Mayor discusses Muskego's budget challenges and new developments at community meeting

The City of Muskego held its State of the City address on February 13, 2025, where key community statistics and future challenges were discussed. The meeting began with an overview of Muskego's demographic and financial standing compared to other communities in Waukesha and Milwaukee counties. With a population of approximately 26,000, Muskego ranks tenth in size among 14 comparable communities. However, it boasts the second-highest household income at $116,000, trailing only Brookfield.

The city's financial health was highlighted, noting a low debt percentage and a strong bond rating of AA1, the second highest available. Muskego's equalized value has increased to $5 billion, with 87% of that being residential property, indicating a strong residential base but limited commercial development, which currently stands at 13%. The city has seen a $120 million increase in new commercial development over the past year.

Tax rates were also a focal point, with Muskego maintaining the lowest overall tax rate among the 14 communities at $9.12. The city’s portion of the tax rate is approximately $2.90, the second lowest, while the school district rate is $4.62, the third lowest.

Looking ahead, Mayor Jeffery D. Dyer discussed several upcoming developments, including the Kirkland Crossing residential project and a new Tractor Supply store. However, he noted a concerning trend of limited developable land, which could hinder future growth. The mayor emphasized the importance of development for maintaining tax rates, as state regulations limit tax levy increases to the percentage of net new construction.

Budgetary constraints were a significant theme, with the mayor revealing that the 2025 budget was balanced using $200,000 of one-time funding, a practice he deemed unsustainable for the future. He acknowledged the need for increased funding for public safety, particularly in police and fire services, as the city grows. The mayor indicated that a public safety referendum may be necessary in the coming years to address these needs.

The meeting also touched on staffing challenges within municipal departments, particularly in public safety and public works, as the city faces difficulties in attracting new employees. The mayor expressed a commitment to finding innovative solutions, including potential collaborations with neighboring communities and the use of technology to improve efficiency.

In response to community concerns about low-income housing and homelessness, the mayor noted that many assistance programs are managed at the county level, and the city provides information to residents about available resources.

The meeting concluded with a call for community engagement and collaboration as Muskego navigates its future challenges while striving to maintain its quality of life for residents.