CCR2009047-Wage
COMMON COUNCIL – CITY OF MUSKEGO
RESOLUTION #047–2009
RESOLUTION OPPOSING PROPOSED CHANGES
TO PREVAILING WAGE LAW
WHEREAS, Governor Doyle’s proposed biennial state budget, AB 75, makes the
prevailing wage law applicable to any public works contract over $2,000; and
WHEREAS, Under current law the prevailing wage requirements only apply to
multiple trade public works projects over $234,000 and single trade public works
projects over $48,000; and
WHEREAS, Reducing the threshold to $2,000 will increase the cost of small public
works projects previously exempted from the prevailing wage requirement; and
WHEREAS, The cost increase will be passed on to municipal property taxpayers
or will force municipalities to reduce other services; and
WHEREAS, The Governor’s proposed state budget, also for the first time, makes
the prevailing wage law applicable to private projects that receive public financing;
and
WHEREAS, Many of the tools communities use to encourage development within a
tax incremental financing district would be considered under the Governor’s
proposal to be public financing of a private project and would, therefore, make
private construction projects within TIF districts subject to the prevailing wage law,
thereby significantly increasing the developer’s project costs; and
WHEREAS, The Wisconsin Statutes and decisions of the Wisconsin Supreme
Court have allowed Municipalities to require Developers of private Development to
contract at their cost certain public infrastructure such as roads, sanitary sewer and
municipal water improvements and such law has been in effect for over 50 years;
and
WHEREAS, Applying the prevailing wage law to private projects receiving public
financing will be a major disincentive to economic development and job creation;
and
WHEREAS, The Department of Workforce Development has interpreted the law to
require a prevailing wage rate determination when the Development Agreement for
a subdivision or commercial development requires the developer to construct
sewer and water mains and the streets, thus adding to the developer’s project
costs and increasing the cost of home and business ownership, which
interpretation is contrary to existing law.
Common Council Resolution #047-2009 Page 2
NOW, THEREFORE, BE IT RESOLVED That the Common Council of the City of
Muskego opposes the changes to the prevailing wage law included in Governor
Doyle’s state budget proposal, AB 75, and hereby urges the Wisconsin State
Legislature to remove these items from the budget bill, and that legislation be
introduced to prevent DWD from requiring municipalities to obtain prevailing wage
determinations when developers are required to construct streets and utilities as
part of a residential subdivision or private commercial development.
TH
DATED THIS ___14 ______ DAY OF _____APRIL________, 2009
SPONSORED BY:
CITY OF MUSKEGO COMMON COUNCIL
Mayor John Johnson
Ald. Tracy Snead
Ald. Dan Pavelko
Ald. Neil Borgman
Ald. Keith Werner
Ald. Bill Schneider
Ald. Tina Schaefer
Ald. Noah Fiedler
This is to certify that this is a true and accurate copy of Resolution #047-2009
which was adopted by the Common Council of the City of Muskego.
_________________________________
Clerk-Treasurer
3/09mep