Racine finance director presents proposed 2026 budget, warns of structural deficit and heavy retiree-health obligation

Kathleen Fisher, finance director for the City of Racine, presented the proposed 2026 city budget to the Common Council on Oct. 21, 2025, describing a multi-fund plan just shy of $276 million that she said was intended to support city priorities while remaining “fiscally responsible and sustainable.”

Fisher told the council the document contains an overview, department detail pages, fee schedules and a 10-year capital improvement plan. She said the proposed general fund is roughly $95.2 million, the total all-funds budget is about $276 million, and the city recorded more than $73 million in net new construction for 2026 — a historic high for Racine.

The budget presentation stressed constraints imposed by state levy limits and long-term obligations. Fisher said the city’s tax rate will be $11.75 per $1,000 of assessed value — “the lowest for the city of Racine in over 15 years” — and that the city’s unfunded other post-employment benefit (OPEB) liability stands at roughly $236 million. She said retiree health care costs run about $10 million a year and noted that those legacy costs hurt the city’s bond…