Waukesha City Administrator Tony Brown told the Finance Committee on Oct. 14 that the meeting’s primary purpose was a review of the city’s 2026 operating budget, with staff and department directors presenting assumptions and program priorities for police, fire, library, parks/recreation & forestry and internal service funds.

Brown said the session would focus on the operating (general) fund and that capital and debt-service levy elements are separate. He reviewed the budget schedule, the city’s financial management plan (FMP) assumptions and an early estimate of the tax-rate impact on a typical single-family household. Brown summarized one FMP initiative included in the 2026 forecast: a garbage and recycling special charge that staff estimates has a net impact of approximately $1,200,000 and that, when combined with other moves, reduces an operating shortfall in multi‑year forecasting.

The nut graf: the presentation framed the budget challenge as structural — Waukesha is largely built out and held to state levy‑limit rules that cap property-tax growth to net new construction plus the CPI lift. Brown and staff emphasized that projected operating costs have been rising faster than levy‑limit allowances, which constrains the city’s ability to fund rising personnel and service costs without offsets or alternate revenue. The committee heard that the assessor’s office estimated 2026 assessed value near $10.6 billion, a large increase over 2025, which affects tax-rate calculations but does not change levy‑limit mechanics.

Committee members pressed staff for more public-facing comparisons. Alderman Rick Piper asked for a follow-up that would combine operating and capital impacts into a single presentation so residents could more easily compare total tax-bill impacts. Staff said they would present a refined total‑tax‑bill comparison, including debt service and tax-increment considerations, at upcoming meetings.

Staff discussed the state Expenditure Restraint Program (ERP) and noted the program’s payment pool is fixed while the number of qualifying municipalities fluctuates; the city saw a favorable ERP allocation for 2026 but staff warned that should not be assumed permanent. Brown also explained one FMP contingency practice: the city budgets contingency amounts (partly funded by transfers from the stabilization fund) to preserve ERP eligibility and provide flexibility if CPI drops in future years.

On next steps, Brown and finance staff said the committee will continue department reviews at the next meeting and expect to be in a position on Oct. 28 to recommend a proposed budget to the Common Council. The committee approved the minutes for the Sept. 30 meeting by unanimous consent before beginning the budget review.

Ending: Staff will return with a combined operating-plus-capital tax-bill comparison and additional detail on net new construction projections, and the committee scheduled further budget sessions on Oct. 16 and Oct. 28.