Oshkosh manager proposes 2026 budget that holds levy at $47 million; municipal services payment rises

City Manager Rebecca Grill on Wednesday presented a proposed 2026 budget to the Oshkosh Common Council that holds the city tax levy at $47,000,000 while using a mix of revenue adjustments and fund balance transfers to close an estimated gap.

Grill said staff discovered late in the day that the municipal services payment — a state payment intended to offset city services provided to state facilities — will be $1,700,000 for 2026, up from the $1.4 million estimate used earlier in the budget process. "We were estimating an increase of 300,000, but at noon today, we got notification that we're getting 1,700,000.0 instead of, 1.4," Grill said.

The municipal services payment increase, a 0% projection for employee health and dental costs and other mitigations have reduced a previously projected shortfall. Grill said net new construction for the city was $1.384 million and that the proposed budget maintains last year’s levy level. "So the levy limit last year was 47.5. I think there's another screen that talks about what we could go up this year, but, the budget the council passed last year was with $47,000,000 levy. This proposed budget maintains that same limit," she said.

Why it matters: The levy limit determines how much property taxpayers contribute to the city budget. Holding the levy flat while moving several formerly separate special revenue funds into the general fund is intended to preserve levy capacity in future years but reduces clarity about which programs are supported by dedicated accounts.

Key details: - The proposed 2026 budget keeps the levy at $47,000,000 and uses fund balance transfers and other revenue increases to close the remaining gap. - The municipal services payment figure changed late in the process; staff originally estimated an additional $300,000 but received a net total of $1.7 million. - City staff report that roughly 75% of general fund expenditures are personnel costs (about $44,000,000 of a $63,000,000 general fund). - Several special revenue funds that had been outside the general fund (museum, senior center, street lighting, cemetery, Pollock Aquatic Center and others) are being moved back into the general fund this year; staff said that step was intended to produce a more accurate picture of levy-supported services.

Council and staff discussion touched on the trade-offs of using fund balance to smooth the levy in the short term versus preserving levy capacity for future years. Finance staff said the general fund balance was about 27% of 2026 budgeted expenditures and within policy after accounting for the special revenue fund transfers.

Staff noted the levy limit worksheet still preserves the tax increase available from net new construction. "You always take the full net new construction," a staff member said during the presentation.

Looking ahead: The council scheduled a possible follow-up meeting to allow more time for department-level questions before the public hearing set for Nov. 4.

Ending: Staff said they will circulate updated spreadsheets and further detail on fund-balance transfers and program-specific impacts before the council’s next meeting.