New Prague council reviews 2026 budget options, weighs smoothing police station levy

Mayor (speaker 3) called the special New Prague City Council meeting to order and the council approved the agenda 4-0. Josh, a city staff member, opened the discussion and said staff had included all budget documents in the packet and planned to review four topics: budget goals, wage/salary adjustments, insurance/benefits, and the capital improvement program and equipment for 2026.

Josh told the council the primary budget pressure was debt service tied to the new police station, which is expected to affect the collect 2027 levy. He said staff had modeled assumptions including a $1.5 million mill-and-overlay project and other CIP items and that those assumptions produced a notable levy spike in the 2027 collect year. He asked whether the council wanted to consider a partial transition levy in 2026 to smooth that effect and explained alternatives including using cash reserves for an initial interest payment or levying in the year the payment is due. Josh said Ehlers would prepare a presale report for the EDA and that bond sale timing would determine when cash would be received;…