Oneida County proposed budget would reduce property taxes

Oneida County kicked off its budget hearings last month facing an estimated operating deficit of nearly $1.3 million, but in October the county’s executive committee went quickly to work, cutting expenditures and modifying revenue measures to the tune of about $1.5 million, and in the end produced for taxpayers both a lower levy and a lower tax rate, if it is enacted as is.

The county board will hold its annual budget hearing Tuesday, Nov. 12. Further modifications to the budget are always possible.

According to the budget proposal approved by the executive committee — and prepared for the board by finance director Tina Smigielski — total revenues are estimated to be $77.5 million, a 15-percent increase compared to last year.

Taxes would account for 34 percent of the total revenues estimated for 2025, but that’s about $785,000 lower than in the 2024 budget, the budget proposal states. 

As such, the property tax levy for 2024, to be collected in 2025, will be $18.32 million, a decrease of 4 percent from last year’s levy of $19.1 million.

The estimated Oneida County tax rate will tumble, too. Smigielski said equalized valuation, based on Wisconsin Department of Revenue published equalized valuation, is estimated to drop 20 cents to $1.53 per $1,000 of equalized value from last year’s $1.73, a decrease in the tax rate of 12 percent.

Sales tax, the county’s second largest tax revenue, is being estimated to bring in $7.05 million in 2025. 

“This is lower than the 2024 budget by $10,000, but higher than 2024 year-end estimates by $75,000,” the proposal states. “Estimates are based on national and state trends, including metrics issued by the Wisconsin Department of Revenue. The executive committee and Finance Department will monitor this economically sensitive revenue source as the year progresses.”

Per the Wisconsin Department of Revenue, the proposal stated, Oneida County equalized value has increased by 9 percent from the previous year to just under $12 billion.

Smigielski explained that general corporate purpose, including human services, public safety and public works, fall under a “tax cap” amount and accounts for $15 million of the proposed levy.

For the upcoming year, the proposal stated, the allowable levy increase was capped at 0.76 percent, or $116,000.

“Other aspects of the levy are ‘above the cap’ including bridge aid, emergency medical services (EMS), WDOR charges, and funding for the libraries,” the proposal stated. “This amount is proposed for $3 million.”

Categories receiving an increase in tax levy support in next year’s budget include the library, human services, public health, and social services, while categories with a reduction in tax levy support include EMS, general government services, and bridge aid, the proposal stated.

Intergovernmental revenue is projected to incur a significant increase, up 23 percent going into 2025, the proposal stated, but Smigielski points out that is mostly attributed to the newly created Human Services Department providing services to Vilas and Forest counties. Those services were previously provided by an outside agency, the Human Service Center, that is terminating at the end of 2024.

As for other revenue categories — licenses and permits; fines, forfeitures, and penalties  —all are a relatively small revenue source for the county and both are estimated to be higher than the prior year budget but in line with year-end estimates for 2024, the proposal stated.

The bottom line is, the proposal stated, the significant growth in public charges and intergovernmental charges are driven by the newly created Human Services Department providing services to clients as well as outside agencies.

Finally for revenues, interest income on invested cash balances is the reason for the increase in the miscellaneous revenue increase, more closely aligned with year-end estimates for 2024.

Expenditures

On the spending side, total expenses are proposed for $81.47 million, a 23 percent increase, or $15 million, compared to the 2024 budget.

Oneida County’s 2025 proposed budget dedicates nearly three-quarters of spending to human services, public works, and public safety, accounting for 30 percent, 23 percent, and 21 percent respectively of the budget, the report states.

“Human services is slated to be the highest spending category at $24.4 million, up $12.8 million from the prior year,” Smigielski wrote. “This change is attributed to the newly created Human Services Department shifting from outsourcing these services to insourcing for Oneida County, and Oneida County providing these services to Vilas and Forest counties.”

Meanwhile, public safety and public works are up 9 percent and 16 percent respectively as compared to the prior year related to increased costs of labor, inflationary impacts on contracted services, and capital projects, the report states. Across all functional categories, the report states, personnel related expenses make up $37.7 million, or 46 percent, of the planned expenses in the upcoming year. 

“Increased head count combined with inflationary wage and benefit increases are driving these costs up by 21 percent year-over-year,” she wrote.

About that increased head count

According to the budget proposal, the 2025 budget consists of 350.88 full time equivalent (FTE) positions.

“Buildings & Grounds is adding two positions to support the addition of the Human Service Center and Koinonia Residential Treatment facilities to their responsibility to maintain beginning in 2025,” the report states. “The district attorney is converting a position from part-time position to full-time to better address victim and witness duties and responsibilities.”

In addition, the Finance Department is converting a position from part-time to full-time as the temporary contract with an outside firm providing accounting support ends in 2024. Then, too, Information Technology is adding a full time position and Labor Relations & Employee Services is converting a part-time position to a full time position. 

“These changes are due to increased demands on the respective departments anticipated with the creation of a Human Services Department,” the report states.

On the other side of the head count, Land Information is reducing its positions by 0.05 FTE by shifting responsibilities internally among staff, and Public Health is decreasing head count by 1.49 FTE due to expiring grant funding, Smigielski wrote.

The current Social Services Department is expected to become a Human Services Department, and will be adding 49.50 positions to staff to service Oneida, Forest and Vilas counties as the Tri-County Human Service Center Board terminates on December 31.

Finally, Veterans Services is eliminating a limited term employee position and replacing with a permanent part-time position to better address veterans requiring services within Oneida County.

The general fund accounts for the primary operations of the county, Smigielski reported, and is proposed for $32.7 million in expenses for 2025. Estimated revenues for the general fund are $33 million. 

“The proposal includes a purposeful spend-down of $4.2 million in available fund balances to underwrite shortfalls in other funds,” Smigielski wrote. “The proposed transfer out of the general fund is in compliance with Oneida County’s Stabilization Fund Policy.”

Special Revenue Funds total 2025 proposed expenses are $32.8 million, the report stated. 

“These funds are used to track restricted funds such as grants, and are currently proposed with a deficit of $2.6 million,” Smigielski wrote. “This deficit is addressed by transferring unrestricted fund balances from the General Fund to support roadway reconstruction projects, and to establish an allowance for out-of-home care expenses in Human Services.”

Capital Project Funds account for the costs of renewal, replacement or acquisition of capital assets and is proposed for $4.4 million in 2025, the proposal reports. 

“The funds’ deficit of $1.2 million is related to investments in facility and information technology capital projects,” Smigielski reported. “This will be rectified with a transfer of unrestricted fund balance from the General Fund.”

Finally, Enterprise Funds are the county’s business-type operations intended to be self-supporting with user fees, totaling $11.6 million for 2025. A deficit of $490,000 is related to Highway Department capital projects funded with a transfer of unrestricted general fund balances.