During a recent government meeting, city officials presented a comprehensive financial management plan aimed at addressing the city's fiscal challenges. City Administrator Tony Brown and Finance Director Joel Shearl outlined the framework for the plan, emphasizing the need for financial sustainability as a strategic priority.

The city operates with a budget of approximately $227 million across over 70 funds, with the general fund—primarily funded by property taxes—accounting for about $80 million. Notably, 75% of the general fund expenditures are allocated to compensation, reflecting the city's service-based operations. The officials highlighted that Wisconsin has the strictest property tax levy limits in the nation, which significantly constrains the city's revenue-generating capabilities. Currently, 80% of the general fund revenue is beyond the city's control, primarily derived from property taxes and intergovernmental revenue.

The presentation revealed concerning trends in the city's financial outlook. While the 2024 budget is balanced, projections indicate that without intervention, the city could face an operating deficit of $8.5 million by 2028. This situation arises from rising expenditures outpacing revenue growth, driven by factors such as inflation and increasing personnel costs. The officials noted that health insurance premiums have surged, with an estimated renewal rate of 14.3% for the upcoming year.

Brown and Shearl underscored the importance of proactive measures to mitigate these financial risks, as the city has not yet tapped into its budget stabilization fund, which currently holds over $4 million. They acknowledged that many municipalities in Wisconsin are grappling with similar fiscal pressures, particularly as net new construction rates remain low.

The meeting concluded with a call for feedback from committee members, which will inform the council's decisions as they incorporate the financial management plan into the 2025 budget. The officials stressed the urgency of addressing these financial challenges to ensure the city's long-term fiscal health and service sustainability.