Onalaska council weighs new fees, grant application and staffing as budget gap looms for 2026

Onalaska’s Common Council held a special meeting July 19 to begin setting a budget strategy for 2026, reviewing a projected deficit and a range of revenue and cost options including fee increases, a new fire-assessment fee, staffing changes and a federal SAFER grant application.

City Administrator Rick presented the report and told the council the work group’s objective: “our goal is to have a balanced budget,” and that achieving it will require a mix of measures. The council discussed short-term revenue steps staff urged the council to approve now to reduce the 2026 gap and longer-term changes that would require study, public engagement or consultant work.

Why it matters: staff projected a roughly $388,000 deficit for 2026 in materials distributed to council, and notified members that recent health-insurance premium estimates would increase that figure further. The council must decide quickly if it will deploy fee changes or other revenue tools ahead of the August budget deadlines.

What council considered and debated

- Existing revenue review: staff recommended a department-by-department review of fees and charges to capture modest revenue increases where justified.

- Public fire-protection charge (water bill): Finance staff said increasing the line-item that covers hydrant/water-for-fire-protection costs would shift an estimated $412,000 in current general-fund transfers onto utility customers. Finance noted the Public Service Commission (PSC) must approve the change; Sabrina said “Ehlers told us that it was kind of the path of least resistance” among options evaluated.

- Municipal vehicle registration fee (“wheel tax”): staff presented a state-administered…