Becky Beissel

This is a question I hear from time to time, and while it's not always asked with the utmost respect, it’s a valid one worth exploring. With property taxes on the rise, and concerns about the state of our streets, sidewalks, and aging infrastructure, it’s natural to wonder: “Where does all our money go?”

Understanding property taxes

To start, let’s clarify a few things about property taxes:

• In the village, four taxing jurisdictions share the property tax revenue: Pierce County, Ellsworth Community School District, Chippewa Valley Technical College, and the Village of Ellsworth. When you notice changes in your property taxes, it’s important to review your annual tax bill to see how each jurisdiction has adjusted its portion. On average, about a third of your property taxes go to the village.
• Municipalities and counties are subject to a levy limit. This limit means that property tax levies cannot increase by more than the percentage of new construction added to the tax base in the previous year. Essentially, the state sets a cap on how much we can charge for property taxes.
• Municipalities can borrow for capital improvements, which can impact property taxes outside of the levy limit.
• Churches, non-profits, and government entities (such as the Village of Ellsworth and Pierce County) are exempt from paying property taxes.

In summary, think of property taxes as a pie. The state (and any borrowing) determines the size of the pie, which is then divided among the tax-paying properties in the village. The size of each slice is based on the property’s value.

The village’s approach to spending

The Village of Ellsworth has historically been cautious with its spending. As we work through our 2025 budget season, initial drafts indicate that we’re on track for a spending decrease for the third consecutive year. In today’s economy, marked by record inflation, this is no small achievement. It reflects the board’s commitment to living within our means while continuing to make necessary updates, investments, and provide high-quality services to our residents.

So, when you ask, “Where does all my money go?” the answer is simple: it’s used to run the village. However, a more pressing question might be, “How can we lower property taxes while making essential investments in our community, achieving our goals outlined in the Comprehensive Plan, and maintaining high-quality services?”

A sustainable path forward

As I’ve delved into this topic over the years, one thing has become clear: if a community lacks a thriving commercial and industrial sector, along with some density and development on most of its lots (especially where infrastructure already exists), the tax burden disproportionately falls on residential taxpayers. In other words, our pie pieces get bigger.

Unfortunately, we’ve seen a significant decline in our commercial tax base in recent years. While part of this is due to assessments, a large portion is because of a drop in the value of our commercial properties. Some downtown properties have seen their values decrease by over 50%. That’s a significant problem. Additionally, we have about 250 vacant lots in the village. When properties remain vacant, they aren’t contributing to the tax base needed to support the community.

Let’s take the old junior high site as an example. Previously, this 2.3-acre parcel generated $2,751 per year in property taxes, with approximately $917 going to the village. The board recently approved the C&E Wurzer proposal for that site, which is estimated to generate around $120,000 in property taxes annually. Because it’s part of a Tax Increment District (TID), the village will receive 100% of that revenue for 25 years. In just ten years (from when construction is complete), this property will contribute $1,210,000 to our village, compared to $9,170 if the old school had remained under previous ownership. Over a 50-year period, the village will receive over $4 million in tax revenue from this property. The state does restrict the use of the revenues during the life of the TID to improvements on the site, as well as utility improvements within a ½ mile of the site. Once the revenues and expenses for the project are finalized, the Village Board will begin determining the best use of the revenues.

Looking ahead

I don’t want to be the bearer of bad news; but reducing property taxes—or even keeping them steady—when we already have low spending, is a long game. However, we do know the sustainable path forward: work with commercial property owners to revitalize blighted properties, encourage light density where appropriate, attract industrial businesses, fill our vacant buildable properties, seek out grant opportunities, and maximize the potential of our TID districts. See what I mean about it being a long game? This is going to take some time, dedication, and endurance by the Village Board.

By following this strategy, we can work toward a future where property taxes are manageable, and our community continues to thrive.