Committee on the Whole: 2026 Budget Hearing

The City of Racine held a comprehensive budget hearing on October 23, 2025, to deliberate on the 2026 proposed budget. The meeting covered all city departments, including Public Safety (Police and Fire), Public Works, Water/Wastewater Utilities, Parks and Recreation, Community Safety, Human Resources, and Administration. Key topics included staffing levels, the implementation of a new referendum funding stream for the fire department, significant changes to EMS fee structures, the relocation of utility finance functions to the finance department, and the adoption of new fees for parade permits and illegal dumping. Council members expressed concerns regarding the inclusion of ordinances within the budget document and voted to defer the discussion of these ordinances to standing committees for proper vetting before final adoption.

Consent Calendar

• No consent calendar items were explicitly voted upon as a group during this committee session; the session proceeded with department-specific Q&A.
• A motion was passed to defer the discussion of 15 ordinances attached to the budget packet to a future date for committee review.

Public Comments & Testimony

• Council Member Concerns: Multiple alders expressed concern that ordinances with financial impacts (fines, fee schedules) were buried within the budget book rather than being vetted in standing committees. Alder Townsend argued this practice prevents full public input on specific ordinances. Alder Harman and others noted that ordinances are intrinsically linked to fee schedules but advocated for a procedural shift to refer them to committees first.
• Alder Harmon: Supported the initiative to increase fines for illegal dumping and the introduction of camera systems to identify repeat offenders.
• Alder Davis: Commented on the potential for the Department of Community Safety to impact the city's budget if federal grants are not secured, highlighting the risk of increased criminal activity and associated costs if interventions are not funded.
• Alder Widener: Expressed concern regarding a perceived reduction in Fire Department Full-Time Equivalents (FTEs) despite a referendum vote intended to maintain staffing levels.

Discussion Items

Police Department (Chief Ramirez)

• Budget Increase vs. Decrease: Alder Townsend noted an 8% increase in calls over two years. The Finance Director and Chief deferred questions regarding the overall 0.66% decrease in public safety expenditures to the Finance Director, noting the decrease was likely isolated to the Fire Department.
• Enforcement & Technology: Discussions covered the new parking citation system, which CSOs use for efficient citation issuance. The Chief noted that the CSO budget is fully funded and part of the operating budget.
• Specific Line Items:
  • Prisoner Expenses: Explained a 733% jump due to a billing lapse from the county jail being resolved.
  • Copying/Printing: Increased 300% due to the reinstatement of an annual police report sent to an outside printer.
  • Overtime: Overtime projection is $0 for 2026, distinct from specific funding sources for past overtime (e.g., shared revenue projects).
  • Salaries: Salary line items show minimal increase (0.4%) as city custom dictates not including estimated wage increases in the budget prior to contract settlement. Negotiations with the Racine Police Association are underway.
  • Recruitment: The department emphasized the use of the cadet and explorer programs to recruit residents living in Racine.

Fire Department (Chief Hanson)

• EMS Budget Restructuring: A major shift occurred where EMS-related supplies, wages, salaries, and benefits were moved from the Fire Suppression budget to a standalone EMS budget. This caused a 79% decrease in Fire Suppression work supplies and an 803% increase in the EMS work supplies line item, though the total funding remains consistent.
• Training Budget: Training costs decreased by 50% in the Fire Suppression budget but were transferred to the new EMS training budget. Total funds remain the same.
• Staffing & Referendum: Clarified that while FTEs dropped slightly on paper (147 to 146.38), the department is fully staffed at its historical average of 141 positions. The discrepancy was attributed to the phasing out of an AFG Safer grant and the transition of some administrative roles (e.g., assistant to office manager) and part-time cadet positions.
• State Assets: Confirmed the department remains a state regional hazardous materials and technical rescue team, receiving approximately $100,000 annually for salaries and equipment for each designation.
• Radio System: Discussed a potential future county-wide trunking system that may introduce subscriber fees, which has not yet been finalized or mandated.
• False Alarms: Reported a low number of false alarms (handful of calls out of 10,502 calls year-to-date), with a billing agency managing charges for excessive alarms.

Department of Public Works (Director Scott Salinas)

• Service Line Replacement: Discussed strategies for restoring pavement after water main replacements, utilizing a pavement management system to determine resurfacing vs. reconstruction needs.
• Sump Pump Program: Proposed a new full-time position to "hand-hold" residents through the sump pump installation process to meet 56 million gallons of Inflow/Infiltration (II) reduction goals. The program shifted from a resident-driven model (which had low conversion) to a city-managed model to increase participation.
• Sanitary Sewer Fee: Explained fee increases are driven by the need to fund emergency lateral repairs and infrastructure maintenance, with nearly $3 million collected annually from the fee.
• Snow and Ice: Predicted reduced overtime due to lower snow accumulation trends compared to 15 years ago, though fleet maintenance staffing for second shift was noted as a potential area of concern.
• Dumping Fine Increase: The department supported a $5,000 fine for illegal dumping and a $1,000 reward for reporting, with City Development leading the enforcement and camera installation strategy.

Water Department & Wastewater Utility (Director Tillis)

• UV Disinfection: Installation of a new UV system is aimed at regulatory compliance regarding a new bug type, which may reduce beach closures but is not solely causative.
• Professional Services: Budgeted funds for renegotiating the 2002 sewer agreement and for electric service upgrades due to increased rates and treatment plant timing needs.
• Administrative Restructuring: Proposed splitting the executive assistant role currently shared between Water and Wastewater into two dedicated positions (0.5 FTE each).

Parks and Recreation (Director Tom Bunker)

• Cemetery Operations: Discussed a trend of decreasing burials due to rising fees, despite a goal to eventually eliminate the tax levy for the cemetery. A realistic levy of $65,000 was budgeted for 2026 after zero levy allocation proved ambitious in 2025.
• Civic Center: Operational subsidies increased by 34% in 2026 to reflect 2025 overages in utility costs and higher event loads. Revenue projections aim to hit one million dollars for 2026.
• Tree Planting: Budget includes funds for 250 additional parkway trees.

Community Safety (Director Tate)

• Grant Funding Uncertainty: The department operates on a bare-bones General Fund levy budget ($1,000 for supplies) while pursuing a potential $2 million federal grant and state funds. If grants fail, the department risks cutting interventions, which Director Tate warned could lead to a resurgence in violence and increased costs for police, prosecution, and hospitalization.
• Music Video Interventions: Described a strategy to engage individuals creating inflammatory music videos to prevent retaliatory violence and coordinate with probation/parole on enforcement.

Human Resources (Director Horton)

• Recruitment Position: Proposed a new recruitment specialist to improve community outreach, specifically targeting local residents and youth (YEP, cadet programs) to address recruitment challenges and improve residency rates.
• Assessment Alignment: Discussations occurred regarding whether current typing speed assessments align with actual job duties.
• YEP Program: The Youth Employment Program was moved from grants to the general fund in 2026, resulting in a significant increase in part-time salaries.

Finance & Non-Departmental

• Utility Accounting: Two positions (Billing Specialist and Utility Accountant) are transferring from Water/Wastewater to Finance as utilities migrate to the city's MUNIS system, eliminating the need for manual data entry between systems.
• Debt Service: Interest costs are rising due to market rates, though a one-time spike from the Lincoln King borrowing will be refinanced in 2027.
• CDA Status: Clarified that the Community Development Authority is a separate legal entity (Authority) from the City of Racine, whereas the Water/Wastewater Utilities remain city departments.

City Administration & Common Council

• Meeting Increases: Operating expenses increased 287.6% largely due to an increase in common council meetings (17 in 2024 to 24 in 2025) and associated committee meetings, requiring more staff time, closed captioning, and advertising.
• Office Supplies: A $1,000 per alder office supply allowance was added by request, causing a significant percentage increase in the line item. Council members questioned if this was a standard benefit or a specific amendment request.
• 250th Anniversary: Additional funding allocated for fireworks (Room Tax Fund) and street trees (Stormwater Utility) to celebrate the city's anniversary.

Key Outcomes

• Deferral of Ordinances: The Common Council voted to defer the discussion of 15 ordinances included in the budget packet to standing committees (PSL, Public Works, Finance) for thorough vetting prior to final budget adoption, rather than considering them during the budget hearing.
• Budget Structure Changes: Finalized the structural separation of EMS costs into a distinct budget fund for the Fire Department, impacting how expenses are reported (supplies, training).
• New Programs: Approved the creation of a full-time Sump Pump Program Manager within DPW to accelerate II reduction goals.
• Funding Transfers: Confirmed the transfer of utility accounting and billing positions to the Finance Department effective 2026.
• Operational Adjustments: Adopted a new fee structure for parade permits ($10 for first 10 blocks + $150 per additional block) and increased fines for illegal dumping to $5,000 with a $1,000 reward.
• Staffing Clarifications: Confirmed Fire Department staffing levels remain at historical averages (141 FTEs) despite surface-level changes in the budget document due to grant expiration and role redefinitions.