Last Updated: July 9, 2011
The Cottage Grove merger study group’s main focus at this point is figuring what tax rates would be in a combined Cottage Grove.
Committee members decided at their June 27 meeting that getting a grasp on what the new cost will be to the taxpayers was essential in deciding whether it is feasible to enter into formal merger talks.
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“We all realize it’s going to come down to a benefit analysis,” said Committee Member and Cottage Grove Township Supervisor Mike DuPlayee, explaining that a substantial increase in tax rates to Township taxpayers would likely stop merger talks before they even start.
“We’re never going to convince Town members if there’s going to be an increase of $500 in taxes,” said DuPlayee during a phone interview, but he added that an increase of $50 would be more realistic and easy to accept for most residents.
The next step for the Committee is to review ordinances and other documents from merger work examples including from nearby neighbor Verona. Committee Co-chairperson and Village President Diane Wiedenbeck said she would get request for proposal (RFP) examples to committee members prior to the next meeting on July 11, giving everyone time to review the information ahead of time.
Representatives from Town and Village financial firm representatives Johnson Block and Baker Tilly, respectively, were asked to furnish the Committee with quotes for developing a financial report of a merged Cottage Grove. An RFP, which Wiedenbeck says will be drafted at the July 11 meeting, will be presented to the firms that will in turn present a price quote for drafting the report.
Committee Member and Town resident Dave Muehl suggested combining Town and Village tax and budget data from 2010 and 2011 to reflect what a merged Cottage Grove might look like in terms of cost. Committee Member and Village Trustee Micah Zielke responded to Muehl's idea, cautioning the need to use ranges and not to be too definitive with calculations. "You can’t give a sharp-pencil answer. You can only give a reasonable range,” he said.
Weighing how much it would potentially cost taxpayers if the town and village do merge versus the long-terms cost if the Town goes it alone was an underlying theme. The down side of rejecting the merger being the Town's likely loss of land and tax base as Madison and the Village continue eyeing property they wish to annex away from the Township.
DuPlayee said taking the time needed to collect accurate information is important. “Whether it runs longer, I don’t care. As long as we get the information right,” said DuPlayee, adding that quality must trump speed in the merger study process since what is gathered here will be used as a basis for the committee and potentially the citizens to decide whether a merger is the right choice.
DuPlayee was responding in part to Zielke’s concern about having study work completed in time to have the merger decision up for a vote on the April 2012 ballot. Zielke expressed concerns about moving the study along, but ultimately agreed with DuPlayee and the rest of the committee that taking time to gather accurate information was paramount.
Another issue discussed at the meeting was the need for a rural affairs committee in a combined Cottage Grove. Committee Co-chairperson and Town Chairman Kris Hampton said he paid close attention to this. The reason for the interest being that without such a committee, rural landowners in a combined Cottage Grove would be at a disadvantage when it came to voting and therefore rural interest would be underrepresented. Rural Township population numbers compared to urban residents in the Village is about a 2 to 1 ratio.
The rural affairs committee, which would be composed of Town residents, would hear any issue that having a direct impact on the Town. These issues would have to be approved by the committee before coming to the Village Board for a vote. Zielke suggested that Town members research the rural affairs committee issue and bring their findings to a future merger study group meeting.