Muskego mayor acknowledges $1 million 2024 water budget documentation error, says project funded without tax impact

The mayor of Muskego told the common council on April 22 that a 2023 staff error created a $1,000,000 funding shortfall that was not reflected on the 2024 water utility budget forms.

The mayor said the infrastructure work was paid with a federal grant and the water utility fund balance and that “no property tax dollars were used,” adding, “the project ultimately came in under budget.” The mayor said the documentation error was not caught until after a contract had been awarded and work begun in spring 2024 and that new procedures have been implemented to prevent a recurrence.

The disclosure followed the mayor’s explanation that the council had previously approved the full cost of the project and that those costs had been discussed publicly multiple times. “That said, the documentation and budget approval error was not caught until after the contract had been awarded and the project had already started in the spring of 2024,” the mayor said. “As mayor, I take full responsibility for this.”

Council members did not vote on the disclosure; it was presented as a report to the council at the start of the meeting. The mayor said the topic was discussed publicly with the council in October and again in a recent closed session before the April 22 meeting.

Council members and staff later discussed broader capital budgeting and road funding during the meeting, including the need for clearer paperwork when multiple funding sources and separate departmental budgets are used for a single publicly bid procurement.

The mayor said the city has implemented new procedures to avoid similar documentation problems and apologized to residents for how the issue was handled and communicated.