Village of Jackson reviews final budget, utility rate forecasts and TID performance; board directs staff to publish budget summary for Nov. 11 hearing

Village of Jackson board members on Oct. 20 reviewed a final financial management plan and utility forecasts presented by Ariana Schmidt of Eller's Financial Advisors and directed staff to publish a budget summary for a public hearing on Nov. 11, 2025.

The presentation combined the village's 10-plus-year capital improvement plan (CIP), operating-budget projections for 2026 and forecasts for the water and sewer utilities, plus year-by-year summaries of the village's tax increment districts (TIDs). Ariana Schmidt, a financial advisor with Eller's Financial Advisors, told the board the village had built a 2026 operating proposal that meets the board's goal of a roughly 3% increase in a sample taxpayer's bill.

That 3% objective was reached by adding $321,000 to the village's levy-for-capital line; Schmidt said that levy-for-capital is a "movable object" the village can use to reduce the need for immediate debt issuance and limit the tax impact of future borrowing. She noted the village's 2025 tax rate was $5.10 and the proposed 2026 tax rate in the framework is $5.25.

Schmidt described the village's remaining "line E adjustment" capacity — the portion of general-obligation debt that is not subject to levy limits — as approximately $254,000 for 2026, meaning the village could claim that additional capacity on its levy worksheet if needed. She cautioned that relying on abated debt is not indefinitely sustainable because the capacity falls as debt amortizes.

On utilities, Schmidt summarized the water utility's conventional rate case filed with the Wisconsin Public Service Commission (PSC) in spring; the village requested a 16.38% revenue increase in that filing. "At that time, the rate increase that we requested was 16.38% based on a variety of factors including any planned capital projects," Schmidt said, adding that PSC staff are auditing the utility's records as part of the process and a final implementation is likely in early 2026.

Schmidt said the 16% request reflected both actual 2024 operating expenses and the village's current CIP; a second scenario shown to the board used adjusted operating-and-maintenance assumptions and would yield stronger debt-coverage metrics. "This plan ... is consistent with the message that we shared with you back in spring that after the implementation of this increase ... we don't anticipate the need for another full rate case for the next nine years," she said, while noting that large changes in capital plans or user counts would alter that outlook.

Sewer rates are set locally, not by the PSC. The consultants recommended an 18% sewer rate increase for 2026, the same near-term recommendation presented last year, to help prepare the utility for an anticipated wastewater treatment-plant project and other capital needs. Schmidt said any sewer increase would be implemented one year at a time and brought back to the board for approval; the presentation indicated a proposed effective date of Jan. 1, 2026 for the sewer increase to be considered at the board's November meeting.

On tax-increment districts, Schmidt said TID 4 (created 1995) closed in 2025 after the village used an affordable-housing extension to retain about $796,000 of 2025 increment and transfer it to TID 7 (the Oaks of Jackson) to support affordable-housing work. She said TID 6 (created 2017) is in a deficit position and may require advances from the sewer utility (Schmidt noted a planning estimate of about $1.6 million over the next five years to stabilize the district). TID 7 (created 2019) was described as mixed-use and performing well in early years.

After the presentation, board member Brian Heckendorf moved to "direct staff to publish a budget summary for a public hearing on 11/11/2025." The motion was seconded by Kurtz. The board approved the motion by voice vote; the clerk announced the motion carried.

The next steps Schmidt listed were: a preliminary financing plan early in 2026 likely involving both general-obligation notes and revenue bonds for utility projects, public notices and PSC customer-notice procedures for the water rate case, and a formal board request in November to implement the sewer increase.

Votes at a glance

- Motion to publish budget summary for a public hearing on Nov. 11, 2025 — Mover: Heckendorf; Second: Kurtz; Outcome: approved (voice vote).