Frequently Asked Questions

Wisconsin imposes strict levy limits on municipalities, which cap how much property tax revenue the City can raise each year, typically based on the net new construction rate. This makes it difficult for growing communities like New Berlin to fund expanding service needs without exploring other tools permitted by state law.

The Common Council discussed the option of a wheel tax during the Special Committee of the Whole meeting on July 29, 2025, but there was consensus not to pursue it. That discussion has since concluded.

It was considered because state-imposed levy limits restrict how much revenue the City can generate through property taxes, even as service demands and costs continue to rise. Under Wisconsin law, a local vehicle registration fee (wheel tax) is one of the few tools available to fund transportation and infrastructure needs. Including it in the discussion was part of the City’s responsibility to evaluate all legally available funding options as we plan for the future.

No public safety referendum has been approved. Like the wheel tax, it was included on the agenda to allow for open discussion and transparency, but no formal action has been taken.

It is being considered because the City is facing increasing demands on its fire, EMS, and police services. To maintain current response levels and ensure adequate staffing in the years ahead, additional funding may be needed. Under Wisconsin law, the only way to exceed the state-imposed levy limit to fund these services is through a voter-approved referendum. Evaluating whether this tool is right for New Berlin is part of the City’s commitment to proactive and responsible planning.

The City cannot raise the levy limit on its own. Under Wisconsin law, municipalities must seek voter approval through a referendum in order to exceed the state-imposed levy cap. That’s why a referendum is one of the few legal tools available to fund growing service demands.

No. The City remains in strong financial health. Moody’s Investors Service reaffirmed New Berlin’s Aaa bond rating, the highest possible rating, awarded to only five cities in Wisconsin. Discussions about funding options are part of responsible long-term planning, not an indication of financial distress.

While the City of New Berlin is currently in a strong financial position, with a Aaa bond rating and well-managed reserves, financial stability today does not guarantee sustainability tomorrow, especially under Wisconsin’s restrictive levy limits.

Even with responsible fiscal management, the City’s ability to maintain core services is challenged by:

• Annual increases in service delivery costs (e.g., fuel, equipment, insurance, utilities)

• Rising labor costs due to inflation and competitive hiring markets

• Increased demand for public safety and emergency services as the population grows

• Limited revenue flexibility under state law, which does not allow the City to raise property taxes beyond a small percentage tied to new construction

New funding options are being explored, not out of immediate financial need, but because the City is committed to long-term planning. By considering all legal tools now — including referenda or fees — the City can ensure it continues to meet service expectations without waiting for a crisis to force reactive decisions.

The City is planning ahead to ensure it can continue delivering high-quality services as New Berlin grows. Several key factors are contributing to the need for long-term budget planning:

• Rising costs due to inflation, supply chain challenges, and higher contract and material prices

• Increased demand for services as the City’s population grows and residents expect timely, efficient delivery of essential services

• Workforce retention and recruitment challenges, especially in a competitive labor market

One of the most pressing concerns is the need to maintain and expand public safety services, including fire, EMS, and police. The City must ensure that staffing levels keep pace with call volumes, population density, and emergency response expectations.

Whether it’s having enough firefighters on each shift, paramedics to respond to medical emergencies, or police officers available for patrols and investigations, public safety is central to the City’s responsibility — and it represents a significant portion of the City’s operating budget. Planning now helps avoid service shortfalls in the future.

No. Municipalities across Wisconsin — both large and small — are facing similar financial pressures due to state-imposed levy limits and revenue restrictions that have not kept pace with inflation or growing service demands.

These constraints mean that, even as costs rise and communities expand, cities and villages have limited ability to increase their revenues to maintain service levels. As a result, many municipalities are exploring or implementing:

• Operational referenda to support fire, police, EMS, or general operations

• Local vehicle registration fees (wheel taxes) to fund road maintenance and transportation needs

• Special assessments or service fees to cover items like stormwater, garbage collection, or facility upgrades

The growing use of these tools is not a sign of poor financial management, but rather a reflection of the limited financial flexibility allowed under state law. New Berlin is not alone in facing these decisions — we are part of a statewide trend of communities trying to balance responsible budgeting with resident expectations for safety, service quality, and infrastructure maintenance.

Residents are encouraged to stay informed and engaged by following upcoming Committee of the Whole and Common Council meetings, where these topics may continue to be discussed.

There are several ways to share your feedback:

• Email your comments to: citizencomments@newberlin.org
  (Messages are shared with both the Mayor and all members of the Common Council)

• Contact your alderperson or the Mayor directly to share concerns or ask questions

• Attend the public budget hearing, where residents will have the opportunity to speak on the record

Public involvement is a vital part of the City’s decision-making process, and your voice matters.

• Visit the City's Budget Transparency Hub
• Subscribe to updates through the Meeting & Agenda Portal
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