Waukesha unveils $3.5 million plan to narrow projected budget shortfall

Waukesha City officials on Wednesday outlined a multi‑year financial management plan they say will head off growing deficits that, under current trends, could reach an $8.5 million single‑year shortfall by 2028.

City Administrator Tony and Finance staff walked the Common Council through the plan, which staff quantified as roughly $3.5 million in fiscal impact drawn from new revenues, cost recovery and service adjustments. "We have 70 funds. The overall budget is around $225,000,000," Tony said during the presentation, adding that the city's general fund is about $80 million and that "75% is compensation." The staff model showed that without action the city would likely exhaust reserves by 2029.

The package mixes revenue and expenditure changes. Staff described a 2026 special charge that would remove recycling and garbage costs from the operating levy and make them a direct charge on property or utility bills; officials estimated a fee in the neighborhood of $150. "What this has the effect of doing is that it frees up additional space on the levy for us to spend funds for the other services that are still within the operating fund," Tony said. Other ideas under consideration include increased user fees, establishing an equipment replacement fund (projected to generate about $1.1 million) and exploring service adjustments such as changing the leaf collection schedule to two cycles rather than fixed district days.

Finance Director Joe summarized the forecasted impact: modest surpluses in 2025 and balance in 2026 under the plan, but continued pressure thereafter. "If we continued with those trends going forward... by the time we get to 2028, we would be at an $8,500,000 deficit," Joe said, describing the baseline scenario the plan seeks to avoid.

Council members pressed staff on tradeoffs. Alderman Bartels said he was "not ready to sacrifice any city services at public safety," while Alderman Piper encouraged residents and others to review the presentation and prior Finance Committee discussion on Granicus. Staff emphasized they are not proposing layoffs; Tony said personnel changes would focus on eliminating vacant positions and reducing seasonal staffing in some areas.

The plan also lists longer‑range options the city could pursue only if policy changes or new authority were granted, including a vehicle registration fee (a wheel tax) and potential adjustments tied to state action such as a levy floor or Medicaid reimbursement changes for EMS providers.

Next steps: staff will continue to refine the proposals, bring the solid‑waste special charge forward for council consideration in 2026, and incorporate other initiatives into the 2025 budget process where feasible.