Committee forwards budget assumptions to full board, sets 5% utility increase and directs focus on non-levy revenue

The Marathon County Human Resources, Finance and Property Committee approved a set of budget assumptions to send to the full County Board and made specific adjustments to guide 2026 budget development, including a 5% assumption for utility cost increases and language directing staff to "maximize use of non-levy revenue streams" to help preserve a sustainable levy rate.

The committee moved the assumptions to the Board after debate on several line items. Chair Gibbs moved the packet of assumptions to the Board, and Supervisor Lemmer seconded; the motion carried but not unanimously. During discussion Vice Chair Marshall argued for a lower health-insurance expense assumption and later moved an amendment to cap the 2026 health-insurance increase at 3.4%; that motion failed. The committee did adopt an amendment, moved by Supervisor Poole and seconded by Vice Chair Marshall, instructing administration to seek non-levy revenue sources where feasible to reduce pressure on the tax levy.

Specific budgeting assumptions and decisions discussed or adopted in committee included: - Revenue and levy assumptions cited in the packet: a 1% sales-tax increase assumption, 1.75% levy increase assumption tied to net new construction, and a 3.4% shared-revenue assumption (listed in the draft assumptions staff presented). These figures are assumptions to guide department budget preparation, not final policy decisions. - Utility costs: the committee inserted a 5% increase assumption for utility costs (gas, electric, water) to guide the 2026 budgeting process. Facilities and maintenance staff briefed the committee on expected fuel and electric rate increases and on ongoing energy-efficiency work intended to reduce consumption. - Health insurance: staff proposed a 6.5% assumption for health insurance costs. Vice Chair Marshall moved to lower that assumption to 3.4% (matching the shared-revenue assumption); that motion failed on the floor. Committee language retained a higher budget assumption while directing staff to limit levy impact by considering plan design changes, increased employee contributions, or other measures.

Committee members asked for follow-up information and flagged priorities: - Administration and the finance director were asked to continue work on centralization of financial reporting and controls to improve budget transparency and reduce audit risks. - Facilities staff were directed to continue energy-efficiency measures and to provide detailed utility-account-level estimates so the committee can refine assumptions; committee members emphasized reducing building footprint (by divesting vacant properties) as a potential ongoing utility saving.

Why it matters: Budget assumptions guide department requests and the administrator's proposed budget; the decisions influence how much pressure will be carried by the property-tax levy versus fees, grants and other non-levy sources.

Ending: The committee forwarded the assumptions and the committee's amendments to the full County Board for final deliberation during the formal 2026 budget process.