Waupaca presents balanced 2026 budget with small tax rate uptick; public hearing set for Nov. 18

City Administrator Josh Finch on Tuesday presented the City of Waupaca’s proposed 2026 budget, saying it preserves services while accounting for personnel and inflationary pressures and positions the city for steady growth.

The proposed budget projects roughly $518,000 in additional general fund revenue for 2026, driven by state aid (+$166,892), net new construction (levy capacity of $61,600, about 1.49%) and increased building-permit revenue (about $190,000), Finch said. The budget includes cost-of-living adjustments totaling 4% across the year (2% on Jan. 1 and 2% on July 1) and assumes about a 9% rise in health insurance premiums, with the city continuing to pay 90% of employee premiums.

"This budget positions Waupaca to remain strong, resilient, and forward looking into 2026 and beyond," Finch said, outlining priorities of service continuity, infrastructure investment and fiscal stability. Finch added the proposed 2026 general fund remains balanced with revenues and expenditures aligned.

Finance Director Stephanie Wright briefed the council on reserve levels and credit ratings. The budget material notes the general fund balance is above the city policy target and that the city holds an A+ credit rating, which Wright and the staff attributed in part to the stronger-than-target fund balance.

The proposal includes several planning items discussed in the meeting: potential increased costs for wastewater permit compliance (phosphorus and sludge treatment) after a DNR inspection; an intent to apply to the Safe Drinking Water Loan Program for lead-service-line replacement; and an anticipated council packet item to consider a carbon-forest project at water-well sites to generate and sell carbon credits.

Council members asked several follow-up questions. Council member Henry Velacher pressed staff on whether the modest tax-rate increase mainly reflects debt-service needs; staff said debt service is a major contributor. Council member Eric Halverson and others discussed the timing and magnitude of staff cost adjustments and the city’s labor-market competitiveness.

The net effect on the city’s tax rate was described in staff materials as an increase from about $7.71 to $7.82 per $1,000 of assessed value — roughly an $0.11 change (about a 1% increase) — driven in part by debt-service obligations tied to recent capital projects, staff said.

The council set a required public hearing on the proposed 2026 budget for Nov. 18, 2025; adoption is scheduled for that same night. Staff said the budget notice will be published in the newspaper after Oct. 30 to satisfy the 15-day publication requirement ahead of the hearing.

Other budget notes discussed: an intern/matching line in community and economic development (approx. $7,500) and ongoing county-led work on a countywide taxi service RFP that could affect how the city budgets for local transit support. Finch and Wright said they will continue to monitor those items and return to the council with options if circumstances change.