September 21, 2022
To: Municipal Clerks and Treasurers, County Clerks and Treasurers
The Wisconsin Department of Revenue (DOR) would like to inform you that the Consumer Price Index for all urban consumers (CPI-U) was certified at
7.7% for the 12 months ending August 31, 2022.
Note: This percentage was rounded to the nearest 0.1%.
Expenditure Restraint Program (ERP)
Per state law, DOR used this 7.7% CPI-U (inflation factor) in ERP to determine the allowable general fund budget percentage increase for qualifying municipalities from 2022 to 2023 (sec. 79.05(1)(am), Wis. Stats.).
To qualify for a 2024 ERP payment, your:
- 2022 municipal TID Out property tax rate must exceed five mills
- Net general fund budget increase from 2022 to 2023 must be less than the sum of the 7.7% CPI-U increase, plus 60.0% of your net new construction percentage during 2021 (up to a maximum 2.0%)
Note: By October 1, 2022, DOR will send ERP budget limit letters providing allowable budget percent increases to municipalities with a 2022 mill rate that exceed five mills.
Under state law, the 7.7% inflation factor is also used for the levy limit increase available for an increase in charges assessed by a joint fire department or joint emergency medical service (EMS) district (sec. 66.0602(3)(h), Wis. Stats.).
You can enter an adjustment in Sec. D, Line I of the Levy Limit Worksheet if all the following applies:
- Your municipality is a member of a joint fire department or joint EMS district as defined in sec. 66.0602(1), Wis. Stats.
- The increase in assessed charges would result in your municipality exceeding its levy limit
- The joint fire department or joint EMS district's total charges assessed (imposed on all members) for the current year (2023 budget year) compared to the prior year (2022 budget year), increased less than or equal to the CPI-U increase of 7.7% plus 2.0% (total of 9.7%)
- Your municipality is covered by the joint fire department or joint EMS district and adopted a resolution supporting the increase
Example: Your municipality's 2022 total assessed charges were $50,000 and the joint fire department's 2023 total assessed charges are $60,000, which is an increase of $10,000 or 20.0%. In this example, the municipality does not qualify for the levy limit adjustment since the increase cannot be more than 9.7%.
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