Maple Bluff eyes property tax referendum to close budget gap (2024)

The village of Maple Bluff has joined the growing list of Dane County municipalities considering a property tax referendum this fall.

Officials in the village of around 1,400 residents put out a report Friday outlining the difficulty they say they are having in making revenue keep up with rising costs while maintaining current service levels in the face of high staff turnover. In response, the village is proposing an operating referendum for the November ballot to raise property taxes beyond the levy limit imposed by the state.

State law restricts the amount a municipality can raise its property taxes to the percentage growth in net new construction each year. If a municipality wishes to raise taxes beyond that limit, it must get direct approval from voters through a referendum.

Maple Bluff’s referendum follows others under consideration in Madison, Monona and Fitchburg as well as the village of Oregon for either November or spring 2025.

Among Maple Bluff’s most pressing concerns is the rising cost of services driven by recent high inflation, which has outpaced the revenue the village has raised through small annual property tax increases within the state limit. That has left a $132,000 shortfall in its 2024 budget that forced the village to tap its reserve funds to cover the gap, according to the report.

Surrounded by Madison to its north, south and east and Lake Mendota to its west, Maple Bluff can’t annex neighboring land, a common way municipalities bring in more tax revenue. It also has very little undeveloped land it can build upon to increase annual net new construction.

Additionally, staff are not paid competitive wages, leading to high turnover and chronic understaffing, the report said. The Maple Bluff Police Department has experienced 86% turnover since January 2021, according to the report.

“Without the referendum, the village will struggle to maintain adequate staffing levels, which are essential for delivering services effectively,” said Tanner Nystrom, Maple Bluff’s village administrator and police chief. “This could lead to increased workloads for existing staff and potential declines in service quality.”

The report includes three referendum proposals that would increase property taxes by between $790,000 and $1,350,000 annually, or $72 to $119 per month on a median-value home in the village valued at $750,000. The cheapest option covers only the cost of inflationary adjustments and employee pay raises. The middle option covers those costs but also would add a full-time administrative support staff person for $118,000, plus $64,600 to add 2,000 more hours of public works labor.

The most expensive option would fund those changes, as well as pay for two additional full-time police officer positions and higher wages for paid on-call fire staff.

If the referendum fails, “the village will face continued and increasing budget shortfalls,” Nystrom said, forcing it to cut further into its reserve funds or reduce services.

Maple Bluff residents approved a levy referendum in 2020 that raised property taxes by $860,000 each year to close a widening gap between the cost of services and the revenue the village could raise under the levy limit. The measure passed with nearly two-thirds of the vote.

The report also indicated another referendum may be possible down the line given that “continued inflation is anticipated.”

“Given the ongoing challenges associated with inflation outpacing levy limits, it is predictable that the Village will need to use future referendums to adjust its operating budget,” Nystrom said.

Residents have until July 21 to answer a survey that will help the village decide which of the three options to place on the ballot. A public information session is scheduled for 5 p.m. Monday at the Maple Bluff Village Center.

If the village board opts to hold the referendum in November, it likely will need to approve the final proposal by mid-to-late August, Nystrom said.