Wauwatosa officials present 2026 budget overview; estimate municipal tax bill to rise about 8.2%

Wauwatosa City finance staff told the Committee of the Whole on Sept. 30 that the average municipal portion of a Wauwatosa tax bill is currently estimated to rise about 8.21% — roughly $176 — in 2026, a figure that officials said could change as the property revaluation and Board of Review work continues.

The estimate and the budget overview were delivered by John Regini, the city’s finance director, who said the increase is driven by a 2% proposed property tax levy combined with an assessed value increase of nearly 50%, offset by an estimated 31% decline in the tax rate. “Our estimate right now is this average tax bill for a Wauwatosa resident for the municipal portion of the bill will go up by 8.21% or approximate $176,” Regini said. He added the estimate may change over the next several weeks as the Board of Review completes its work.

Why it matters: property taxes make up the bulk of the city’s general fund and few alternative local revenue tools exist, officials said. Regini said property taxes account for about 69% of the general fund and that roughly 73% of expenditures fund front-line services such as police, fire and public works — areas where reductions would be most likely to affect residents.

Key service and budget items - Yard waste collection: The 2026 draft keeps the April–October collection season but reduces curbside pickup from twice a month to once a month. To offset the reduced collection frequency, residents may use the city’s drop-off center at no charge (the drop-off was previously $5) or purchase a larger wheeled yard-waste cart for storage between pickups. Finance staff said the change is expected to save about $90,000.

- Fire department staffing: The 2026 draft does not fund one frontline firefighter FTE that is currently vacant. Finance staff said the change would not require a layoff but will increase the frequency of “brownouts” — periods when an apparatus is short-staffed and cannot provide mutual aid or is temporarily out of service. Regini said an engine (identified in the presentation as Engine 53) has experienced brownouts about 14 times so far this year.

- Police equipment and efficiency tools: The draft budget includes a proposed replacement/renewal contract with Axon for body-worn cameras, interview-room systems and digital evidence management at an estimated 2026 cost of $170,000. Regini said the system’s improved video-redaction tools should reduce staff time responding to records requests. The police department is also budgeted to purchase a second drone to provide redundancy; staff said the existing drone has helped locate a robbery suspect and monitor large events.

- Library staffing and circulation: Library circulation remains high — the presentation said 871,541 items were checked out in 2024 — and the draft adds circulation-desk hours for existing attendants rather than new head count. The library requested two additional librarian positions (one children’s and one adult librarian) but those positions are not funded in the 2026 draft.

- Employee compensation and benefits: The draft recommends a 3% cost-of-living adjustment for nonrepresented employees. Regini said the Wisconsin Retirement System (WRS) employer rate will increase from 6.95% to 7.2% (a state-determined change). The city projects a 4% increase in health insurance premiums in 2026 and no planned benefit design changes.

How the budget gap was closed (high level) Regini presented a “waterfall” summary of how the city closed an initial projected $1.7 million gap. Departments were directed to reduce their “cost to continue” — the incremental funding needed to maintain current services after inflation and wage changes — by about $810,000 (the largest single department reduction coming from the fire department). Positive variances included higher-than-expected interest earnings (about $900,000) and benefit-related savings (about $750,000). Offsetting those were higher operating costs (about $521,000), including a fleet-replacement inflator that the city increased to account for vehicle-cost inflation and one-time expenses related to police department savings incentives. Regini acknowledged a remaining $141,000 “plug” at this high level of summary that will be reconciled in the full budget document.

Capital budget, flood and FEMA uncertainty Regini said the 2026 draft does not reflect potential financial impacts from a proposed fire-department merger, ongoing flooding response, or a library and city hall renovation because the details of those items were still evolving. The city is awaiting FEMA decisions on public assistance; FEMA has approved assistance for private homeowners and businesses but has not made a final determination about local-government-eligible assistance. Regini said the capital budget timeline is behind due to the flooding; tentatively the Committee of the Whole would review the capital plan on Oct. 28 or at the Nov. 11 Financial Affairs meeting, with a final adoption by the common council planned in mid-November.

Water-utility capital pressure Officials warned of significant water-utility capital pressure in coming years, citing two state projects — Highway 181 and North Avenue — that together include more than $17 million in water-main work. Regini said the city may defer non–state-funded projects that include water-main work to avoid paving roads that would later require excavation. He said the city is likely to increase its forecasted utility rate adjustment in 2028 to address the funding shortfall.

Process and next steps Regini said the full 2026 budget document had been posted to the city’s website the evening of the presentation and that three Financial Affairs Committee meetings are scheduled in October for departmental reviews. He asked alderpersons to notify staff if they wanted additional departments to present. Staff emphasized the draft is still subject to change as revaluation results and Board of Review adjustments are finalized.

The presentation and committee discussion were informational; no formal budget adoption vote occurred at the Sept. 30 Committee of the Whole meeting. City staff and multiple alderpersons asked questions during the presentation and received clarifications on arbitration assumptions for the fire contract, line-item detail availability (provided on request), and net-new-construction estimates that inform future levy capacity.