Monona council adopts 2026 operating budget and tax levy after amendments

The Monona Common Council adopted the city’s 2026 operating budget and tax levy on Dec. 1 after approving a series of budget amendments that adjusted debt service, departmental costs and a small training allocation for AI research.

Finance director Mark summarized seven amendments that altered the levy and internal allocations. The largest change came from a revision to the debt-service repayment schedule; staff reported a lower-than-expected borrowing cost that reduced the city’s required debt-service contribution by $737,800, which in turn lowered the property tax levy pressure (amendment 2601).

Council approved a library budget amendment after two part‑time employees enrolled in city health insurance, creating a $9,074 increase in the library line; the council approved an amendment to cover that cost (amendment 2602) and discussed whether departmental budgeting for insurance produces volatility in small departments. Other amendments included an internal transfer to debt service (2606) and a technical media equipment reallocation that was net zero to the operating budget (2607).

Council also debated a modest $2,000 allocation for AI training and policy exploration (identified in the packet discussion as amendment 2605). Staff described participation in the Government AI Coalition and available UW Extension courses; councilors agreed training and policy development warranted a small initial allocation and approved the amendment with a recorded voice vote (some members opposed or abstained).

With amendments applied, staff presented final levy numbers: finance reported the property tax levy required to finance the 2026 budget as $12,160,120.50 and the tax rate as 6.090281 per $1,000 of assessed value. Staff said the net impact on a median Monona household would be about $4 annually from the city operating budget changes; staff also emphasized that most of a typical homeowner’s tax bill comes from other jurisdictions.

The council moved the resolution and approved the 2026 operating budget and tax levy on a roll‑call vote. Finance staff will file levy documents with the county clerk and publish the adopted budget and supporting materials with the minutes.

Key actions taken in the budget process included: approving debt-service schedule changes that reduced levy pressure, adding the library insurance cost to departmental budgets, approving a modest AI training allocation, and instructing staff to post the adopted budget and levy information.