City of Waterloo, WI Chapter 53 Finance and Taxation

[HISTORY: Adopted by the Common Council of the City of Waterloo 10-19-1987 by Ord. No. 87-6 as Ch. 3 of the 1987 Code. Amendments noted where applicable.]

GENERAL REFERENCES

Assessments — See Ch. 12.

Records — See Ch. 100.

§ 53-1 Preparation of tax roll, receipts and statements.

A. Aggregate tax stated on roll. Pursuant to § 70.65(2), Wis. Stats., the Clerk-Treasurer shall, in computing the tax roll, insert only the aggregate amount of state, county, school and local taxes in a single column in the roll opposite the parcel or tract of land against which the tax is levied or, in the case of personal property, in a single column opposite the name of the person against whom the tax is levied.

B. Uniform tax bills and receipts. The Clerk-Treasurer shall use uniform tax bills and receipts as prescribed by the Department of Revenue under § 70.09(3)(a), Wis. Stats. Tax bills shall be mailed to taxpayers or their designees and shall include all the information required by § 74.09, Wis. Stats.

§ 53-2 Duplicate Treasurer's bond eliminated.

A. Bond eliminated. The City elects not to give the bond on the Clerk-Treasurer provided for by § 70.67(1), Wis. Stats.

B. City liable for default of Treasurer. Pursuant to § 70.67(2), Wis. Stats., the City shall pay, if the Clerk-Treasurer fails to do so, all state and county taxes required by law to be paid by such Clerk-Treasurer to the County Treasurer.

§ 53-3 Fiscal year.

The calendar year shall be the fiscal year.

§ 53-4 Budget.

A. Preliminary budget framework. On or before the first Thursday in July, as initially submitted by the Mayor, to the Finance, Insurance and Personnel Committee shall establish parameters and target levels of projected revenues and expenditures for each department for the ensuing fiscal year.

[Added 8-4-2022 by Ord. No. 2022-10[1]]

[1] Editor's Note: This ordinance also redesignated former Subsections A through E as Subsections B through F, respectively.

B. Departmental estimates. Each year, on or before the second Thursday of July, each officer, department and committee shall timely file a five-year capital budget based on the budget parameters to the Clerk-Treasurer. On or before the end of July, each officer, department and committee will provide an itemized statement of anticipated disbursements, including a one-year operations budget to the Clerk-Treasurer. Made so to carry out the powers and duties of such officer, department or committee during the preceding fiscal year, and a detailed statement of the receipts and disbursements on account of any special fund under the supervision of such officer, department or committee during such year, and of the condition and management of such fund, along with detailed estimates of the same matters for the current fiscal year and for the ensuing fiscal year. Such statements shall be presented in the form prescribed by the Clerk-Treasurer and shall be designated as "Departmental Recommended Budgets" and shall be as nearly uniform as possible for the main division of all departments for incorporation into the budget document.

[Amended 8-4-2022 by Ord. No. 2022-10]

C. Preparation procedure.

(1) Budget to include. Each year the Finance, Insurance and Personnel Committee, with the assistance of the Clerk-Treasurer and the appropriate committees, officers and department heads, shall prepare and submit to the Council a proposed budget presenting a financial plan for conducting the affairs of the City for the ensuing calendar year. The budget shall include the following information:

[Amended 3-15-2007 by Ord. No. 2007-06]

(a) The expense of conducting each department and activity of the City for the ensuing fiscal year and corresponding items for the current year and last preceding fiscal year, with reasons for increase and decrease recommended as compared with appropriations for the current year.

(b) An itemization of all anticipated income of the City from sources other than general property taxes and bonds issued, with a comparative statement of the amounts received by the City from each of the same or similar sources for the last preceding and current fiscal year.

[Amended by Ord. No. 88-4]

(c) Such other information as may be required by the Council and by state law.

(2) Copies for citizens. The City shall provide a reasonable number of copies of the budget thus prepared for distribution to citizens.

D. Budget summary. The Clerk-Treasurer shall prepare a summary of the budget and shall publish the notice required under § 65.90(3)(a), Wis. Stats. Pursuant to § 65.90(3)(b), Wis. Stats., the budget summary shall include the following:

[Added by Ord. No. 88-4]

(1) All expenditures, by major expenditure category.

(2) All revenues, by major revenue source.

(3) Any financing source and use not included under Subsection D(1) and (2) above.

(4) All beginning and year end fund balances.

E. Appropriation ordinance. The Finance, Insurance and Personnel Committee shall submit to the Council, at the time the annual budget is submitted, the draft of an appropriation ordinance providing for the expenditures proposed for the ensuing fiscal year. Upon the submission of the proposed appropriation ordinance to the Council, it shall be deemed to have been regularly introduced therein.

F. Hearing. The Council shall hold a public hearing on the budget as required by law. Following the public hearing, the proposed budget may be changed or amended and shall take the same course in the Council as other resolutions.

§ 53-5 Changes in budget; policies and procedures document.

[Amended 7-2-2009 by Ord. No. 2009-07[1]]

A. The amount of the tax to be levied or certified, the amounts of the various appropriations, and the purposes thereof shall not be changed by the Common Council after approval of the budget except by a two-thirds vote of the entire membership of the Council pursuant to § 65.90(5), Wis. Stats. Notice of such transfer shall be given by publication within 10 days thereafter in the official City newspaper.

B. The heads of each municipal department shall be granted the authority to transfer unspent and unobligated appropriations within departmental budgets in the current budget year, in accordance with the City of Waterloo Budgetary Policies and Procedures document. The policies and procedures document shall be approved by the Council, maintained by the Clerk/Treasurer and amended from time to time as needed.

[1] Editor's Note: This ordinance provided that it shall take effect upon the adoption of a City budgetary policies and procedures document, which was adopted 7-16-2009 by Res. No. 2009-33.

§ 53-6 City funds to be spent in accordance with appropriations.

No money shall be drawn from the treasury of the City nor shall any obligation for the expenditure of money be incurred, except in pursuance of the annual appropriation in the adopted budget or when changed as authorized by § 53-5 of this chapter. At the close of each fiscal year, any unencumbered balance of an appropriation shall revert to the general fund and shall be subject to reappropriation, but appropriations may be made by the Council, to be paid out of the income of the current year, in furtherance of improvements or other objects or works which will not be completed within such year, and any such appropriation shall continue in force until the purpose for which it was made shall have been accomplished or abandoned.

§ 53-7 Approval of claims.

A. Payment of accounts. Except as provided in Subsection B below, accounts on demand against the City shall be paid pursuant to § 66.0607, Wis. Stats., approved by the Clerk-Treasurer and reviewed and approved by the Council. The Clerk-Treasurer shall keep on file the details of all claims in accordance with generally accepted accounting principles and the state statutes for record preservation.

B. Payment of regular wages and certain bills. Regular wages or salaries of City officers and employees shall be paid by payroll, verified by the proper City official in time for payment on the regular pay day. The Clerk-Treasurer shall pay, when due, social security and withholding taxes, health and life insurance premiums, utility bills and contracted services.

§ 53-8 Purchases.

No equipment or supplies shall be purchased by any City official unless previously budgeted. Equipment and supplies which cost over $500 shall also be approved by the appropriate committee and the Council; however, emergency purchases not to exceed $500 may be approved by the department head and the Mayor or the appropriate committee chairperson.

§ 53-9 Payment of taxes and special assessments.

[Amended by Ord. No. 89-7; 3-15-2007 by Ord. No. 2007-06]

A. Real estate taxes. Pursuant to § 74.11(2), Wis. Stats., real property taxes for the previous year shall be paid in full on or before January 31 or may be paid in semiannual payments, provided that the first semiannual payment is made on or before January 31.

B. Personal property taxes; special assessments. There shall be no installment payments allowed on personal property taxes or special assessments placed on the tax roll, the same being due and payable to the Clerk-Treasurer on or before January 31 of each year.[1]

[1] Editor's Note: Original § 3.10, which immediately followed this section, was repealed by Ord. No. 89-8.

§ 53-10 Issuance of municipal bonds and notes; referendum for capital projects.

[Added 6-2-2005 by Ord. No. 2005-1]

A. Purpose and intent. Recognizing the significant fiscal impacts that can result from municipal borrowings, the City of Waterloo desires to provide greater input by the electors in the borrowing process. The intent of this section is not to supersede or replace any provisions of Ch. 67, Wis. Stats., as amended from time to time; but to supplement provisions thereof to allow for greater participation by the electors. Accordingly, this section shall be construed and enforced to achieve this end, and in that regard the following rules of the construction shall apply:

(1) Whenever the provisions of Ch. 67, Wis. Stats., or any other statute apply to a borrowing by the City of Waterloo and such provisions require that a referendum on a contemplated borrowing be submitted to the electors for authorization, this section shall have no application whatsoever. In such event, the provisions of Wisconsin Statutes shall control.

(2) This section shall apply in all other circumstances to municipal obligations of the City of Waterloo as defined in § 67.01(6), Wis. Stats., where the obligations constitute a general liability of the City of Waterloo.

B. Procedure. The City of Waterloo may borrow money and issue municipal obligations in accordance with the provisions of Ch. 67, Wis. Stats., as amended, except that if the conditions of Subsection C below are applicable, then in such event the City shall, prior to the issuance of a municipal obligation, adopt a resolution that states the purpose for and maximum amount of the contemplated borrowing. This resolution shall be known as an "initial resolution." The initial resolution shall be submitted to the electors for approval in the manner provided in § 67.05(5), Wis. Stats. Failure of the referendum shall prohibit the City from issuing the contemplated municipal obligations.

C. Conditions for holding the referendum.

(1) In order for a referendum to be held pursuant to Subsection B above, the following conditions precedent must exist:

(a) If the municipal obligation in question is authorized, it will result in the City exceeding the sum of 75% of the aggregate amount of authorized indebtedness the City may incur pursuant to § 67.03(1), Wis. Stats.

(b) The municipal obligation in question relates to a "project" as defined in § 67.04(1)(ar), Wis. Stats.

(c) The municipal obligation in question exceeds the sum of $2,000,000.

(d) The City of Waterloo is not in the midst of a bona fide emergency, act of war or natural disaster.

(2) Unless the foregoing conditions precedent are satisfied, Subsection B shall have no application to the issuance of municipal obligations.

D. The conditions for holding a referendum shall be reviewed on a biennial basis.

§ 53-11 Fund balance policies.

[Added 3-15-2007 by Ord. No. 2007-07]

A. Objective. A formally adopted policy will help eliminate ambiguity regarding maintaining appropriate fund balances.

B. Definition. The general fund is the general operating fund of the City of Waterloo. It is used to account for all financial resources except those required to be accounted for in other funds. Undesignated/Unreserved general fund balance is the portion of the general fund not assigned to a defined purpose.

C. Policy. To preserve working capital and to adequately prepare for unforeseen events, which will require ready access to funds, the City of Waterloo requires that the undesignated fund balance shall be between 25% and 33% of the general fund budget. Amounts exceeding 33% shall be transferred to a contingency fund. Any expenditure from a contingency fund must be for one-time, nonrecurring costs and requires Council action.

[Amended 10-4-2007 by Ord. No. 2007-19]

D. Procedure. The City of Waterloo Clerk-Treasurer or designee shall annually review the levels of undesignated fund balance to ensure that appropriate levels are maintained and issue a report to the Council.

E. Formula.

	Current Year Undesignated Fund Balance
		=	% of Fund Balance
	Current Year General Fund Budget

§ 53-12 Debt policies.

[Added 3-15-2007 by Ord. No. 2007-08]

A. Objective: issue debt and manage our portfolio to ensure that the City of Waterloo maintains a sound debt position.

B. Policy. The City of Waterloo may issue bonds and notes for purposes of financing its capital improvements program or to refund existing debt. The capital improvements program includes projects to acquire, plan, design, construct, improve and equip all or any part of its facilities or systems, promote economic development or to secure quality of life issues.

C. The City of Waterloo will strive to maintain a balanced relationship for financing its capital improvements through annual tax levy for street reconstruction and equipment purchases.

(1) General guidelines:

(a) The City of Waterloo shall assess the fiscal impact of the debt prior to issuance.

(b) Total general obligation debt for the City of Waterloo should not exceed 3.75% of TID-Out equalized valuation.

(c) Total annual debt service payments on tax-supported debt, excluding tax increment finance debt, of the City of Waterloo will not exceed 15% of total general government operating revenue.

(2) Refunding:

(a) Periodic reviews of outstanding debt by City of Waterloo staff will be undertaken to determine refunding opportunities. Refunding will be considered by the Finance, Insurance and Personnel Committee if and when there is a net economic benefit of the refunding.

(b) Advance refundings for economic savings will be undertaken when net present value savings (defined as the present value of future annual debt service savings net of issuance cost) of at least 2% of the refunded debt can be achieved. Current refundings that produce net present value savings of less than 2% savings may be considered when there is a compelling public policy or long-range financing policy objective.

(3) Needs Assessment and Fund Alternatives:

(a) Identifying useful life of project. Capital projects and equipment financed through the issuance of debt shall be financed for a period not to exceed their expected useful lives.

(b) Review of financing alternatives.

[1] The City of Waterloo will consider using non-general obligation debt to finance activities that are funded from sources other than general property taxes.

[2] The City of Waterloo will seek grants to finance capital improvements, implement impact fees, and negotiate developer contributions whenever possible to ensure that new development pays its fair share of the increased costs created by the new development.

[3] Under no circumstances shall the City of Waterloo install public improvements for development without fully securing its financial interests.

§ 53-13 Investment policies.

[Added 3-15-2007 by Ord. No. 2007-09]

A. Objective: to establish a uniform policy governing the investment of operating funds of the City of Waterloo.

B. Policy. It is the policy of the City of Waterloo to invest public funds in a manner that will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the City.

C. Scope. This investment policy applies to all financial assets of the City of Waterloo.

D. Investment objectives. The primary objectives, in priority order, of the City of Waterloo investment activities shall be:

(1) Safety. Safety of principal is the foremost objective of the investment program. Investments of the City of Waterloo shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio.

(2) Liquidity. The City of Waterloo investment portfolio will remain sufficiently liquid to enable the City of Waterloo to meet all operating requirements that might be reasonably anticipated.

(3) Return on investments. The City of Waterloo investment portfolio shall be designed with the objective of attaining a rate of return throughout budgetary and economic cycles, commensurate with the City of Waterloo investment risk constraints and the cash flow characteristics of the portfolio.

E. Delegation of authority. The Clerk/Treasurer shall establish written procedures for the operation of the investment program consistent with this investment policy.

(1) Procedures. Procedures should include reference to safekeeping, PSA repurchase agreements, wire transfer agreements, banking service contracts, and collateral/depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions.

(2) Investment Committee. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the City of Waterloo Manager's Investment Committee. The Committee consists of the City of Waterloo Clerk-Treasurer, Utilities Superintendent and City of Waterloo Deputy Clerk-Treasurer. The Clerk-Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the investment activities.

F. Authorized and suitable investments. The investment of City of Waterloo funds shall be in accordance with §§ 34.01 and 66.0603, Wis. Stats.

(1) Certificates of deposit. City of Waterloo funds may be invested in time deposits in any credit union, bank, savings bank, trust company, or savings and loan association which is authorized to transact business in the State of Wisconsin if the time deposits mature in not more than three years. Preference may be given, within reason, to area financial institutions. Investment amounts are limited to the maximum of state and FDIC insurance limits for each institution unless collateralized or approved by the Council .

(2) Government bonds and securities. City of Waterloo funds may be invested in United States government bonds or securities which are direct obligations of or guaranteed as to principal and interest by the federal government; and bonds or securities which are obligations of an agency, commission, board or other instrumentality of the federal government, where principal and interest are guaranteed by the federal government. The securities must be purchased through finance institutions authorized to conduct business in the State of Wisconsin and placed in safekeeping in a segregated account in the City of Waterloo's name as any designated public depository or approved financial institution.

(3) Local Government Investment Pool (LGIP).

(a) City of Waterloo funds may be invested in the Wisconsin Local Government Investment Pool at the discretion of the Clerk-Treasurer. Investment limitations shall not apply.

(b) Any local government, as defined under § 25.50(1)(d), Wis. Stats., may invest surplus funds in the Local Government Investment Pool (LGIP) fund. Cemetery perpetual care funds or endowment funds, including gifts where the principal is to be kept intact, may also be invested under Ch. 881, Wis. Stats.

(4) Repurchase agreements. City of Waterloo funds may be invested in repurchase agreements, in financial institutions authorized to conduct business in the State of Wisconsin. Repurchase agreements can only be made in securities which are direct obligations of or guaranteed as to principal and interest by the federal government; and securities which are obligations of an agency, commission, board, or other instrumentality of the federal government, where principal and interest are guaranteed by the federal government.

(5) Wisconsin Investment Trust. City of Waterloo funds may be invested in the Wisconsin Investment Trust. Investment limitations shall not apply.

(6) Savings deposit. City of Waterloo funds may be invested in interest bearing savings, demand deposit, and Money Market accounts.

(7) Securities. In accordance with 1987 Wisconsin Act 399, City of Waterloo funds may be invested in securities if the security has a rating which is the highest or second highest rating category assigned by Moody's Investors Service, Standard & Poor's Corporation or other similar nationally recognized rating agency.

G. Collateralization. Collateralization will be required on two types of investments. They are certificates of deposit and repurchase and reverse agreements. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be a 101% percent of market value of principal and accrued interest. Collateral will always be held by an independent third party with whom the City of Waterloo has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City of Waterloo and retained. The right of collateral substitution is granted.

H. Safekeeping and custody. All security transactions, including collateral for repurchase agreement entered into by the City of Waterloo, shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by a third-party custodian designated by the Clerk-Treasurer and evidenced by safekeeping receipts.

I. Diversification. The City of Waterloo will diversify its investments by security type and institution as follows:

(1) Short-term funds. Funds which are required for daily operating needs and which are available for short periods of time are handled through a service contract with a local bank. This contract specifies that in exchange for services provided, the bank receives a non-interest-bearing compensation daily cash balance to pay for the services. All amounts in excess of the compensating balance are invested daily in a repurchase agreement which earns interest. Funds necessary for approximately two weeks of operations are kept on deposit in this program.

(2) Long-term funds.

(a) Funds that are available for 30 days or longer are placed in U.S. government obligations, certificates of deposit with local financial institutions or the state-maintained Local Government Investment Pool. The maximum limits on the amount of funds which can be placed in any one type of investment are:

[1] Local Government Investment Pool: 80%.

[2] Obligations of federal government: 80%.

[3] Certificates of deposit: 60%.

(b) No more than 75% of the City of Waterloo's total investment portfolio will be invested in a single security type or with a single financial institution.

§ 53-14 Capital improvement program policy.

[Added 4-5-2007 by Ord. No. 2007-10]

A. Objective: create an organized process for financial planning of the City's capital needs; create a financial management tool that will balance City priorities with affordability; present a means for reporting the City's multi-year plans for capital project spending to the public.

B. Policy. The City will make all capital improvements in accordance with an adopted capital improvement program. The City will develop a five-year plan for capital improvements and update it annually.

C. Procedure. The City of Waterloo Finance, Insurance and Personnel Committee or its designee shall, prior to each annual budget process, submit a capital improvement plan consisting of a project description, estimated costs and probable funding sources to the Council for its consideration. The Council shall act on the recommendations in a timely manner.

§ 53-15 Municipal vehicle registration fee.

[Added 12-6-2018 by Ord. No. 2018-08]

A. Authority. This § 53-15 is adopted pursuant to the authority granted by Wis. Stats. § 341.35, as from time to time amended or renumbered.

B. Purpose. The purpose of this section is to provide the City of Waterloo a source of revenue in addition to other revenue sources currently being utilized to maintain public streets and highways.

C. Definitions. In this section, a "motor vehicle" means an automobile or motor truck registered under Wis. Stats. § 341.25(1)(c) at a gross weight of not more than 8,000 pounds.

D. Imposition of motor vehicle registration fee.

(1) Pursuant to § 341.35, Wis. Stats., an annual flat City registration fee as set forth herein in the amount of $15 is hereby imposed upon all motor vehicles in the State of Wisconsin that are customarily kept in the City.

(2) This fee shall be paid by the registration applicant at the time that a motor vehicle is first registered and at each time of registration renewal.

(3) The City registration fee shall be paid as provided in Wis. Stats. § 341.35(5).

(4) The City registration fee shall be in addition to state registration fees.

E. Administrative costs. Wisconsin Department of Transportation (WisDOT) shall retain a portion of the moneys collected equal to the actual administrative costs related to the collection of these fees (currently $0.17 per motor vehicle). The method for computing the administrative costs will be reviewed annually by the WisDOT, as provided in Wis. Stats. § 341.35.

F. Exemptions.

(1) The following motor vehicles are exempt from the annual Waterloo vehicle registration fee:

(a) All vehicles exempted by Wis. Stats. Ch. 341 from payment of a state vehicle registration fee.

(b) All vehicles registered by the state under Wis. Stats. § 341.26 for a fee of $5.

G. Deposit of fee revenues; administration.

(1) All moneys under this application statute and this section remitted to the City by the WisDOT or other applicable agency shall be deposited into the City's capital fund.

(2) The City Clerk/Treasurer shall be responsible for the administration of this section and funds.

H. Annual municipal legislative review.

(1) The City Council on, or about, September 1st each year shall consider an annual renewal resolution establishing the status of the fee for the upcoming calendar year.