Port Milwaukee officials told the Common Council’s Finance and Personnel Committee on Oct. 17 that the port’s proposed 2026 budget reduces overall spending and special-fund revenues even as capital work on a new South Shore cruise dock proceeds and cruise traffic is expected to grow.

The department presented a ‘‘cost-to-continue’’ budget that the Budget Management Division summarized as a $1.4 million (about 17%) reduction from the adopted 2025 level. The department attributed most of that decline to a roughly $1.2 million drop in special funds, including a decrease in the Summerfest payment to the general fund. Port staff also reported a 54% fall in capital spending, from $6.3 million in 2025 to $2.9 million (excluding a separate $800,000 grant).

Why it matters: Port Milwaukee operates as a quasi‑enterprise fund that must balance projected revenues against planned spending. The passenger and cruise business is a growing part of the port’s activity and economic story for southeast Milwaukee — but many of the port’s large capital projects and irregular lease payments cause year‑to‑year swings in the port’s budget picture.

What Port Milwaukee said: Angelique Pedigree, a budget analyst who presented the mayor’s request slide, said the department’s ‘‘cost-to-continue’’ baseline decreased primarily because of the drop in special funds. She noted that Summerfest’s five‑year rental payment moved the 2025 adopted budget to a higher amount and that 2026 includes a lower scheduled payment: $1.8 million in the 2026 proposal compared with $3.0 million in 2025. Pedigree also said operating expense reductions reflect a mayoral reduction request and prior spending trends.

Port staff outlined four core service areas — business and trade development, port infrastructure and maintenance, ‘‘recreational’’ lease management (tenants such as Discovery World and Lake Express), and tourism (cruise visits and shore services). Jackie Q. Carter, who is serving with the port during a leadership transition, said port infrastructure and maintenance draws the greatest share of funds and full‑time employees.

Cruise traffic and projects: Chief engineer Brian Kasprzak and the port’s presentations emphasized that cruise visits are increasing and that the port expects 62 vessel visits and roughly 19,000 passengers in 2026, in part because a new operator, American Cruise Lines, will offer Milwaukee round‑trip sailings. Kasprzak said the port’s stewardship program, Green Marine membership, LED upgrades and a 14‑year‑old wind turbine at the administration building are part of long‑running environmental efforts. He also described a major dredge‑material facility on Jones Island and the Milwaukee Estuary cleanup with EPA and local sponsors; dredging mobilization is expected in 2027 with cleanup work beginning in 2028.

Capital projects: Port staff reported several active capital projects. Construction of the South Shore cruise dock, funded in part by $3.5 million from the Wisconsin Department of Administration (tourism grant) and $500,000 from the Wisconsin Department of Transportation harbor assistance program, is under way and was described as on schedule for partial operation in June 2026. The port also described a Delong Agricultural Maritime Export Facility project of about $16 million with a federal Port Infrastructure Development Program grant of about $9.3 million; port staff said that required no city operating contribution and that Delong provided local match.

Operations and staffing: The port requested three seasonal positions to support peak cruise season operations and noted personnel will ramp up in May and June then taper off. Pedigree told the committee the added seasonal staff would cost roughly $13,764 for two people and be funded from an existing vacancy. Finance and procurement steps, including standardized lease terms, updated tariffs, and expanded e‑Notify and procurement advertising, were described as ways the port is improving uniformity for customers and tenants.

Committee questions and context: Committee members asked about the port’s relationship to city borrowing, debt service on the recent cruise dock, the port’s revenue transfer to the general fund (as Summerfest and other payments occur at year‑end), and whether passenger fees would pay down capital costs. Port officials said the city generally carries debt service for capital borrowing, but the port had carried some debt service for a prior phase (and that remains on the port’s budget for a specific project). Officials said tariff reviews are done annually and that passenger fees — currently $11 per passenger in the port tariff — are reviewed for 2027 budget planning.

Members also pressed port staff on how cruise passengers can be connected to transit and neighborhood businesses; staff said local tour operators coordinate bus excursions and that port marketing staff will continue to work to connect local businesses with passenger itineraries. Aldermen asked about vacant parcels and lease renewals; port staff said the Harbor Commission had approved several renewals and extensions and that the port actively markets several vacant parcels, noting that multimillion‑dollar leases can take years to materialize.

What was not decided: The committee received the port’s budget presentation and asked questions; no formal actions or votes on port budget items were recorded during this session.

What to watch next: The cruise dock construction timeline (partial operation anticipated June 2026), final tariff decisions that could affect 2027 revenue, and how the port’s year‑end payments (Summerfest or other large, intermittent lease payments) influence general fund transfers.

Ending: Port Milwaukee’s presentation framed 2026 as a year of lower special‑fund revenue and reduced capital spending compared with 2025, while emphasizing growth in cruise activity and continued capital investment in port infrastructure and grain export facilities.

Quotes (selected): "The department's overall cost-to-continue budget decreased by $1,400,000 or 17% from 2025," said Angelique Pedigree, Budget Analyst. "We expect 62 vessel visits and about 19,000 cruise passengers in 2026," Chief Engineer Brian Kasprzak said.

Votes at a glance: No formal committee votes were recorded for Port Milwaukee during the Oct. 17 session.