City presents 2026 executive draft budget; council workshop set for Oct. 10

Deputy City Administrator and Finance Officer Max Gagan presented the 2026 executive draft budget to the Oak Creek Common Council on Oct. 7 and invited council members and the public to a budget workshop scheduled for Oct. 10 at 8:30 a.m.

Gagan said the proposed overall property tax levy would increase 5.4% compared with 2025, with an operating-levy increase of about 3.4% and a 29% increase in the debt service levy. He told the council the debt service increase follows council direction to borrow for an enhanced surface transportation rehabilitation program — $3 million this year and $4 million in subsequent years — and this is the first year debt service payments for that program appear in the levy.

Gagan described revenue assumptions: a 1.71% net new construction factor, increases in several state shared-revenue items, and a restructuring of utility aid payments between operating and debt funds. He said the city’s closure of Tax Increment District (TID) No. 7 earlier this year provided an additional 1.7% levy capacity. Gagan also said the city expects to lose eligibility for the state expenditure restraint incentive program in 2028 and that staff reduced the 2026 budgeted amount for that program to smooth the transition.

On the expenditure side, Gagan said general fund spending would rise about 3.4%. Personnel costs account for roughly 80% of operating expenditures, and the proposed budget includes a 3.5% cost-of-living adjustment for employees effective Jan. 1, 2026. Gagan noted that employees in the Labor Association of Wisconsin bargaining unit are eligible for a CPI-based base increase (2.64%) and would receive an additional one-time payment (0.86%) in the proposal to reach 3.5%.

Gagan highlighted program-level changes: a new case manager position moved into the general fund after grant funding lapsed, a part-time graphic designer, a part-time police aid, and additional library staff hours. The proposed 2026 capital improvement program totals about $9.8 million, with the $4 million enhanced surface transportation program as the largest component; other projects include a fire engine replacement, ambulance replacement, building access control upgrades, and a snowplow/dump truck replacement.

Gagan warned the council that by 2027 the city likely will face a significant budget gap because the one-time levy capacity from closing TID No. 7 will be gone. He also detailed ongoing health-insurance pressures: cumulative losses in the city’s health insurance fund since 2018, increasing premiums, and the proposed higher employee premium share (nonrepresented employees to move from 10% to 12%; all employees to 13%).

Gagan said staff will present more detail and seek council input at the Oct. 10 workshop.