What is the difference between the City’s Operational Budget and the Capital Budget?

The City’s Annual Budget is made up of two components: the Operating Budget and the Capital Budget.

 

The Capital Budget funds major improvements to City facilities and infrastructure.  The Capital Budget is supported through multiple funding sources, including different types of bonds (i.e. borrowing, debt), grants, and cash as well as other smaller sources of funding.  Capital Budgets are not restricted by the state’s levy limits and are funded through the debt levy portion of the City’s property tax.

 

The Operating Budget pays for expenses such as personnel costs, facility operating costs and other expenses that fund City services.  It is funded primarily through local property taxes, shared revenue from the State, licenses, such as building and other fees, charges for services, fines, and other smaller sources of revenue.  Increases to the property tax levy for the Operating Budget are limited to the City’s annual percentage of net new construction by Wisconsin State Statutes and can otherwise only be increased through a referendum.