calls for $3.8 million in spending for the general fund of which just under $1 million will come from local property taxes with the remainder from fines, fees and state shared revenues.

Harris noted the city conservatively budgeted the amount of state aid for the coming year, noting that they typically go off of what they received the prior year. The shared revenue amount is set by the state government in Madison. “When you figure Madison out, you let me know,” Harris said.

In addition to the tax base increasing, the city has seen an increase in revenue from fines and citations issued by the police department.

Police Chief Chad Liske noted that officers, particularly the younger ones, have been aggressive in enforcing things such as overnight parking violations and other violations. “The younger guys are aggressive about writing tickets,” Liske said.

Council president Christine Weix, who was running the meeting in Mayor Mike Wellner’s absence, asked about parking enforcement along Main Street and if the announcement that the city would be enforcing the twohour parking limits made a difference.

“It goes in spurts,” Liske said, noting that after the announcement there is compliance and then it trails off. He explained that they are unable to chalk tires like they used to,so they rely on patrons or business owners making complaints.

One area where law enforcement revenues is down is with registration fees. Residents may register vehicles at the police department in person rather than doing it online and pay a convenience fee which is retained by the city and used for equipment purchases. Liske noted these revenues continue to drop and will be well below what was seen in the past.

Overall there were few changes to the proposed budget compared to last year with the city projected to spend $872,000 in capital projects compared to the $912,000 in the current year’s budget. Projects for 2023 include the Main Street alley and finishing the alley by the Chamber of Commerce office.

In addition to the construction fund, the city budget includes $372,628 in debt service spending. However, only $46,580 is due from the general tax levy with the remaining $326,048 coming from the utility budget. The city has drastically decreased the amount of tax dollars going toward debt service in recent years. In 2020, the city’s debt service tax levy was about $270,000.

The budget will go to the full city council for final approval later this fall.

Engineering services

Prior to the budget review session, committee members voted to recommend hiring Ayres Associates for engineering services for the planned 2023 projects at a total cost of about $88,000.

Projects include: Reconstruction of Madison Street from its intersection with Wheelock Ave for 800 feet North to the intersection of Brucker Street. Engineering costs are not to exceed $49,800.

Replacing the water main along the East side of Medford Area Senior High, starting at Hwy 64 and going North approximately 750 feet to Brucker Street. Engineering costs are not-to-exceed $21,000. The money is coming from the water utility budget.

Rehabilitating sewer main along South Eighth Street from the intersection with Perkins Street going North approximately 3,000 feet to the intersection with Hwy 64. Engineering costs are not-to-exceed $16,600. The money will come from the wastewater utility budget.

Brian Wilson/The Star News

Representatives from the Medford Kiwanis and Medford Lions clubs were recognized for the assistance they give to educational efforts for those with special needs in the schools.

A’viands was on hand to provide a free meal at the event. There were many resources available for families.