Residents of Spruce deadlocked on a Town Board request to raise property taxes $30,000 to cover substantial increases in legal and ambulance fees and other expenses in 2015.
The hourlong special meeting Oct. 21 ended with a 16-16 vote. Without a majority in favor of the proposal, the board’s plan to raise taxes by 23 percent was defeated.
Town Chairman Terry Brazeau said he was surprised by the close vote and disappointed more people didn’t attend the meeting to have their say on the proposed tax increase.
“We’ll have to rework our budget to determine what we have to do before our budget hearing in November,” he said.
The Town Board will meet at 7 p.m. Nov. 18 and hold the budget hearing at 8 p.m.
The town leaders had proposed a budget of $337,755 for 2015. The board proposed a tax hike of $30,000, which translated to 30 cents more per $1,000 of equalized value.
“The town has had a number of expenses that have not been budgeted for, starting last year, and (using) the money we receive as state aid and other aid, we cannot pay those,” Brazeau told residents at the Oct. 21 meeting.
One of the expenses is tied to the town’s ambulance contract. Fees jumped from $18,000 in 2013 to $31,700 in 2014 and 2015 after Oconto Falls Area Ambulance Service hired employees to bolster its all-volunteer department. Spruce is one of the owners of the ambulance service.
A harsh 2013-14 winter also cost the town more than usual, according to Brazeau. Winter road maintenance cost about $28,000 last year. For an average winter, the town spends $10,000 to $15,000.
Another unexpected expense is legal fees, budgeted at $22,700 for 2015, up from $3,000 spent in 2013 and $4,600 estimated for 2014. In 2013, the town lost an open records lawsuit filed by James Webster and took out a loan in 2014 to pay the $57,000 settlement. Its 2015 payment is $18,650.
At the town meeting, Webster encouraged the board to file a malpractice suit against attorney Vance Waggoner, who represented the town when the suit was filed.
“We’re looking into it,” responded Josh Koch, the town’s attorney.
Webster also said town leaders failed to inform their insurance agency a lawsuit had been filed, making the town ineligible for insurance coverage to pay the settlement.
Treasurer Sally Witt admitted town officials made mistakes in the past but never did anything dishonest.
“I think one of the things going on here is to try to get this board to resign,” she said.
Webster encouraged residents to vote down the tax levy increase, saying the town can raise revenue by changing the way it runs Holt Park.
“There are other ways to raise the money. There’s always been other ways to raise the money,” Webster said. “There’s cutting the costs and increasing revenues.”
He said the town can cut costs by contracting with different fire and emergency services, but Brazeau said the town is well served by the fire departments in Lena and Spruce and the Oconto Falls Area Ambulance Service.
Webster also advised the board to drop insurance policies that cover town property at the homes of the treasurer and clerk, who he said should work at the town hall and keep all town records at the town hall. Witt responded, saying Internet access is not available at the town hall, and much of her work requires the transfer of documents via the Internet.
Resident Pam Lemorande questioned if board members had considered all options available.
“The real issue, and what we want to know here, is if you’ve exhausted all possibilities of raising revenues, other than raising our taxes,” she said.
Lemorande suggested the town raise fees at the recycling center and Holt Park Campground.
“You could raise fees at the park,” Brazeau replied, “but you can only raise fees … to the average with what’s around the area and the state for camping fees.”
Some residents suggested the town use its $50,000 certificate of deposit to cover expenditures, but Brazeau was opposed to this proposal. He said the $200,000 CD from 10 years ago had already been tapped for new windows at the town hall, parking lot upgrades and roadwork. The final $50,000 is earmarked for bridge replacement, he said.
To meet expenses for 2015, the board planned to raid the town’s road maintenance budget, something it did last year to cover its ambulance, assessing and recycling contracts.
Brazeau was opposed to taking more than about $8,000 from the roads budget, saying it’s needed for maintenance, and the town stands to lose aid if it doesn’t maintain a healthy three-year budget for road work. Highway and street maintenance was budgeted to cost $144,790 for 2015.
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