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Paying Their Way; Some Wish for Lower Tax Bills; Others Say Their Load is Reasonable

Posted on: Sunday, 22 January 2006, 15:00 CST

By MIKE JOHNSON and DAVE SHEELEY

With his property tax bill increasing by $267 in the past five years, Brent Frafjord wistfully ponders a reality without tax hikes.

"It'd be nice to see taxes equal to what they were in 2000," the Sussex resident said.

Frafjord's latest tax bill came in at $3,908 7% more than what he paid five years ago and a total that he believes is too high. And that's not including the municipal fees he pays.

What's his solution for government to lower taxes, especially in tough economic times?

Follow the rule of his household.

"When things get tight, we cut back on things we don't need," he said.

However, south of Sussex, there's Erv Szpek of Waukesha, who may be one of the rarer taxpayers these days one who thinks he's getting his money's worth at a time when the overall sentiment seems to be that taxes are out of hand.

Szpek feels that way even though Waukesha ranks No. 1 in tax bite out of all the Waukesha County municipalities.

"I don't really see us as out of line," Szpek said. "I always take into consideration that we live in a city. So the infrastructure is different than outlying rural areas. Your taxes are just going to be higher from being in the city."

You get what you pay for, Szpek said.

In Waukesha, that means a pretty good parks system, many more parks than you would find in rural areas.

You get leaf and garbage pickup included in property taxes. Some communities charge an extra fee for garbage pickup, Szpek points out. In other communities, residents have to haul their own leaves to the dump, he said.

"We've got a new pool. That all costs money. None of that is free," he said.

His tax bill for 2005 was $3,394 on his house assessed at $190,000 on N. Hartwell Ave. That's a 42.6% increase since 2000, when his bill was $2,380 for the home when it was assessed at $101,000.

When he bought the home in 1984 for about $61,000, his tax bill was $1,045.

His property taxes have more than tripled, but so has his home's value.

"So, it's not like something's out of whack there," he said.

Waukesha tops ranking again

For Waukesha, it is the third straight year the city has topped the tax list in the county, according to an annual Journal Sentinel analysis.

Elm Grove moved into the No. 2 spot while the portion of Butler served by Hamilton Schools was No. 3.

In Waukesha, the property tax bill on a typical house with a market value of $240,000 is $4,365.

In Elm Grove, the tax bill for the same house would be $4,282, and in Butler, $4,239.

To make the comparison, the Journal Sentinel used consolidated tax rates that have been equalized. Then those rates which included all entities, such as the school, county and state, levying property taxes in a community were applied to the same theoretical house with a market value of $240,000, roughly the county median.

Applying the equalized rate to a fair market value house is the most accurate for the purposes of comparing communities, since assessment practices vary from municipality to municipality.

The Town of Eagle area served by East Troy Schools again remained at the bottom of the list. The taxes on a $240,000 home is $2,633, some $1,700 lower than Waukesha's.

But Waukesha Mayor Carol Lombardi said it is no surprise her city is at the top.

"Of course Waukesha would have the highest tax rate of the county. We are host to over 850 tax-exempt organizations. . . . We are the largest city. We are the county seat. We are the host city to 100,000 people on a daily basis," Lombardi said.

Lombardi said it is not fair to compare the city with many other smaller communities throughout the county.

The larger the size of a municipality, the larger the cost, she said.

The city, she said, has a "full-time, top notch" fire department and emergency medical services. It has the biggest library in the county, she said.

"How many calls have I received about tax bills this year?" the mayor asks. "Absolutely none."

"People are getting their money's worth" in Waukesha, she says. "The market value of homes has continued to increase because buyers want to come here for the services we offer."

Harder to maintain services

It is, Lombardi adds, getting harder and harder to provide those services, especially under the spending cap imposed by state lawmakers. Those caps allowing municipal levies to grow by at least 2%, or a higher percentage based on new construction in their communities.

Waukesha had to trim spending by $900,000 for 2006, cutting back at the library, on some park and recreation programs and park upkeep, and in staffing and supplies in other city departments, Lombardi said.

While Waukesha holds the top position, Summit once again remains in the bottom half of the tax ranking.

Town Manager/Planner Henry J. Elling said a little more development in Summit likely would push the town even lower in the rankings.

"We have not had a substantial amount of development in the town" compared to other municipalities, Elling said. "The pie has not gotten any bigger."

Other places with more development, Elling said, can spread out the tax burden.

Even so, Elling said the town has been able to keep its tax rate essentially flat for the last three years, and because property has not been re-valued in that time, the town portion of residents' tax bills also has stayed relatively flat.

Summit resident Carolyn Wickert said she would like to see a little more business development in the town.

"We don't have anything but residential and churches and institutional," Wickert said. "There aren't any businesses in the town that would help bring the tax down."

Still, she says, she can't really complain about her taxes. Her latest tax bill for her home, barn and five acres on Abitz Road is $4,326. The bottom line also includes a fee of $182.30 for garbage pickup.

The total is up about 35% from 2000, when she and her husband, Bruce, paid $3,210, including garbage pickup.

The home and property's assessed value has increased from $180,600 in 2000, to $262,600 today. The 45% increase in value has outpaced the rise in taxes.

"I don't think we're paying too much at all, considering what I have here," Wickert said.

Wickert doesn't even complain about school taxes, which make up the largest portion of her tax bill.

"We've got a real good school district out here," she said of Kettle Moraine schools, from which her three sons graduated.

She also said she can't say anything bad about the technical college taxes, either. Wickert, who has a nursing background, learned medical transcription at WCTC, and is employed in that field.

"I utilized the technical college. If you utilize what you have, you can't complain that you've got it or what you paid for it," Wickert said.

Two sides of tax debate

As a member of the town's Plan Commission, Wickert is aware of the concern statewide about taxes. Being involved, she said, helps her see both sides of the issue.

But she adds: "The taxpayer revolt depends on what part of state you're living in. I don't know if I could afford the taxes in Wauwatosa, and that's where I grew up."

"Then again, there's the old adage, You get what you pay for.' I don't think my taxes are out of line at all. We have good police service, we have good fire service. We have good garbage pickup. . . . And the times when I've needed the police and the fire, they've been here fast."

Three years ago, her barn burned down the week before Christmas. Summit police were at her home in two minutes. Volunteer firefighters from Dousman, which serves her area, were there in about five to 10 minutes.

"For volunteer services, I really can't complain about that. And I did not get a bill, because that's part of our taxes. That night, we must have had 45 firefighters here," she said.

Not everyone agrees with Szpek and Wickert.

Fear of being priced out

Jonathan Ulfeng of Muskego said his taxes are too high, even though they went down slightly this year.

"My property tax bill in Muskego has gone from $2,400 to $3,650 in five years for a $200,000 home," Ulfeng told a reporter via e- mail. "I think it's on the expensive side and should be around $1,000 to $1,800 to be fair. Most other states weigh in at around $800 average per year. If the amount keeps going up at this rate of $250 per year, I will have to move out in just about five more years."

Frafjord doesn't plan to move his family out of Sussex, which comes in at No. 23 on the analysis. He is happy with the services he receives for the taxes he pays, which he believes are lower than those residents in Milwaukee County pay.

If he would sell his property on N. Ridgeview Circle, he would make a profit because its assessed value has increased from $164,400 in 2000 to $229,000 this year, he said.

"It's good that that value goes up," he said.

Since he's staying put, the higher value means higher taxes.

"If you're staying, now you're paying a lot more for the privilege of living there," he said.

The portion of Menomonee Falls that includes the Menomonee Falls School District is 10th in the analysis.

John and Kathy Mehring of Paseo Lane in Menomonee Falls don't have much criticism of their taxes.

"I can't complain. I know people that had a lot higher taxes," John Mehring said. His tax bill in December was $3,334, up from $3,274 in 2000.

"I think that's fair," Kathy Mehring said. "I think we pay for what we have: a nice home."

The couple feared a surge in taxes as homes popped up around their property in fast-growing Menomonee Falls.

"We thought, Oh-uh,' here we go,' " Kathy Mehring said.

But they haven't jumped too much.

Still, development of expensive homes nearby has brought a greater value to their home.

The Mehrings' bought the home for $95,000 in 1990. Today, its assessed value is $205,900.

Szpek, the city of Waukesha resident, believes taxpayer unrest could stem from the fact that taxes might be outpacing the ability to pay.

"I think at the heart of the issue, the average taxpayer is probably most concerned and upset that income does not keep up with the rate of tax increases," Szpek said. "I mentioned over the time period of slightly more than 20 years my assessed value has roughly tripled and my taxes have tripled, as well. It is all a wash until one contemplates has my income tripled over that same period?

"I'm not going to check. I suspect I'll be shocked. Do you think a family income of $30,000 back in '85 is now at $90,000? For some, yes. But I'd guess most have not," he said.

Copyright 2006, Journal Sentinel Inc. All rights reserved. (Note: This notice does not apply to those news items already copyrighted and received through wire services or other media.)

Source: Milwaukee Journal Sentinel

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