City Council Finance Committee Meeting on November 13, 2025

The City Council Finance Committee convened to review the Mayor's recommended 2026 budget, departmental funding requests, and the 2030 Capital Improvement Plan (CIP). Mayor Hinkfist presented the budget overview, highlighting a 3.4% levy increase driven by shared revenue from the state, increased debt service from infrastructure investments, and a 2.5% COLA for employees. Key discussions focused on staffing vacancies in public safety, equipment replacement needs in Public Works, and funding challenges for Parks and Recreation. The committee heard extensive testimony regarding the impact of state funding reductions, leading to a consensus on increasing borrowing capacity to address critical equipment and staffing gaps.

Consent Calendar

• Agenda Approval: The committee approved the agenda for the November 13, 2025 meeting.
• Minutes Approval: The committee unanimously approved the minutes from the November 4, 2025 Finance Committee meeting.

Public Comments & Testimony

• Post-Meeting Comments: Alder Johnson, serving as the committee chair, emphasized that while the budget process has become more efficient, the community faces a "turning point" due to insufficient state funding. He expressed frustration with the current fiscal constraints, noting that cities must now "cut bone and muscle" rather than just cutting fat. He urged the council to continue advocating for state-level tax sharing.
• Alder Galvin's Position: Alder Galvin expressed that the community's needs outweigh state restrictions, arguing that the city is "in a corner" regarding safety and infrastructure. He stated that the state "belittles" the city for not spending money wisely while begrudgingly providing funds, and emphasized the urgent need for a half-cent sales tax to fund essential services and equipment replacements that have been delayed for years.

Discussion Items

• 2026 Budget Overview (Mayor's Office):

  • Mayor Hinkfist proposed a 3.4% levy increase, equating to approximately $60 on an average $250,000 home.
  • The Mayor noted a 5.4% reduction in the equalized tax rate due to significant property value increases, though assessed rates are rising.
  • To offset a $2.8 million increase in salaries, the Mayor proposed utilizing a "turnover number" assumption, acknowledging the potential pain of keeping positions open longer to realize savings.
  • The Mayor reiterated the need for a local sales tax, noting the County generates roughly $40 million annually from a half-cent tax, with the City potentially capturing $16 million.
  • New positions proposed include one Data Analyst for the Fire Department, three full-time Community Service Officers (CSOs) for the Police Department to in-source City Hall security, and the reclassification of the Deputy City Attorney to a Paralegal position.

• Departmental Budget Reviews:

  • Administrative Services: Staff clarified a $50,000+ increase in contractual services is due to the city's revaluation costs being split over three years (2025, 2026, 2027).
  • Law Department: Discussion confirmed the reclassification of the Deputy City Attorney to a Paralegal to align positions, resulting in a slight decrease in regular salaries for the department. Legal expenses are projected to decrease as expected litigation costs for certain matters did not materialize.
  • Human Resources: Training and travel costs increased slightly for standard conferences. Recruiting expenses were higher due to three director-level vacancies but efficiency gains were noted from automated reference checking.
  • Community and Economic Development: The department will not renew the "Plugger" subscription due to cost increases, seeking affordable alternatives. Vehicle leasing for inspections and police DPW/Parks increased slightly as funds were moved from capital to the operating budget. A $10,000 line item was restored for neighborhood association mini-grants, historically funded after exhausting ARPA funds.
  • Police Department: The budget includes three new civilian CSO positions. Overtime remains a critical issue; Chief Knott explained that hiring up to 190 officers (currently 13 vacancies) is essential to address downtown safety issues without relying on excessive overtime. The department noted a 31% drop in workers' compensation costs. Leased vehicles and axle agreements (Axon) contributed to increased lease payments. State grant revenues were discussed, with the department clarifying timing differences between budgeted projections and actual receipts.
  • Fire Department: Chief Knott explained that overtime is driven by staffing factors (current staffing is below the industry norm of 1.4 people per riding position) and seasonal absences. A proposal is in development to add firefighters to offset overtime costs. A significant increase in one line item was attributed to a Line of Duty Death sustained the previous year.
  • Public Works: Director Jussen clarified that a 10.4% increase in regular salaries is an accounting shift rather than a true salary hike. A 463% increase in car allowances is a reclassification of expenses previously in the capital fund. Contractual services increased for engineering needs related to new facilities and bridges divisions. A clothing allowance was added for field employees who previously purchased their own high-visibility gear.
  • Parks, Recreation, and Forestry: Director Ditchette highlighted recurring challenges with staffing shortfalls at Bay Beach, specifically a shortage of mechanics and ride operators, exacerbated by the train project and old equipment. A new program to train younger individuals in lifeguarding is launching this winter at no cost. Leased vehicles have increased as the city moves from bonding to leasing. Future staffing needs for new facilities (Shipyard, Light Park, JBS) will be proposed for the 2027 budget.

• Capital Improvement Plan (CIP) and Bonding:

  • Alder Johnson's Amendment: Alder Johnson moved to amend the borrowing request to include a used motor grader for $370,000. He argued that this is the highest priority for Public Works, as current plow trucks are years past their replacement date. He stated that having a machine with a deeper cutting bed will improve snow removal efficiency and safety for first responders by allowing the grader to get closer to the street rather than relying on surface plowing which leaves snow piles.
  • Alder Galvin's Amendment: Alder Galvin moved to add a $55,000 vehicle for transporting animals for the Wildlife Sanctuary and proposed adding funding for four park restrooms with electronic locks (totaling $30,000 in bonding, though staff noted locks are typically operational budget items or funded via ARPA interest). Galvin argued that the community deserves access to functional bathrooms and that the sanctuary vehicle's current rusted state provides a poor impression.
  • Debate on Borrowing: Discussion ensued regarding the city's borrowing capacity. Director Ellenbecker clarified that the city is currently borrowing above the rate of repayment, utilizing fund balance to reduce the bonded amount. Alders emphasized that the "excess capacity" for bonding is not free money and will increase the mill rate in future years.

• Urban Design Amendment:

  • Alder Johnson's Amendment: Alder Johnson moved to amend the 2026-2030 CIP to add a future project for streetscape improvements on Adams and Washington Streets ($2.4 million estimated cost) for Year 3. He emphasized this is a planning slate, not a funding commitment, to ensure the project is not forgotten. Funding is anticipated to come from an Urban Design Tax Incremental District (TID).

Key Outcomes

• Budget Approval: The committee approved the Mayor's 2026 budget recommendations for all departments (Common Council, Mayor's Office, Admin, IT, Law, Municipal Court, HR, CED, Police, Fire, Public Works, Parks/Frontage) with no motions to reduce funds.
• Bonding Request Approved (as Amended): The committee approved the 2026 borrowing request as amended by Alder Johnson and Alder Galvin. The total borrowing capacity was increased to accommodate the following additions:
  • Used Motor Grader for Public Works ($370,000).
  • Wildlife Sanctuary Animal Transport Vehicle ($55,000).
• CIP Amendment Approved: The 2026-2030 Capital Improvement Plan was approved as amended to include the $2.4 million streetscape project for Adams and Washington Streets in Year 3.
• State Revenue Advocacy: The committee reaffirmed the Mayor and Alders' stance that the city requires increased state shared revenue or local sales tax authority to manage the rising costs of inflation, benefits, and infrastructure without placing undue burden on property taxpayers.
• Adjournment: The meeting was adjourned after all items were processed, with members expressing appreciation for the staff's hard work and the committee's deep dive into city operations.