Manitowoc officials map multi-year budget choices as operational referendum winds down

At a finance and facilities committee meeting, district staff presented a multi-year budget forecast and warned that the district's operational referendum exemptions will rise over the next two years and then expire after 2027–28, creating a potential jump in property-tax levies if the district does not manage levy decisions or seek new referendum authority.

"We chose to under levy just a hair under $3,700,000 that got us to the goal of having just a 3% raise on the levy for this coming year," said Nate, a district staff member leading the forecast discussion. Staff told the committee the district used about $9.3 million of a $13 million operational referendum this year, and that the referendum amount is projected to increase to about $15 million next year and $17.5 million the following year.

The presentation outlined several scenarios showing the compounding effect of rising referendum exemptions and pending debt. Nate said that if the district does not again underlevy next year, the combined changes could produce a roughly 24% levy increase in that year, with successive increases producing substantially larger gains over a two-year span. To illustrate potential capital needs, staff used a hypothetical $75 million building referendum as an example of future debt-service pressure.

Board members and staff discussed trade-offs between keeping annual levy increases "palatable" for voters and preserving capacity to fund facility investments. One board member asked whether repeated underlevying would entrench a reputation as a low-spending district and how that history might affect future operations; staff replied the district's current underlevying is taking place within the framework of the operational referendum, which changes the mechanics of levy decisions.

The committee asked staff to provide an extended forecast model from Baird, the district's financial advisor, in December. Staff noted Moody's credit review factors and said maintaining a fund-balance ratio approaching the district's target (discussed as near 30%) would help preserve favorable borrowing conditions.

Discussion also covered district priorities for any future building referendum and the need for community and staff engagement on what projects should be included. Gary Wilson, a board member, urged considering both "core needs" (roofs, windows) and discretionary items that would demonstrate community benefit.

No formal action was required on the long-range budget presentation; staff will return with updated modeling and further recommendations.