Port Washington-Saukville board approves revised 2025-26 budget, certifies tax levy and authorizes short-term borrowing

Port Washington-Saukville School District trustees on Oct. 28 approved a revised 2025-26 budget that the district presented as balanced and consistent with the strategic plan.

The board approved Resolution 10-28-25 adopting the revised 2025-26 budget, then certified the tax levy (Resolution 10-27-25) and approved anticipated tax-and-revenue borrowing authority not to exceed $3,000,000 at up to 5.5% interest to support short-term cash-flow needs. The board also approved the Department of Public Instruction third-Friday pupil-count report for 2025-26 at the meeting.

District staff said the 2024-25 results are unaudited but show an operating surplus (recorded at $470,000 unaudited, with staff projecting the final audited surplus nearer $370,000). Using that figure as a starting point, the district presented a revised 2025-26 budget with projected revenues of about $34.6 million and expenditures reduced by roughly $1.3 million from the prior year. Staff described the proposed budget as effectively balanced (a roughly $21,000 positive margin in staff's projection) and said it would place the district's fund balance near 15.7% of expenditures if projections hold.

Why it matters: Staff said the district's equalized property value rose from roughly $2.6 billion to about $2.9 billion, a jump staff characterized as roughly 23% new growth, which reduced the district's mill rate even while referendum debt is being repaid. Presenters told trustees the district's mill rate is about 6.998 (rounded to 7), the lowest in five to six years despite carrying referendum debt service. The presentation noted that state revenue limits and voucher payments reduce general aid and that greater local property value tends to lower state aid.

Key budget details reported by staff: - 2024-25 unaudited beginning fund balance: just above $4.9 million. - 2024-25 unaudited revenues: ~$36.3 million; expenditures: ~$35.9 million; unaudited surplus: $470,000 (staff estimate after audit: ~$370,000). - 2025-26 proposed revenues: ~$34.6 million (a decline of about $1.7 million); expenditures reduced by about $1.3 million. - Equalized value increase: reported from ~$2.6B to ~$2.9B; staff estimated new growth near 23%. - Mill rate: reported at 6.998 (rounded to 7.0) for 2025-26. - Transfer: $200,000 planned to Fund 46 (deferred maintenance/capital set-aside). - Short-term borrowing authority: certification approved up to $3,000,000 at a not-to-exceed 5.5% rate with Port Washington State Bank (for temporary cash-flow bridging).

Enrollment and revenue drivers: Staff emphasized continuing declining enrollment as a major fiscal driver. The district's three-year average pupil count fell from 2,414 to 2,353, which reduces revenue-limit funding and per-pupil aid and also lowers activity-fee and participation revenues. Staff reported open-enrollment figures of about 168 incoming and 179.6 outgoing students; officials said they are surveying families who enroll in and out of the district and will present findings in November.

Fiscal controls and one-time items: Presenters reminded the board that the district made a large prepayment on prior referendum debt (a roughly $10 million prepayment disclosed in the budget narrative) and that ESSER federal funds have declined, reducing federal revenue in the budget. Staff also discussed audit timing issues tied to the district's self-funded insurance and recent GASB guidance on prepaid expenses that affect final audited numbers.

Votes at a glance: - Motion to approve Resolution 10-28-25, revised 2025-26 budget: roll-call vote recorded as Aye from Karen, Brian, Yvonne, Elisa, Nicole, Justin, Stephanie, Sarah and Kirsten (motion passed). - Motion to approve DPI third-Friday pupil-count report for 2025-26: voice vote, all in favor (motion carried). - Motion to approve Resolution 10-27-25 certifying the tax levy to support the approved budget: roll-call vote recorded as Aye from Karen, Brian, Yvonne, Elisa, Nicole, Justin, Stephanie, Sarah and Kirsten (motion passed). - Motion to certify anticipated tax-and-revenue borrowing (not to exceed $3,000,000 at 5.5%): roll-call vote recorded as Aye from Karen, Brian, Yvonne, Elisa, Nicole, Justin, Stephanie, Sarah and Kirsten (motion passed).

What the board directed next: Trustees and staff said they will return to the board with audited financials in November and December and provide additional KPI reporting. Staff also said they will present survey results on open enrollment and additional detail on pupil-count and special-education transfers.

Requests for detail: Board members asked for building-level open-enrollment breakdowns, details on voucher mechanics and their effect on general aid, and follow-up on any audit adjustments tied to self-funded insurance and prepaid expenses. The district indicated those items will be available in the budget book and at upcoming board meetings.