by Tony Palmeri
October 7, 2001
According to the nonpartisan Wisconsin Taxpayers Alliance (WTA) , Wisconsin's 189 cities reported $2.75 billion in debt in 1999, up 6.2% from $2.59 billion in 1998. An October 4, 2001 WTA press releases says that "Under state law, Wisconsin cities generally must limit debt to 5.0% of equalized property value. Debt for all cities in 1999 was 43.3% of the total of their combined limits . . ."
The city of Oshkosh reported over $72 million in debt for 1999, a whopping 63.9% of its allowable limit. Oshkosh has the dubious distinction of being 1 of only 11 Wisconsin cities for which the debt as percentage of statutory limit is more than 60%.
Among all 189 Wisconsin cities, Oshkosh ranked 37th in terms of debt as a percentage of statutory limit. Oshkosh was 7th worst among Wisconsin's 59 cities with populations of over 10,000. Among 8 similarly sized cities (Appleton, Waukesha, Oshkosh, Eau Claire, West Allis, Janesville, LaCrosse, Sheboygan), only LaCrosse ranked worse than Oshkosh. See the chart below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One need not be a financial wiz to be troubled by these numbers. When one considers the fact that Oshkosh has a high level of deferred maintenance in spite of running up a large debt, a good argument could be made that the city has been the victim of gross financial mismanagement. The Common Council should call for a full, independent audit of the city's finances, including a critical examination of the impact of TIF (Tax Incremental Financing) districts on the overall budget picture.
There is no reason why Appleton and other cities of similar size should have a substantially lighter debt load than Oshkosh and yet not the same level of deferred maintenance woes. Citizens of Oshkosh deserve better.