Altoona Budget Committee Meeting - August 27, 2026

The Altoona Budget Committee convened on Thursday, August 27, 2026, at 3:30 PM at the City Hall Council Chambers. Mayor Brendan Pratt called the meeting to order with a roll call of members and staff. The agenda focused on the budget process overview, the proposed 2027–2028 Capital Improvement Plan (CIP), and a review of 2027 debt service implications. Finance Director Tina Nelson led the presentation, supported by City Administrator Mike Golott and financial consultant Sean Ellers of Ellers Associates.

Budget Process Overview & Schedule

• Finance Director Nelson reviewed the budget timeline. Final adoption is scheduled for December 3, 2026, later than usual due to the release of state credits on November 21.
• Enterprise fund (water, sewer, stormwater) budgets are scheduled for September, followed by the library and general fund budgets in October. A final draft of the general fund budget and consideration of TIF #4 and the affordable housing fund will occur in November.
• Staff are operating under direction to tightly control operating expenses because the city's net new construction growth allowed for a levy limit increase of only 1.57% for 2026.

Financial Position & Fund Balances

• The committee reviewed the five strategic priorities guiding the budget: community growth, financial strength, infrastructure and facilities, workforce retention, and technology optimization.
• City growth was highlighted as a strength. Equalized valuation rose from $535.8 million in 2015 to $1.43 billion in 2026, a 167.68% increase, though growth slowed to approximately 3% this year.
• Fund Balances: The Tax Stabilization fund holds $4.9 million. The city's policy targets a 30% reserve of general fund revenues and expenses (approximately $2.6 million), leaving roughly $2.2 million available. The closure of TID #3 contributed $1.6 million to the unassigned general fund balance and adds approximately $600,000 annually to the tax base.
• Discussion included the classification of the general fund balance from TID #3 closure as a one-time settlement, not an ongoing revenue source.

2027–2028 Capital Improvement Plan (CIP)

• Fire Apparatus ($3M placeholder): The CIP includes $1.8 million for a ladder truck and $1.2 million for a pumper. The Capital Budget Committee recommended authorizing staff to explore flexible purchasing options, such as demo units or used equipment, to potentially save money and stagger the replacement life cycles of the two trucks.
• Water and Sewer Utilities: A new well project is planned with $1 million in new borrowing and $600,000 from the water fund balance. The city is also planning ongoing well rehabilitation and lift station component replacements.
• Parks and Yard Facilities: $40,000 is budgeted for roof replacements at the Hob Nob/yard facilities.
• Forestry: $20,000 was allocated over the two-year period, and staff noted an urban forestry grant will be pursued in the next cycle for a tree inventory and plan.
• Street Reconstruction: The city allocates approximately $1 million annually to reconstruction. Several councilmembers stressed that the current CIP prioritizes streets where utility coordination is needed, sometimes at the expense of streets in critically poor condition (specifically citing El Tuna Avenue, Sherwin Avenue, and the Country Club area north of Valmont Avenue). Councilmembers urged staff to "take a closer look" at reprioritizing these highly deteriorated segments. City Engineer Christian Hupert noted that coordination with galvanized service replacements was a significant factor in the current sequencing. Staff committed to reviewing the priority list.

Debt Service & Financial Modeling

• Sean Ellers (Ellers Associates) described the preliminary financing model. He stated that because of the city's strong financial planning, growth, and successful tax increment district closure, the city can issue new debt for the CIP to "wrap around" its existing debt. This strategy keeps the total debt service levy and mill rate approximately level with current projections.
• The city's current equalized mill rate is approximately $5.00 per $1,000 of value. This is consistent with peer communities in western Wisconsin (New Richmond is identical; Chippewa Falls and Eau Claire are higher; River Falls is slightly lower).
• Borrowing capacity is not a present constraint. The city remains well under the state-imposed 5% equalized value debt limit. A major legacy project, such as a combined community building costing $20–25 million, would be required to significantly challenge this capacity.

Key Outcomes

• The committee reviewed and forwarded the proposed 2027–2028 Capital Improvement Plan for further consideration, with the understanding that the fire truck procurement strategy and street reconstruction prioritization require refinement.
• Staff were directed to re-evaluate the street reconstruction capital plan with greater emphasis on pavement condition.
• The budget adoption timeline was confirmed, with the final budget scheduled for adoption on December 3, 2026.
• A motion to adjourn was made, seconded, and unanimously approved.