Some say you can't fight City Hall, but you should never have to because we all work for you. Today it is easy to be cynical and critical of government but elected officials are your neighbors who are working together with the private sector to make Neenah a better place for all of us. The leadership to achieve that vision does not come from City Hall alone, but from all citizens who dare to care about our future. Questioning and constructive criticism are a healthy and necessary part of citizen involvement so I am initiating this effort to provide answers to the concerns and questions I have been receiving. If you have a question or concern, please contact me at 886-6104, e-mail me at gscherck@ci.neenah.wi.us or stop in my office for a visit.
* Indicates new issue since last revision (for background, some prior answers continue to be listed).
REVISED FEBRUARY 2, 2012
REMINDERS
- STARTING APRIL 15, PARKING GOES BACK TO ODD-EVEN
- STOP SIGNS MEAN A COMPLETE STOP
- WATCH YOUR SPEED FOR EVERYONE’S SAFETY
- CUT YOUR LIMBS THAT EXTEND OVER SIDEWALKS
- Pick up after your dog when you are walking on sidewalks, trails or on trails in parks
- Dogs in parks must be on a leash
- For tax information the # to call is 886-6376
- You cannot park so that vehicle blocks the sidewalk or ON LAWNS
- FOLLOW RECYCLING GUIDELINES - SEE THE BROCHURE
- Remember to keep your grass cut or the City will do it for you and bill you.
- Also remember not to rake grass or leaves into the curb, it flows into the sewers and then into our lakes
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*February 2: Your Tax Bill at a Glance
Remember, while the City sends out the tax bill, your total represents the taxes as determined by 4 separate taxing entities.
- Neenah Joint School District - 34.68%
- City of Neenah - 35.14%
- Winnebago County - 22.93%
- Fox Valley Tech - 7.25%
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*February 2: What do we do to drive a multi-lane roundabout safely?
With Winneconne Avenue scheduled for reconstruction this summer, it’s time to talk about the safe use of roundabouts. The roundabouts on the project will be multi-lane roundabouts. Part of the City’s efforts on the project will be to educate the public on how to drive a multi-lane roundabout safely. The rules for using multi-lane roundabouts safely are basically the same as the rules for single lane roundabouts with a couple of additions.
- Choose the correct lane as you approach the roundabout, following the signs and pavement markings.
- Slow down.
- Yield to all lanes of traffic within the roundabout.
- Once in the roundabout, do not switch lanes.
- Do not pass trucks within the roundabout. Large trucks often need to straddle lanes as they maneuver through a multi-lane roundabout.
- Look out for pedestrians and bicyclists.
Roundabouts are safer, less costly, reduce emissions, and save time; but they do require public education and we will make that our highest priority.
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NOTE-CITY GARAGE AT TULLAR IS NOW MANNED EVERY WEEK DAY TO HELP NEENAH CITIZENS DEPOSIT MATERIALS IN CORRECT PLACE AND TO CHECK DRIVERS LICENSES TO INSURE THAT ONLY NEENAH TAXPAYERS ARE USING THIS SERVICE. YOUR COOPERATION IN PUTTING ONLY ALLOWED MATERIALS AND IN THE CORRECT PLACE WILL GUARANTEE WE CAN CONTINUE THIS POPULAR SERVICE.
A. CARDBOARD MUST BE BROKEN DOWN
B. NO ELECTRONICS
C. NO OIL FILTERS PER NEW STATE LAW(COUNTY LANDFILL WILL ACCEPT AS WILL GIBSON IRON AND METAL.
D. NO GRASS
**NOTE-GARAGE WILL BE CLOSED IN FEBRUARY BECAUSE OF LOW USAGE AS A COST SAVING MEASURE. IT WILL RE-OPEN IN MARCH AND WILL BE OPEN SATURDAYS BEGINNING IN MAY(8:30-11:30)
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*February 2: What will be the result of the latest new projects in downtown Neenah?
The Plexus Corporation will be building a conference and data center in front of their current building with an estimated value of $7 million. That will yield $175,000 a year in revenue to the City or a total in excess of $3.3 million. Next to that project as you move to the west will be the Gateway Plaza built with a combination of some city investment and major private donor contributions. Next to that, Affinity will be building a new clinic valued at $6.7 million. Neenah continues, despite hard economic times, to attract new development, increase the tax base and bring new jobs to the community.
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*February 2: What is the status of Neenah's review of potential consolidation of the Health Department?
Our Director retired in June and we currently have an interim director. Along with Oshkosh, and the County we are studying the potential of a consolidation as a cost saving measure that could also provide more efficient service. An interagency agreement has been drafted and will go to the City Council this month. If passed, there will continue to be a northern satellite located at Neenah's City Hall so their should be no impact on services to our citizens but there will be a major cost savings.
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*February 2: What is happening relative to the proposal to put an eagle and welcome sign at the Winneconne roundabout?
A private citizen has offered to fund the project, a committee of staff and citizens has been working to develop a site plan for consideration by the Council. The primary concern was that it be safe so refinements in size, location and the material the sign will be constructed out of were made and the council accepted the gift so it will be constructed this spring.
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*February 2: What is the status of the effort to raise money for a K-9 Unite and Dive Team for water rescue?
As of today, $94,000 was raised for the K-9 Unit and the dog has arrived helping us in the battle against drugs. The Fire Dept. is close to their goal of $90,000 to help with ice/water rescues. How blessed we are to live in a community with so many generous people. Thanks to both the police and fire departments for their efforts in raising this money.
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*February 2: What is the purpose of the fundraising efforts for a canine unit and a dive team?
The Neenah police department wants to follow what many communities have done and that is to go to the community to raise the funds for a canine unit to help the department combat the rising drug problem in the Fox Valley. Currently we rely on dogs from other municipalities or counties but that often takes too long to be effective. If you would like to contribute to this effort call the NPD at 886-6000.
The fundraiser for a Dive Team by the Neenah-Menasha Fire Rescue Department is an effort to raise the funds to train and buy the equipment for a water/ice rescue team when the need is below the surface. We have personnel willing to take on this challenge but they need to be trained, certified and have the proper equipment. There is such a team in Oshkosh but by the time they respond to the north end of the county it becomes a recovery operation not a rescue operation, so once more we are asking interested citizens to step up and contribute to this life saving effort by calling 886-6200.
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December 8: If my assessed value went down, will my taxes go down?
It depends. If your assessed value went down less than the average, you could still see an increase. If assessed value went up you will see an increase.
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December 8: The school's tax levy went down but the City's increased. Why?
Governor Walker's budget mandated a 5.9% contribution by all public employees toward their retirement, but he excluded police and fire so while all public employees made that contribution, cities came up short, facing a reduction in state aid and less savings from the retirement contribution.
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December 8: Why is the City building so much new development in the downtown?
Plexus and Affinity bring $20 million in new value and 420 employees into the downtown. They could have built their facilities anywhere, including outside of Wisconsin, so it was to our advantage to keep them in Neenah. While many communities have little or no development going on, we have two townhouse projects (on Breezewood and Western Avenues) and CVS Pharmacy and Kwik Trip opened their doors this summer. So my point is we are not focusing on just the downtown.
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December 8: Why did the City invest so much in the public plaza between the new Affinity clinic and Plexus?
A plaza was part of our agreement to get Plexus to move to that site but the vast majority of the cost was paid for by private donors.
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October 26: What did Neenah do about posting no concealed weapons in public places?
While I supported the action the Council voted to table on an 8-1 vote so as of now there will be no restrictions on where a citizen can carry a concealed weapon other than provided by law (schools, courts).
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October 26: What were the major issues in the capital budget proposals by the Mayor?
There has been a major controversy over Lake Shore Drive, a project estimated at $696,000. I removed the project primarily for fiscal reasons. I proposed $1.3 million in utilities. We can’t leave our storm and sanitary sewers deteriorate leaving the burden to future generations. The same rationale applies to the proposal to spend $1.6 million for streets, pedestrian routes and traffic signals. The major streets proposed include Plummer Court, Ninth Street, Western Avenue, Adams, Zemlock, and Stuart Drive. The budget also includes $2.4 million in Tax Incremental Financing, providing funding for redevelopment, parking downtown and finishing the roundabouts at Shopko Plaza and Big Lots.(Shopko Plaza removed by Council)
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October 26: Where does my municipal tax dollar go?
- PUBLIC SAFETY - 48%
- PUBLIC WORKS - 17%
- CULTURE AND RECREATION - 16%
- GENERAL GOVERNMENT - 9%
- COMMUNITY DEVELOPMENT AND HUMAN RESOURCES - 8%
- SPECIAL RESERVES - 1%
- MISCELLANEOUS - 2%
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October 26: What is the justification for the recycling fee?
The State reduced municipal grants last year requiring the use of reserves and cut the grant further this year requiring $350,000 on the tax levy. Neenah's levy limit was .44% plus the potential of using .5% of previously unused levy so fiscally something had to change. Furthermore, I believe it is more transparent to list exactly what the cost of recycling is for each property rather than bury it in the total tax. Remember, recycling includes not just the pick up on the curb of plastics etc. but brush-pick up, leaves, and the city garage drop off site. It is also more equitable in that the more your home is valued does not increase the service received or the amount of recyclables placed at the curb.
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June 17: What is the status of Neenah's recycling program?
The governor's budget proposal eliminated grants to city’s for recycling, eliminates the requirement that a city have a recycling program but requires you to recycle. This proposal is environmentally unsound and fiscally unwise, since it is far cheaper to recycle than to bury in a landfill.
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June 17: Why wasn't the rest of the Big Lots property torn down?
The development is private and part of the property was demolished to make room for a Kwik Trip and a CVS Pharmacy. I assume the rest will be demolished when additional new projects are found but that is a private decision.
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June 17: Are there other new developments planned?
Recently the Plan Commission approved a site plan for an 18 unit apartment complex on the corner of Tullar and Breezewood across from the Fire Station.
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June 17: What is the City doing along Little Lake Butte Des Morts?
Thanks to a generous gift of $600,000 by Alice Jean Smith, Neenah will soon have access to the lake with a new park that will focus on nature-based activities, a trestle trail, canoe and kayak launch and a shelter.
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January 25: Why are water rates increasing again?
The simple answer is that the cost of providing water has increased (especially the cost of chemicals) while the consumption of water has decreased therefore revenue has gone down. Because revenues are down and expenses are up, the Utility cannot meet the coverage requirement for their revenue bonds, which is the net income available for debt service divided by the debt service. If that continues the Utility bond rating will be reduced making future borrowing for major water projects more expensive. With the rate increase, the average utility bill will be $145 per quarter, Fond du Lac is already at $167, Appleton will be at $150, Menasha is at $162, and those that are lower are expected to increase rates in the near future.
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December 8: What efforts are being made to reduce City costs?
While there is a long list of such efforts the most recent focus on two areas. First, a study of the potential to consolidate the health department with the County and or the city of Menasha. The second, and most significant is the development of a 2nd tier of both salary and benefits for new employees. New employees will have reduced vacation benefits and sick leave payout and will contribute 50% of the employee share toward the Wisconsin Retirement System. Non-represented employees in salary grades 4,5, & 6 will be hired at a salary significantly below the current salary plan for existing employees. A cap on the city’s contribution to the Wisconsin Retirement System for all employees has also been proposed as well as a 10% contribution toward dental insurance. Full implementation of the proposals will depend on the ability to negotiate successfully with the unions. The above actions will put Neenah on the cutting edge of state wide leadership in the effort to reduce the cost of government.
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June 14: What is the job of the complaint officer and what is the procedure for gaining compliance?
Our complaint officer is a part time employee whose primary purpose is to help educate the public about city ordinances dealing with a wide range of subjects, including rummage sale signs, brush on the curb, garbage and large items on the curb, weed control, junk on property, branches overhanging the sidewalk etc. Often responding to neighborhood complaints, he first places a notice on the property as to the violation and the need to correct. Our goal is not to fine but to gain compliance so we can make our neighborhoods places we can all be proud of. If compliance is not voluntary, the next step is enforcement, which often means a City crew brings the property into compliance and bills the owner. This is a step we want to avoid whenever possible. The best enforcement is for each of us to be a good neighbor and take good care of our property, following the rules. If you get a tag, please do not take offense, but simply correct the problem. Your cooperation will be appreciated.
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April 28: What are the plans for educating the public for safe use of multi-land roundabouts?
Video kiosks showing actual functioning of such roundabouts will be located at key locations for viewing by motorists and moved weekly. Display boards will be set up at the YMCA, Library and City Hall. A scaled display showing the actual layout with small cars will move to key viewing locations. Information and video will be on the City website. Stuffers will be included in utility bills, diagrams will be located at the top of area gas pumps, cable access will have a video display, book marks and other materials with diagrams and instructions will be handed out. In other words, it will be an all out effort, doing everything possible to make certain that the information is convenient, easy to access and in many public locations. If everyone keeps an open mind, reviews the information that is available before and during construction this should improve traffic movement in the entire corridor.
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February 24: Why do City projects go over budget, especially the Plexus/Glatfelter project?
First, the City has a long record of completing projects under budget. While budgets are estimates and unforeseen factors can often influence the final expenditures, the process we have in place and the oversight of staff and the due diligence of the Council usually complete the project at or below the estimate. Here are just a few examples: Water plant, $2.1 million under budget, Alta Resources, $2.4 million under, Lake Street utilities, $220,000 under and recently the water main construction on Breezewood came in $128,000 under budget. Such results are typical but when costs exceed the budget, the buck stops here and it is my job to find out why it happened and look for ways to improve the process and the oversight.
For example, the Plexus/Glatfelter project was the most complicated the City has ever undertaken. Considering our options for the site, we could either concede the relocation of a major company with 400 employees to a location outside Neenah or to raze the mill and remediate the site, preparing it for a $20 million global headquarters at the gateway to the downtown. You can judge the results for yourself. In addition to Plexus there are 5 additional sites to develop with the potential to greatly expand our tax base. The tax increment created will pay back our costs over time. No one was happy with the increased expenditures brought on by unforeseen additional remediation, professional assistance needed to meet complex environmental regulations and to assist in meeting grant requirements resulted in a cleaned site and brought the project over $1.1 million in grants with another $500,000 pending. Meeting the Plexus fast track schedule to insure they would stay in Neenah was another factor that increased costs. This was a completely transparent project, as the Community Development Authority held open meetings with minutes available to anyone interested. Nevertheless we will review the entire process and look for ways to further increase oversight and monitoring of every project.
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February 24: How do I receive emergency notifications?
Want to be quickly notified of an emergency or disaster near your home or work? Winnebago County has developed an emergency telephone notification system that will call and notify you of evacuations, weather emergencies, and other serious incidents. This is a free service; all landline phones in Winnebago County are already registered. The Neenah Police Department recommends you also register your cell phone by signing up your number on the county’s website. Just go to www.co.winnebago.wi.us and click on “Emergency Management.” Only emergency and disaster-related calls will be placed.
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January 12: Why do residents have to buy their own recycling containers?
The choice was to have everyone buy their own or have the City buy one using your tax dollars. Many people already had a container, some needed two, some needed only one small container, others one large container, so it seemed economically and practically better to let each person handle it the way that best fit their needs.
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August 26: Did Neenah benefit from the federal stimulus/recovery funding?
Thanks to the perseverance and due diligence of Neenah department heads, the City has received significant federal assistance through the stimulus program. The benefits received include:
- A 20 hr per week employee at the library for one year
- $512,000 for the Adams Street Bridge
- $500,000 for the reconstruction of W. Wisconsin Avenue
- $1.2 million for the Commerce Court storm detention pond(50% will be a Clean Water Loan and 50% a stimulus grant
- $31,000 for the Police Department
- The CDA has submitted an application for $300,000 for the Glatfelter/Plexus project
- The Fire Department has applied for several grants
Our Park and Recreation Dept. also received $107,000 Wisconsin Waterways grant for the Rec Park boat landing and the PD received $20,000 drunk driving enforcement grant.
While all of this is our money, we have a responsibility to take the burden off our taxpayers and get a fair share of the funds being distributed. The key was to focus on established needs and not try to create projects just to get federal dollars.
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August 26: What should I do if I see a street light on during the day?
If you see a street light that is on during daylight hours or blinking or completely off at night, call WE Energies at 1-800-714-7777, report on-line at www.we-energies.com/night_aura or call the Neenah Public Works Department at 886-6240.
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August 26: How do we know what to recycle?
Top 5 Recycling Questions
Which plastics are recyclable?
You can identify recyclable plastic by the numbering system on the container. Only plastics with a #1 or #2 with a narrow neck are recyclable.
Why only #2 narrow neck bottles?
#2 plastics are made of high-density polyethylene which can be "blow molded" to form bottles or "injection-molded" to form tubs. The two applications are chemically different and have different "melting points."
Do I need to rinse the containers before recycling them?
Yes. Rinsing containers helps with the sorting of recyclables.
Do I need to take the labels off jars and cans?
No. There is no need to waste water and energy struggling with labels. The labels are burned off during the recycling process.
Should caps be removed before recycling?
YES
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December 22: Why are both the sanitary and storm sewer rates increasing by such a large percentage?
A recent letter to the editor referred to the increase in Neenah's storm and sanitary sewer rates as "unconscionable", and while I respect the right of citizens to form their opinions on every action taken by the City, I thought I would provide the actual facts and let everyone arrive at their own opinion.
The author of the letter bases his criticism on a basic misunderstanding. The City has not created a series of quasi-governmental districts for the purpose of "unaccountable revenue streams". Our storm water, sanitary sewer and parking utilities are simply segregated funds that record all expenditures for that specific purpose and all revenue derived from that specific purpose. When we created the storm water utility in 2003, we took dollar for dollar off of the general property tax and transferred it to the storm water fee that appears on your water bill. While the writer believes this was"smoke and mirrors" the result was that tax exempt properties and large facilities like Walmart started to pay their fair share of the cost of treating storm water, taking a greater burden off the backs of residential property taxpayers. The tax rate that year for municipal purposes would have been $10.26 per thousand, but by moving $1 million off the property tax levy, the rate became $9.43 per thousand. The simple answer is that residential property tax payers paid less property taxes for this purpose than they paid in storm water fees. We have not increased that fee since 2003 (try to think of anything else that has not gone up in cost during that time period). Now the DNR has mandated that by 2008 we remove 20% of sediment from storm water discharged and that by 2013 we remove 40%. Again, to simplify, the rate you pay has stayed the same, the state mandates have drastically increased our projected costs, thus the new rate.
The sanitary rate followed the same course and the rate has not increased since 1991, and in that year the rate was decreased. A recent survey of 312 communities found Neenah's rates to rank 312th, the lowest in the State. After the increase we will rank 287th and we will be the lowest in the Valley. To keep the rates that low, we have been spending down a surplus that accumulated in the late 1980's and since it came from the rate payers, this was the fairest way to get it back to them. Obviously, since 1991, operational costs of maintaining the sanitary sewer system have increased. During heavy storms, to prevent basement flooding, the City has by-passed which the DNR has ordered us to eliminate. All of this costs money and it either gets paid for by rate payers or tax payers and there are more rate payers so once again it keeps the cost to the residential property tax payer down.
The letter to the editor also criticized the increase in the water bill when the water is the same. That is exactly the point. We now are able to provide a supply of water adequate to the demand that is safe and not subject to cryptosporidium and other contaminants. The $26 million water plant insured that Neenah residents will not face a DNR boil order or a mandated reduction in the use of water. As one simple example, the Water Commission approved the chemical order for next year, and the costs had increased 24% over this year. That will not make your water better, just the cost of providing it more costly.
No one wants to see taxes or fees increase, and Neenah has clearly held the line on sanitary and storm water fees so that they were the lowest in the State. As the costs of sewers, storm ponds, and meeting new mandates increases, rate increases become the only option, unless we put these charges back on the property tax, where the burden rests heaviest on the residential property taxpayer. I encourage citizens to read the facts, form your own opinion and if you have questions, don't hesitate to contact me at gscherck@ci.neenah.wi.us or call me at 886-6104.
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August 21: Why does the city build new buildings when there are so many vacant buildings in the City?
First, this is a decision made by the private sector not the City. Often the old building is in need of so much remediation that it is no longer cost effective to redevelop. At other times it no longer meets the needs of the business because of size or physical lay out. Clearly, once a business decides it needs a new location, our goal is to make certain the new location is in Neenah and not elsewhere. But let's also remember the large number of buildings that have been redeveloped providing enhanced tax base, new jobs and new shopping opportunities. The Jersild Building, Family Video, Papa John's, Mighty Auto, Choices Restaurant, Directions Inc. and Dollar General are just a few examples of vacant buildings that have been renovated for new uses. Many other locations have been razed to make room for a new Neenah business such as the Taco Bell on Green Bay Road, many locations on S. Commercial St. and a new medical facility on N. Commercial. The best example of this will be the replacing of the Glatfelter Mill with an $18 million Plexus National headquarters. Attracting new development and backfilling vacant buildings is a major challenge of every community, one Neenah has met with great success.
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June 10: When are City Council meetings televised?
If you turn to Cable Channel 2, on the first and third Thursdays at 6 pm, you will get a replay of that Wednesday's council meeting. If you can't make the meetings, this is a good way to stay informed.
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Speed Enforcement Alert!
Speeds seem to be constantly increasing, putting all of us, but especially our children at risk. The NPD is going to target specific areas for enforcement but our goal is not to issue tickets but to gain voluntary reduction. A special concern exists for traffic going west on the Cecil St. overpass since there is a school crossing at the toe of the overpass. Give our kids a brake, slow it down!
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November 1: What has Neenah already done to move toward a sustainable community?
The following represents those actions Neenah has already completed or is exploring relative to becoming an eco-municipality.
- A highly successful recycling program
- Use of recycled oil to heat the City garage
- Replacing of lights with compact fluorescents
- Leadership in construction of roundabouts
- Support for enabling legislation to authorize a Regional Transportation Authority
- An expanding trail system
- Support for green development in the Church Condominium project
- Adoption of the 20/20 Comprehensive Plan
- Tree City USA designation
- Mayor Scherck directed staff to explore solar energy options
- Exploring the purchase of a nitrogen compressor that improves fuel mileage and extends tire life.
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How are city expenditures determined?
A recent "It's Your Call" a Town of Menasha resident, inquired if money would be spent "foolishly" in Neenah. This is the process followed in making decisions on capital expenditures.
- Department heads propose projects to be included in a Five Year Capital Improvement Plan
- As Mayor, I carefully review those proposals, deleting or deferring some projects.
* This year for example, I deleted over $700,000 in capital projects.
- The Council then reviews the proposed plan, holds a public hearing and approves the Five Year Plan.
- Annually, projects are then proposed by the department head for review by the Mayor for inclusion in the Executive Annual Capital Budget.
- Many of hours of workshops are held by the City Council to review the executive proposal.
- After a public hearing, amendments are proposed and the annual Capital Budget is adopted by the Council.
- Each specific project is then the subject of yet another public hearing prior to the project moving forward.
- On many projects, pre-construction information sessions are held to allow citizens to ask questions and learn specific details relative to timetable, assessments etc.
I respect the fact that if we personally disagree with the purpose of an expenditure, we may regard it as "foolish". If I don't own a boat, money to improve the boat ramps could be perceived as foolish, or if I don't play tennis, I may question why the City is spending money on tennis courts. My goal as your Mayor is to spend your money as if it were my own, after full consideration, based on established priorities. Citizen input is always the top priority, which is why I have held a "town meeting" each of the last two years, prior to making my budget recommendations. If you have topics you would like to discuss or projects you are concerned about, don't hesitate to call me at 886-6104, e mail me at gscherck@ci.neenah.wi.us or stop in my office for a visit.
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Why are some traffic signals not better coordinated or timed?
Signal coordination is a constant objective but it is also complicated, not a one size fits all solution. If you have concerns about a specific situation, please call the Mayor's office at 886-6104 so we can check it out.
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Why did the city create a community development authority?
Cities have 3 primary tools to assist in spurring development and redevelopment projects designed to increase the tax base, retain existing jobs and create new jobs. We have successfully utilized Tax Incremental Financing and Industrial Revenue Bonds for that purpose. The third tool is the creation of an Community Development Authority (CDA). Some have criticized this as a "gimmick to shift and hide Neenah's spending". To the contrary, all proposals and projects of the CDA must be approved by a 2/3 vote of the Common Council on a project-by-project basis. The City's Director of Community Development is the Executive Director of the CDA and he reports directly to the Mayor and the City Council. The membership of the CDA includes citizens' members with expertise in finance, real estate, construction, development, the law and two alderpersons as elected representatives of all citizens. The purpose is not to spend more but rather to provide more thorough oversight and accountability over development projects that have been previously approved by the Council. The CDA provides flexibility, helps simplify the process of creating public/private partnerships and improves the City's ability to attract capital because the bonds issued by a CDA are double tax-exempt. The debt incurred by the CDA does not count against the City's 5% legal borrowing capacity. This in turn allows the City to carry out previously approved projects without jeopardizing its' bond rating. That means lower interest costs to the City. Because City officials have a wide range of responsibilities, a CDA allows for a more focused collaborative effort in completing successful, tax-producing projects. Since a CDA is one of the tools available to a municipality, why would a City not want this tool in its' toolbox? The purpose of every action Neenah takes is to control taxes, improve our quality of life by doing what is best for this community and our future. The CDA is another step in that direction. A recent editorial said, "Authorizing a CDA is a leap of faith". The simplest thing in government is to do nothing, uphold the status quo and hope good things will happen. The leap of faith we need is in elected officials withvision and the courage to propose responsible change. The leap of faith we need is in our citizens' ability to remove elected officials who disregard the public interest and act irresponsibly.
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How would the CDA work on a specific project?
When the City has an opportunity to participate in a high value, job producing or job retention project, like the Alta Resources office center, it would need to devise a Tax Increment Financing and project feasibility plan.
- With a CDA in place, the Council could direct the CDA to prepare a redevelopment plan for the project to explore all options for the public's role, to maximize the impacts from the development.
- The Council would have to approve the CDA's plan by a 2/3-majority vote before the project could be implemented. The Council would also have to approve a capital budget for the project to bring the resources of the Tax Increment Financing district to the development.
- In the Alta Resources project, the CDA would design, finance and build the structure through the issuance of mortgage revenue bonds.
- By agreement, the CDA would lease the parking structure to the City. The City's lease payment would be made from the tax increment payments collected on the new high value development.
- After the parking structure debt is fully paid, ownership of the parking structure would be transferred from the CDA to the City.
- Long-term maintenance and operating expenses of the parking structure would be fully covered by parking leases and monthly parking permits.
- In addition to parking revenues, the City would continue to receive the property taxes from this new private development forever.
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How exactly does Tax Incremental Financing (TIF) work?
Let's look at a hypothetical example. A large open property is assessed at $100,000. The City invests $1 million in roads, sewers and development assistance so a commercial development can be built with an assessed value of $10 million. All of the property taxes paid on that $10 million new increment goes to pay off the City's $1 million investment. After the City collects sufficient tax revenues to pay off all the borrowing costs, the taxes generated will be shared with the school district, county and technical college forever, holding down future taxes. In addition, the City helps to create new jobs, new shopping opportunities and brings new homeowners into the community.
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What has been Neenah's track record with TIF? Does it really work?
Since 1982, Neenah has invested $57 million in TIF districts, creating $455 million in new tax base. If not for TIF investments, the average taxpayer would be paying an additional $390 in property taxes each year. In addition, we have helped create 4550 new jobs, bringing 155 new businesses to the community. In Tax Increment District #4 in the South Commercial Street Corridor, the City's $4.0 investment, spurred the creation of $28 million in new tax base, paying off all of the City costs and creating a surplus of over $2.0 million. Taxes will continue to be paid on that increment forever. The old Butterfly Bar, Lakeroad Lanes and Bricco's Video Vault are gone and in their place is a new housing complex, mini mall and auto repair shop. At the south end of the business corridor, Copp's and the Shops at Mahler Farms adds shopping opportunities to the east side that would not otherwise exist. You bet TIF works in Neenah.
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