Verona staff present proposed 2026 budget, recommend levy at $17,341,719

Mister Aulik, a city staff presenter, told the Verona Committee of the Whole on Oct. 27 that staff are presenting a proposed 2026 budget that would use the city's full municipal levy limit of $17,341,719 to maintain services and fund capital projects.

The presentation said Verona's population has grown to about 16,796, nearly 50% above the 2014 level, and equalized property value is roughly $4.6 billion. Staff reported more than $230 million in net new construction in the last year, placing Verona fourth in the state on that measure behind Madison, Milwaukee and Pleasant Prairie.

Why it matters: staff said rapid residential and commercial growth is increasing demand for city services and future maintenance obligations. The proposed budget emphasizes maintaining service levels while reducing reliance on debt and preserving reserve targets that staff say support the city's AA1 bond rating.

Key revenue and levy points in the presentation included the use of net new construction to increase levy capacity, deductions for changes such as personal property aid and an EMS formula adjustment, and a caution that the Wisconsin Department of Revenue can require repayment if the levy exceeds the allowable limit. Brian, identified in the presentation as finance director, was cited as the staff contact for levy calculations and amendment questions.

Staff identified personnel costs and benefits as the primary operating pressure. The proposal implements the results of a compensation study for nonrepresented positions to align pay with area markets. Health insurance costs are projected to rise (staff cited 9.25% for general employees and 11.17% for the police group), and staffing changes proposed for 2026 include adding a community resource specialist in police, converting a case manager to a social-worker-level case manager, adding a building inspector while removing a permit specialist, two engineering technicians, and a half-time public works administrative assistant.

Capital and operating requests described in the presentation include:

- Levy-funded items: $60,000 for solar installations, $25,000 toward police handguns, replacement patrol vehicles, park and recreation equipment, community center renovations ($67,000), and a $500,000 allocation currently shown to replace the skate park.

- Other capital and borrowing: a proposed borrowing plan of $2.35 million (about $1.25 million for a pedestrian and bike trail and $1.10 million for street improvements) and anticipated TID-driven infrastructure projects (noted as TID 11/EPIC) for water and sewer that may be largely TID-funded but could create non-TID-eligible costs requiring future borrowing.

Staff reported projected increases in several revenue categories, including a modest rise in investment interest income, higher building permit and planning fees tied to development activity, growing recreation revenues tied to expanded programs and the community center, and a small projected increase in hotel-motel room tax. Highway aids were projected to decline by roughly $129,000 as a large county highway project drops from the five-year rolling average used in that formula.

On reserves and debt, staff said they plan to apply $2.2 million of 2024 year-end fund balance toward one-time capital in 2026 to reduce borrowing. The city continues a conservative general-obligation debt policy (staff noted Verona uses 3.75% of equalized value as its internal guideline versus the state's 5% statutory benchmark) and reported that existing GO debt is about 18.6% of the city's allowable debt capacity. Next year's debt service was presented as $5,000,000 in principal and roughly $1,000,001 in interest.

Process and next steps: Mister Aulik said budget amendment forms are due Nov. 6 at 9:00 a.m., and the council will hold a public hearing and consider action on any amendments and on the budget and levy on Nov. 10. He emphasized that amendments must be budget neutral and encouraged members to consult with Brian or himself when preparing amendments.

The committee took no formal action on the budget at the Oct. 27 meeting. The committee approved minutes from Oct. 28, 2024, on a voice vote after a motion from Alder Lydall and a second from Alder Helmke. The meeting adjourned after a motion from Alder Helmke and second from Alder Swanson.

Mister Aulik closed the presentation by offering to answer brief questions and invited alderpersons to consult staff on amendment details.