Town of Brookfield Not Concerned About Cuts

Town leaders said they can handle a state-proposed two-year property tax freeze because they have frozen the levy on their own in four of the last six years.

They also are not worried about state aid cuts, even though they can't offset them with full labor cost savings until 2013 when union contracts expire.

Town Chairman Keith Henderson and Town Administrator Rick Czopp said they will find ways to balance the town budget, even if they lose some of their $108,000 in state shared revenue and $281,000 in road aid.

"We’ve got a pretty tight ship going on right now and we’ll continue to be tight," Henderson said Wednesday.

Czopp praised Gov. Scott Walker for reigning in state spending and deficits.

"Absolutely I agree with what he's doing," Czopp said. "You just can not continually raise taxes. It's just out of control. I think we all should be thankful that we have a job and we have health insurance because there are a lot of people who don't."

The town does not know yet how much state shared revenue it would lose under Walker's budget, which would cut total aid to local governments by $96 million in 2012. Road construction aid could be cut by 10 percent.

State aids make up 10 percent of the town's total annual revenue, less than hotel room tax revenue, which comprises nearly 13 percent of the town's coffers. Property taxes are nearly 50 percent of the town's revenue. 

Walker has said his cuts will be replaced by savings in his stalled budget repair bill, whose call to end almost all collective bargaining for public workers has set off a firestorm of opposition by unions in Wisconsin and nationwide.

The repair bill calls for most public workers to contribute 5.8 percent toward their pensions and 12.6 percent of their health insurance premiums. Wages would be capped at the consumer price index and would be the only thing unions could negotiate with government managers and elected officials.

The Town of Brookfield has two unions — police and fire — who have contracts that are settled through Dec. 31, 2012. The town could not force Walker's proposed contributions until 2013 unless the unions were willing to reopen their contracts.

Public safety costs represent about two-thirds of the town's entire budget.

Under the contracts, town police and fire personnel do not make any contributions to their pension plans. The town pays 100 percent of the employee and employer contributions. 

All other town employees, including police and fire command staff not represented by the unions, contribute 1 percent toward their pensions. The command staff consists of five members: the police chief, a sergeant, a captain, the fire chief and an assistant fire chief. 

Regarding health insurance, all town employees — even those in the police union — pay 10 percent of their monthly premiums. Raising employees' health payments to 12.6 percent would not be a major impact, Czopp said.

"We’re moving in that direction anyway because we figured we need to do that," Henderson said.

Town firefighters are all considered part-time and do not receive health benefits. One exception: the town fire chief is the only full-time member of the Fire Department but has chosen not to take health benefits.

Non-union town employees have not had a raise in three years, Czopp said. But police and fire personnel covered by the union have had annual raises and will continue to do so through year-end 2012, per bargained contracts.

Henderson said he will not worry about state aid cuts until they are imposed. 

"It hasn't passed yet and it hasn't been signed yet," the chairman said. "I don’t know what’s going to happen yet."