Mayville Eliminates Deficit, Addresses Future Shortfalls

8/16/17 – The Mayville Common Council this week approved a resolution intended to limit snowballing deficits in city-funded endeavors. The initiative stemmed from a multi-year shortfall to run the TAG Center. The athletic facility was donated to Mayville but operating costs over several years exceeded revenues to the tune of $2.4-million-dollar. A nine-year plan was put in place to address that shortfall. The plan – that ends this year – cut citywide spending by $365-thousand dollars annually to wipe away the deficit while also building up a contingency fund. Alderman Bob Smith – who chairs the finance committee – says, at the time, the city neglected to address the problem head-on and that caused the shortfalls to balloon. Smith says the resolution adopted this week requires the council to pay the shortfalls of projects using enterprise funds within 24 months, through either borrowing, the tax levy or by tapping the contingency fund. The resolution will serve as a directive for future city treasurers during budget time to come up with a plan to fix any deficits, should they arise, within two budget cycles.  Concerns were raised that the resolution would affect the mill rate. Smith says that will not happen and that taxes should go down this year. He says the city is in good shape and that they have paid their debts. Smith credits past city governments for sticking to the nine-year plan which helped create an $800-thousand-dollar contingency fund.