Editor's note: Every week this month, Brookfield-Elm Grove NOW is asking the two mayoral candidates to answer a question from one of our readers about an issuing facing the city. To submit a question to one of the candidates, visit BrookfieldNOW.com.
The city has had budget surpluses for the last eight years, about $5.3 million in total. Why were our taxes raised if you had all that money leftover?
Steve Ponto: The city's annual budget is based on fiscally conservative assumptions. If revenues for the city are higher or costs are lower than assumed, they will add to the city's surplus. Surplus funds are used to reduce debt, fund non-recurring projects like the recent software upgrade, and to set aside money for future obligations such as contractually committed retirement obligations.
Brookfield's general fund balance surplus is consistent with the surpluses of the other two Wisconsin cities that have the highest AAA bond rating. This bond rating allows us to operate more efficiently because it reduces our cost of borrowing for capital projects.
Jeff Speaker: The city adopts conservative, balanced budgets based on the programs and services established by the mayor and the council. Annual surpluses are not planned, but sometimes revenues come in higher than expected and costs come in lower, such as employees leaving (e.g., for military service) or fuel costs dropping.
Surpluses are used to reduce future tax costs, either for legitimate needs that would have to be funded somehow in the future, like replacement software or parkland purchases, or by reducing debt for projects like the new fire stations.
The city has consistently managed its budget with such a long-term perspective.
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