(d) "Trust" means a common law trust organized under the laws of this state, by the county, as settlor, pursuant to a formal, written, declaration of trust.
(2) SPECIAL FINANCING ENTITIES, FUNDS, AND ACCOUNTS. (a) To facilitate a pension funding plan and in furtherance thereof, a board may create one or more of the following:
1. A trust.
2. A nonstock corporation under ch. 181.
3. A limited liability company under ch. 183.
4. A special fund or account of the county.
(b) An entity described under par. (a) has all of the powers provided to it under applicable law and the documents pursuant to which it is created and established. The powers shall be construed broadly in favor of effectuating the purposes for which the entity is created. A county may appropriate funds to such entities and to such funds and accounts, under terms and conditions established by the board, consistent with the purposes for which they are created and established.
(3) STABILIZATION FUNDS. (a) To facilitate a pension funding plan a board may establish a stabilization fund. Any such fund may be created as a trust, a special fund or account of the county established by a separate resolution or ordinance, or a fund or account created under an authorizing resolution or trust indenture in connection with the authorization and issuance of appropriation bonds under s. 59.85 or general obligation promissory notes under s. 67.12 (12). A county may appropriate funds for deposit to a stabilization fund established under this subsection.
(b) Moneys in a stabilization fund established under this subsection may be used, subject to annual appropriation by the board, solely to pay principal or interest on appropriation bonds issued under s. 59.85 and general obligation promissory notes under s. 67.12 (12) issued in connection with a pension funding plan, for the redemption or repurchase of such appropriation bonds or general obligation promissory notes, or to make payments under any agreement or ancillary arrangement entered into under s. 59.86 with respect to such appropriation bonds or general obligation promissory notes. Moneys on deposit in a stabilization fund may not be subject to any claims, demands, or actions by, or transfers or assignments to, any creditor of the county, any beneficiary of the county's employee retirement system, or any other person, on terms other than as may be established in the resolution or ordinance creating the stabilization fund. Moneys on deposit in a stabilization fund established under this subsection may be invested and reinvested in the manner directed by the board or pursuant to delegation by the board as provided under s. 66.0603 (5).
SECTION 5. 66.0602 (3) (d) 3. of the statutes is created to read:
66.0602 (3) (d) 3. The limit otherwise applicable under this section does not apply to amounts levied by a county having a population of 500,000 or more for the payment of debt service on appropriation bonds issued under s. 59.85, including debt service on appropriation bonds issued to fund or refund outstanding appropriation bonds of the county, to pay related issuance costs or redemption premiums, or to make payments with respect to agreements or ancillary arrangements authorized under s. 59.86.
SECTION 6. 66.0603 (1m) (e) of the statutes is created to read:
66.0603 (1m) (e) Subject to s. 67.11 (2) with respect to funds on deposit in a debt service fund for general obligation promissory notes issued under s. 67.12 (12), a county having a population of 500,000 or more, or a person to whom the county has delegated investment authority under sub. (5), may invest and reinvest in the same manner as is authorized for investments and reinvestments under s. 881.01, any of the following:
1. Moneys held in any stabilization fund established under s. 59.87 (3).
2. Moneys held in a fund or account, including any reserve fund, created in connection with the issuance of appropriation bonds under s. 59.85 or general obligation promissory notes under s. 67.12 (12) issued to provide funds for the payment of all or a part of the county's unfunded prior service liability.
3. Moneys appropriated or held by the county to pay debt service on appropriation bonds or general obligation promissory notes under s. 67.12 (12).
4. Moneys constituting proceeds of appropriation bonds or general obligation promissory notes described in subd. 2. that are available for investment until they are spent.
5. Moneys held in an employee retirement system of the county.
SECTION 7. 66.0603 (5) of the statutes is created to read:
66.0603 (5) DELEGATION OF INVESTMENT AUTHORITY IN CONNECTION WITH PENSION FINANCING IN POPULOUS COUNTIES. The governing board of a county having a population of 500,000 or more may delegate investment authority over any of the moneys described in sub. (1m) (e) to any of the following persons, which shall be responsible for the general administration and proper operation of the county's employee retirement system, subject to the board's finding that such person has expertise in the field of investments:
(a) A public board that is organized for such purpose under county ordinances.
(b) A trustee, investment advisor, or investment banking or consulting firm.
SECTION 8. 67.01 (9) (intro.) of the statutes is amended to read:
67.01 (9) (intro.) This chapter is not applicable to appropriation bonds issued by a county under s. 59.85 and, except ss. 67.08 (1), 67.09 and 67.10, is not applicable:
SECTION 9. 67.04 (5) (b) 4. of the statutes is amended to read:
67.04 (5) (b) 4. To pay unfunded prior service liability contributions under the Wisconsin retirement system, or to pay unfunded prior service liability with respect to an employee retirement system, if all of the net proceeds of the note will be used to pay for such contributions or payments.
SECTION 10. 67.045 (1) (g) of the statutes is created to read:
67.045 (1) (g) The debt is issued by a county having a population of 500,000 or more to pay unfunded prior service liability with respect to an employee retirement system.
SECTION 11. 67.12 (12) (a) of the statutes is amended to read:
67.12 (12) (a) Any municipality may issue promissory notes as evidence of indebtedness for any public purpose, as defined in s. 67.04 (1) (b), including but not limited to paying any general and current municipal expense, and refunding any municipal obligations, including interest on them. Each note, plus interest if any, shall be repaid within 10 years after the original date of the note, except that notes issued under this section for purposes of ss. 119.498, 145.245 (12m), 281.58, 281.59, 281.60, and 281.61, or issued to raise funds to pay a portion of the capital costs of a metropolitan sewerage district, or issued by a county having a population of 500,000 or more to pay unfunded prior service liability with respect to an employee retirement system shall be repaid within 20 years after the original date of the note.
(End)
LRB-1170LRB-1170/5
MES:jld&kjf:jf
2007 - 2008 LEGISLATURE
DOA:......Hatch, BB0231 - Modify and extend local levy limits
For 2007-09 Budget -- Not Ready For Introduction
2007 BILL
AN ACT ...; relating to: modifying and extending levy limits for cities, villages, towns, and counties.
Analysis by the Legislative Reference Bureau
Local government
Current law prohibits a political subdivision (any city, village, town, or county) from increasing its levy by a percentage that exceeds its "valuation factor," which is defined as the percentage change in the political subdivision's equalized value due to new construction, less improvements removed, but not less than 2 percent. In addition, the calculation of a political subdivision's levy does not include any tax increment that is generated by a tax incremental district.
Current law contains exceptions to the levy limit for political subdivisions that transfer the provision of services, for cities or villages that annex town territory, for political subdivisions that levy to pay debt service on debt authorized by referendum on or after July 1, 2005, for certain joint fire departments, and for a county levy that relates to a county children with disabilities education board.
Also under current law, a political subdivision's levy limit is increased if the amount of debt service in the current year exceeds the amount in the prior year for debt that was approved by the governing body before July 1, 2005. The levy limit may also be exceeded if a political subdivision's resolution to do so is approved in a referendum. If a political subdivision exceeds the levy limit, creating a "penalized excess," DOR is required to reduce the political subdivision's local aid payments in an equal amount. The levy limit only applies to the 2007 and 2008 levies.
This bill extends the levy limit on political subdivisions through 2009, modifies the calculation of the limit, and creates a number of new exceptions to the limit. The bill changes the definition of "valuation factor" to be the greater of either 4 percent or the percentage change in the political subdivision's equalized value due to new construction, less improvements removed. Also under the bill, the base amount of a political subdivision's levy, on which the levy limit is imposed, is the maximum allowable levy for the immediately preceding year.
The bill creates several new exceptions to the levy limit for political subdivisions: county levies for certain bridge and culvert construction and repairs; certain levies for fire departments from any combination of cities, villages, and towns that have entered into a contract to jointly provide fire protection services; political subdivision levies for a revenue short fall for the debt service on a revenue bond; and county levies for payments to adjacent counties for library services.
Under this bill, DOR may not reduce a political subdivision's aid payments unless its penalized excess is at least $500, but, if the amount of a political subdivision's penalized excess exceeds its aid payments in the following year, DOR must carry forward the unused penalized excess and deduct it from aid payments for future years until the penalized excess amount is fully deducted from local aid payments in future years. Also under the bill, a political subdivision will not be liable for a penalty for a penalized excess if DOR determines that the penalized excess is directly caused by DOR assessment errors or because of an error in preparing or delivering the tax roll by the taxation district clerk or county clerk.
For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SECTION 1. 66.0602 (1) (am) of the statutes is created to read:
66.0602 (1) (am) "Joint fire department" means a joint fire department organized under s. 61.65 (2) (a) 3. or 62.13 (2m), or a joint fire department organized by any combination of 2 or more cities, villages, or towns under s. 66.0301 (2).
SECTION 2. 66.0602 (1) (b) of the statutes is amended to read:
66.0602 (1) (b) "Penalized excess" means the levy, in an amount that is at least $500 over the limit under sub. (2) for the political subdivision, not including any amount that is excepted from the limit under subs. (3), (4), and (5).
SECTION 3. 66.0602 (1) (d) of the statutes is amended to read:
66.0602 (1) (d) "Valuation factor" means a percentage equal to the greater of either 4 percent or the percentage change in the political subdivision's January 1 equalized value due to new construction less improvements removed between the previous year and the current year, but not less than 2. Except as provided in subs. (3), (4), and (5), no political subdivision may increase its levy in any year by a percentage that exceeds the political subdivision's valuation factor. In determining its levy in any year, a city, village, or town shall subtract any tax increment that is calculated under s. 60.85 (1) (L) or 66.1105 (2) (i).
SECTION 4. 66.0602 (2) of the statutes is created to read:
66.0602 (2) LEVY LIMIT. Except as provided in subs. (3), (4), and (5), no political subdivision may increase its levy in 2007 or 2008 by a percentage that exceeds the political subdivision's valuation factor. The base amount in any year, to which the limit under this section applies, shall be the maximum allowable levy for the immediately preceding year. In determining its levy in any year, a city, village, or town shall subtract any tax increment that is calculated under s. 60.85 (1) (L) or 66.1105 (2) (i).
SECTION 5. 66.0602 (3) (e) of the statutes is renumbered 66.0602 (3) (e) (intro.) and amended to read:
66.0602 (3) (e) (intro.) The limit otherwise applicable under this section does not apply to the amount that a county levies in that year for a county children with disabilities education board. any of the following:
SECTION 6. 66.0602 (3) (e) 1. of the statutes is created to read:
66.0602 (3) (e) 1. The amount that a county levies in that year for a county children with disabilities education board.
SECTION 7. 66.0602 (3) (e) 2. of the statutes is created to read:
66.0602 (3) (e) 2. The amount that a 1st class city levies in that year for school purposes.
SECTION 8. 66.0602 (3) (e) 3. of the statutes is created to read:
66.0602 (3) (e) 3. The amount that a county levies in that year under s. 82.08 (2) for bridge and culvert construction and repair.
SECTION 9. 66.0602 (3) (e) 4. of the statutes is created to read:
66.0602 (3) (e) 4. The amount that a county levies in that year to make payments to an adjacent county, under s. 43.12 (1), for library services.
SECTION 10. 66.0602 (3) (e) 5. of the statutes is created to read:
66.0602 (3) (e) 5. The amount that a political subdivision levies in that year to make up any revenue shortfall for the debt service on a revenue bond issued under s. 66.0621.
SECTION 11. 66.0602 (3) (f) of the statutes is repealed.
SECTION 12. 66.0602 (3) (h) 1. of the statutes is amended to read:
66.0602 (3) (h) 1. Subject to subd. 2., the limit otherwise applicable under this section does not apply to the amount that a city, village, or town levies in that year to pay for charges assessed by a joint fire department organized under s. 61.65 (2) (a) 3. or 62.13 (2m), but only to the extent that the amount levied to pay for such charges would cause the city, village, or town to exceed the limit that is otherwise applicable under this section.
SECTION 13. 66.0602 (4) (a) of the statutes is amended to read:
66.0602 (4) (a) A political subdivision may exceed the levy increase limit under sub. (2) if its governing body adopts a resolution to that effect and if the resolution is approved in a referendum. The resolution shall specify the proposed amount of increase in the levy beyond the amount that is allowed under sub. (2), and shall specify whether the proposed amount of increase is for the next fiscal year only or if it will apply on an ongoing basis. With regard to a referendum relating to the 2005 levy, or any levy in an odd-numbered year thereafter, the political subdivision may call a special referendum for the purpose of submitting the resolution to the electors of the political subdivision for approval or rejection. With regard to a referendum relating to the 2006 levy, or any levy in an even-numbered year thereafter, the referendum shall be held at the next succeeding spring primary or election or September primary or general election.
SECTION 14. 66.0602 (4) (d) of the statutes is amended to read:
66.0602 (4) (d) Within 14 days after the referendum, the clerk of the political subdivision shall certify the results of the referendum to the department of revenue. The levy increase limit otherwise applicable to the political subdivision under this section is increased in the next fiscal year by the percentage approved by a majority of those voting on the question. If the resolution specifies that the increase is for one year only, the amount of the increase shall be subtracted from the base used to calculate the limit for the 2nd succeeding fiscal year.
SECTION 15. 66.0602 (5) of the statutes is amended to read:
66.0602 (5) EXCEPTION, CERTAIN TOWNS. A town with a population of less than 2,000 may exceed the levy increase limit otherwise applicable under this section to the town if the town board adopts a resolution supporting an increase and places the question on the agenda of an annual town meeting or a special town meeting and if the annual or special town meeting adopts a resolution endorsing the town board's resolution. The limit otherwise applicable to the town under this section is increased in the next fiscal year by the percentage approved by a majority of those voting on the question. Within 14 days after the adoption of the resolution, the town clerk shall certify the results of the vote to the department of revenue.
SECTION 16. 66.0602 (6) (intro.) of the statutes is amended to read:
66.0602 (6) PENALTIES. (intro.) If Except as provided in sub. (6m), if the department of revenue determines that a political subdivision has a penalized excess in any year, the department of revenue shall do all of the following:
SECTION 17. 66.0602 (6) (c) of the statutes is amended to read:
66.0602 (6) (c) Ensure that the amount of the penalized excess is not included in determining the limit described under sub. (2) for the political subdivision for the following year.
SECTION 18. 66.0602 (6) (d) of the statutes is created to read:
66.0602 (6) (d) Ensure that, if a political subdivision's penalized excess exceeds the amount of aid payment that may be reduced under par. (a), the excess amount is subtracted from the aid payments under par. (a) in the following years until the total amount of penalized excess is subtracted from the aid payments.
SECTION 19. 66.0602 (6m) of the statutes is created to read:
66.0602 (6m) MISTAKES IN LEVIES. The department of revenue may issue a finding that a political subdivision is not liable for a penalty that would otherwise be imposed under sub. (6) if the department determines that the political subdivision's penalized excess is caused by one of the following clerical errors:
(a) The department, through mistake or inadvertence, has assessed to any county or taxation district, in the current year or in the previous year, a greater or less valuation for any year than should have been assessed, causing the political subdivision's levy to be erroneous in a way that directly causes a penalized excess.
(b) A taxation district clerk or a county clerk, through mistake or inadvertence in preparing or delivering the tax roll, causes a political subdivision's levy to be erroneous in a way that directly causes a penalized excess.
SECTION 20. 66.0602 (7) of the statutes is repealed.
(End)
LRB-1181LRB-1181/9
JK/CTS/GMM:jld/kjf:rs
2007 - 2008 LEGISLATURE
DOA:......Easton, BB0238 - Increase the real estate transfer fee
For 2007-09 Budget -- Not Ready For Introduction
