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Oconomowoc finance director previews balanced 2026 budget; typical homeowner faces roughly $24 annual increase
Summary
Finance Director presented a preliminary 2026 budget that staff said is balanced under state levy limits; large net new construction and modest shared‑revenue growth offset most operating increases. The average home will see an estimated $24 increase in city property tax under the draft.
Oconomowoc's finance director presented the preliminary 2026 operating budget to the Common Council on Sept. 16, showing a balanced proposal that staff said meets state levy‑limit rules and maintains core city services.
Steve, the city's finance director, said the draft shows a modest net tax impact for the typical homeowner and that the budget is balanced using projected net-new construction value and modest increases in shared state revenue. He told aldermen the city's 2026 budget would rely in part on a sizable growth in the tax base driven by new construction: staff reported roughly $133 million of net new construction in the most recent valuation period, producing a calculated permissible levy increase of about $474,000.
Under the preliminary budget, the estimated tax bill for an average assessed home value (quoted by staff as approximately $455,000) would be $1,891, about $24 more than the 2025 adopted budget (an increase of roughly $2 per month). Staff said the calculation factors in operating and debt levies and that the budget matches projected revenues and expenditures.
Major items in the proposed budget included a 3.5% cost-of-living adjustment for general‑fund personnel, a small employer health‑insurance increase, continued enhanced street maintenance funding, and the Western Lakes Fire District levy impact (a separate resolution related to the joint fire district was on the council agenda and approved). Staff also noted changes in Wisconsin Retirement System employer rates that affect total employer costs.
Steve showed council members a detailed workbook and a linked PDF the public can view on the city's website; the documents include line‑item comparisons, historical transactions and staff notes. He asked aldermen to review materials before a scheduled workshop on Oct. 2 and said follow-up sessions would address all other city funds and utility budgets later in the month; final budget adoption is set for early November under the schedule presented.
Council members asked for more time and outreach on specific items; staff said the documents are interactive and that aldermen and residents can submit questions in advance of the Oct. 2 workshop. The budget team said they will provide additional detail on labor, capital transfers, and contingency items at future workshops.
Steve and other staff emphasized that some one-time revenues and grant assumptions in 2025 had been removed from the 2026 draft to avoid overstatement, and that certain contingency allocations remain in the draft awaiting council direction.
Staff said the budget workbook and the more detailed PDF (both posted to the city's finance pages) will allow aldermen and residents to drill into account transactions and historic spending patterns. The finance office encouraged aldermen to contact department heads or finance staff with questions prior to the next workshop.
