RACINE — In addition to weighing in on the next President of the United State and U.S. Representative for Wisconsin’s 1st Congressional District, Racine residents will be asked this fall whether they’d accept a 6.49% increase on the tax levy to cover the cost of healthcare benefits for city retirees.

For 2020, the city collected a total of $53,820,230 in property taxes. Because the city had zero net new construction in 2020 the most it would be able to raise its levy is 0.15% or $80,730.35.

Going into 2021, interim City Administrator Kathleen Fischer estimated the city is facing a $4.5 to $5.5 million budget shortfall. The referendum would ask taxpayers whether they are willing to contribute an additional $3.5 million to the 2021 levy and then an additional $1 million each year thereafter.

The additional funds would only cover a portion of retiree healthcare expenses. In 2020, the city will spend $21 million on healthcare for 750 retirees and 450 active employees, not including the water and wastewater utilities. The active employees accounted for about $11.5 million of that total and the retirees accounted for about $9.5 million.

On Tuesday the City Council passed the proposal to put the referendum on the Nov. 3 ballot, 9-6. Aldermen Jeff Coe, Mollie Jones, John Tate II, Edwin Santiago, Jen Levie, Maurice Horton, Mary Land, Natalia Taft and Melissa Lemke voted in favor. Aldermen Jeff Peterson, Marcus West, Trevor Jung, Carrie Glenn, Henry Perez, and Jason Meekma voted in opposition.