Wisconsin Constitution
Article XI - Corporations
Section 3 - Municipal home rule; debt limit; tax to pay debt.

1. Cities and villages organized pursuant to state law may determine their local affairs and government, subject only to this constitution and to such enactments of the legislature of statewide concern as with uniformity shall affect every city or every village. The method of such determination shall be prescribed by the legislature.
2. No county, city, town, village, school district, sewerage district or other municipal corporation may become indebted in an amount that exceeds an allowable percentage of the taxable property located therein equalized for state purposes as provided by the legislature. In all cases the allowable percentage shall be 5 percent except as specified in pars. (a) and (b):
   1. For any city authorized to issue bonds for school purposes, an additional 10 percent shall be permitted for school purposes only, and in such cases the territory attached to the city for school purposes shall be included in the total taxable property supporting the bonds issued for school purposes.
   2. For any school district which offers no less than grades one to 12 and which at the time of incurring such debt is eligible for the highest level of school aids, 10 percent shall be permitted.
3. Any county, city, town, village, school district, sewerage district or other municipal corporation incurring any indebtedness under sub. (2) shall, before or at the time of doing so, provide for the collection of a direct annual tax sufficient to pay the interest on such debt as it falls due, and also to pay and discharge the principal thereof within 20 years from the time of contracting the same.
4. When indebtedness under sub. (2) is incurred in the acquisition of lands by cities, or by counties or sewerage districts having a population of 150,000 or over, for public, municipal purposes, or for the permanent improvement thereof, or to purchase, acquire, construct, extend, add to or improve a sewage collection or treatment system which services all or a part of such city or county, the city, county or sewerage district incurring the indebtedness shall, before or at the time of so doing, provide for the collection of a direct annual tax sufficient to pay the interest on such debt as it falls due, and also to pay and discharge the principal thereof within a period not exceeding 50 years from the time of contracting the same.
5. An indebtedness created for the purpose of purchasing, acquiring, leasing, constructing, extending, adding to, improving, conducting, controlling, operating or managing a public utility of a town, village, city or special district, and secured solely by the property or income of such public utility, and whereby no municipal liability is created, shall not be considered an indebtedness of such town, village, city or special district, and shall not be included in arriving at the debt limitation under sub. (2). [1872 J.R. 11, 1873 J.R. 4, 1874 c. 37, vote Nov. 1874; 1909 J.R. 44, 1911 J.R. 42, 1911 c. 665, vote Nov. 1912; 1921 J.R. 39S, 1923 J.R. 34, 1923 c. 203, vote Nov. 1924; 1929 J.R. 74, 1931 J.R. 71, vote Nov. 1932; 1949 J.R. 12, 1951 J.R. 6, vote April 1951; 1953 J.R. 47, 1955 J.R. 12, vote April 1955; 1957 J.R. 59, 1959 J.R. 32, vote Nov. 1960; 1959 J.R. 35, 1961 J.R. 8, vote April 1961; 1961 J.R. 71, 1963 J.R. 8, vote April 1963; 1963 J.R. 44, 1965 J.R. 51 and 58, vote April 1966; 1979 J.R. 43, 1981 J.R. 7, vote April 1981]

Authorizing municipalities to issue revenue bonds to finance industrial development projects, is not an improper delegation of authority in a matter of statewide concern. When the purchase price of property to be acquired is payable exclusively from income or profits to be derived from the property purchased and a mortgage or lien attaches only to that property, no debt is created in violation of this section of the constitution. State ex rel. Hammermill Paper Co. v. La Plante, 58 Wis. 2d 32, 205 N.W.2d 784.

This section does not invalidate provisions of the Solid Waste Recycling Authority Act dealing with required use of the authority's facilities, user charges, and condemnation powers, since the purpose of the act involves a matter of statewide concern. Wisconsin Solid Waste Recycling Auth. v. Earl, 70 Wis. 2d 464, 235 N.W.2d 648.

The provision of s. 144.07 (1m) [now s. 281.34 (1m)], that voids a DNR sewerage connection order if electors in an affected town area reject annexation to the city ordered to extend sewerage service, represents valid legislative balancing and accommodation of 2 statewide concerns, urban development and pollution control. City of Beloit v. Kallas, 76 Wis. 2d 61, 250 N.W.2d 342.

No conflict was found between an ordinance and a statute dealing with related subject matter when the former was paramountly in the local interest and the latter was of statewide concern. State ex rel. Michalek v. LeGrand, 77 Wis. 2d 520, 253 N.W.2d 505.

Coexisting ordinances and statutes prohibiting the same conduct is discussed. State v. Karpinski, 92 Wis. 2d 599, 285 N.W.2d 729 (1979).

Refusal by a city to provide sewerage service to a portion of a town unless inhabitants agreed to annexation of that portion did not violate antitrust law. Town of Hallie v. City of Chippewa Falls, 105 Wis. 2d 533, 314 N.W.2d 321 (1982).

A city ordinance that regulated lending practices of state chartered savings and loans with regard to discrimination was preempted by state statutes. Anchor Savings & Loan Association. v. Madison EOC, 120 Wis. 2d 391, 355 N.W.2d 234 (1984).

Liberally construing home rule authority, a city is not authorized to institute a public safety officer program. Local Union No. 487 v. Eau Claire, 147 Wis. 2d 519, 433 N.W.2d 578 (1989).

Antitrust law demonstrates the legislature's intent to subordinate a city's home-rule authority to its provisions. Unless legislation at least impliedly authorizes a city's anticompetitive action, the city has violated antitrust law. Amer Med. Transp. v. Curtis-University, 154 Wis. 2d 135, 452 N.W.2d 575 (1990).

A school district did not incur indebtedness by entering into a lease-purchase agreement for a new school when the district, by electing not to appropriate funds for the following fiscal year's rental payment, had the option to terminate the agreement with no future payment obligation. Deick v. Unified School District of Antigo, 165 Wis. 2d 458, 477 N.W.2d 613 (1991).

Tax increment financing bonds that a city proposed to issue under s. 66.46 [now s. 66.1105] constituted debt under this section and were subject to the city's debt limits. City of Hartford v. Kirley, 172 Wis. 2d 191, 493 N.W.2d 45 (1992).

The fact that the regulation of sex offenders is a matter of statewide concern does not preclude municipalities from using their home-rule powers to impose further restrictions consistent with those imposed by the state. An ordinance regulating an area of statewide concern is preempted only if: (1) the legislature has expressly withdrawn the power of municipalities to act; (2) the ordinance logically conflicts with state legislation; (3) the ordinance defeats the purpose of state legislation; or (4) the ordinance violates the spirit of state legislation. City of South Milwaukee v. Kester, 2013 WI App 50, 347 Wis. 2d 334, 830 N.W.2d 710, 12-0724.

While the home rule amendment authorizes municipal regulation over matters of local concern and protects that regulation against conflicting state law, state law will still preempt that municipal regulation if it with uniformity affects every city or every village. Madison Teachers, Inc. v. Walker, 2014 WI 99, 358 Wis. 2d 1, 851 N.W.2d 337, 12-2067.

Whether a particular statute relates to a matter of statewide concern is for the courts to determine on a case-by-case basis. Generally, state legislation falls into three categories: 1) those involving matters exclusively of statewide concern; 2) those involving matters entirely of local character; and 3) those that encompass both state and local concerns. When legislation falls under the 3rd category, the court must determine whether state or local concerns are paramount and conduct its analysis accordingly. Milwaukee Police Association v. City of Milwaukee, 2015 WI App 60, 364 Wis. 2d 626, 869 N.W.2d 522, 14-0400.

The uniformity requirement in sub. (1) does not simply mean that a legislative enactment applying to all municipalities passes the test. The language used in the state constitution is “affects," not “applies," indicating that a more substantive analysis is required. Enactments of the legislature that do not affect all cities uniformly are to be subordinate to legislation of cities within their constitutional field. Legislative pronouncements of statewide concern are not controlling, and it is the judiciary that has been charged with the ultimate determination of what is a matter of statewide concern. Milwaukee Police Association v. City of Milwaukee, 2015 WI App 60, 364 Wis. 2d 626, 869 N.W.2d 522, 14-0400.

The scope of legislative activity covered by “ordinances” and “resolutions,” extends to formal and informal enactments that address matters both general and specific, in a manner meant to be either temporary or permanent, and which can be characterized as administrative or otherwise. The court will treat a municipality's legislative device as an ordinance or resolution, regardless of how it may be denominated, so long as it functions within the scope of this definition. There is no legislative action a municipality could take that would not come within the ambit of “ordinance" or “resolution." Consequently, if a statute removes the authority of a municipality's governing body to adopt an ordinance or resolution on a particular subject, the governing body loses all legislative authority on that subject. Wisconsin Carry, Inc. v. City of Madison, 2017 WI 19, 373 Wis. 2d 543, 892 N.W.2d 233, 15-0146.

A 1947 law authorized 1st class cities to assume responsibility for the Employee Retirement System (ERS) under home rule, providing that the city did not amend or alter the ERS to modify the annuities, benefits, or other rights of ERS members. Milwaukee's amendment to its charter ordinance that changed the board size and member voting rights of the ERS was an improper exercise of home rule because it modified “other rights” of members, contrary to state law. Milwaukee Police Association v. City of Milwaukee, 2018 WI 86, 383 Wis. 2d 247, 914 N.W.2d 597, 15-2375.

An agreement to purchase park land whereby a county is to make deferred payments from an existing nonlapsing account, sufficient to cover the entire obligation, secured by mortgaging the property to the grantor, would not create an obligation within the ambit of ch. 67 nor constitute a debt in the context of this section. 63 Atty. Gen. 309.

Local government units cannot include the value of tax-exempt manufacturing machinery and specific processing equipment and tax exempt merchants' stock-in-trade, manufacturers' materials and finished products, and livestock in their property valuation totals for non-tax purposes, such as for municipal debt ceilings, tax levy limitations, shared tax distributions, and school aid payments. 63 Atty. Gen. 465.

There is no constitutional prohibition against increasing either municipal tax rate limitations or increasing the municipal tax base. However, a constitutional amendment would be required to increase municipal debt limitations. 63 Atty. Gen. 567.

“Home rule" discussed. 69 Atty. Gen. 232.

Home rule applicability to libraries and library systems contrasted. 73 Atty. Gen. 86.

The housing of out-of-state prisoners by the state, a county, or a municipality may only be as authorized by statute, which is currently limited to the Interstate Corrections Compact, s. 302.25. OAG 2-99.

Conflicts between state statute and local ordinance in Wisconsin. 1975 WLR 840.