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La Crosse preliminary 2026 operating budget advanced for publication after vote to split $2.1M shortfall between levy and reserves
Summary
On Oct. 9 the La Crosse Board of Estimates advanced a preliminary 2026 operating budget that meets the state Expenditure Restraint Program after departments cut about $2.8M; the board agreed to cover a roughly $2.1M shortfall by splitting the burden 50/50 between the tax levy and the city's fund balance and will publish the proposal for November public hearings.
Mayor Shondell opened the Oct. 9 Board of Estimates meeting to consider the preliminary 2026 operating budget and asked Director Hawkins to review finance's packet, which the director said was placed on Legistar for review. Director Hawkins told the board that department heads had worked to reduce expenses and that those cuts totaled about $2,800,000, allowing the city to "meet that not by a lot but we did meet it by 26000 dollars." The materials, Hawkins said, are being provided for publication and public hearing in November, not as final adoption.
The meeting focused on how to cover a remaining shortfall of roughly $2,100,000. Mayor Shondell proposed options that included using the fund balance, adding the full amount to the tax levy or a split (he initially suggested 60% fund balance / 40% levy). Finance staff offered preliminary per-$100,000 estimates: if the gap were covered entirely from fund balance, the per-$100,000 impact would be roughly $30–$35; if entirely on the levy, about $90 per $100,000; and the mayor's earlier 60/40 split would translate to about $50–$55 per $100,000. Hawkins cautioned that those figures were preliminary and had not been fully vetted.
Council members pressed for context about the fund balance and levy capacity. Hawkins said the city's audited 2024 unrestricted fund balance was about $24,000,000, and by policy the council holds a $15,000,000 minimum (about 20% of the annual operating budget). Hawkins noted some of the current fund-balance cushion came from one-time or exceptional revenues (investment earnings and prior federal and settlement dollars), and those sources are not guaranteed going forward.
Directors also discussed revenue drivers that could help future budgets. Director Train told the board that three tax-increment financing districts (TID 11, 13 and 14) are scheduled to close in the coming years and estimated their returns to the levy: about $812,000 when TID 11 closes (2031), roughly $551,000 when TID 13 closes (2029) and about $328,000 when TID 14 closes (2026), noting dates and amounts can change.
Council members and department heads flagged program and service impacts in the proposed cuts. The Library Board has not finalized line-item cuts but discussed roughly $175,000 of reductions, primarily personnel, and said a possible option under consideration is reducing service at the Northside Library (the board reported the Northside location is open about 28 hours per week; minimum staffing and operating costs cited were roughly $64,000 and $40,000 respectively). Parks staff described deferred capital work and maintenance issues at the Northside Pool and said operating it for the next season would cost about $90,000; agency staff warned closing a pool would disrupt swim lessons and recreation programming.
After extended discussion and several failed amendment attempts (including proposals to adopt a 60/40 split, a 40/60 split and to put the full $2.1M on the levy), Council Member Trotz moved to adopt the proposed operating budget. The board considered a motion to refer for another week (which failed) and then heard an amendment to set the shortfall split at 50/50 between levy and fund balance; the transcript records the motion to advance the preliminary operating budget with the 50/50 split and the board's approval to publish the packet so it can be taken to November public hearings. The transcript does not record a roll-call vote tally for the final approval.
The board directed staff to publish the packet for the November public hearings; council members were reminded that the full council may amend the budget during the public hearing and adoption process in November. Mayor Shondell said he will continue to coordinate with other Wisconsin mayors and municipal groups on the broader state policy constraints that affect local levy capacity.
Next steps: finance will publish the preliminary budget for the November public hearings; the full City Council will take up amendments and final adoption at the scheduled November meetings.
