2026 Annual Program Budget

2026 VILLAGE OF GRAFTON, WI M BUDGETANNUAL PROGRA 2 Table of Contents Community Profile Village Board ............................................................................................................................ 6 Organizational Chart and Management Team ......................................................................... 7 Background and General Information ...................................................................................... 8 Demographic Statistics ............................................................................................................ 9 Budget Message Village Administrator’s Message ............................................................................................ 11 GFOA Budget Award – 2025 .................................................................................................. 20 Budget Structure Strategic Plan ......................................................................................................................... 21 Fund Structure ....................................................................................................................... 26 Budgetary Basis ..................................................................................................................... 27 Overview of Budget Policies, Presentation, and Process ....................................................... 32 Budget Overview 2026 Budget Facts ................................................................................................................. 40 Budget Summary ................................................................................................................... 41 Fund Balance Summary ......................................................................................................... 43 Combined Summary of Changes in Fund Balance ................................................................ 45 Personnel Schedule Summary ............................................................................................... 46 Summary of Revenues and Expenditures by Fund, Type, and Category ............................... 47 Departments by Fund Classification ....................................................................................... 48 Revenue Analysis Long Term Financial Plan ...................................................................................................... 49 Major Revenue Sources, Trends, and Assumptions .............................................................. 60 General Fund General Fund Summary ......................................................................................................... 70 General Fund Revenues ........................................................................................................ 71 General Fund Expenditures Summary ................................................................................... 73 General Government Village Board .......................................................................................................................... 74 Legal ...................................................................................................................................... 76 Administration ........................................................................................................................ 78 Village Clerk ........................................................................................................................... 81 Elections................................................................................................................................. 84 Information Technology (IT) ................................................................................................... 86 Finance .................................................................................................................................. 88 Assessing ............................................................................................................................... 91 3 Village Hall ............................................................................................................................. 93 Village Promotion and Goodwill ............................................................................................. 95 Public Safety Police Administration .............................................................................................................. 97 Police Operations ................................................................................................................. 100 Police Professional Staff ...................................................................................................... 102 Police Station ....................................................................................................................... 105 Fire Station Building ............................................................................................................. 107 Inspection ............................................................................................................................. 109 Public Works Administration ...................................................................................................................... 112 Engineering .......................................................................................................................... 115 Street Repair and Maintenance ............................................................................................ 117 Street Cleaning .................................................................................................................... 119 Snow and Ice Control ........................................................................................................... 121 Forestry ................................................................................................................................ 123 Traffic Control ....................................................................................................................... 125 Storm Water Management ................................................................................................... 127 Bridges and Dams ................................................................................................................ 129 Equipment Repair and Maintenance .................................................................................... 131 Municipal Services Facility ................................................................................................... 133 Recycling and Sanitation ...................................................................................................... 135 Community Enrichment Services Adult Senior Services ........................................................................................................... 137 Parks and Playgrounds ........................................................................................................ 139 Parks and Recreation Department Administration ............................................................... 141 Timothy Wooden Building .................................................................................................... 144 Woodlawn Cemetery ............................................................................................................ 146 Conservation and Development Community Development ..................................................................................................... 148 Other Transfers .............................................................................................................................. 151 Unclassified .......................................................................................................................... 153 Special Revenue Fund Special Revenue Funds Budget Summary........................................................................... 155 Room Tax Fund ................................................................................................................... 156 Fire Protection and Rescue .................................................................................................. 158 Park and Open Space Fund ................................................................................................. 162 4 Revolving Loan Fund ........................................................................................................... 164 Woodlawn Cemetery Capital ................................................................................................ 166 Recreation Fund ................................................................................................................... 168 Parks and Recreational Facilities Fund ................................................................................ 171 Name and Location of Public Parks .................................................................................. 173 Aquatics Fund ...................................................................................................................... 174 Library .................................................................................................................................. 176 Library Donor Fund .............................................................................................................. 180 Environmental Fund ............................................................................................................. 182 American Rescue Plan Fiscal Recovery Fund ..................................................................... 184 Police K9 Program ............................................................................................................... 186 Fire Department County ARPA Grant .................................................................................. 188 Debt Services Funds Debt Service Fund ............................................................................................................... 190 Debt Service Fund Budget ................................................................................................... 191 Computation of Legal Debt Margin ................................................................................... 192 Debt Service Fund - Notes and Bonds .............................................................................. 193 Debt Service Revenues and Expenditures ....................................................................... 195 Annual Debt Service Requirements .................................................................................. 196 Debt Service Requirements of Outstanding G.O. Bonds and Notes ................................. 197 Impact Fee Fund .................................................................................................................. 198 Capital Improvement Funds Capital Improvement Funds Budget Summary ..................................................................... 200 TID No. 3 - Downtown Redevelopment ................................................................................ 201 TID No. 4 – South Commercial District ................................................................................ 203 TID No. 5 – Grafton Commons ............................................................................................. 205 TID No. 6 – Goldberg Foundry ............................................................................................. 207 Capital Project Fund ............................................................................................................. 209 Equipment Fund ................................................................................................................... 212 Fire Department Equipment Fund ........................................................................................ 215 Fiduciary Fund Woodlawn Cemetery Perpetual Care Fund .......................................................................... 217 Proprietary Funds Proprietary Funds Budget Summary .................................................................................... 219 Water Utility .......................................................................................................................... 220 Wastewater Utility ................................................................................................................ 228 Utility Capital Projects .......................................................................................................... 234 Water & Wastewater Utility Schedule of Capital Expenditures ............................................. 235 5 Appendix Tax Rate............................................................................................................................... 237 Personnel Schedule ............................................................................................................. 238 Total Expenditures by Fund and Department ....................................................................... 241 General Fund Summary of Expenses by Category .............................................................. 242 5 Year Capital Improvement Plan ........................................................................................ 244 Resolution Adopting the 2025 Annual Program Budget ....................................................... 249 Notice of Public Hearing ....................................................................................................... 250 Chart of Accounts – Expenditure Classifications .................................................................. 252 Glossary ............................................................................................................................ 256 Acronyms .......................................................................................................................... 261 6 Community Profile Village Board Daniel Delorit Village President Dave Armstrong Village Trustee Kevin Curtis Village Trustee Amy Luft Village Trustee Sarah Scarpace Village Trustee Andrew Schwartz Village Trustee Lisa Uribe Harbeck Village Trustee Vacant Village Administrator VISION STATEMENT “Grafton will embody its “Quality Life. Naturally.” brand with superb services, integrating natural resources and life enriching cultural experience to build pride in our community." 7 Organizational Chart and Management Team Name Title Vacant Village Administrator Jeff Caponera Police Chief Paul Styduhar Administrative Services Director Vacant Community Development Director James Micech Building Inspector Chad Hoier Parks and Recreation Director Vacant Director of Public Works/Village Engineer Brecken Gries Utility Director/Engineer Amanda Kloppmann Library Director William Rice Fire Chief 8 Background and General Information The Village was incorporated in 1896 with 145 acres of land purchased in 1838 by Timothy Wooden. At that time Grafton was a lumber community; today, the Village is approximately 5.503 square miles with a 2025 population of 13,124, and is located in Ozaukee County. The Village operates under a “Council-Manager” form of government. Policymaking and legislative authority are vested in the elected governing body, which consists of seven part-time Board of Trustees (Board) including a Village President. The Village Administrator is responsible for recommending and carrying out the policies and ordinances of the Board, appointing Department Heads (confirmed by the Board) and overseeing the day-to-day operations. The departments of the Village include Administration, Administrative Services (Finance and Clerk), Police, Public Works, Water and Sewer Utility, Parks and Recreation, and Community Development (Planning, Inspections and Assessments). The Village is also served by the U.S.S. Liberty Memorial Public Library and the Ozaukee Central Fire Department which are both governed by separate Boards whose members include residents of the municipalities they serve. The Village is served by the Grafton School District and Cedarburg School District, offering comprehensive educational programs for student grades K-12. The Village is also served by Milwaukee Area Technical College which provides secondary educational opportunities for Grafton’s residents and workforce. The Village of Grafton 9 Demographic Statistics 10 Demographic Statistics Building Permits Occupational Composition (Ozaukee County, 2020) Year Number Managerial and Professional 34.90% 2024 2,025 170 Technical, Sales and Administrative 35.10% 2023 1,579 46 Service Occupations 9.70% 2022 1,675 40 Production and Transportation 11.80% 2021 1,794 40 Natural Resources, Construction, Maintenance 8.50% 2020 1,599 46 2019 1,061 21 Water / Wastewater (2024) 2018 1,099 24 Active Accounts Serviced 5,281 2017 1,121 70 Water Treated & Distributed (millions of gallons) 409 Sanitary Sewers (miles) 57 Employment Trends (Ozaukee County) Water Main (miles) 76 Employment Unemployment Rate 2024 (Oct) 48,772 2.2% Elections (2024) 2023 48,551 3.7% Registered Voters Turn-out Percent 2022 48,552 3.4% Spring Election 8,135 3,775 46.40% 2021 47,184 3.9% Partisan Primary 8,170 3,577 43.78% 2020 45,682 5.4% General Election* 8,500 8,000 94.12% 2019 48,770 2.5% * estimated 2018 47,434 2.1% 2017 47,891 2.1% Infrastructure (2024) Miles of State Highway 2.54 Parks Miles of County Highway 3.28 Parks Miles of Local Roads and Streets 58.80 2024 21 130 Miles of Sidewalks 104.19 2023 20 128.5 Number of Street Lights 1,691 2022 20 128.5 2021 20 128.5 Number of Sworn Police Officers 2020 17 120.0 2025 22 2019 17 120.0 2024 22 2018 17 120.0 2023 22 2017 17 120.0 2022 22 2021 22 Public Safety 2020 22 Number of Police Stations 1 2019 22 Number of Fire Stations 1 2018 22 ISO Rating 3 2017 22 Source : US Census, Wisconsin Department of Revenue, Wisconsin Department of Administration, Federal Reserve Bank of St Louis, Village of Grafton Annual Financial Reports, Village of Grafton Comprehensive (Master) Plan and the Wisconsin Information System for Education Acres Maintained Value (millions) 11 Budget Message Village Administrator’s Message To: Village President Delorit and Members of the Board of Trustees From: Village of Grafton Budget Team Date: October 10, 2025 Re: FY 2026 Executive Budget Letter of Transmittal On behalf of all of the Village of Grafton Departments, the Budget Team respectfully presents the 2026 Executive Budget which sets forth funding for all Village operations and Departments to ensure the highest level of municipal service delivery and amenities are available to residents within the various fiscal constraints that are imposed upon the Village. The Budget Team would like to extend a sincere “Thank you!” to all Village Departments for submitting responsive and responsible Requested Budgets based on direction from the Village Administrator. Budget Process The Village’s budget process begins in February with preparation of the 5-Year Capital Improvement Program (CIP). The CIP sets forth a plan for the purchase, design, rehabilitation, renovation, construction, and maintenance of facilities, properties, and systems to enhance the physical development of the Village. The first year of the CIP is intended to be part of the annual budget process and the remaining four years are recommended as a plan for future projects. The process continues in June when Departments receive budget instructions and Administration presents a “Budget 101” informational session to the Committee of the Whole explaining the budget process, influential factors, and fiscal constraints the Village is facing in 2026 and beyond. Departmental Heads present their requested budgets to their peers in August to help educate each other about various departmental functions and how funding requests come together to form the overall budget. The Budget Team then works to bring the Department requests together with other factors (i.e., insurance premiums, WRS rates, consumer price index, tax levy, state aids, manufacturing property values, etc.) to submit an Executive Budget to the Village Board on October 10, 2025. The 2026 Budget was approved by the Board of Trustees as presented with no changes. The “Requested” column may differ from the “Executive” column due to the need to balance available financial resources with the needs of all Departments to the extent possible and the need to borrow for some projects rather than funding with Fund Balance since there is no tax levy available for all mandated projects. 2026 Executive Budget Overview The following sections highlight noteworthy items within the Budget in lieu of a line-by-line review. Areas of the Budget that are not mentioned here are either unchanged from prior 12 year(s) or have minor changes or balances when considered within the scope of the overall budget. • The recommended total tax levy for the General Fund for 2026 is $6,169,176. This is a decrease of $194,295 or 3% due to an increase in tax levy needs in other funds including Special Revenue Funds (Ozaukee Central Fire Department). • The Village’s net new construction allowed the Village to add 3.73%, or $392,733 of tax levy for 2026. State property tax levy limits, under Act 20 (2013), allow municipalities to adjust their total property tax levy by the percent increase in net value of new construction or 0%, whichever is greater. • The Village’s assessed tax rate is $4.937 per $1,000 of assessed value. This is a decrease of $2.10 from 2025. This decrease occurred due to the Village-wide reevaluation, which increased property values an average of 43%. • The following table shows the percentage change in the Village’s Assessed Tax Rate vs the percentage change in Consumer Price Index (CPI). Figure 1: Change in Village’s Assessed Tax Rate Vs. CPI • In the above chart it can be concluded that the percentage change in the Village’s assessed tax rate mirrors the change in CPI from year to year except in 2021 and 2026 when Village-wide revaluations were completed and in 2025, when the referendum for Ozaukee Central Fire Department caused a spike in the Village’s tax rate. • The Village’s equalized tax rate is $4.78 per $1,000 of equalized value. At this time, the Village does not qualify for the State’s Expenditure Restraint Program because the equalized tax rate is below $5.00 per $1,000 of equalized value. • The 2025 Budget budgeted use of $749,188 in Fund Balance; however, only $102,348 will be needed to cover expenses through the end of 2025. The expected year-end Fund Balance of $4,589,134 is approximately 42% of expected 2025 expenditures which -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 20262025202420232022202120202019 Percentage Change of Tax Rate vs. CPI CPI used for 2025 and 2026 are forecasted by the US Bureau of Labor Statistics Percentage of Change in Tax Rate from the Prior Year Percentage of Change in CPI from the Prior Year 13 exceeds the recommended guideline of 25%. Continued responsible use of Fund Balance dollars helps to maintain the Village’s sound bond rating, ensure compliance with the State’s ERP guidelines, and helps to stabilize the tax rate over time. • The 2026 Budget includes the use of $1,231,416 of Fund Balance to create a balanced budget. Of this amount, $149,540 is budgeted for specific one-time projects as noted below. The Ozaukee Central Fire Department’s requested increase in tax levy shifted tax levy from the General Fund to the Fire Protection & Rescue Services Fund in the amount of $359,431. Consistent with past practice, the remaining amount of budgeted use of Fund Balance is not committed for a specific use. Rather, it is programmed to cover increased costs of Village expenditures including wages, benefits, and mandated projects. Fund Balance levels remain in compliance with Village policy. o Comprehensive Outdoor Recreation Plan update o Floodplain Review Project o Maintenance projects at Village Hall including an ADA door conversion, landscaping replacement, and HVAC updates. Figure 2: Fund Balance Policy Compliance • The 2026 Budget includes the implementation of the Classification and Compensation Report with an average 3% pay increase for non-represented employees. The Village Board acknowledged that this increase was necessary in a highly competitive employment market with extremely low unemployment. • The 2026 Budget does not include any staffing changes. One Department of Public Works Crewperson position was planned for 2026 to meet the needs of our growing community but was removed due to financial constraints. • The Village’s America Rescue Plan Act Fund (ARPA) funds were programmed and completely expended in 2024; the Ozaukee County ARPA funds given to the OCFD were completely expended by June 30, 2025. • Figure 3 illustrates how an average homeowner’s tax bill payment is allocated based on an average home value of $419,000 and the Village’s 2026 tax rate of $4.937 per $1,000 of assessed value. Using these assumptions an average residential Village tax bill would 2021 Actual 2022 Actual 2023 Actual 2024 Actual 2025 Adopted 2026 Executive $2,133,146 $2,250,124 $2,358,545 $2,662,007 $2,850,934 $2,850,934 $3,350,968 $3,031,242 $3,463,030 $4,691,482 $4,180,761 $4,589,133 FUND BALANCE LEVEL VS. 25% OF GENERAL FUND EXPENDITURES POLICY THRESHOLD Actual Fund Balance 25% Fund Balance Policy Threshold 14 be $2,070. It is important to note that this calculation does not reflect taxes collected by other jurisdictions such as Ozaukee County, Grafton School District/Cedarburg School District, and Milwaukee Area Technical Colleges. Figure 3: Allocation of an Average Residential Tax Bill ($ amounts rounded) Ozaukee Central Fire Department • The 2026 Budget includes $2,680,887 for the Village’s share of the requested Ozaukee Central Fire Department’s 2026 Budget, a 15.48% increase from 2025. • The Village’s total tax levy includes $246,061 and $1,478,072 each year for the Fire and EMS referendums approved by voters in November 2012 and April 2024, respectively. • In addition to the referendum amounts, the Village contributes an additional $956,754 above the required referendum amounts to the OCFD. • The 2026 OCFD Budget was rejected by the Town of Grafton. The Intergovernmental Agreement states that a final budget shall be adopted by all four municipalities no later than December 1, and if the budget is not adopted by all municipalities by that date, the current year’s budget shall be used for the next calendar year. • The proportion of each municipality’s tax levy contribution (i.e., Financing Formula) is based on a three-year average of call volume, population, and equalized value of improvements. The proportion changes annually regardless of acceptance of the OCFD Budget by all municipalities. The Village’s portion of the 2025 OCFD Budget was $2,321,456. General Debt • Budgeted debt service expenditures have decreased $164,243 from 2025 in accordance with amortization schedules. Tax levy allocation has remained the same. This Debt $1,137 $507 $175 $131 $62 $31 $27 Allocation of Average Tax Bill General Fund Fire/EMS Capital Equip & Projects Library Debt Service Rec Prog & Aquatics Park & Open Spaces 15 Service fund sets forth the Village’s payments towards its debt obligations (not including Utility related debt within the Proprietary Funds). • Wisconsin Statutes allow for a maximum debt limit of five (5) percent of the community’s equalized tax base. The Village’s overall estimated 2025-year end debt percentage of the statutory limit is 22%. In other words, the Village is carrying about one quarter of the amount of allowable debt per state law. Tax Increment Financing Districts • TID No. 3 continues to pay down existing debt service and is scheduled to close in 2028 with tax levy available to the General Fund in 2029. • TID No. 4 allocates funding for possible project(s) and has a required closure date of September 2031, but may be able to close sooner. • TID No. 5 contributes funds to TID No. 3. This TID has a required closure date of April 2033, but may be able to close sooner. • TID No. 6 was created in 2024 to generate a funding source for environmental remediation of the Goldberg Foundry. This district will have a 25+ year life span depending upon financial and market conditions. The 2026 Budget includes $685,000 for demolition of the Goldberg Foundry. The Village Board could authorize borrowing for this project, or wait for tax increment to be available. Parks and Recreation • The primary project in the Parks and Open Space Fund (tax levy for replacement equipment) is replacement of the playground structure at Lime Kiln Park for $115,0000. Centennial Park parking lot repaving project was removed from the Executive Budget due to lack of funds. • The Parks and Recreational Facilities Fund (impact fees for new facilities) is expected to use $1,000,000 to purchase or portion of the 5.6 acres of parkland in Hawks Ridge Landing subdivision per the approved development agreement. Following Plan Commission and Village Board approval of the final plat adjacent to the parkland, the Village will hire an appraiser to prepare an appraisal of the property. The Village will pay the cost of the parkland in installments of 50% of the available Park Impact Fee Fund Balance on May 15th of each year until the cost of the parkland is paid in full. Library • The Library Fund has an increase of $10,000 in allocated Village tax levy to address increases in salary and benefits. • Donor funds totaling $315,000 will be used in 2026 for a comprehensive replacement shelving project. Capital Projects Fund • Capital Projects Fund budget items for 2026 include approximately $2,744,643 of Capital Projects as noted below: • 8th Avenue, 9th Avenue, Power Street, and Overland Court street reconstruction related to the improvements at the 9th Avenue Lift Station. • $25,000 budgeted for street trees • $11,000 contribution towards the State’s reconstruction of Hwy 60 16 The 2026 street reconstruction project is to be funded through issuance of debt included in the Executive Budget. Figure 4a: 2026 Street Improvements (north) 17 Figure 5b: 2026 Street Improvements (south) 18 Capital Equipment Fund • Starting in 2026, the Police Department and the Public Works Department will each receive a set amount for Capital Equipment purchases each year. This will allow each Department flexibility to save for large purchases. This will also encourage Departments to maintain and sell unneeded equipment, the proceeds of which will return to their respective Capital Equipment funds. The Police Department will receive $246,500 and the Public Works Department will receive $403,500. • The Capital Equipment Fund budgeted $551,993 in 2026 for the following major pieces of equipment or building upgrades: o Police Department vehicle leases o Police Department building HVAC system upgrade o Replacement excavator o Annual financing payment on the streetsweeper Water and Wastewater Utility • Water and Sanitary Sewer Utilities is budgeted to have $1,806,479 of net operating income and a net position increase of $2,265,215. • Approximately $4,800,000 of capital projects, $3,200,000 of which will require borrowing, are in the 2026 Budget including: o 9th Avenue Lift Station upgrades in response to increased development on the west side of the Village. o 8th Avenue, 9th Avenue, Power Street, and Overland Court street reconstruction related to 9th Avenue Lift Station upgrades. o South Final Clarifier Rehabilitation. o Ongoing meter conversion program. Bond Rating The Village can be proud of its efforts to provide high-quality municipal services while maintaining a solid financial position and an Aa2 bond rating through the monitoring of its Fund Balance levels and making decisions within the context of its debt management plan. This excellent bond rating will greatly assist the Village in obtaining favorable rates on its planned borrowing for utility related projects. Budget Awards To provide the public with various formats in which to review the Village’s financial information, Grafton publishes the annual budget, a Popular Annual Financial Report (PAFR) and an Annual Comprehensive Financial Report (ACFR). Grafton is one of seven communities throughout the State of Wisconsin to be considered a “Triple Crown Winner”. To receive this designation a community must obtain the following recognitions from the Government Finance Officers Association of the United States and Canada (GFOA): • Distinguished Budget Presentation Award • Popular Annual Financial Report (PAFR) Outstanding Achievement Award, and the • Annual Comprehensive Financial Report (ACFR) Outstanding Achievement Award. In addition to receiving the award for 2025, the Village received special recognition in the areas of strategic goals and strategies, financial policies, and budget process. Special recognition is 19 given when all three reviewers give the highest possible score in particular categories. This marks the 32nd consecutive year the Village has received the Distinguished Budget Presentation Award and the ACFR Award and the 15th consecutive year that the Village’s PAFR were recognized for outstanding achievement by the GFOA. Proof positive of the excellent financial oversight and reporting provided by the Village and its staff. Closing The Village is in sound financial condition as evidenced by our continued strong bond ratings and adherence to external and internal financial policies. Similar to previous years, the 2026 Executive Budget is a balanced budget that best serves the needs of Grafton residents through cost- conscious efforts. It is important to recognize and thank the Department Heads and many other team members who responsibly and effectively manage their financial resources on a day-to- day basis. Additionally, a thank you is due to the Village President, Board of Trustees, and residents for their interest, dedication, and support of the financial operations of the Village. As the Acting Village Administrator, I would also like to thank Director of Administrative Services Paul Styduhar, Accountant Monica Stern, and Human Resources Generalist Ashley Voigt for their hard work, expertise, and invaluable contributions each year to create the Annual Budget. Respectfully submitted, Jessica Wolff, Acting Village Administrator/Community Development Director Paul Styduhar, Director of Administrative Services Monica Stern, Accountant Ashley Voigt, Human Resources Generalist 20 GFOA Budget Award – 2025 21 Budget Structure Strategic Plan The Village of Grafton (Village) is committed to its mission, "As a managed growth community in the Milwaukee metropolitan area, the Village strives to deliver the finest municipal services available in the most cost effective and efficient manner, and in so doing, ensure the highest quality of life for its residents -- defined by quality housing in safe neighborhoods, the provision and maintenance of essential streets and utilities, a broad and stable economic base, exceptional recreational opportunities, and attractive commercial and industrial development” and its brand of “Quality Life. Naturally.” To accomplish this mission, the Village conducts Strategic Planning. Strategic planning gives elected officials and Village staff the tools to respond to rapid changes in technology, markets, and customer expectations. The Village's staff has worked as a team to develop and improve the Village's efforts in strategic planning. This continuing effort has resulted in a comprehensive strategic planning process that is designed to achieve two broad purposes: • To develop an organizational climate that responds proactively, rather than reactively; and • To align the Village's resources with the most important challenges facing Grafton. Through this process, the Village: • Identified the “vital” strategic priorities – Areas of Emphasis, that will enable the Village to move forward in accomplishing its mission statement; • Determine how it will respond in addressing these strategic priorities, the methods it will use in meeting priorities, and the “scoreboard” it will use to measure results; • Aligned the Village’s personnel, fiscal, and capital resources to address the most critical issues facing the community; and • Sought to maintain our residents’ confidence and trust that their Village leaders are working on the issues that they believe are key to improving the quality of their lives. To further the Village's ever-evolving planning process, the Village utilizes data, including input from elected officials, residents, and businesses, to identify community needs and requirements. The strategic planning process initially undertaken by staff resulted in a long- term, broad overview describing the Village's strategic initiatives, Areas of Emphasis. These initiatives are revisited and refined based on citizen-generated input through meetings and citizen requests, etc. In addition, the Village has conducted comprehensive Village-wide surveys, which are used to rate resident satisfaction with current services and identify future areas of focus. Once the community needs and requirements are identified and confirmed, each department develops short and long-term initiatives to address those needs. Those initiatives are then prioritized and incorporated into the budget process to be funded. 22 Figure 1: Strategic Planning Cycle STRATEGIC PRIORITIES The Areas of Emphasis serves as the foundation for the Village’s Strategic Plan. Based on data analysis and community input, the Village has developed seven main areas of focus: 1. Continue to improve the quality of life a. Ensure quality of public health and safety services b. Promote community wellness c. Implement Comprehensive Outdoor Recreation Plan 2. Improve efficiency and effectiveness of municipal services a. Expand use of technology to improve services and its efficiencies b. Expand intergovernmental partnerships for greater efficiencies and cost savings c. Continue implementation of Sustainability Guide Plan 3. Ensure stakeholders are well informed and engaged on municipal matters 4. Ensure fiscal stability 5. Ensure adequate infrastructure, facilities and equipment a. Ensure safe and adequate transportation b. Ensure public facilities and equipment are adequate and maintained in a cost-effective manner 6. Promote quality and sustainable economic and community development 7. Promote a quality housing mix for Grafton’s residents and Grafton’s business workforce. 1) Analyze Data and Community Imput 2) Develop Initiatives 3) Prioritize and Fund Initiatives 4) Implement Initiatives 5) Review progress throughout the year 23 The Village conducted a Village-wide survey in 2025 to rate resident satisfaction with some of the Village’s Areas of Emphasis. The following table is a sampling of recent survey results as they related to the identified Areas of Emphasis: Continue to improve the quality of life Ensure stakeholders are well informed and engaged on municipal matters Ensure adequate infrastructure, facilities and equipment Overall Quality of Life rated 3.26 out of 4 Village website, as a source for obtaining current information on Village activities or services rated 2.90 out of 4 Quality of the Family Aquatic Center rated 2.74 out of 4 Quality of Police Services rated 3.65 out of 4. Quality of the Village’s online services rated a 3.25 out of 4. Quality of Public Parks and Playgrounds rated 3.62 out of 4 STRATEGIC INITIATIVES The series of tables that follow provide a summary of the Village’s strategic priorities; the strategic initiatives that support the strategic priorities; and some of the budgeted programs and services that support these initiatives and priorities. Ensure stakeholders are well informed and engaged on municipal matters Strategic Priorities Strategic Initiatives Budgeted Programs/Services To keep Village residents, the general public, Village employees, and the media informed about Village issues, programs and community events. Expand E-government access. Continue to review and update of Village’s website and social media presence to facilitate stakeholder communications. Quarterly newsletter from Village President Implement Comprehensive Outdoor Recreation Plan Strategic Priorities Strategic Initiatives Budgeted Programs/Services To provide and maintain parks and open space in a manner that is attractive and inviting. Expand and improve public access to riverways. Continued participation in the Community Rivers Program through Riveredge Nature Center Ensure public facilities and equipment are adequate and maintained in a cost-effective manner. Update Comprehensive Outdoor Recreation Plan, as needed. Replace one playground structure annually. 24 To provide quality programming for the Family Aquatic Center. Ensure public facilities and equipment are adequate and maintained in a cost-effective manner. Update the Family Aquatic Center water features and amenities. Continue to improve the quality of life Strategic Priorities Strategic Initiatives Budgeted Programs/Services To provide safe sidewalks for the traveling public. Inspect and replace defective sidewalk. Continue Sidewalk Replacement Program. Provide connecting pedestrian paths to all residential developments. Requiring developers to construct or provide easements for pedestrian paths. To coordinate with other Grafton community groups to provide support for community events. Create, develop, and promote tourism events. Coordinate with the Chamber and Celebrate Grafton to provide tourism promotion. Financial and in-kind contribution to Chamber of Commerce for fireworks and parade. Actively engage with the designated tourism entity for allocation and utilization of room tax funds To keep private properties from becoming overgrown. Inspect and send weed notices to property owners who are in violation of weed control ordinance. Provide weed cutting/removal service to property owners who are not in compliance with weed control ordinance. To keep streets clear of debris and dirt. Develop systematic strategy to adequately clear streets of debris and dirt. Monthly sweep of all Village streets and weekly sweep of all downtown streets. To provide streets and parks lined with healthy trees. Manage and enhance street tree program. Continue tree replacement program. Ensure quality public health and safety services Strategic Priorities Strategic Initiatives Budgeted Programs/Services To continue researching joint municipal projects with neighboring communities. Participate in Multi- Jurisdictional emergency response teams where practical. Train Grafton Police Department personnel as members of multi- jurisdiction teams. To provide high quality police services. Expand used of technology to improve services and its efficiencies. Implementation of FLOCK cameras/license plate readers in high-traffic areas. 25 STRATEGIC MEASURES With the established areas of emphasis, the Village uses benchmark and performance measurements to implement these strategic initiatives and to monitor progress throughout the year. A sample of these measurements are located in each program budget section. Areas of emphasis that are found in each program budget section can be thought of as broad- based goals that achieve the collective vision of the Village. These strategic initiatives were developed through a comparative analysis that evaluated the community-generated goals, objectives and action steps. A narrower version of the areas of emphasis can be used at all levels of the organization. Through the planning process, each department prepared their operational initiatives including some of their departmental initiatives linking to the Village-wide areas of emphasis. CONCLUSION The Village is dedicated to its vision of “Quality Life. Naturally”. Our commitment to Village residents through the execution of our strategic plan has also been recognized by outside agencies through the presentation of various awards and certificates, including the following: • Received the Tree City USA award for 31 years and the past two years the Tree City USA Growth Award. The award is national recognition given by the Arbor Day Foundation to communities for their commitment to urban forestry and maintaining public trees. To earn the award, a community must meet four standards: establish a tree board or department, have a tree care ordinance, maintain an annual community forestry program budget of at least $2 per capita, and proclaim and observe Arbor Day. • Consistently rated the Healthiest County in Wisconsin as identified by The University of Wisconsin Population Health Institute’s County Health Rankings & Roadmaps. • Healthy River Community, as recognized by the Community Rivers Program, since 2017 • Award for Outstanding Achievement - Popular Annual Financial Report designation by Government Finance Officers Association. 2024 marks the 17th year in a row that the Village has received this award. • Certificate of Achievement for Excellence in Financial Reporting designation by Government Finance Officers Association in 2024. • Distinguished Budget Presentation Award from the Government Finance Officers Association for 32 years in a row. In addition, in 2025 the Village received special recognition for the following sections: Strategic Goals & Strategies, Financial Polices and Budget Process. • Government Finance Officers Association Triple Crown Winner in 2023 and 2024 • Recognized in 2024 as the safest place to live in Wisconsin by State Regs Today. 26 Fund Structure By Budgetary Basis Modified Accrual Basis of Budgeting Accrual Basis of Budgeting Proprietary Fund Types Water Utility Fund Wastewater Utility Fund Governmental Fund Types General Fund Special Revenue Funds Room Tax Fund FIre Protection and Rescue Fund Park and Open Space Fund Revolving Loan Fund Woodlawn Cemetery Capital Fund Recreation Fund Park and Recreation Facilities Fund Aquatics Fund Library Fund Library Donor Fund Enviromental Fund American Rescue Plan Fiscal Recovery Fund K-9 Fund Fire Department County ARPA Fund Debt Service Funds Debt Service Fund Impact Fee Fund Capital Improvement Funds TID No. 3 Fund TID No. 4 Fund TID No. 5 Fund TID No. 6 Fund Capital Project Fund Equipment Fund Fire Department Equipment Fund Fiduciary Fund Woodlawn Cemetery Fund Perpetual Care 27 Budgetary Basis Budgetary basis refers to when revenues and expenditures/expenses are recognized. Modified Accrual is an accounting method under which revenues and other financial resources are recorded when they become measurable and available and expenditures/expenses (with a few exceptions) are recorded when liabilities are incurred. Available is defined as collectible in the current period or soon enough thereafter to be used to pay the liabilities of the current period. All Governmental Funds (General, Special Revenue, Debt Service, Capital Improvement and Fiduciary Funds) are budgeted and accounted for using the modified accrual basis of accounting. Property taxes are recorded in the year levied as a receivable and deferred revenues. They are recognized as revenues in the succeeding year when services financed by the levy are being provided. Property taxes are levied and billed in December; payment in full or the first installment is due January 31; the second installment is due March 31, and the third installment is due May 31. Intergovernmental aids and grants are recognized as revenues in the period the related expenditures are incurred, if applicable, or when the Village is entitled to the aids. Special assessments are recorded as revenues when collected. Annual installments due in future years are reflected as receivables and deferred revenues. Other general revenues such as fines and forfeitures, inspection fees, recreation fees, and miscellaneous revenues are recognized when received in cash or when measurable and available under the criteria described above. Accrual Basis is an accounting method whereby revenues are recorded when earned (whether or not cash is received at the time) and expenditures are recorded when goods and services are received (whether or not cash disbursements are made at the time). The Proprietary Funds are budgeted and accounted for using the accrual basis of accounting. Revenues such as user fees are recognized in the accounting period in which they are earned; expenses are recognized in the period services were incurred. Budgeted expenses include depreciation. FUND TYPES Governmental accounting systems should be organized and operated on a fund basis. Individual resources are allocated to, and accounted for, in separate accounting entities, identified as funds, based upon the purposes for which they are to be spent and the means by which spending activities are legally controlled. Governmental units should establish and maintain those funds as required by law and sound financial administration. Only the minimum number of funds consistent with legal and operating requirements should be established because unnecessary funds result in inflexibility, undue complexity, and inefficient financial administration. 28 Governmental Fund Types The following are the Village’s governmental fund types: • General Fund: Used to account for the Village’s primary operating activities. It is used to account for all financial resources and uses except those accounted for in another fund. The principal sources of revenue are property taxes and state aids. • Special Revenue Funds: Used to account for the proceeds of specific revenue sources that are legally restricted or committed to expenditures for particular purposes. • Debt Service Funds: Used to account for financial resources that are restricted, committed or assigned to expenditures for the payment of general long-term debt principal, interest and related costs, other than Proprietary debt. • Capital Improvement Funds: Used to account for financial resources that are restricted, committed or assigned to expenditures for capital outlays, including the acquisition or construction of capital facilities and other capital assets. • Fiduciary Funds: Used to account for resources and related uses that are legally restricted to the extent that only earnings may be used for purposes that support the program specified. Proprietary Fund Types • Enterprise Funds: Used to account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the governing body is that the cost (expenses, including depreciation) of providing goods or services to the users on a continuing basis be funded primarily through user charges. • Internal Service Funds: Used to account for activities provided to other funds, departments or agencies on a cost reimbursement basis. The Village does not have any Internal Service Funds. Major and Non-Major Fund Definition A Major Fund is defined as a fund that has at least ten percent of total governmental assets, liabilities, revenues or expenditures and at least five percent of combined Village assets, liabilities, revenues or expenditures. A government agency may choose to classify a fund as a major fund if that fund has particular importance to financial users. By definition, the General Fund is always considered a major fund. The remaining major funds are Debt Service Fund, Capital Projects Fund, Tax Incremental District No. 3 – Downtown Redevelopment Fund and Fire Protection and Rescue Fund. Non-Major Funds are funds not classified as major. Fund Descriptions • Fund 100 – General Fund (Major Fund): The General Fund of a government unit serves as the primary reporting vehicle for current government operations. The General Fund, by definition, accounts for all current financial resources not required by law or administrative action to be accounted for in another fund. The major sources of revenue for the General Fund include: property taxes and intergovernmental revenue. The major departments funded are: Village Administration, Administrative Services (Finance IT and 29 Clerk), Assessment, Police, Inspections, Public Works, Engineering, Adult Senior Services, Parks and Planning. • Fund 201 – Room Tax Fund (Non-Major Fund): The Room Tax Fund is a Special Revenue Fund used to account for the collection of room tax revenue and the use of the funds. • Fund 202 – Fire Protection and Rescue Fund (Major Fund): The Fire Protection and Rescue Fund is a Special Revenue Fund used to account for the Village’s allocation of taxes to the Ozaukee Central Fire Department (OCFD) as well as payroll services provided to OCFD under a Memorandum of Understanding (MOU). This fund has a zero- fund balance as of January 1, 2025 as the fund balance of this account was donated to OCFD • Fund 203 – Park and Open Space Fund (Non-Major Fund): The Park and Open Space Fund is a Special Revenue Fund used to account for activities and capital costs associated with implementing the Village’s Comprehensive Outdoor Recreation Plan. • Fund 204 – Revolving Loan Fund (Non-Major Fund): The Revolving Loan Fund is a Special Revenue Fund used to account for costs associating with operating a loan program. The loan program is managed by the Ozaukee County Economic Development Council (OEDC) and the Village Department of Administrative Services. • Fund 205 – Woodlawn Cemetery Capital Fund (Non-Major Fund): The Woodlawn Cemetery Capital Fund is a Special Revenue Fund used to account for activities associated with the acquisition of land, equipment associated with the maintenance of the cemetery and other miscellaneous expenditures for the benefit of the public cemetery located at North Street and Third Avenue. • Fund 215 – Recreation Fund (Non-Major Fund): The Recreation Fund is a Special Revenue Fund used to account for operational activities related to recreational programming and wellness activities. • Fund 220 – Park and Recreational Facilities Fund (Non-Major Fund): The Park and Recreational Facilities Fund is a Special Revenue Fund used to account for impact fees paid by local residential developers (in lieu of dedicating land) and capital costs associated with the Village’s Comprehensive Outdoor Recreation Plan. • Fund 225 – Aquatic Fund (Non-Major Fund): The Aquatic Fund is a Special Revenue Fund used to account for operational and capital activities associated with the Family Aquatic Center and for any Village programming at the Grafton High School indoor pool. • Fund 230 – Library Fund (Non-Major Fund): The Library Fund is a Special Revenue Fund used to account for current operations and capital costs associated with the U.S.S. Liberty Memorial Public Library. • Fund 235 – Library Donor Fund (Non-Major Fund): The Library Fund is a Special Revenue Fund used to account for private donations to the library. • Fund 240 – Environmental Fund (Non-Major Fund): The Environmental Fund is a Special Revenue Fund used to account for the Wisconsin Department of Natural Resources 30 required activities associated with contamination sites which operated for the benefit of Village residents and businesses. • Fund 250 – American Rescue Plan Fiscal Recovery Fund (Non-Major Fund): The American Rescue Plan Fiscal Recovery Fund is a Special Revenue Fund used to account for federal grant funds received from under the American Rescue Plan Act. This fund has expended all funds as of December 31, 2024. • Fund 260 – K-9 Fund (Non-Major Fund): The K-9 Fund is a Special Revenue Fund used to account for the activities for the Police Department’s K-9 Program. This fund became inactive effective December 31, 2023. • Fund 270 – Fire Department County ARPA Fund (Non-Major Fund): The Fire Department County ARPA Fund is a Special Revenue Fund used to account for funds received through an Ozaukee County ARPA grant. This fund has expended all funds as of June 30, 2025. • Fund 300 – Debt Service Fund (Major Fund): The Debt Service Fund is a Debt Service Fund used to account for the accumulation of resources for the payment of principal, interest, and related debt costs. • Fund 305 – Impact Fee Fund (Non-Major Fund): The Impact Fee Fund is a Debt Service Fund used to account for revenue collected from new development to pay for debt issued for the expansion of the Police Station and the replacement of the Public Works facility. • Fund 340 – Tax Incremental District No. 3 – Downtown Redevelopment (Major Fund): The Tax Incremental District No. 3 – Downtown Redevelopment Fund is a Capital Improvement Fund which accounts for planning, marketing, and infrastructure improvements for the 1999-identified downtown redevelopment area. • Fund 360 – Tax Incremental District No. 4 – South Commercial District (Non-Major Fund): The Tax Incremental District No. 4 – South Commercial District Fund is a Capital Improvement Fund which accounts for planning, marketing, and infrastructure improvements for the 2003-identified 141 acre south commercial redevelopment area. • Fund 380 – Tax Incremental District No. 5 – Grafton Commons (Non-Major Fund): The Tax Incremental District No. 5 – Grafton Commons Fund is a Capital Improvement Fund which accounts for planning, marketing, and infrastructure improvements for the 2006- created 70-acre commercial development area. • Fund 390 – Tax Incremental District No. 6 – Goldberg Foundry (Non-Major Fund): The Tax Incremental District No. 6 – Goldberg Foundry Fund is a Capital Improvement Fund which accounts for planning, marketing, and infrastructure improvements for the 2024- identified 34.9 acres northwest of the downtown area. • Fund 405 – Capital Projects Fund (Major Fund): The Capital Projects Fund is a Capital Improvement Fund which is used to account for the costs associated with capital projects and land purchases. 31 • Fund 410 – Equipment Fund (Non-Major Fund): The Equipment Fund is a Capital Improvement Fund which is used to account for the costs associated with the purchase of vehicles and equipment. • Fund 415 – Fire Department Equipment Fund (Non-Major Fund): The Fire Department Equipment Fund is a Capital Improvement Fund which was used to account for the capital costs associated with the OCFD’s purchase of vehicles and equipment. This fund has a zero-fund balance as of January 1, 2025 as the fund balance of this account was donated to OCFD. • Fund 605 – Water Utility Fund (Major Fund): The Water Utility Fund is a Proprietary Fund that accounts for water services provided to Utility customers of the Village of Grafton. This fund is considered a major fund. • Fund 610 – Wastewater Utility Fund (Major Fund): The Wastewater Utility Fund is a Proprietary Fund that accounts for wastewater collection and treatment services to Utility customers of the Village of Grafton. • Fund 803 - Woodlawn Cemetery Perpetual Care Fund (Non-Major Fund): The Woodlawn Cemetery Perpetual Care Fund is a Fiduciary Fund used to account for funding toward the maintenance of the Woodlawn Cemetery. Relationship between Budgeting and Accounting This budget is adopted on a basis consistent with GAAP, except for certain items that are adjusted in the Village’s accounting system at year-end. During the year the Village’s accounting system is maintained on the same basis as the adopted budget. This enables departmental budgets to be easily monitored via internally generated monthly reports. The major differences between this adopted budget and GAAP for governmental funds are: a) certain revenues and expenditures, (e.g., compensated absences) are not recognized for budgetary purposes but are accrued (GAAP); b) supply inventory and self-insurance contributions are recognized as expenditures for budgetary purposes only. For budgetary control purposes, the Village appropriates capital expenditures for the Proprietary Funds whereas for GAAP purposes they are capitalized. 32 Overview of Budget Policies, Presentation, and Process BUDGET POLICIES Introduction The Village of Grafton’s (Village) program budget serves as a comprehensive, rational guide for financial decision-making and operations management throughout the year. This is accomplished by the existence of policies and procedures that apply uniformly throughout all Village funds, departments, programs and services. The following section outlines those basic policies and procedures, which govern the planning, preparation, implementation, and management of the Village budget each year. A. Forecasting Methodology of Revenues and Expenditures Each year, the Village must develop a plan of action for projecting/forecasting its revenues and expenditures. Forecasting provides an estimate of how much revenue will be available and the resources required to meet current service levels and programs over the forecast period, along with an understanding of how the total financial program will be affected by the demographic and economic factors driving these forecasts. The value of forecasts is in estimating whether, given assumptions about local financial policies and economic trends, the Village will have sufficient resources to meet the resource requirements of ongoing, planned, or mandated programs. Forecast models have the added value of providing a planning tool for capital projects and/or whether indebtedness will be required for capital funding. In short, forecasting provides an estimate of the financial flexibility of the Village, as well as insight into property value, revenue, and service options the Village Board must address. The Village’s forecasting methodology reflects a combination of internal analysis and locally generated consensus forecasts covering such factors as: population growth, real estate property values, income per capita, and inflation. Specifically, revenue forecasts begin with models that include prior year actual revenues and project the balance of the current year revenues based on prior year patterns. In general, the Village seeks to match revenue sources with the economic and/or demographic variables that most directly affect year-to-year changes in those revenues. For example, a major revenue such as the Village's property taxes will reflect forecasts related to real estate property values; whereas, revenue from building permits and plan reviews will be tied to the expected trends in development and re-development. By identifying and utilizing as many revenue-related variables as possible in our forecast, the Village hopes to minimize the risks of overstating or understating revenues that could arise from using only a few variables to forecast all revenue sources. The Village's approach to forecasting in general is to apply a conservative philosophy that will produce its long-term goal of not overstating revenues nor understating expenditures. The Village recognizes that economic forecasting is not an exact science and at times relies upon the best professional judgment of the forecaster. To reduce the risks of miscalculating revenues or expenditures, we attempt to identify as many factors as possible that may contribute to 33 changes in revenues and expenditures. The Village’s budgets are comprised of many unique elements that respond to a variety of external factors such as population growth, development, inflation, and interest rates. The following provides our 2025 assumptions relating to major revenues and expenditures. For revenues, changes are most closely linked to property tax levy growth, the history of net new construction changes and development activity. For expenditures, increases are most closely linked to inflation (including general inflation), market adjustments to salaries, and changes in benefits costs. For certain expenditure categories (such as fuel and utilities), we apply inflation factors that reflect the historical rate of inflation in these categories relative to overall and/or projected publicized rate increases. The outlook for local economic growth in Village is positive. In 2024, the Village experienced continued growth in the amount of new residential development compared to recent years. The Village expects that trend to continue into 2026. October 2024 unemployment rates as compared to December 2023 have decreased in Ozaukee County but increased on a state wide level. Ozaukee County’s 2024 unemployment rate decreased to 2.2% compared to the 2023 unemployment rate of 3.7%. The Ozaukee County 2024 rate is lower than the Wisconsin and Federal 2024 unemployment rates of 3.3% and 4.0%, respectively. On a federal level, the Federal Planning Bureau is predicting a decrease in the average consumer price inflation rate from 2025 to 2026 from 3.1% to 2.4%. The Federal Reserve anticipates continued, though moderated, real GDP growth for the remainder of 2025 and into 2026, with recent data showing growth around 1.5% in the first half of 2025. The median Federal Open Market Committee forecast predicts the federal funds rate will reach a target range of 3.3% to 3.5% by the end of 2026, down from 3.5% to 3.8% at the end of 2025. Using estimates, this plan varies from year to year, reflecting the many changing factors which affect Village estimates. B. Resource Allocation and Planning The allocation of available resources among various Village programs and services will vary from year to year in response to current community needs as well as long range goals. The goals are identified by respective Board committees. In 2026, for example, the Village’s goals highlight equipment replacement, redevelopment, and infrastructure/development projects. Policies for accomplishing those goals were discussed early in the budget process. C. Capital Improvement Program In conjunction with Village goals, the Village annually updates its five-year Capital Improvement Program (CIP) no later than July in anticipation of the program budget development. The CIP incorporates the recommendations of the Equipment Replacement Program, Technology Plan, TID 3, 4, 5 and 6 Project Plans and the Street Improvement Program. The Village Board gives priority to recommendations in the CIP in the deliberation of the program budget. 34 On July 7, 2025 the Village Board approved the 2026-2030 Capital Improvement Plan. Included in the Plan are capital expenditures and capital projects. They are defined as follows: Capital Expenditures (CE) – Charges for the acquisition (including transportation and installation charges) of equipment, fixtures, land, buildings, land improvements or other permanent improvements with a value in excess of $5,000 and a useful life of at least 2 years. Capital Improvement Projects (CP) – An undertaking that has a specific objective, can be easily distinguishable from other work being performed, has a definite beginning and end, and has a total cost in excess of $5,000. For the 2026 Program Budget, CE and CP are included in the General Fund, Park and Open Space Fund, Woodlawn Cemetery Capital Account Fund, Park & Recreational Facilities fund, Aquatics, Capital Projects Fund, Equipment Fund, Water Fund and the Wastewater Fund. The approved list of CIP projects is included in the Appendix at the end of this document. D. Executive Instruction Included each year the Village Administrator provides budget instructions to Department Heads. The budget instructions include: • Revenue and expenditure projections. • Any proposed increase or reduction in overall spending. • Other special instructions as needed to assist departments in preparing their budget requests. The Village Administrator’s instructions put a current year perspective on the budget preparation effort, while furnishing specific information to guide Department Heads in preparing their estimates. The development of the 2026 budget was initiated in June 2025. Goals of the budget process that were conveyed to Department Heads included: • Leveraging intergovernmental, grant and other outside sources of revenue to help offset the cost for projects or programs. • Maintaining prior year level budget amounts, when possible. • Balancing all Fund budgets. If necessary, utilize fund balance or plan for borrowed fund proceeds. • Maximizing property tax levy increase as allowed by State property tax levy limit policy. E. Program/Service Level Budget versus Line-Item Budget The Village budget incorporates two distinct components: a program/service level budget and a line-item budget. The budget is approved by the Village Board at the fund level with the exception of the General Fund, which is approved at the functional level – General Government, Public Safety, Public Works, etc. Program/Service Level Budget Policy - Because the basic function of the Village is to carry out programs and provide services that benefit citizens of the Village, the Village budget is organized around programs and services provided by various Village departments. 35 At the beginning of each program budget is a statement or mission of each program. Benchmark Measurements have also been incorporated into the document in order to identify quantitative goals. This information is useful to Department Heads in weighing proposed budget increases or reductions. Responsibility for establishing program/service level budgets each year rests jointly with the Village Board and Village staff. Line-Item Budget Policy - In the Village’s budget concept, a line-item budget is an accounting and reporting tool used in monitoring and managing the adopted program/service level budget. A line-item budget organizes costs by type or class of expenditure and by source of revenue. Because its format adapts easily to an accounting/reporting financial system, the line-item budget becomes a basic tool for yearlong financial reporting and budget management. F. Funds In municipal budgeting, a “fund” is a self-balancing set of accounts with revenues earmarked for specific programs or purposes. For a list of the Village’s fund types included in the Program Budget see the Budgetary Basis section of this document. Throughout the upcoming year, the Village budget may be amended as needed to reflect new sources of revenue or changes in appropriations for any fund. G. Carry-Forward Balances Monies appropriated but not expended within a given year are carried forward into the next year as either obligated or surplus revenue. Carry-forward procedures vary according to the fund in which the appropriated, but unexpended funds have accrued. For example: General Fund – Monies are allocated each year in the Village budget to various departments, programs and activities. However, if those monies have not been expended at the end of the year, they automatically revert to the General Fund’s fund balance rather than being carried forward as a departmental surplus. Two exceptions to this rule are encumbered amounts (see section H) and uncommitted fund balances. At year end, if the Village’s uncommitted fund balance is below the policy minimum, any unused contingency funds will be used to increase the Village’s uncommitted fund balance. Proprietary Fund – Excess revenues may accrue positive fund balances from year to year without loss of those monies to other funds or programs. At the end of each year, a Proprietary Fund balance is simply carried forward as surplus (Net Position). Special Revenue Funds, Debt Service Funds and Capital Improvement Funds – Funds are earmarked for specific programs or purposes. Balances in these funds are carried forward to the next fiscal year as unobligated surplus, unless monies are encumbered for a project already underway. In that case, the encumbrance amount is carried forward as obligated surplus revenue. Donations, which are received and are not spent, are carried over from one year to another. 36 H. Encumbrances An encumbrance is a method of obligating monies for future expenditures. Specifically, in Village budgeting, an encumbrance is used to keep unexpended monies from reverting back to their source at the end of each year. It is the Village’s policy that revenue monies may be encumbered by either of two methods: 1. A purchase order, approved and issued before the close of a year, will encumber monies to pay for goods and services ordered, upon delivery. 2. A contract for goods or services, drawn up and approved in accordance with Village policy, may also encumber funds for payment in the following year, provided the amount and source of funds have been clearly identified. I. Chart of Accounts Expense categories used in the Village’s program budget are set in accordance with a master list known as the Chart of Accounts. This list establishes uniform expenditures/cost titles and corresponding account numbers for use by all Village departments. In the Appendix, the budget includes the list and definition of the commonly used accounts. The Chart of Accounts may be expanded or reduced. Requests for amendments to the Chart of Accounts must be initiated by a Department Head and submitted to the Administrative Services Department for consideration and final approval. J. Contingencies Budgeting for contingencies is the Village Administrator’s responsibility. Departmental budgets are prohibited from including planned contingencies. K. Cost Allocation For various reasons, the Village may wish to identify overhead or administrative costs associated (directly or indirectly) with a specific program or activity. The most common example of this is inter-departmental charging for shared personnel, equipment, and materials. The process of identifying, computing, and assigning these costs to the appropriate fund or department is known as cost allocation. For the Village, this function is performed by the Administrative Services Department. BUDGET PRESENTATION Most funds are divided by cost centers. The cost center can be a fund, major program, department or other activity for which control of expenditures is considered desirable. Each Fund budget is discussed in the Budget Message as well as in each fund section of the budget document. For each program budget, a summary sheet identifies the following information: • Department or Fund Purpose: explains the mission for the program budget or fund 37 • Department or Fund Description: identifies the background and purpose of the program budget or fund • Budget Highlights: lists the significant budgetary changes involving personnel or project cost in comparison to prior budgets • Permanent Staffing: identifies, if any, the number of permanent staff by position • Revenue: if applicable, lists revenue for the two previous years, the prior year budget, an estimate of the current year and the adopted budget • Expenditures: lists expenditures for the two previous years, the prior year budget, an estimate of the current year and the adopted budget; expenditures are summarized by personnel services, non-personnel services, and capital outlay • Areas of Emphasis: identifies a critical long-term strategic goal(s) the program or fund budget covers • Goal: describes the intended result or accomplishment that the program or fund are focused • Objective: identifies precise actions for accomplishment of a specific measurable, attainable task to meet the Goal(s) • Measurements: identifies quantifiable resource, workload, efficiency or effectiveness measurements of meeting the Objectives • Significant Capital Projects: lists the major budgeted capital projects The Appendix contains several features (i.e., tax rates, personnel schedules, tables and graphs) designed to aid in the understanding of the Annual Program Budget. EXPLANATION OF BUDGETARY PROCESS The administration of the program budget is a constant process. The preparation of the following year's budget begins during May of each year with the Budget Team (Administrator, Assistant Administrator, Director of Administrative Services, Accountant and Human Resources Generalist) developing budget instructions and guidelines. For 2026 the Village used the following general timeline when developing the Annual Program Budget. 1. In June, budget instructions are distributed to Department Heads by the Village Administrator. Budget training sessions are held for all departments. 2. In early August Department Heads submit to the Village Administrator their proposed operating budgets. The operating budget includes proposed expenditures and means of financing them. In mid-August each Department Head provides a high-level summary of their budget requests noting major changes from the previous year to the Budget Team and all other Department Heads. 3. In early October, the Village Administrator submits the executive budget to the Village Board. Copies of the budget are made available to the general public. 4. In accordance with Wisconsin Statutes Section 65.90 (3), a Class 1 public notice is published at least 15 days prior to the public hearing. 5. A budget public meeting/workshop is held by the Village Board and Village staff in late October. 6. A public hearing is held the first week of November concerning the proposed budget. 38 7. During the month of November, the Village Board approves, by resolution, the executive budget and sets the associated tax levy. 2026 BUDGET CALENDAR Procedures for Amending Village Budgets Following the adoption of the annual program budget, budget transfers and supplemental appropriations are made based on the following: Intra-Program Category Amendment 1. Since the annual Village program budget is adopted at the functional level of expenditures (program categories, i.e., Public Works, Public Safety), the Village Administrator may authorize any intra-program line-item change, i.e., utilities, local auto expense, supplies, etc. up to $2,500. 39 Inter-Program Category or Inter-Fund Amendment 1. At the committee of jurisdiction, the Department Head, along with the Administrator's approval, identifies the need to transfer funds and makes a recommendation of specific amounts and accounts involved in the transfer. The committee recommends to the Village Board for or against the transfer. 2. Following the recommendation of the committee, the Village Board, in accordance with Wisconsin Statues Section 65.90 (5) (a), must approve of the transfer by the two-thirds vote of the Board's entire membership. Subsequently, the Village Clerk must publish a Class 1 notice within 10 days of the action taken. 3. Similarly, all transfers of funds from the contingency account must be approved by two- thirds of the Boards' membership (per Wisconsin Statutes Section 65.90 (5)(a)). 4. Failure to obtain a two-third approval vote by the Village Board on the transfer of funds results in the Department Head's inability to spend the additional funds for the recommended purpose. 40 Budget Overview 2026 Budget Facts 41 Budget Summary 42 Budget Summary 43 Fund Balance Summary The 2026 budget identifies material changes to most of the fund balances of the various funds. A table follows which shows the impact of budget decisions on fund balance for all funds. Decreases in fund balances reflect planned use of fund balance to address projected budget shortfalls between revenues and expenditures. Governmental Funds General Fund The General Fund budget plans for the use of $1,231,416 of fund balance. This represents 10.6% of the budgeted revenue and other financing sources. Although the Village is identifying the use of fund balance, historically the amount actually used was significantly less than the budgeted amount. The approved budgeted use of fund balance in 2024 and 2023 was $495,182 and $456,825, respectively. However, neither year used fund balance. At this time, it is estimated that fund balance will decrease by $102,348 in 2025, even though it was budgeted to decrease by $749,188. The increase of fund balance from December 31, 2023 to December 31, 2025 is estimated to be $1,126,103 Even with the identified $1,231,416 fund balance applied in 2026, the fund balance is 39.6% and the unassigned fund balance is 29.0% of the 2026 budgeted expenditures. One of the Village’s goals identified in the Long-Term Financial Plan is the maintenance of fund balance equal to or greater than 25% of expenditures. Special Revenue Funds Overall, Special Revenue fund balances are budgeted to decrease $677,886 or approximately 15.2%. Funds with significant changes to fund balance in 2026 are explained below. The Park & Recreational Facilities Fund budgeted fund balance is expected to decrease to $2,145,755 or 13.6% at December 31, 2026. This is due to the anticipated purchase of parkland in the Hawks Ridge/Kohlway subdivision. The Library Donor Fund is expected to decrease by $284,400, or 37.1% in 2026. The fund was established to account for the spending of a large private donation to the library. This fund is used to fund capital purchases for the library and is expected to decrease each year until fully spent. The fund balance is budgeted to be $481,714 at December 31, 2026. All other Special Revenue Funds will either have a zero fund balance or no significant changes in budgeted fund balance for 2026. Debt Service Funds The Debt Service Fund budgeted fund balance is expected to increase from $101,741 to $168,823, or 65.6%. This is due to a policy of maintaining a stable tax levy amount to avoid large increases and decreases in tax levy required to meet the Village’s debt obligations based on a five-year projection. The tax levy requirements, based on existing debt schedules, will peak in 2027 so the plan is to maintain the tax levy revenue on a consistent level and reevaluate when the tax levy requirements decrease. The Impact Fee Fund budgeted fund balance is expected to decrease from $786,494 to $663,035, or 15.7%. Impact fee revenue is anticipated to decline in 2026 as the allowable 44 amount for the Public Works Facility fee has been fully collected. In addition, construction is expected to slow in 2026. Capital Improvement Funds: Overall, fund balances in Capital Improvement funds are expected to decrease 1.9%, or $51.287. Tax Incremental District No. 4 Fund budgeted fund balance is expected to decrease 59.9% to $416,609. This is mainly due to debt service requirements related to TID No. 4 improvements exceeding tax increment. Tax Incremental District No. 6 Fund budgeted fund balance is projected to decrease $45,445 or 68.6%. This TID is relatively new and therefore tax increment is still nominal. The 2026 budget anticipates borrowing to fund asbestos abatement on one property within the TID. The Capital Projects Fund budgeted fund balance is anticipated to increase $327,847 or 16.3% as tax levy is planned to increase incrementally to fund future projects in order to avoid large increases in the need for tax levy support or the issuance of debt. The Equipment Fund budgeted fund balance is anticipated to increase $136,950 or 102.2%. Tax levy allocation to this fund is maintained at a relatively stable amount to fund a stable level of budgeted purchases. Tax Incremental District No. 3 and No. 5 do not anticipate major fluctuations in fund balance in 2026. Fiduciary Fund Consistent with prior year, the Woodlawn Cemetery Perpetual Care Fund anticipates no major changes in fund balance in 2026. Proprietary Funds Water and Wastewater Utility Funds The Water Utility and Wastewater Utility Funds do not have fund balances as they are proprietary funds. No major changes are projected to their net position which is anticipated to be $54,073,946 at December 31, 2026, which is an increase of 4.4%. 45 Combined Summary of Changes in Fund Balance 46 Personnel Schedule Summary SUMMARY 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Office of the Village Administrator 1.75 1.85 1.85 1.75 1.75 Administrative Services Department 4.60 4.60 4.60 4.60 4.60 Police Department 34.00 35.00 35.00 35.00 35.00 Fire Department 9.00 13.00 25.00 25.00 25.00 Public Works Department 16.75 18.75 18.75 19.00 19.00 Parks and Recreation Department 3.91 4.45 4.45 4.45 4.45 Community Development Department 6.25 5.90 6.38 6.50 6.50 Library 9.17 9.11 9.14 9.47 9.47 Water and Wastewater Utility 11.25 11.25 12.25 12.00 12.00 TOTAL VILLAGE PERSONNEL 96.68 103.91 117.42 117.77 117.77 AUTHORIZED PERMANENT POSITIONS 2023-2026 47 Summary of Revenues and Expenditures by Fund, Type, and Category 48 Departments by Fund Classification 49 Revenue Analysis Long Term Financial Plan The Village of Grafton (Village) annually updates its comprehensive Long Term Financial Plan (LTFP). The goal of the LTFP is to serve as a tool, providing the Village Board (the Board), the Village management team (the Team) and the community with the insight required to address issues impacting the Village's financial condition. It provides an illustration of both historical trends and future forecasts that provide context to the Village’s financial condition. The LTFP is not intended to set forth neither an inclusive list of action items nor specific solutions to current trends rather it is a plan that: • provides objectives for identified critical issues • identifies how, from a financial perspective, the Village will be impacted by Board decisions The LTFP for the Village represents the ongoing focus on financial strategic plans. Elements of the LTFP have been incorporated on an annual basis into the development, deliberation and approval of the Annual Program Budget. The LTFP is presented in detail to the Board as part of the budget. The LTFP is a tool to monitor financial sustainability obtained through flexibility, efficiency, sufficiency, integration and credibility. Sustainability extends beyond the ability to raise sufficient revenue to meet expenditures by ensuring that the level and types of service expected from the community can be delivered while assessing and managing associated risks, and at acceptable levels of sources of revenue. Financial sustainability is not static and is delivered using the following principles: Flexibility: responding effectively to changing circumstances. The capacity to be able to respond to significant atypical conditions or events needs to be considered as part this goal. Efficiency: using public funds to provide the highest level of needed services possible within the funding available. There are two components of this goal; strive to use the least number of resources to provide a given level of service targeting resources for those services most valued by citizens and only providing services that provide sufficient value to justify the costs. The LTFP is a financial strategic plan. Principles of Financial Sustainability 50 Sufficiency: having sufficient funding resources to support the delivery of services. This goal not only refers to the amount of funding but also to the consistency in funding level changes relative to changes in expenditures and the diversity of funding sources. Integration: ensuring that the financial constraints under which the Village operates are fully considered when engaging in policy-making and decision-making. Credibility: achieving financial performance in a way that maintains public confidence in the Village’s ability to provide services and infrastructure at expected levels. Financial decisions should be consistent with the overall goal of financial sustainability. Services must be valuable to citizens and the benefits provided must be perceived to be in proportion to the taxes and fees paid. The following financial strategies have been identified to achieve the five financial principles indicated above: Adequate Funding: Obtain adequate funding from multiple sources for requirements related to day-to-day operating commitments, capital equipment and infrastructure needs, as well as managing growth and development. This encompasses a balanced approach between understanding the timing and nature of operating expenditures to ensure they are matched with reliable and stable funding sources. This strategy includes identifying costs and maintaining or increasing funding from existing and new revenue sources. Diverse Sources of Funding: Identify alternative and innovative funding sources that will help the Village respond to the pressures of growth and redevelopment and reduce the reliance on property taxes. Property taxes, user fees and intergovernmental revenue are the traditional revenue sources used to meet expenditure requirements that are continually under pressure which can place stress on the Village’s financial position. Manage Expenditures: Contain costs in order to limit pressure on revenue requirements, while maintaining market competitiveness and/or reserve capacity to retain existing service levels. This can be accomplished by increasing efficiencies in service delivery, setting spending priorities to ensure the most important areas are funded, and positioning the Village as an efficient provider of services and infrastructure. Provide for Contingencies: Prepare the Village to manage risk and be resilient when dealing with unforeseen circumstances while limiting the impact on services. This can be accomplished by monitoring economic and operational factors and forecasts and ensuring that the Village has access to enough funds to meet unforeseen urgent needs while managing risk appropriately. Use of Debt Strategically: Provide capital funding flexibility by allowing infrastructure to be built and used before sufficient revenue has accumulated to offset needed investment. This can be accomplished by managing the level of debt and strategically making essential assets available as well as examining a wider range of debt financing instruments. Operate with Foresight: Take into account the current and future impacts of decisions on services and infrastructure. This includes maintaining or extending existing practices regarding a long-term approach in decision making. Sufficient Cash Flow: Allow the Village to pay the costs of supplying services and infrastructure throughout the year, including debt service. Financial Strategies 51 Promote and Enable Integration of Priorities and Resources: Identify and encourage awareness of the financial implications of policy making and decision making on the Village’s financial position. This can be accomplished by linking needs and actions to resources, responsibilities and timeliness among stakeholders, promoting greater efficiency by reducing duplication of effort or working at managing growth and development. Long Term Financial Plan Process The flow chart that follows, graphically describes the process that is used in developing the Village’s LTFP. The Village’s LTFP begins by identifying several critical areas which have, or are expected to have, an impact on the financial condition of the Village over the next five years. Once the critical issues are identified, specific goals and objectives are developed for each area and are designed to meet the overall goal of the LTFP. The Team is responsible for keeping the goals and objectives moving forward and on schedule. The Team also identifies when their goals and objectives are met. The key message expressed to the Team is that the goals and objectives have to be clear and concise while providing very specific and practical recommendations that address the issue at hand. This phase of the LTFP process uses financial forecasts and trends to identify critical issues. Financial forecasting with financial strategizing is used to identify problems and opportunities for identified critical issues. Recommendations from the Village's multi-year plans, such as the Street Improvement Plan, Technology Replacement Plan, Sidewalk Replacement Plan and Identification of Critical Issues Develop Objectives for Critical Issues Develop Long Term Financial Plan Board Deliberation & Action Implementation Identify Critical Issues Develop Objectives for Each Critical Issue Financial Trends Financial Forecast Financial Trend Analysis Fund Balance Capital Improvement Plan (CIP) Expenditure Restraint Program (when eligible) Review of User Fees Property Tax Levy Increases Use of Donations between Tax Incremental Districts Debt Policy Monitor 52 Capital Improvement Plan are taken into consideration when developing objectives for each critical issue as they undoubtedly will impact the finances of the Village over the next five to ten years. Many municipal facilities have been either newly constructed, renovated or expanded over the years. In many cases, the projects have occurred to reflect the community's growth or anticipated growth. Future significant projects are anticipated to be development related, i.e., transportation and utility extensions and park improvements. Identified critical issues, objectives and long-term financial plans are as follows: Mechanism Used to Identify Critical Issues Critical Issue Identified Objective Long Term Financial Plan Financial Trend Analysis The Financial Trend Monitoring System (FTMS) Report completed in September 2025 indicating eight trends were favorable and six were caution. The trends identified as caution were related to revenues, operating position, fund balance levels and the level of direct debt. Continue to monitor trends using Financial Trends Monitoring System (FTMS). Strive for favorable indicators. Fund Balance Levels Financial forecasts indicate that a 25% General fund Balance is unattainable as it is anticipated expenditures will outpace revenues through 2029. The Village Policy sets a target of maintaining 25% of expenditures in the General Fund Balance. Continue to monitor the budgeted vs actual use of Fund Balance. Capital Improvement Plans The annual list of street projects, technology and equipment replacement is included in the 5 Year CIP and it is anticipated to be funded through the allocation of tax levy. Tax levy may not always be enough to fund these projects and other revenue sources will need to be identified. Fund budgeted capital improvements with tax levy as able as funding with debt is not sustainable. Continue to balance the amount of capital improvements with funds available. In addition, some of these projects may fall within TID boundaries and could be funded with TID Fund Balances. See discussion that follows later in the report. Expenditure Restraint Program (ERP) This State of Wisconsin program rewards municipalities whose annual operating (General Fund) budgets are at or below inflation plus a percentage of net new construction. The Village is not eligible for the ERP in 2026 as its equalized tax rate was below $5.00 per thousand of valuation, a requirement of the ERP. Continue to use this source of revenue, when possible. The Village will be eligible for the program again in 2026 and assumes the Village will remain eligible for this program thereafter. The Village will become eligible for the program again due to the additional tax levy to be collected based on the 2024 referendum approved by the voters related to a joint Fire Department. The LTFP projects expenditures based on projected inflation. 53 Review of User Fees User fees do not match the cost it takes to provide the service. The Team reviews existing non-utility and utility user fees annually. Non-utility user fees include, but are not limited to permits, access fees, (pool, recreation programs, senior center, rental facilities), and licenses. Utility user fees includes volume usage charges as well as flat charges for both water and sewer. In 2025 the Village Board approved increases to building related permits as recommended by the Southeast Wisconsin Builders Association, and facility rental fees. The utility had rate increases that were effective in 2025. Water rates increased 48% (October) and wastewater rates were increased 6% (July) and will increase by 6% in 2026 and by 5% in 2027 & 2028. Staff will review water rates in 2027. Property Tax Levy Increases The State of Wisconsin, currently, limits municipality levy increases to the percentage of net new construction. The Village maximizes the allowable tax levy limit available. Monitor the allowable tax levy and align with appropriate fee increases to maintain services. Use of Donations between TIDs TID No. 3 and TID No 4. both have projected deficit fund balances. The Village works to manage TID deficits with donations from healthy TIDs. TID No. 5 may donate to TID No. 3 and TID No. 4. Donations have been made to both TID 3 and 4 in the past. However, no donations were made to TID 4 in the past five years and none are anticipated for 2026. Donations to TID 3 are expected to continue in the future in response to annual deficits. An analysis and cash flow projection for TID No. 3 is included later in this analysis. Debt Levels Net direct debt to equalized value is trending higher. The Village’s Debt Policy establishes parameters for issuing and managing debt. No more than 85% of the State of Wisconsin’s limit of 5% of equalized value of which no more than 55% of debt may be issued for non-TID purposes. Continue to monitor compliance with internal as well as State requirements. A historical summary and financial projection of the General Fund and a projected cash flow for TID No. 3 follows. A table in the Debt Fund section of the budget indicates required debt expenditures and revenues through the length of the debt issuances. The CIP included in the budget summarizes projected capital expenditures for the next five years. Long Range Financial Plans for Major Funds 54 Historical revenues and expenses have remained relatively static until 2022. General property taxes increased over 7% when comparing 2023 to 2025 due to higher property tax base. In 2023, interest rates started rising which resulted in higher interest income of almost $650,000 from a loss of $50,000 in 2022. From 2023 to 2025 expenses have increased almost 22%. Inflationary pressures, increases in personnel costs (health insurance, pension contributions) as well as an increase of 3.5 FTE positions have contributed to the increase over the past couple years. Based on actual and current budgeted revenues and expenditures as well as annual CPI changes a five-year forecast was developed for the General Fund. Included in this analysis are calculated General Fund’s fund balances. An annual inflation rate of 2.0 percent for revenues and 3.0 percent for expenditures was assumed based on the following: Revenue Assumptions • Property Tax Levy – Property taxes are the primary source of revenue for the Village. Current state-imposed levy limits continue. Property taxes are limited to net new construction increases, with current State of Wisconsin legislation establishing a floor of zero plus or minus adjustments to debt service, and additional adjustments due to annexations, transfer of services to/from another municipality, adjustments due to increase of fees for tax levy supported services and amounts approved by referendum (Fire and Rescue services referendum passed by the Village of Grafton voters in 2024). The General Fund tax levy is projected to remain stable due to increased pressure for tax levy support for other funds. Historically net new construction is roughly 2% annually. 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Revenue 7,922 8,403 8,266 8,374 8,506 8,364 8,681 9,963 11,396 10,852 Expenditures 8,321 8,161 8,329 8,473 8,369 8,533 9,000 9,531 10,168 10,954 Fund Balance, at the end of the year 3,303 3,545 3,482 3,382 3,519 3,351 3,031 3,463 4,691 4,589 7,000 8,000 9,000 10,000 11,000 12,000 GENERAL FUND REVENUES AND EXPENDITURE HISTORY (In Thousanths) Revenue Expenditures General Fund Historical Revenue, Expenditures and Fund Balance Projection Assumptions 55 • Intergovernmental Revenue – Current State funding includes transportation aids, expenditure restraint program awards, state shared revenue and recycling grant funds. The approval of additional intergovernmental revenue funds by the State of Wisconsin in 2023 will provide an additional $302,904 and increase 2% annually. This revenue category assumes no increases to other intergovernmental revenue received from the State of Wisconsin. • All Other Revenue – Other revenue includes permit and licenses, fines and forfeitures, charges for services, interest income and miscellaneous income. A slight increase is anticipated in construction related permits due to new residential development and interest income due to a positive economic outlook. All other revenues in this classification anticipated to remain stable. • Other Financing Sources – Estimated with no change. Expenditure Assumptions • Personnel Expenditures – These include wages and benefits, including pension contributions (rates determined by the state), health insurance contributions (uncontrollable expenditure) and the employer share of Social Security and Medicare taxes (rates determined by the Federal government). This expenditure classification is 69 percent of the 2026 budgeted general fund expenditures and 69 percent of anticipated 2025 general fund expenditures and other financing uses. • Non-Personnel Expenditures – The primary expenditures in this category are contractual services, office supplies, utilities, gasoline, liability and property insurance, training and conferences and communications. The chart the follows shows current Executive 2026 budgeted General Fund revenues and expenditures and the projected 2025 year-end fund balance with a 4-year projection. 2026 2027 2028 2029 2030 2031 Revenues & Other Sources 10,345 10,552 10,763 10,978 11,198 11,422 Expenditures & Other Uses 11,577 11,924 12,282 12,651 13,030 13,421 Fund Balance 4,589 3,217 1,697 25 (1,807) (3,806) 10,000 11,000 12,000 13,000 14,000 GENERAL FUND REVENUES AND EXPENDITURE FORECAST (in thousands) Revenues & Other Sources Expenditures & Other Uses 56 Based upon these assumptions the General Fund projects a fund balance deficit of $3,806,000 at the end of 2031. As show in the historical graph fund balance has increased $1,286,000 over the last 10 years based on the estimated 2025 revenues and expenditures resulting in financial stability. Although projected revenues are projected to increase the forecast chart indicates that expenditures will outpace revenue growth. This results in a decrease of fund balance. Financial stability requires that the Village will need to focus on controlling costs and identifying increases in revenue. The closure of TID No, 3 with movement of the associated property values to the general tax roll will provide an estimated $350,000 of property tax in 2029. The forecast above does not include this estimated increase in the revenues as multiple funds receive tax levy revenue as a funding source. There are external factors beyond the Village’s control that may cause swings in revenues and expenditures. The Village should review potential strategies such as expanding the use of grants, containment of operating costs within the control of the Village, service prioritization and consolidation of services. Tax levy revenue is the largest revenue source for the Village. The revenue chart shown previously is tax levy for the General Fund only. Tax levy is limited under current state law as previously noted. Tax levy limits under current state law may change with future legislation and need to be monitored to adjust future long-range forecasts as necessary. Future limitations could impact the ability of the Village to deliver services. Tax levy limit increases are based, mainly, on net new construction which has been less than the rate of inflation. Tax levy revenue is collected for the following funds: • General Fund – Largest tax levy portion is allocated to this fund which is the operating fund of the Village (currently assumed a 0% increase); • Joint Fire Department – Tax levy which is allocated to the joint Fire Department for both operating and capital purposes is determined partially by referendum and additionally from the amount of tax levy allocated in the 2026 budget; • Park and Open Space Fund – Tax levy reflects a portion of the amount needed to fund amounts approved in the CIP; • Library – Tax levy needed to maintain current service levels and capital requirements; • Debt Service – Tax levy allocated is equal to debt requirements for the payment of principal and interest in 2026 assumes impacts regarding anticipated issuance of debt. • Capital Projects – Tax levy reflects the amounts needed to fund amounts approved in the CIP except for the Street Replacement Program, which may be funded through the issuance of debt rather than tax levy; • Capital Equipment – Tax levy reflects the amounts needed to fund amounts approved in the Five-Year Capital Improvement Plan. The Police Department and Department of Public Works receives a set allocation annually enabling the tax levy amount to remain stable while having funds available for larger capital equipment needs. For capital funds, the amount of tax levy required is dependent on the actual requirements or approved amounts in the CIP. The level of tax levy allocated to the capital funds will provide sufficient revenue to support the expenditures identified and retain sufficient fund balances. Tax Levy Considerations 57 A referendum held in in April, 2024 approved the Village exceeding the State of Wisconsin tax levy limits by $1,478,082 for the purpose of further funding the Fire Department. The Village of Grafton, Village of Saukville, Town of Grafton, and Town of Saukville will contract with the Ozaukee Central Fire and Emergency Services, a joint Fire Department which will be established January 1, 2025, for fire protection and rescue services. Additionally, the closure of TID N0. 3 will, based on current state law, provide an estimated $350,000 in tax levy revenue. Annually a cash flow pro forma for each of the TIDs is completed by Ehlers, Inc. A summary of TID No. 3 follows. Ehlers, Inc. performs pro formas to assist in identifying a debt structure that the TIDs can support. A majority of TID expenditures are debt service requirements to repay debt issued for various projects completed within the boundaries of the specific TID such as road improvements, purchase of land for development or parking lots, and developer incentives. The TID No. 5 and TID No. 4 pro formas indicate sufficient revenues will be generated to meet or exceed projected expenditures until their close (except for one year with TID No. 4). All TIDs are expected to have a positive fund balance when legally required to close. Both of these TIDs are expected to close in 2028. The TID No. 3 pro forma indicates that the revenues generated annually will not exceed the projected expenditures until 2027. Included in the analysis is donations or advances made by TID No. 5 to TID No. 3. Because of projected annual shortfalls in TID No. 3 the Joint Review Board approved a five- year extension of TID No.3 extending the mandatory closing date to 2031. However, it is anticipated this TID will close in 2028. TID No. 3 (Major Fund) Projections 58 Tax Incremental District No. 3 Downtown Business District Cash Flow Pro Forma Tax Other Donation Donation Total Debt Other Total Annual Cumulative Year Increments Revenues from TID No. 2 from TID No. 5 Revenues Service Expenditures Expenditures Balance Balance 2015 550,131 1,289,607 521,674 - 2,361,412 1,333,243 487,371 1,820,614 540,797 (680,835) 2016 645,768 1,204,019 368,281 63,766 2,281,834 1,399,609 586,702 1,986,311 299,522 (385,312) 2017 572,265 355,298 371,165 112,421 1,411,149 1,546,809 919,192 2,466,001 (1,054,852) (1,440,164) 2018 700,257 1,206,855 428,631 940,019 3,275,762 1,627,593 650,592 2,278,185 997.577 (442,587) 2019 896,025 7,826 415,531 838,135 2,164,842 2,031,858 343,422 2,375,280 (210,438) (653,025) 2020 1,023,267 383,474 397,040 946,422 2,750,203 2,180,144 352,534 2,532,678 217,525 (435,500) 2021 891,499 13,378 - 941,901 1,846,778 1,952,154 44,535 1,996,689 (149,911) (585,411) 2022 1,085,875 27,184 - 995,237 2,109,892 1,950,779 31,001 1,981,780 128,112 (457,299) 2023 996,177 34,770 - 953,024 1,983,971 2,043,630 4,390 2,048,020 (64,049) (521,348) 2024 1,047,012 41,953 - 959,999 2,052,164 2,044,894 3,400 2,048,924 3,870 (517,478) 2025 1,122,293 50,510 - 1,008,340 2,181,763 2,187,061 1,900 2,188,961 (7,198) (524,676) 2026 1,122,293 30,010 - 990,340 2,143,263 1,879,966 1,900 1,881,866 261,397 (263,279) 2027 1,122,293 30,010 - - 1,152,923 - 25,000 25,000 1,127,923 846,644 59 The LTFP is designed to be a dynamic document that is modified based on current or new conditions. External factors play a key role in determining the financial picture of the Village. The external factors include legislation approved by the State of Wisconsin, development and the economy. These factors may have a positive or negative financial impact on the Village. The Village current finance condition reflects a strong financial position, prudent fiscal practices and solid reserves. All current TIDs are projected to close with a positive or zero balance. The General Fund forecast indicates that the gap between revenues/funding and expenditures over the next five years will increase. The operating, capital projections and debt service requirements (non-TID) have been calculated based on the identified assumptions that would maintain existing types of services and infrastructure. The General Fund operating revenue and expenditure projection (2025-2029) results in increasing average annual shortfalls of approximately $1,400,000. Projections indicate revenue will not be able to meet demands for services and infrastructure improvements. The main driver of this issue is the mandated State of Wisconsin tax levy limit which severely hampers the ability to fund existing services at the same level. The Village will be furthered challenged by continued growth and economic volatility as well as other factors. Without action to address these challenges the Village will face increasing financial pressure in providing services and infrastructure. The Village needs to develop and implement actions that support the necessary financial strategies identified in order to achieve those financial goals that will maintain or enhance financial sustainability while continuing to provide services and infrastructure expected and valued by residents and taxpayers. The impacts of implementing strategies will be monitored to determine effectiveness and whether strategies need to be adjusted as well as monitoring changes to the economy and external developments that may affect the Village financially. 60 Major Revenue Sources, Trends, and Assumptions Incorporating all Village funds, the Village's major revenue sources in the 2026 budget are: general property taxes, Water and Wastewater (Utility) user charges, TIF (Tax Incremental Finance) increments, and state transportation aids. These revenue categories represent $21,631,743 or 50% of the overall 2026 budgeted revenue. General Property Taxes – In comparing the 2023 actual to 2026 budgeted, General Property Taxes will increase 27% (or approximately 6.8% average annual increase). General Property Taxes support the General Fund, Fire and Rescue Services Fund, Parks and Open Space Fund, Library Fund, Debt Service Fund, Capital Projects Fund and Equipment Fund. During this period, (net of new construction) the 2025 non-TID property tax base (used for the 2026 budget) is 54.1% higher than the 2022 non-TID property tax base (used for the 2023 budget). The Village anticipates a minimal increase in property tax levy over the next two years due to limited residential construction. The State of Wisconsin has enacted tax levy limits on municipalities limiting property tax increases to a percentage increase of new construction with limited adjustments based on debt service, referendum approval, fee adjustments, annexations, etc. A referendum to fund $1,478,082 for the Fire Department was approved by the voters in April, 2024. The Village of Grafton, Town of Grafton, Village of Saukville and Town of Saukville contract with the Ozaukee Central Fire Department (OCFD) for fire and EMS services. Utility user charges – Utility user charges have increased 18.3% from 2023 actual to budgeted 2026. Increased revenue is directly attributable to the number of new customers. The utility had a sewer rate increase of 6% in 2025 with automatic increases of 6% in 2026 and 5% in 2027 and 2028. Water rates increased 48.6% in the fourth quarter of 2025. TIF Increments – In comparing the 2023 actual to 2026 budget, TIF Increments have increased 13.6%. The Village has four TIDs which this revenue source supports. TIF Increment is generated from the additional value of property created in the district and is used to support projects within a district including tax revenue from other tax jurisdictions which remain with the district. This revenue source is projected to increase slightly in 2026 due to minimal development created within each district. GENERAL FUND The general fund’s major revenue sources in the 2026 budget are: general property taxes, use of fund balance and state transportation aids. These revenue categories represent $8,728,311 or 75.4% of the overall 2026 general fund budgeted revenue. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted General Property Taxes 5,947,504 $ 6,366,859 $ 6,363,471 $ 6,363,471 $ 6,169,176 $ Use of Fund Balance 0 $ 0 $ 749,188 $ 0 $ 1,231,416 $ State Transportation Aids 686,110 $ 714,483 $ 744,144 $ 743,496 $ 777,718 $ GENERAL FUND MAJOR REVENUE SOURCES 61 General Property Taxes In the State of Wisconsin, General Property Taxes are based upon the value of real estate property. This is the general fund’s largest source of revenue at 53.3%. Budgeted 2026 general taxes have increase by 3.7% over 2023 general property taxes. $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 General Fund General Property T axes* *Years 2017-2024 are actual, 2025 is estimated, and 2026 is the Budget amount. In 2025, the Village's equalized value property tax base increased by $338,454,900 or 15.6%. Of the 15.6%, approximately 7.9% is due to an increase in property value and 3.7% is due to new construction. Factors affecting the allocation of General Property Taxes to the General Fund include funding required by the Ozaukee Central Fire Department and debt service requirements. State Transportation Aids State transportation aids recognize local government’s past costs for constructing and maintaining local streets. Funding for state transportation aids is based on a formula that includes actual eligible expenditures for local street maintenance and number of street miles. *Years 2017-2024 are actual, 2025 is estimated, and 2026 is the Budget amount. $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 State Transportation Aids* 62 In 2026, the Village will receive $777,718 (6.7% of General Fund revenue) in state transportation aids. These are all recognized as revenue in the general fund in 2026. The Village anticipates that future state transportation aids may increase incrementally as the Village has been increasing expenditures related to street reconstruction. The state formula uses a six-year average of the Village’s expenses associated with street construction or reconstruction efforts as well as maintenance to determine the amount of state aid related to transportation. Use of Fund Balance Use of fund balance is the identified amount of fund balance used to balance the budget. This is a method utilized to fund one-time expenditures, one-time loss of revenue, stabilize the tax levy or other revenue sources or avoid issuance of debt. Identified in the 2026 budget is the use of general fund balance of $1,298,194 or 11.2% of budgeted general fund revenues. The following table identifies the budgeted use of fund balance and the actual use of fund balance. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Budgeted Use of Fund Balance 456,825 $ 495,182 $ 797,230 $ 797,230 $ 1,298,194 $ Actual Use of Fund Balance 0 $ 0 $ 0 $ 102,348 $ NA ACTUAL USE OF GENERAL FUND BALANCE VS. BUDGETED USE OF FUND BALANCE The following chart identifies the historical use of fund balance. $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Historical Use of General Fund Balance* *Years 2017-2024 are actual, 2025 is estimated, and 2026 is the Budget amount. The Village anticipates the use of fund balance in 2026 but has generally seen an increase in fund balance. The actual increase in fund balance for 2017, 2020, 2023 and 2024 was $241,712, $136,756, $431,768 and $1,228,451 respectively. It is estimated that $102,348 of fund balance will be used in 2025. 63 SPECIAL REVENUE FUNDS The special revenue funds major revenue sources in the 2026 budget are taxes and charges for services. The revenue budgeted in these revenue categories represent $8,518,855 or 87.4% of the overall 2026 special revenue funds budgeted revenue. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Taxes 2,032,281 $ 1,859,963 $ 3,507,094 $ 3,487,094 $ 3,949,122 $ Charges for Services 786,749 $ 890,172 $ 3,800,772 $ 4,252,122 $ 4,569,733 $ SPECIAL REVENUE FUNDS MAJOR REVENUE SOURCES Room Tax Fund The only revenue source in this fund is room tax collected from local lodging establishments. The table that follows shows a four-year history of the room taxes. ROOM TAX FUND MAJOR REVENUE SOURCE 2023 Actual 2024 Actual 2025 Adopted 2025 Estimated 2026 Adopted Room Tax $462,776 $452,418 $455,000 $435,000 $435,000 Room Tax is imposed on the service of furnishing rooms or lodging to transients by hotel keepers, motel operators, and other persons furnishing accommodations that are available to the public. The room tax rate is seven percent of revenue derived from the sale of rooms. Fire Protection and Rescue Fund The top two revenue sources for the Fire Protection and Rescue Fund are general property taxes and charges for services. These two sources comprise 100% of the fund’s revenue sources. The Villages of Grafton and Saukville, and the Towns of Grafton and Saukville approved an agreement to contract for fire and EMS services with Ozaukee Central Fire Department (OCFD) beginning January 1, 2025. The Village of Grafton will employ OCFD staff for 2025 and 2026 due to transition related to benefits. In 2025 OCFD contracted with the Village to process accounts payable and perform accounting and human resources services. In 2026 OCFD has contracted with the Village to perform human resources services. Charges for services represents the amount OCFD reimburses the Village for OCFD staff as well as administrative charges for the services the Village provides OCFD. The table that follows shows a four-year history of the major revenue sources for the Fire Protection and Rescue Fund. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted General Property Taxes 739,118 $ 687,292 $ 2,321,456 $ 2,321,456 $ 2,680,887 $ Charges for Services 0 $ 0 $ 3,519,643 $ 3,316,391 $ 4,297,019 $ FIRE PROTECTION AND RESCUE FUND MAJOR REVENUE SOURCES General property taxes have increased to support the services provided. This amount represents 38.4% of the fund’s revenue. Two referendums were approved by the Village of 64 Grafton voters for approval to exceed the property tax limits imposed by the State of Wisconsin. The total of the two referendums is $1,742,133. The Village has budgeted contributing $956,754 above the referendum amount in 2026. Charges for services represents the amount OCFD reimburses the Village for OCFD staff as well as administrative charges for the services the Village provides OCFD. Park and Open Space Fund In 2026 the major revenue sources in the Park and Open Space Fund are general property taxes and donations. These categories comprise 98.3% of the fund’s revenue sources. The table that follows shows a four-year history of the top 2025 revenue source. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted General Property Taxes 40,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ Donations 3,000 $ 260,000 $ 85,000 $ 141,500 $ 91,500 $ PARK AND OPEN SPACE FUND MAJOR REVENUE SOURCES The Park and Open Space Fund receives general property taxes as part of an ongoing effort to fund park renovations that are not funded with impact fees from the Park and Recreational Facilities Fund. The Park and Open Space Fund received donations and a commitment to provide donations for the construction of a replacement pavilion at Veterans Park. Library Fund The major revenue source for the Library Fund are general property taxes. This category comprises 75% of the fund’s revenue sources. The table that follows shows a four-year history of the major revenue sources. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted General Property Taxes 659,013 $ 670,253 $ 680,638 $ 680,638 $ 690,638 $ LIBRARY FUND MAJOR REVENUE SOURCES The Town of Grafton has notified the Village of their withdrawal from the Library contract effective June 2025. Previously the Library operated as a joint library per agreement between the two communities. General Property Taxes remains the major revenue source for this fund. The Town is no longer part of the Library System and is required to pay Ozaukee County an amount per checked-out items to municipalities within the system. The Library will receive funding directly from the County based on a formula but the amount to be received in 2026 is an estimate. 65 DEBT SERVICE FUNDS Debt Service Fund The top revenue source for the Debt Service Fund is Transfers from Tax Incremental Districts (TIDs) No. 3 and 4. This category comprises 87.2% of the fund’s revenue sources. The table that follows shows a four-year history of the top revenue source. The transfers from TIDs represent these TIDs’ responsibilities for debt incurred to promote redevelopment of Downtown Grafton (TID No. 3) and the redevelopment of the South Commercial District (TID No. 4). The refunding of existing debt has stabilized future debt service payments. Impact Fee Fund The top major revenue sources are impact fees collected for the construction of the police station (PD) and the Municipal Services Facility (MSF). The table that follows shows a four-year history of impact fees. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted PD Impact Fees 80,059 $ 457,359 $ 259,200 $ 304,622 $ 86,541 $ MSF Impact Fees 111,505 $ 522,307 $ 189,782 $ 149,302 $ 0 $ IMPACT FEE FUND MAJOR REVENUE SOURCES Both impact fees are derived from residential, commercial, and industrial development. During 2025 the maximum amount of impact fees related to the construction of the MSF was collected. In 2026 only fees related to the PD have been budgeted. In 2026 impact fees comprise 68.4% of the fund’s revenue CAPITAL IMPROVEMENT FUNDS TID No. 3 – Downtown Redevelopment Fund The top two revenue sources in the TID No. 3 – Downtown Redevelopment Fund are TIF increments and transfer from TID No. 5 These two categories comprise 97.2% of the fund’s revenue sources. The table that follows shows a four-year history of the top two major revenue sources. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Transfer from TIDs 2,851,411 $ 2,954,253 $ 2,828,523 $ 2,828,523 $ 3,710,260 $ DEBT SERVICE FUND MAJOR REVENUE SOURCE 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted TIF Increments 996,177 $ 1,047,012 $ 1,047,012 $ 1,122,913 $ 1,122,913 $ Transfer from TID No. 5 953,024 $ 959,999 $ 958,144 $ 1,036,690 $ 1,030,340 $ TID 3 FUND MAJOR REVENUE SOURCES 66 TIF increments are property taxes paid by the property owners on the valuation of their development and value above the 1998 base year. Transfer from TID No.5 is a donation of excess funds generated by TID No.5 to TID No.3. This donation was adopted by the Joint Review Board as an amendment to TID No. 5 and TID No. 3. These donations are expected to continue through 2028, when TID No. 3 closes. TID No. 4 – South Commercial District Fund The top revenue source in the TID No. 4 – South Commercial District Fund is TIF increments. This category comprises 88.2% of the fund’s revenue sources. The table that follows shows a four-year history of the top revenue source. TIF increments are property taxes paid by the property owners on the valuation of their development and value above the 2004 base year. TIF Increments for 2026 are expected to stabilize. TID No. 5 – Grafton Commons Fund The top revenue source is TIF increments. This category comprises 87.6% of the fund’s revenue sources. The table that follows shows a four-year history of the top revenue source. TIF increments are property taxes paid by the property owners on the valuation of their development and value above the 2006 base year. TIF Increments for 2026 are expected to stabilize. TID No. 6 – Goldberg Property The top revenue source is Proceeds from Borrowing. This category comprises 98.8% of the fund’s revenue sources. The table that follows shows a four-year history of the top revenue source. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Proceeds from Borrowing 0 $ 0 $ 0 $ 0 $ 685,000 $ TID 6 FUND MAJOR REVENUE SOURCE 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted TIF Increments 852,846 $ 1,010,369 $ 1,010,369 $ 1,076,637 $ 1,076,637 $ TID 4 FUND MAJOR REVENUE SOURCE 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted TIF Increments 887,498 $ 900,089 $ 900,089 $ 906,062 $ 906,062 $ TID 5 FUND MAJOR REVENUE SOURCE 67 Proceeds from Borrowing will be required for potential asbestos abatement of the Goldberg Property. A study will be conducted in 2026 to determine the scope of the project. The Village Board will determine the course of action required for the property when the results of the study are presented. Capital Projects Fund The top revenue source for this fund is proceeds from borrowings. This category comprises 83.3% of the fund’s revenue sources. The table that follows shows a four-year history of the major revenue source. Proceeds from Borrowing were needed to fund the road replacement projects in 2023 and 2024. Prior to approving the final 2025 Budget it was discovered a section of sewer main collapsed and the decision was made to proceed with road and water and wastewater main replacement to be funded by the utility and no road replacement was done by the Capital Projects Fund 9n 2025. The 2026 Budget amount reflects funding of the street replacement project and mandated State of Wisconsin repairs for dam repairs. Equipment Fund The top revenue source in the Equipment Fund is general property taxes. This category comprises 76.2% of the fund’s revenue sources. The table that follows shows a four-year history of the top revenue source. General property taxes are historically the largest revenue source for this fund and varies somewhat due to the timing of scheduled equipment replacement. The Village routinely funds the purchase of equipment as identified in the 5 Year Capital Improvement Program with general property taxes rather than with issuance of debt. The Village has initiated a lease program for police vehicles to assist stabilizing or decreasing future tax levy allocations to this fund. In 2026 the Police Department and Department of Public Works will be allocated a specific tax levy amount to manage for current and future equipment replacement. This will eliminate the need to increase property tax allocation specifically for the Department of Public Works as replacement of some of their equipment is very costly. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Proceeds from Borrowings 1,080,000 $ 2,330,000 $ 0 $ 0 $ 2,700,000 $ CAPITAL PROJECTS FUND MAJOR REVENUE SOURCE 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted General Property Taxes 525,000 $ 585,000 $ 550,000 $ 550,000 $ 525,000 $ EQUIPMENT FUND MAJOR REVENUE SOURCE 68 FIDUCIARY FUND Woodlawn Perpetual Care Fund The major revenue source of this fund for 2025 is investment income. This category comprises 73% of the fund’s revenue sources. WOODLAWN PERPETUAL CARE FUND MAJOR REVENUE SOURCE 2023 Actual 2024 Actual 2025 Adopted 2025 Estimated 2026 Adopted Investment Income $7,974 $9,086 $8,500 $9,000 $8,500 Interest earnings are anticipated to remain stable in 2026. PROPRIETARY FUNDS Water Utility The top four major revenue sources are Sales – Residential, Capital Contributions, Residential Fire Protection, and Sales – Commercial. These four categories comprise 77.8% of the fund’s revenue sources. The table below shows a four-year summary of the top five major revenue sources. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Residential - Meterd 950,919 $ 959,405 $ 980,771 $ 1,064,672 $ 1,400,927 $ Capital Contributions 1,361,348 $ 211,317 $ 725,000 $ - $ 502,333 $ Commercial - Meterd 200,721 $ 198,485 $ 205,477 $ 209,926 $ 264,309 $ Residential Fire Protection 192,140 $ 195,530 $ 197,572 $ 240,402 $ 451,293 $ WATER FUND MAJOR REVENUE SOURCES Sales – Residential is revenue derived from user fees of residential properties (41% of revenues). Despite an increase in the number of customers usage has actually been declining for the last 20 years as more low flow devices are installed in homes. The utility continually reviews the need for rate increases as necessary. The 2025 and 2026 revenues increased due to a rate increase which was effective in the fourth quarter of 2025. Capital contributions are capital assets (water mains and infrastructure) installed by developers in developments and accepted by the Village to maintain said asset (15% of revenues). There are currently 10 phases of subdivisions in various stages of development in the Village and it is anticipated that there will be capital contributions received in 2026 and possibly 2027 as these phases are completed. Sales – Commercial is revenue derived from user fees of commercial properties (8% of revenues). Overall water usage is on a declining trend but is anticipated to remain steady as growth occurs. Rates were increased in the fourth quarter of 2025 resulting in the increased revenue budgeted in 2026. Residential –Fire Protection is a charge placed on all residential properties that is designed to recoup the cost of maintaining a water system’s capacity to provide high pressures and flows to hydrants for the purpose of fire suppression (13% of revenues). This revenue source is estimated to increase as the Village Board approved an application to the Wisconsin Public 69 Service Commission to move this charge from a Village charge to a customer charge. The request was for this change was requested to be effective January 1, 2026. Wastewater Utility The top two major revenue sources are Sales – Residential and Sales – Commercial. These two categories comprise 76 percent of the fund’s revenue sources. The table below shows a four-year summary of the two major revenue sources. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Residential 2,759,367 $ 2,870,259 $ 2,862,845 $ 3,021,440 $ 3,021,440 $ Commercial 595,477 $ 605,179 $ 621,382 $ 633,566 $ 633,566 $ WASTEWATER FUND MAJOR REVENUE SOURCES Sales – Residential is derived from user fees of residential properties (63 percent of revenues). Historical water usage (water usage is used to calculate sewer usage) has decreased in the Village resulting in a need to increase user rates to meet ongoing demands of replacing older equipment and to ensure a consistent cash flow for ongoing main replacement in lieu of issuing debt. The Village Board approved step increases to sewer rates which will occur in 2025-2028. This revenue source is expected to increase in small increments for the near future. Sales – Commercial is derived from user fees of commercial properties (13 percent). This revenue source is anticipated to increase incrementally through 2026. Additionally, the Village Board approved step increases to sewer rates which will occur in 2025-2028. 70 General Fund General Fund Summary 71 General Fund Revenues 72 73 General Fund Expenditures Summary 74 General Government Village Board Department Purpose To represent residents of the Village of Grafton in implementing the community’s vision. Department Description The Village Board is comprised of six trustees and one Village President who are elected at -large for two-year, overlapping terms. They have the responsibility to establish policy by legislation, to adopt a spending plan (i.e., Annual Budget), and to carry out the duties as defined by State Statutes and Village Ordinances. 2026 Budget Highlights There are no notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 36,534 $ 37,139 $ 37,139 $ 37,139 $ 37,139 $ Non-Personnel 12,633 14,263 14,135 13,774 16,312 Total Expenditures 49,167 $ 51,403 $ 51,274 $ 50,913 $ 53,451 $ 75 76 Legal Department Purpose To facilitate the Village’s vision and operations using legal services while minimizing claims against the Village. Department Description The Village attorney, appointed by the Village Board, is the legal advisor and attorney for the Village on a contract basis. Activities include presentation and defense of the Village’s legal interests and rights and prosecution for misdemeanor complaints. The Village attorney also is responsible for attending Village Board meetings and serving as legal counsel during such meetings. Services are as follows: (1) support the legislative and administrative processes (ordinances, opinions, litigation, contracts, personnel arbitration, legal research, liens); (2) present and defend the Village’s legal interests and rights before all courts, legislative and administrative tribunals; and (3) pros ecute complaints (misdemeanor traffic and criminal, municipal, and circuit courts). 2026 Budget Highlights There are no notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Non-Personnel 48,583 $ 53,238 $ 40,000 $ 45,000 $ 47,000 $ Areas of Emphasis: Continue to improve quality of life. Goal: To limit the Village’s liability due to lawsuits/claims. Objective: 1. Minimize the number of claims and lawsuits. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 6,632 $ 9,729 $ 15,340 $ 13,775 $ 14,468 $ Non-Personnel 39,657 41,486 41,871 46,915 64,547 Capital Oulay 0 0 0 4,275 9,020 Total Expenditures 46,288 $ 51,215 $ 57,211 $ 64,965 $ 88,035 $ 77 78 Administration Department Purpose To professionally implement all Village Board policy decisions, efficiently direct Village operations, and create an organizational culture that results in the delivery of excellent municipal services to Grafton residents. Department Description Working with the Village Board, the community, and staff, the Village Administrator is responsible for professionally implementing all Village Board policy decisions and efficiently directing the operation and activities of the Village in accordance with sound management principles. In addition, the Village Administrator prepares, reviews, and monitors the annual operating budget. The Village Administrator also serves as the Public Information Officer and oversees the Human Resources Generalist. 2026 Budget Highlights There are no notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Non-Personnel 55,187 $ 87,886 $ 217,252 $ 196,500 $ 84,293 $ Areas of Emphasis: Continue to improve quality of life. Goal: To keep Village residents, the general public, Village employees, and the media informed and engaged about Village issues, programs, and community events. Objective: 1. Utilize and refine the Village’s website and social media presence to facilitate stakeholder communications. 2. Obtain GFOA Budget Awards. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Executive Performance Measurement Budget GFOA Award Yes Yes Yes Yes Yes 79 Areas of Emphasis: Continue to improve quality of life. Goal: Ensure organizational competitiveness, enhancing productive and quality public service. Objective: 1. Foster a positive work environment to increase employee engage and reduce turnover. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Workload Percent of annual turnover of permanent positions 18.10% 14 10% 20% 15% Percent of orientations for new employees within 30 days 100% 100% 100% 100% 100% 80 81 Village Clerk Department Purpose To act as a liaison between the Village and the State of Wisconsin; to accurately maintain the legal record of the action of the Village Board and all permanent Village records; and to ensure the preservation and accessibility of essential information by adhering to all statutory requirements established by the State. Department Description The Office of the Village Clerk serves as the legal custodian of the Village’s official records and is responsible for supplying general information to the public on various issues. The Office of the Village Clerk is also responsible for taking minutes at public hearings, Village Board, Board of Review, and other meetings as necessary , processing all alcohol and tobacco related and performing duties as required for Board of Review. 2026 Budget Highlights There are no notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Permanent Staffing Village Clerk 1.00 1.00 1.00 1.00 1.00 Deputy Village Clerk 0.50 0.50 0.50 0.50 0.50 Accounting Clerk 0.10 0.10 0.10 0.10 0.10 Total Staffing 1.60 1.60 1.60 1.60 1.60 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 142,374 $ 163,510 $ 171,980 $ 155,957 $ 160,499 $ Non-Personnel 21,961 20,937 20,315 20,527 18,820 Total Expenditures 164,335 $ 184,447 $ 192,295 $ 176,484 $ 179,319 $ Areas of Emphasis: Ensure the public stays well informed and engaged on municipal matters. Goal: To maintain an open and transparent governmental process and provide information to the citizens of the community in a manner that ensures adherence with all open record and meeting law requirements. Objective: 1. Provide meeting information to the public as required by State Statues. 2. Manage public records and ensure their accessibility to the public in a variety of formats. 82 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Agendas and cancellation notices posted 152 153 150 145 150 Public hearing notices mailed 991 891 1,200 1,200 1,000 83 84 Elections Department Purpose To administer all elections required to be held by State Statutes and Village Ordinance. Department Description The Elections budget accounts for costs associated with Village held elections. In coordination with Ozaukee County, the Office of the Villag e Clerk is responsible for administering all election activities including receiving filings from candidates for the positions of Village President and Village Trustee. In addition, the Office of the Village Clerk processes all local referendum and recall petitions. 2026 Budget Highlights Increase due to four scheduled elections in 20 26 compared to two scheduled elections in 202 5. The Village Board approved the purchase of Badger Books in 2025 to be implemented in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 15,396 $ 25,855 $ 16,425 $ 14,474 $ 28,003 $ Non-Personnel 14,458 21,220 10,931 12,288 19,728 Capital Outlay 275 0 0 1,859 0 Total Expenditures 30,129 $ 47,074 $ 27,356 $ 28,621 $ 47,731 $ Areas of Emphasis: Improve efficiency and effectiveness of municipal services Goal: To provide access to the citizens of the Village of Grafton to fair and impartial elections that comply with the election laws of the State of Wisconsin while maintaining election integrity. Objective: 1. Facilitate voter participation by ensuring the process is convenient and accessible to all eligible citizens. 2. Work to increase efficiency in election costs. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Average Number of Registered Voters 8,364 8,527 9,032 9,032 9,393 Average Voter participation per election 3,479 3,953 3,500 3,683 4,000 Cost per vote 2.89$ 2.74$ 3.91$ 3.11$ 2.61$ 85 86 Information Technology (IT) Department Purpose To provide secure and reliable “up -to-date" technology support s ervices to Village staff to enhance the efficient and effective performance of their duties Department Description Under the direction of the Finance Department, the Information Technology department coordinates and manages the Village’s network security, phone systems, and web page. 2026 Budget Highlights This is a newly created department, to better track costs associated with information technology and communication needs of General Fund supported operations. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Permanent Staffing Administrative Services Director 0.00 0.00 0.00 0.00 0.03 Human Resources Generalist 0.00 0.00 0.00 0.00 0.09 Total Staffing 0.00 0.00 0.00 0.00 0.12 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 0 $ 0 $ 0 $ 0 $ 14,621 $ Non-Personnel 0 0 0 0 122,186 Total Expenditures 0 $ 0 $ 0 $ 0 $ 136,807 $ Areas of Emphasis: Improve efficiency and effectiveness of municipal services Goal: Expand the use of technology to improve services and efficiencies, while strengthening cybersecurity. Objective: 1. Maintain hardware configuration and communications to optimize performance of computer system. 2. Perform necessary software upgrades to ensure computer system reflects current technology. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Total computer users 102 105 106 105 106 PC's supported 58 60 60 62 62 IT Tasks completed internally 174 201 200 150 200 Percent of taks performed by external computer consultant 36% 66% 67% 67% 67% 87 88 Finance Department Purpose To provide administration of the accounting system, payroll, investment, cash management, cash receipting, accounts payable, debt management, and utility billing; maintain fixed asset inventory and property insurance replacement value; prepare and publish Comprehensive Annual Financial Report and Popular Annual Fina ncial Report. The department is also responsible for the administration of the Debt Service Fund, Impact Fee Fund, and Revolving Loan Fund as well as the Information Technology department. Department Description Under the direction of the Administrative Services Department, the Finance department coordinates and controls all financial transactions of the Village; prepares work papers and coordinates the annual audit ; coordinates payments of all invoices and cash receipting; processes payroll, prepares and distributes 1099’s and W-2 forms; maintains compliance with all state and federal laws; supplies meaningful and timely financial data that will inform and assist the public and decision making of Village management; and provides support for network services, end-user computer system support, and hardware acquisition. 2026 Budget Highlights In 2026 all information technology and communication expenses, including related labor costs were moved to a new Information Technology department. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Permanent Staffing Administrative Services Director 1.00 1.00 1.00 1.00 0.97 Accountant/Financial Analyst 0.75 0.75 0.75 0.75 0.75 Human Resources Generalist 0.25 0.25 0.25 0.25 0.16 Deputy Village Clerk 0.50 0.50 0.50 0.50 0.50 Accounting Clerk 0.50 0.50 0.50 0.50 0.50 Total Staffing 3.00 3.00 3.00 3.00 2.88 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 313,027 $ 323,963 $ 342,727 $ 337,736 $ 338,912 $ Non-Personnel 55,178 56,273 75,874 83,002 65,677 Total Expenditures 368,205 $ 380,236 $ 418,601 $ 420,738 $ 404,589 $ 89 Areas of Emphasis: Ensure fiscal stability. Goal: To provide accurate and timely financial information for management decisions. Objective: 1. Disburse monthly revenue and expenditure reports by the tenth of the following month. 2. Obtain the Certificate of Achievement for Excellence in Financial Reporting Award and the Popular Annual Financial Report Award from the Government Finance Officers Association. 3. Receive an unqualified audit opinion. 4. Ensure Village Funds are invested to maximize earnings while minimizing risk. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Percent of reports distibuted by the 10th 100% 100% 100% 100% 100% Received GFOA ACFR and PAFR Award Yes Yes Yes Yes Yes Received unqualified audit opinion Yes Yes Yes Yes Yes Rate of Return on Investments* 4.9% 5.2% 5.0% 5.2% 5.0% * Includes mark to market adjustments 90 91 Assessing Department Purpose To maintain equitable, market value property assessments in a cost- effective manner. Department Description The Village contracts with Associated Appraisal Consultants, Inc. for assessment services. 2026 Budget Highlights There are no notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Permanent Staffing Administrative Assistant 0.50 0.05 0.05 0.05 0.00 Administrative Specialist 0.00 0.00 0.00 0.00 0.05 Total Staffing 0.50 0.05 0.05 0.05 0.05 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 4,556 $ 4,351 $ 4,663 $ 4,661 $ 4,863 $ Non-Personnel 58,044 68,265 71,364 71,013 70,634 Total Expenditures 62,600 $ 72,615 $ 76,027 $ 75,674 $ 75,497 $ Areas of Emphasis: Ensure fiscal stability. Goal: Maintain, in a fiscally responsible manner, fair and equitable property values with a valuation that approximates fair market value. Objective: 1. To maintain property values within 10 percent of fair market value (assessment ratio) in compliance with Wisconsin Statutes 70.05 (5). 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Contract cost per assessed property 10.81$ 13.30$ 13.17$ 12.80$ 12.76$ Cost of interim market update/revaluation per parcel 20.30$ - $ 8.81 $ 8.71 $ - $ 92 93 Village Hall Department Purpose To operate and maintain Village Hall, which contains the Board Room as well as the following departments: Administration, Administrative Services, and Community Development. Department Description The Village Hall budget provides for the costs incurred to operate and maintain the 12,000 square foot Village Hall with building and landscaping maintenance provided by the Public Works and Parks and Recreation Departments. 2026 Budget Highlights Village Hall landscaping and small building updates are planned for 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 6,632 $ 9,729 $ 15,340 $ 13,775 $ 14,468 $ Non-Personnel 39,657 41,486 41,871 46,915 64,547 Capital Oulay 0 0 0 4,275 9,020 Total Expenditures 46,288 $ 51,215 $ 57,211 $ 64,965 $ 88,035 $ Areas of Emphasis: Continue to improve quality of life. Goal: To provide the employees of the assigned departments with office space that allows them to work effectively and efficiently in a safe manner. Objective: 1. Obtain a rating of 3 or better (on a scale of 1-5, with 5 being excellent) from Village Hall employees regarding the quality of housekeeping services. 2. Obtain a rating of 3 or better (on a scale of 1-5, with 5 being excellent) from Village Hall employees regarding the ability to maintain a safe working environment. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Employee rating of quality housekeeping* 2.5 4.0 3.0 4.0 4.0 Employee rating regarding maintaining a safe working environment* 4.0 4.3 4.0 4.0 4.0 94 95 Village Promotion and Goodwill Department Purpose To maintain a positive culture for employees and community as well as promote community engagement. Department Description Village Promotion and Goodwill provides funding for employee recognition programs, employee health and wellness programs, employee assistance programs, as well as a business recognition program and personnel costs associated with civic celebrations including energy costs for holiday streetlights. 2026 Budget Highlights There are no notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 32,555 $ 23,867 $ 32,823 $ 29,677 $ 33,946 $ Non-Personnel 32,799 57,915 58,331 58,054 51,430 Total Expenditures 65,354 $ 81,782 $ 91,154 $ 87,731 $ 85,376 $ Areas of Emphasis: Continue to improve quality of life. Goal: To provide high quality Village services to the residents, businesses, and employees of the Village of Grafton. Objective: 1. Increase employee awareness of health insurance wellness programs. 2. Increase the number of subscribers to the Village Facebook page and Notify Me website, assisting citizens in becoming more aware of Village activities. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Number of employees receiving wellness award through health insurance 30 32 30 30 35 Number of Notify Me subscribers 929 997 975 960 975 Number of Facebook Followers 4,500 4,800 5,000 4,900 5,000 96 97 Public Safety Police Administration Department Purpose To establish and oversee a financially responsible budget that prioritizes trust and transparency, supports growth and career advancement, and fosters a harmonious work environment through compassion, accountability, respect, and empathy (C.A.R.E.). Department Description The Police Administration is responsible for managing and overseeing all police operations. This division offers a range of essential services, including but not limited to the following: 1) identifying organizational strengths, weaknesses, opportunities, and threats; 2) developing and implementing the Police Department’s Strategic Plan; 3) establishing a vision for, and providing leadership, management, and guidance to the Police Dep artment staff; 4) overall planning and research; 5) developing and administering departmental operating and capital improvement budgets; 6) reviewing and revising departmental policies and procedures; 7) identifying staffing needs and coordinating the selection and retention of employees; and 8) managing the storage and retrieval of departmental criminal justice information. 2026 Budget Highlights There are no notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Permanent Staffing Chief 1.00 1.00 1.00 1.00 1.00 Assistant Chief 1.00 1.00 1.00 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 1.00 0.00 Administrative Specialist 0.00 0.00 0.00 0.00 1.00 Total Staffing 3.00 3.00 3.00 3.00 3.00 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 387,331 $ 389,644 $ 413,351 $ 422,421 $ 430,704 $ Non-Personnel 191,124 131,085 141,077 134,706 114,278 Total Expenditures 578,455 $ 520,728 $ 554,428 $ 557,127 $ 544,982 $ 98 Areas of Emphasis: Ensure Fiscal Stability Goal: Optimize patrol operations to maximize public safety outcomes while maintaining cost - effective resource utilization and generating sustainable revenue streams. Objective: 1. Enhance traffic enforcement, parking violations, and fee-based services to generate legitimate revenue while supporting public safety objectives. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Grant funding secured 1 1 2 2 2 Cost recovery percentage for special events - - - - 60% Overtime Costs 200,794$ 184,179$ 150,000$ 225,000$ 150,000$ 99 100 Police Operations Department Purpose To provide professional, impartial, and ethical law enforcement services through Compassion, Accountability, Respect, and Empathy (C.A.R.E.), through progressive and community-minded law enforcement strategies and a strong commitment to working in partnership with our neighbors to provide a safe, secure environment that enhances their quality of life. To implement crime prevention strategies that are fair, consistent, and unbiased to help prevent crime and reduce the fear of crime. Department Description Police Operations provides high quality law enforcement services by responding to requests from the community, informing and educating the community on crime prevention strategies, promoting safe vehicular and pedestrian travel, coordinating with emergency government officials, cooperating with other public service agencies to enhance the effectiveness of service delivery, and prioritizing resource allocations. 2026 Budget Highlights There are no notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Permanent Staffing Sergeant 5.00 5.00 5.00 5.00 5.00 Patrol Officer 13.00 14.00 14.00 14.00 14.00 School Resource Officer 1.00 1.00 1.00 1.00 1.00 K9 Officer Handler 1.00 1.00 1.00 1.00 1.00 K9 Officer (Canine) 1.00 1.00 1.00 1.00 1.00 Crossing Guard 5.00 5.00 5.00 5.00 5.00 Total Staffing 26.00 27.00 27.00 27.00 27.00 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 2,496,780 $ 2,745,059 $ 2,954,672 $ 3,042,395 $ 3,152,845 $ Non-Personnel 213,037 204,598 232,930 217,245 205,050 Total Expenditures 2,709,817 $ 2,949,657 $ 3,187,602 $ 3,259,640 $ 3,357,895 $ Areas of Emphasis: Continue to improve the quality of life. Goal: Ensure quality of public health and safety services. Objective: 1. Enhance rapid response capabilities for emergency calls and coordinate with health services for mental health crises, overdoses, and public health incidents. 2. Establish partnerships with community organizations, businesses, and residents to identify and address recurring public safety and quality-of-life issues. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Average Response time* 2.25 6.70 < 3 3.67 <5 Resident Survey Scores 98 97 98 97 96 * to Priority 1 calls, in minutes 101 102 Police Professional Staff Department Purpose Police Professional Staff enhance customer service, relieve sworn members from ministerial work, improve accountability in high liability areas, improve and expand existing programs, develop new programs, and enhance processes to ensure efficient delivery of police services. Department Description Police Professional Staff are responsible for the comprehensive clerical support of the Police Department staff and the community by transcribing and assembling arrest and investigative reports, providing police records management services, answering all non-emergency phone calls, providing assistance to citizens in the lobby, assisting with collection of citation payments, entering and cancelling warrants, validating of police records, compiling and analyzing data to identify crime trends, managing the property and evidence room for compliance with state and federal laws, regulations, and best practices, and acting as a liaison between the police and the community working to develop and implement community programs. 2026 Budget Highlights There are no notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Permanent Staffing Police Records Specialist 1.00 1.00 1.00 1.00 0.00 Police Records Technician 0.00 0.00 0.00 0.00 1.00 Police Records Administrator 1.00 1.00 1.00 1.00 0.00 Records Coordinator 0.00 0.00 0.00 0.00 1.00 Neighborhood Services Liaison 1.00 1.00 1.00 1.00 1.00 Property & Evidence Manager 1.00 1.00 1.00 1.00 0.00 Property & Evidence Specialist 0.00 0.00 0.00 0.00 1.00 Administrative Assistant 1.00 1.00 1.00 1.00 0.00 Administrative Specialist 0.00 0.00 0.00 0.00 1.00 Total Staffing 5.00 5.00 5.00 5.00 5.00 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 339,327 $ 334,621 $ 339,109 $ 335,299 $ 369,792 $ Non-Personnel 507 377 314 231 293 Total Expenditures 339,834 $ 334,998 $ 339,423 $ 335,530 $ 370,085 $ Areas of Emphasis: Improve efficiency and effectiveness of municipal services Goal: Expand the use of technology to improve services and its efficiencies Objective: 1. Implement online crime reporting systems, community feedback portals, and mobile apps for non-emergency services and police-citizen communication. 2. Establish crime analysis platforms and predictive policing tools to support data- driven patrol deployment and crime prevention strategies. 103 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Non Emergency Reports Submitted online N/A N/A N/A N/A 35% Proactive Deployments based on Analytics N/A N/A N/A N/A 6 104 105 Police Station Department Purpose To provide for the operation and maintenance of the Police Station. Department Description The Police Station budget provides for the operation and maintenance of the 30,670 square foot Police Station. 2026 Budget Highlights There are no notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 3,991 $ 12,354 $ 12,351 $ 19,570 $ 20,542 $ Non-Personnel 77,373 69,970 71,691 67,271 61,567 Total Expenditures 81,364 $ 82,324 $ 84,042 $ 86,841 $ 82,109 $ 106 107 Fire Station Building Department Purpose To provide for the operation and maintenance of the Grafton Fire Station. Department Description The Fire Station budget provides for repairs and maintenance of the Grafton Fire Station. The Village retains ownership of the building. Fire services are provided by Ozaukee Central Fire Department. 2026 Budget Highlights This is a new fund in 2026 to account for repairs and maintenance of the Fire Station building. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Non-Personnel 0 $ 0 $ 0 $ 0 $ 10,000 $ 108 109 Inspection Department Purpose To safeguard life and property by the administration, regulation, and enforcement of local, state, and national codes as they relate to public and private building design and construction activities within the Village. Department Description The Inspection Office (as part of the Community Development Department) oversees the public and private building construction activities within the Village. Services provided include review and approval of building plans and specifications of all proposed construction, issuance of permits for development, on-site building inspections, and management of the State weights and measures program and liquor license inspections. The Village also provides contracted inspection services to the Village of Saukville. 2026 Budget Highlights There are no notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Permanent Staffing Building Inspector 1.00 1.00 1.00 1.00 1.00 Assistant Building Inspector 1.00 1.00 1.00 1.00 1.60 Part-Time Building Inspector 0.00 0.00 0.58 0.60 0.00 Building Inspector Consultant 0.50 0.25 0.15 0.15 0.15 Building Plan Reviewer Consultant 0.25 0.25 0.25 0.25 0.25 Electrical Inspector Consultant 0.25 0.25 0.25 0.25 0.25 Cemetery Grounds/Maint. 0.25 0.25 0.25 0.25 0.25 Administrative Assistant 1.45 1.45 1.45 0.95 0.95 Office Assistant 0.00 0.00 0.00 0.50 0.50 Total Staffing 4.70 4.45 4.93 4.95 4.95 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 370,891 $ 421,550 $ 485,153 $ 471,101 $ 483,926 $ Non-Personnel 45,556 53,604 76,910 75,181 66,565 Total Expenditures 416,447 $ 475,154 $ 562,063 $ 546,282 $ 550,491 $ Areas of Emphasis: Continue to improve the quality of life by ensuring the quality of public health and safety services. Goal: To ensure quality and safe buildings for residents and the public through consistent code enforcement. To provide high quality services to the residents and businesses of the Village of Grafton. Objective: 1. Maintain compliance with Wisconsin statues and codes as they relate to residential and commercial construction. 2. Provide inspection services in a timely manner. 110 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Number of inspections performed 2,300 2,769 2,500 3,500 3,000 Number of building permits 580 1,264 800 925 800 Percentage of residential permits processed within 10 working days 80% 80% 80% 70% 80% 111 112 Public Works Administration Department Purpose To oversee the maintenance, repairs, and construction of streets, curbs and gutters, sidewalks, bridges/dams, street signs, traffic-control devices, trees, storm water ponds and storm sewer system, sewer and water utility systems, signs and markings, Village buildings, recycling/sanitation, winter road/sidewalk/parking lot maintenance, and all machinery and equipment used to accomplish these activities. Department Description Public Works Administration is responsible for providing leadership, management, and administrative support for the Public Works Department. The department provides high-quality community services necessary to build and maintain the Village's infrastructure. These services include engineering, garbage and recycling collection and disposal, electronics recycling, facility maintenance, park maintenance, roadway/sidewalk/bridge/dam maintenance and cleaning, snow and ice removal, storm water system maintenance, permanent and temporary traffic control, forestry, and building and equipment maintenance. 2026 Budget Highlights There are no notable changes in 2026. 113 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Permanent Staffing Director/Village Engineer 0.50 0.50 0.50 0.50 0.50 Superintendent 1.00 1.00 1.00 1.00 1.00 Administrative Assistant 0.50 0.50 0.50 0.50 0.00 Administrative Specialist 0.00 0.00 0.00 0.00 0.50 Total Staffing 2.00 2.00 2.00 2.00 2.00 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 233,095 $ 250,098 $ 249,807 $ 215,799 $ 277,252 $ Non-Personnel 13,607 12,115 12,380 24,840 8,784 Total Expenditures 246,701 $ 262,213 $ 262,187 $ 240,639 $ 286,036 $ Areas of Emphasis: Continue to improve quality of life. Goal: To provide high quality services to the residents and businesses of the Village of Grafton. Objective: 1. Provide high level customer service via phone and in-person. 2. Effectively manage all staff, equipment, and projects. 114 115 Engineering Department Purpose To provide engineering services, construction management, and consultant management on all capital improvement and developer projects in the Village. Department Description Engineering services for the Village include in-house and consultant survey and design for private and public improvements; development and management of the capital improvements program; traffic engineering; miscellaneous engineering studies and reports; and maintenance of plans, maps, GIS and other records. 2026 Budget Highlights There are no notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Director/Village Engineer 0.50 0.50 0.50 0.50 0.50 Assistant Village Engineer 0.00 1.00 1.00 1.00 1.00 Engineering Technician II 1.00 1.00 1.00 1.00 1.00 Administrative Assistant 0.50 0.50 0.50 0.50 0.00 Administrative Specialist 0.00 0.00 0.00 0.00 0.50 Total Staffing 2.00 3.00 3.00 3.00 3.00 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 239,353 $ 341,956 $ 380,932 $ 303,883 $ 424,468 $ Non-Personnel 13,393 20,370 29,234 138,017 14,482 Total Expenditures 252,745 $ 362,326 $ 410,166 $ 441,900 $ 438,950 $ Areas of Emphasis: Continue to improve the quality of life. Ensure safe and adequate transportation. Goal: To provide engineering services in a timely manner. To provide inspection services for the Village’s public projects and, as time allows, private development. Objective: 1. Review of plans within two weeks of plans being submitted. 2. Provide inspection services for Village and private projects with a priority on Village projects. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Percentage of plans reviewed within 2 weeks 25% 100% 100% 100% 100% 116 117 Street Repair and Maintenance Department Purpose To maintain the Village’s public roads, sidewalks, and streetlights in a manner that provides for safe travel. Department Description The Street Repair and Maintenance program maintains about 62.2 miles of paved streets through micro- surfacing, crack sealing and asphalt patching. The program also maintains approximately 100 miles of sidewalks and Village-owned streetlights. 2026 Budget Highlights The Wisconsin Ave. micro-surfacing project for 2025, budgeted at $252,000, was cancelled due to unanticipated prep work needed on the road in order for the micro-surfacing to be effective. In 2026 $100,000 has been budgeted for the road maintenance program. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Permanent Staffing Foreman 1.00 1.00 1.00 1.00 1.00 Crewperson 12.00 12.00 12.00 12.00 12.00 Custodian 0.00 1.00 1.00 1.00 1.00 Total Staffing 13.00 14.00 14.00 14.00 14.00 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 521,738 $ 582,880 $ 574,654 $ 575,610 $ 584,758 $ Non-Personnel 652,187 627,880 786,691 531,377 639,488 Total Expenditures 1,173,924 $ 1,210,760 $ 1,361,345 $ 1,106,987 $ 1,224,246 $ Areas of Emphasis: Ensure adequate infrastructure, facilities and equipment by ensuring safe and adequate transportation. Continue to improve the quality of life by ensuring quality public health and safety services. Goal: To properly design and maintain streets to maximize safe travel. To perform roadway and sidewalk maintenance to extend the life of Village streets and sidewalks. Objective: 1. To get all of the Village’s streets at a rating of 6 (good) or higher. 2. To continue with the sidewalk replacement program. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Percent of streets rated six or higher 53% 60% 55% 55 55 Squart footage of sidewalk replaced 6,000 0 0 0 0 118 119 Street Cleaning Department Purpose To sweep Village streets in accordance with storm water management regulations in order to prevent solids or pollutants from entering the Milwaukee River, Ulao Creek, and Cedar Creek Watersheds. Department Description The Street Cleaning budget provides for the costs to clean approximately 62.20 miles of street. 2026 Budget Highlights No significant changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 43,357 $ 30,036 $ 40,306 $ 25,892 $ 32,844 $ Non-Personnel 12,060 18,207 23,218 19,252 22,899 Total Expenditures 55,417 $ 48,243 $ 63,524 $ 45,144 $ 55,743 $ Areas of Emphasis: Ensure adequate infrastructure, facilities and equipment by ensuring safe and adequate transportation. Continue to improve quality of life. Ensure stakeholders are well informed and engaged on municipal matters. Goal: To keep the Village’s streets clear of debris and dirt. To reduce the amount of debris and dirt that enters the storm water system and eventually the local waterways. To provide high quality services to the residents and businesses of the Village of Grafton. Objective: 1. To sweep all Village streets once per month and the downtown once per week during the spring, summer, and fall seasons. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Debris removed (tons) 247 202 181 180 200 Curb miles of streets swept 1,843 1,549 1,800 1,400 1,800 120 121 Snow and Ice Control Department Purpose To provide safe passage on Village roads, sidewalks, and parking lots during snow and ice events. Department Description The Snow and Ice Control budget provides for the costs associated with snow and ice removal during winter storm events for about 62.20 miles of streets, 10 miles of sidewalks, and Village-owned parking lots. 2026 Budget Highlights There are no notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 79,991 $ 86,050 $ 115,215 $ 77,813 $ 106,603 $ Non-Personnel 83,335 82,413 61,806 49,377 75,026 Total Expenditures 163,326 $ 168,463 $ 177,021 $ 127,190 $ 181,629 $ Areas of Emphasis: Ensure adequate infrastructure, facilities and equipment by ensuring safe and adequate transportation. Ensure stakeholders are well informed and engaged in municipal matters. Goal: To provide safe roads for the traveling public during and following snow and ice events. To remove snow from the downtown district to provide convenient parking and pedestrian access. To provide high quality services to the residents and businesses of the Village of Grafton. Objective: 1. To provide efficient use of equipment and labor during snow events. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measure Tons of salt used per salting operation 45 86 50 67 67 122 123 Forestry Department Purpose To maintain the Village’s forestry program by trimming street trees to promote visibility and clearance and to develop healthy tree growth in accordance with accepted Urban Forestry practices. To remove dead and diseased trees before they become a safety hazard and to replace vacant spaces with new, diversified tree species. Department Description The Forestry Program involves the maintenance of all trees within the Village Street rights-of-way, parks, building grounds, and other Village owned property. This includes necessary trimming as well as removal and replacement of dead or diseased trees. 2026 Budget Highlights There are no notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 67,179 $ 78,448 $ 86,385 $ 84,848 $ 89,435 $ Non-Personnel 15,619 12,701 20,201 19,380 15,929 Total Expenditures 82,798 $ 91,149 $ 106,586 $ 104,228 $ 105,364 $ Areas of Emphasis: Continue to improve the quality of life. Ensure quality of public health and safety services. Goal: To provide streets and parks lined with healthy trees. To continue to qualify and be recognized as a Tree City USA community. To provide high quality services to the residents and businesses of the Village of Grafton. Objective: 1. Trim all Village owned trees once every five years. 2. Remove all hazardous trees. 3. Maintain Tree City USA designation. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Trees removed 191 120 100 160 150 Trees trimmed 1,290 1,314 1,300 1,070 1,260 Tree City USA designation Yes Yes Yes Yes Yes Percent of trees trimmed once every 5 years 100% 100% 100% 100% 100% 124 125 Traffic Control Department Purpose To maintain and install the appropriate traffic control devices to provide a safe and efficient transportation system throughout the Village in compliance with National and State uniform traffic control standards. Department Description Traffic Control maintains a system of approximately 1,600 permanent traffic signs and 10 signalized intersections. It also includes all the necessary temporary traffic control signs, barricades, barrels, etc. used for setting up safe construction zones, detours, and special events. 2026 Budget Highlights There are no notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 11,425 $ 19,362 $ 18,336 $ 17,593 $ 19,257 $ Non-Personnel 24,106 20,475 31,601 30,447 37,016 Total Expenditures 35,531 $ 39,837 $ 49,937 $ 48,040 $ 56,273 $ Areas of Emphasis: Ensure adequate infrastructure, facilities and equipment by ensuring safe and adequate transportation. Goal: To provide traffic control in an efficient manner. Objective: 1. To improve safety within the public rights-of-way by analyzing recommendations from traffic accident analysis and annual sign visibility surveys. 2. To ensure traffic control signage is highly visible both during daylight and nighttime hours and is installed in accordance with prescribed standards and guidelines. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Number of signs replaced 79 38 40 40 40 Number of new signs 33 24 30 30 30 126 127 Storm Water Management Department Purpose To reduce flooding and to improve the water quality of local rivers and creeks consistent with Wisconsin Department of Natural Resources (WDNR) regulations and the Village’s Stormwater Discharge (MS4) Permit. Department Description The Stormwater Management Program maintains a system of approximately 65 miles of storm sewers, 2.5 miles of roadside ditch, 20 retention ponds, and 3,976 catch basins, manholes, and miscellaneous structures. 2026 Budget Highlights The new MS4 permit requires spending for technical education, the creation of Stormwater Pollution Prevention Plans (SWPPP) and river outfall prioritization planning. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 30,767 $ 22,388 $ 35,510 $ 29,364 $ 34,709 $ Non-Personnel 92,780 78,146 95,154 87,391 120,825 Total Expenditures 123,547 $ 100,534 $ 130,664 $ 116,755 $ 155,534 $ Areas of Emphasis: Promote quality and sustainable economic and community development. Ensure stakeholders are well informed and engaged in municipal matters. Goal: To continue efforts in implementing Stormwater Management Plan goals and objectives and requirements as contained in the WDNR-mandated Storm Water MS4 Permit. Objective: 1. Meet all requirements of the Village’s permit issued by the Department of Natural Resources in the most economical means. 2. Educate the community on storm water issues. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Catch basins inspected/ cleaned 800 909 900 839 900 Catch basins repaired/ replaced 17 15 15 15 15 128 129 Bridges and Dams Department Purpose To maintain the Village’s bridges and dams; keeping them structurally solid and meeting all DOT and DNR requirements. Department Description Inspect and maintain bridges and dams to ensure uninterrupted service. The following are maintained and located in the Village: Washington Street Bridge, Bridge Street Bridge, Falls Road Bridge, Cedar Creek Road Culvert, and Bridge Street Dam. 2026 Budget Highlights In 2025, project bids for the DOT mandated repairs to the Washington Street and Falls Road bridges were significantly greater than the budgeted amount. Thus, the project was pushed back into 2026. Design work was completed in 2024. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 145$ 241$ 1,719 $ 0 $ 288$ Non-Personnel 649 39,306 224,332 37,003 32,263 Total Expenditures 794$ 39,548 $ 226,051 $ 37,003 $ 32,551 $ Areas of Emphasis: Ensure adequate infrastructure, facilities and equipment. Goal: To maintain the Village’s dams and bridges in a safe manner and in compliance with regulations. Objective: 1. To informally inspect bridges on an annual basis and make any repairs necessary. 2. To informally inspect the dam twice per year. 3. To contract for dam inspection services every two to three years in compliance with DNR requirements. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Number of bridges inspected 0 3 0 0 0 Bridge Street dam compliant with NR 333 Yes Yes Yes Yes Yes 130 131 Equipment Repair and Maintenance Department Purpose To maintain approximately 210 pieces of Public Works and Parks and Recreation motorized equipment in a high degree of mechanical readiness as economically as possible. Department Description Operate and maintain all equipment for the Public Works and Park and Recreation Departments through in-house staffing and contracted repair service. Services include vehicular fleet maintenance, preventative maintenance, unscheduled repair and road service, and parts inventory control. 2026 Budget Highlights There are no notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 94,008 $ 83,920 $ 108,063 $ 107,196 $ 113,906 $ Non-Personnel 221,244 241,942 250,876 287,294 256,069 Capital Outlay 7,464 7,784 6,535 6,820 8,000 Total Expenditures 322,716 $ 333,646 $ 365,474 $ 401,310 $ 377,975 $ Areas of Emphasis: Ensure adequate infrastructure, facilities and equipment. Ensure safe and adequat e transportation, public facilities and equipment are adequate and maintained in a cost - effective manner. Goal: To keep all Public Works and Parks and Recreation equipment available for employee use in a cost-effective manner. Objective: 1. Repair 95% of damaged equipment within one week of breakdown. 2. Provide preventive maintenance (PM) on all equipment per manufacturer specifications. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Preventive maintenance inspections performed 53 80 53 80 80 Percent of equipment PM performed during year 100% 100% 100% 100% 100% 132 133 Municipal Services Facility Department Purpose To maintain the 65,000 square foot Municipal Services Facility in a sustainable manner. Department Description Municipal Services Facility division of Public Works maintains the office, shop, and storage facilities which houses the Public Works Department and the Parks and Recreation Department equipment and staff. 2026 Budget Highlights There are no notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 22,852 $ 26,545 $ 29,859 $ 36,898 $ 38,742 $ Non-Personnel 96,234 88,551 104,306 82,631 98,332 Total Expenditures 119,086 $ 115,096 $ 134,165 $ 119,529 $ 137,074 $ Areas of Emphasis: Improve efficiency and effectiveness of municipal services by continuing implementation of Sustainability Guide Plan. Goal: To maintain the Municipal Services Facility in a manner that allows for efficient use of utilities. Objective: 1. To reduce utility costs of the building. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Annual utility cost 45,525$ 43,473$ 49,973$ 48,596$ 51,026$ 134 135 Recycling and Sanitation Department Purpose To serve the public through recycling education and the collection/disposal of recyclables, yard waste, and solid waste in a safe, cost effective, and environmentally responsible manner. Department Description The recycling and sanitation program oversees the contract with the service provider (Harter’s Lakeside Disposal) for recycling and sanitation for one to four family residences, condominium complexes, Village municipal buildings, and small businesses; manages the residential yard waste site; and provides weekly curbside pickup of brush from the spring thru fall. 2026 Budget Highlights There are no notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 60,547 $ 65,817 $ 68,917 $ 69,992 $ 73,162 $ Non-Personnel 703,080 696,919 736,577 743,060 796,191 Total Expenditures 763,627 $ 762,735 $ 805,494 $ 813,052 $ 869,353 $ Areas of Emphasis: Improve efficiency and effectiveness of municipal services by continuing implementation of Sustainability Guide Plan. Ensure stakeholders are well informed and engaged on municipal matters. Goal: To reduce landfill waste through recycling efforts through recycling. To qualify for and obtain a Wisconsin Recycling Grant by maintaining a 25% material recovery rate. Objective: 1. To educate and update the citizens on proper recycling practices. 2. To achieve a 25% material recovery rate by promoting and providing recycling services. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Number of public information announcements 86 72 60 64 60 Material recovery (tons) 642 891 880 900 900 Number of dumpster days 3 3 3 3 3 Areas of Emphasis: Continue to improve the quality of life by ensuring quality public health and safety services. Ensure stakeholders are well informed and engaged in municipal matters. Goal: To provide garbage disposal to the residents and businesses of the Village of Grafton Objective: 1. To provide dumpster service each month from Memorial Day to Labor Day so residents can conveniently dispose of bulky items. 136 137 Community Enrichment Services Adult Senior Services Department Purpose To coordinate activities and provide administrative support for all senior citizen recreational opportunities. Department Description Provide Adult Senior Services programs including educational, physical, and social activities for older adults. 2026 Budget Highlights There are no notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Permanent Staffing Senior Coordinator/Recreation Program Supervisor 0.65 0.65 0.65 0.65 0.65 Senior Center Assistant 0.45 0.45 0.45 0.45 0.45 Total Staffing 1.10 1.10 1.10 1.10 1.10 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 87,191 $ 99,090 $ 110,300 $ 112,679 $ 115,379 $ Non-Personnel 53,297 42,330 49,514 47,165 52,756 Total Expenditures 140,488 $ 141,420 $ 159,814 $ 159,844 $ 168,135 $ Areas of Emphasis: To continue to improve the quality of life by promoting community wellness. Goal: To provide high quality senior adult programming at indoor and outdoor facilities. To promote community wellness through a variety of recreational programming. Objective: 1. Offer a minimum of twenty educational sessions per year. 2. Offer a minimum of nine social activities per year. 3. Maintain current levels of participation in all programs, activities and special events. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Total attendance 11,086 11,093 11,036 11,221 11,036 Trips offered 18 17 18 17 17 Educational programs offered 49 67 55 55 55 138 139 Parks and Playgrounds Department Purpose To coordinate planning, use, and maintenance of all Village parks and open space. Department Description Parks and Playground provides for the planning, development, use, and maintenance of parkland and facilities. Public demand is met through grounds maintenance of all parks including River Island Golf Course; seasonal weekly maintenance of Centennial Park, Veterans Memorial Park, and Lime Kiln Park pavilions; and grounds maintenance for all rights-of-way and bike and pedestrian paths. 2026 Budget Highlights There are no notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 152,999 $ 168,088 $ 177,431 $ 193,835 $ 193,845 $ Non-Personnel 59,586 72,602 79,944 76,864 106,485 Capital Outlay 0 0 0 0 0 Total Expenditures 212,585 $ 240,690 $ 257,375 $ 270,699 $ 300,330 $ Areas of Emphasis: Continue to improve quality of life by implementing the Comprehensive Outdoor Recreation Plan. Goal: To provide and maintain parks and open space in a manner that is attractive and inviting. Objective: 1. To achieve an 80 percent or greater customer satisfaction rating for park pavilion rentals. 2. To achieve a 90 percent or greater satisfaction rating for maintenance of Centennial Park lighted ball diamond. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Satisfaction with rental of park pavilions 100% 100% 80% 100% 80% Softball team satisfaction with the quality of maintenance for Centennial Park lighted ball diamond 100% 100% 90% 100% 90% 140 141 Parks and Recreation Department Administration Department Purpose To provide the overall direction for Aquatics, Parks and Playgrounds, Recreation, and Adult Senior Services in accordance with the policies established by the Village Board. Department Description Parks and Recreation Administration is responsible for the overall management of the Village’s parks and recreation resources. In this role, administration manages services provided at municipal parks, park facilities, swimming pools, rights-of-way landscaping, and community special events throughout the Village. 2026 Budget Highlights There are no notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Permanent Staffing Director 1.00 1.00 1.00 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 1.00 0.00 Administrative Specialist 0.00 0.00 0.00 0.00 1.00 Aquatics Coordinator/Recreation Program Supervisor 0.00 0.30 0.30 0.30 0.30 Ofice Assistant 0.46 0.00 0.00 0.00 0.00 Total Staffing 2.46 2.30 2.30 2.30 2.30 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 232,490 $ 236,948 $ 254,025 $ 262,079 $ 269,520 $ Non-Personnel 25,238 29,482 32,016 28,281 33,923 Total Expenditures 257,728 $ 266,430 $ 286,041 $ 290,360 $ 303,443 $ 142 Areas of Emphasis: Continue to improve quality of life. Goal: To provide professional support services to all program areas of the Parks and Recreation Department. To coordinate with other community groups to provide support for community events that attract local residents and visitors and maintain parks and open space in a manner that is attractive and inviting. Objective: 1. Provide in-service training to 100 percent of seasonal staff. 2. Achieve an 85 percent approval rating for support services from local organizations. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Percent of seasonal employees attending in- service training 100% 100% 100% 100% 100% Local organization satisfaction with support services 100% 100% 85% 100% 85% 143 144 Timothy Wooden Building Department Purpose To provide for the operation and maintenance of the Timothy Wooden Building Department Description The Timothy Wooden Building budget provides for the operation and maintenance of the Timothy Wooden Building. This is a new fund in 2026 to separately track expenses related to repairs and maintenance and insurance of the building. The two-story building is adjacent to the Grafton library and shares an entrance and an elevator. 2026 Budget Highlights This is a new fund in 2026 to account for any Timothy Wooden Building repairs and maintenance and insurance. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Non-Personnel 0 $ 0 $ 0 $ 5,725 $ 10,706 $ 145 146 Woodlawn Cemetery Department Purpose To oversee the sale of lots, record keeping functions, and maintenance of the Village-owned cemetery grounds. Department Description Woodlawn Cemetery is a five-acre Village-owned cemetery located at the corner of North Street and Third Avenue that provides burial sites and cemetery services on a nondenominational basis. 2026 Budget Highlights The lawn mower budget for purchase in 2025 was not purchased. It is budgeted to be purchased from the Woodlawn Capital Fund. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 6,986 $ 8,089 $ 8,005 $ 8,504 $ 8,969 $ Non-Personnel 5,144 3,394 4,866 5,635 5,347 Capital Outlay 0 0 0 0 0 Total Expenditures 12,131 $ 11,483 $ 12,871 $ 14,139 $ 14,316 $ Areas of Emphasis: Promote quality and sustainable economic and community development. Goal: To reduce the cost to maintain Village property or facilities through sustainable measures. Objective: Establish 2.5% of the cemetery with wild grass to reduce mowing area. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Percent of cemetery with wild grass area 2.5% 2.5% 2.5% 2.5% 2.5% Acres maintained 5.46 5.46 5.46 5.46 5.46 147 148 Conservation and Development Community Development Department Purpose To promote the development and redevelopment of high quality residential, commercial, and industrial properties that is consistent with the Village of Grafton Comprehensive Plan. Department Description The Community Development department coordinates all development-related activities and makes reports and recommendations to the Plan Commission, Architectural Review Board, Community Development Authority, and Zoning Board of Appeals. The department also provides customer service for all development -related inquiries and plans that do not require review by a board or commission. The department contracts at times with planning firms for special projects, GIS services, and detailed analysis of specific development proposals. This department also enforces and updates, as necessary, the Zoning Ordinance and the Sign Ordinance. 2026 Budget Highlights There are no notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Permanent Staffing Director 1.00 0.90 0.90 1.00 1.00 Administrative Assistant 0.50 0.50 0.50 0.00 0.00 Office Assistant 0.00 0.00 0.00 0.50 0.50 Total Staffing 1.50 1.40 1.40 1.50 1.50 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Personnel 172,463 $ 168,589 $ 148,120 $ 134,030 $ 191,298 $ Non-Personnel 19,619 16,526 116,109 63,040 83,908 Total Expenditures 192,082 $ 185,115 $ 264,229 $ 197,070 $ 275,206 $ 149 Areas of Emphasis: Continue to improve quality of life. Goal: Promote a sustainable, inclusive and economically vibrant community. Objective: 1. Review, on a timely basis, development plans to ensure quality development and conservation in the community and make informative recommendations. 2. Recommend amendments to the Zoning Ordinance to promote quality development and redevelopment. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Percentage of site, signage and landscape plans reviews finished in 2 weeks 100% 100% 100% 100% 100% Percentage of code violations attempted to be rectified within 15 days of notification 100% 100% 100% 100% 100% 150 151 Other Transfers Department Purpose This department contains the funds to account for the allocation of funds to the Recreation and Aquatics Funds. Department Description The Administrative Services Department allocates the necessary funds required to maintain a zero balance in the Recreation and Aquatics Funds. 2026 Budget Highlights The contribution of the General Fund to the Recreation and Aquatics Fund is budgeted to increase in 2026. Despite increases in user fees, cost increases are outpacing revenue increases. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Other Financing Uses 97,259 $ 141,198 $ 120,423 $ 144,935 $ 162,550 $ 152 153 Unclassified Fund Purpose To provide contingency funds for unanticipated expenses and potential increases in personnel-related costs. Fund Description Unclassified contains the contingency account for unanticipated expenditures and money for increased personnel-related costs. The Office of the Village Administrator and Administrative Services Department monitors the annual budget and makes recommendations to the Finance Committee and Village Board for approval of the use of Contingency funds for unknown and unanticipated expenditures and wage and associated benefit increases. 2026 Budget Highlights Decrease of $112,252 for Wage Adjustment Reserve as the Village Board approved new wage scales effective January 1, 2026 which are more indicative of the market. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Non-Personnel 55,187 $ 87,886 $ 217,252 $ 196,500 $ 84,293 $ 154 155 Special Revenue Fund Special Revenue Funds Budget Summary 156 Room Tax Fund Fund Purpose To account for the collection of room tax and use of the funds as determined by the Village Board. Fund Description The Room Tax Fund accounts for the collection of room tax and use of the funds for the purpose of funding economic development, including tourism promoti on, public works activities, and capital improvement projects as determined by the Village Board. By Village ordinance, a room tax of 7 percent of gross receipts is received from local lodging establishments. The Village must pass along 70 percent of the room taxes to be used for tourism promotion and development as defined in Wisconsin Statutes Sec. 6.0615(1)(fm). This fund is managed by the Office of the Village Administrator. 2026 Budget Highlights There are no notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Revenues Taxes 462,776 $ 452,418 $ 455,000 $ 435,000 $ 435,000 $ Expenditures Non- Personnel 473,924 $ 416,692 $ 468,500 $ 404,500 $ 454,500 $ Areas of Emphasis: Continue to improve quality of life. Goal: To coordinate with other community groups to provide support for community events. Objective: 1. Contract with Celebrate Grafton to create, develop, and promote tourism events. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Number of tourism events 4 6 6 6 6 157 158 Fire Protection and Rescue Fund Purpose To provide for the safety and welfare of the public through preservation of life, property, and the environment. Fund Description In 2024 an Inter-Municipal Agreement was signed which established a joint Fire Department, Ozaukee Central Fire Department (OCFD), between the Villages of Grafton and Saukville and the Towns of Grafton and Saukville. OCFD began operations on January 1, 2025. Additionally, a referendum held in in April, 2024 approved the Village of Grafton exceeding the State of Wisconsin tax levy limits by $1,478,082 for the purpose of further funding the Fire Department. For 2024, and the years prior, the revenues and expenditures in this fund represent the Village of Grafton costs to maintain their own fire department. The budget for 2025 only includes the tax levy allocation (both operating and capital) from the Village of Grafton to OCFD. OCFD has contracted with the Village of Grafton for human resource services and to use its employees (all fire department personnel will be employees of the Village of Grafton) until December 31, 2026. During 2025 OCFD also contracted with the Village of Grafton to perform financial services. The 2025 and 2026 budgets for this fund include the expenditures related to those fire employees and the revenues from OCFD to pay for those employees. 2026 Budget Highlights General property tax increase as a result of passed referendum in 2024 and changes as noted above. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Permanent Staffing Fire Chief 1.00 1.00 1.00 1.00 1.00 Assistant Fire Chief 1.00 1.00 1.00 1.00 1.00 Deputy Chief 0.00 0.00 0.00 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 0.00 0.00 Business Manager 0.00 0.00 0.00 1.00 1.00 Lieutenant 0.00 0.00 0.00 3.00 3.00 Captain 0.00 1.00 1.00 3.00 3.00 Firefighter/Paramedic 4.00 6.00 6.00 9.00 9.00 Engineer/Paramedic 0.00 0.00 0.00 3.00 3.00 Firefighter/EMT 0.00 0.00 0.00 3.00 3.00 Total Staffing 7.00 10.00 10.00 25.00 25.00 159 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Revenues Taxes 739,118 $ 687,292 $ 2,321,456 $ 2,321,456 $ 2,680,887 $ Grants and Other State Aid 149,238 150,238 185,417 192,862 0 Ambulance Revenues 556,680 637,650 0 662,660 0 Town Contribution 265,745 274,303 0 0 0 Village of Saukville 41,266 47,216 0 0 0 Other 689 17,735 0 0 4,297,019 Total Revenue 1,752,736 $ 1,814,434 $ 2,506,873 $ 3,176,978 $ 6,977,906 $ Expenditures Personnel 1,160,923 $ 1,280,870 $ 3,452,643 $ 3,416,608 $ 4,230,019 $ Non- Personnel 645,881 723,682 2,546,251 3,164,485 2,747,887 Capital Outlay 17,959 29,818 0 90,055 0 Total Expenditures 1,824,763 $ 2,034,371 $ 5,998,894 $ 6,671,148 $ 6,977,906 $ 160 161 162 Park and Open Space Fund Fund Purpose To account for activities in parks and open spaces that are not eligible for impact fees. Fund Description The Park and Open Space Fund accounts for activities including park land acquisition, park land development, and support related activities that are identified in the Village’s 2020 “Comprehensive Outdoor Recreation Plan.” 2026 Budget Highlights 2026 projects include FAC recirculation pump replacement, FAC pool caulking, Lime Kiln Park play structure and table and chair replacements and park sign and tree replacements. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Revenues Taxes 40,000 $ 50,000 $ 50,000 $ 50,000 $ 142,597 $ Other 6,034 282,461 97,500 142,000 95,500 Total Revenue 46,034 $ 332,461 $ 147,500 $ 192,000 $ 238,097 $ Expenditures Capital Outlay 13,789 $ 1,613,516 $ 139,080 $ 272,657 $ 169,000 $ Other Financial Uses 0 $ 112,202 $ 85,000 $ 135,000 $ 91,500 $ Areas of Emphasis: Continue to improve the quality of life by implementing the Comprehensive Outdoor Recreation Plan. Goal: To continue to follow the goals of Comprehensive Outdoor Recreation Plan. Objective: Replace one playground surface annually with safety surface. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Number of playground safety surfaces replaced 1 2 2 2 1 163 164 Revolving Loan Fund Fund Purpose To create additional jobs through the issuance of low interest loans and to promote economic development. Fund Description The Revolving Loan Fund (RLF) provides low interest and/or deferred principal payment financing for companies that are unable to obtain loans solely from financial institutions and the Small Business Administration. The loan program is predicated upon job creation or job retention. The Village has a program to loan to help local companies expand and create new jobs. The Revolving Fund Loans were decentralized in 2019 and the Village Board authorized the use of funds for approved economic development projects. Economic development projects may be funded through the RLF fund with $450,000 maintained for the loan program. Additionally, the Village Board approved a loan program for those business es impacted by the COVID-19 pandemic. The Revolving Loan Fund is managed by Ozaukee Economic Development and the Village of Grafton Department of Administrative Services (Finance Division). 2026 Budget Highlights There are no notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Revenues Other 24,175$ 27,785$ 25,082$ 24,350$ 23,605$ Expenditures Non-Personnel 3,960$ 2,480$ 2,400$ 2,400$ 2,400$ Areas of Emphasis: Promote quality and sustainable economic and community development. Goal: Issue new low interest rate loans to encourage local businesses. Objective: 1. Meet with interested individuals and businesses to review loan program. 2. Monitor existing loans to verify financial condition and creation of new positions as pledged. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Outstanding RLF loans as of year end 0$ 72,305$ 66,206$ 89,999$ 108,000$ Outstanding COVID-19 loans as of year end 11,420$ 3,550$ 0$ 0$ 0$ Number of new RLF loans 0 1 0 2 1 165 166 Woodlawn Cemetery Capital Fund Purpose To account for costs associated with capital expenditures of Woodlawn Cemetery, a five-acre Village-owned cemetery. Fund Description Woodlawn Cemetery Capital Fund accounts for activity related to the acquisition of land, equipment associated with the maintenance of the cemetery, and other miscellaneous expenditures for the benefit of the public cemetery located at North Street and Third Avenue. 2026 Budget Highlights The lawn mower replacement planned for in 2025 has been pushed back to 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Revenues Cemetery Lot Sales 3,825 $ 2,975 $ 3,200 $ 6,300 $ 3,200 $ Other 1,507 2,117 2,000 1,800 1,800 Total Revenue 5,332 $ 5,092 $ 5,200 $ 8,100 $ 5,000 $ Expenditures Capital Outlay 0 $ 0 $ 10,000 $ 0 $ 12,000 $ Areas of Emphasis: Ensure adequate infrastructure and fiscal stability Goal: Improve and maintain existing cemetery facilities, ensuring a respectful, dignified and safe environment. Objective: 1. Ensure current and future maintenance costs are covered by revenue sources. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Lot Price 800$ 850$ 850$ 850$ 900$ Lot Sold 9 7 8 10 8 167 168 Recreation Fund Fund Purpose To provide quality recreation services by coordinating the effective use of community parks and recreation resources. Fund Description The Recreation Fund consists of youth and adult sports, general recreation, and wellness-oriented activities. 2026 Budget Highlights There are no notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Permanent Staffing Senior Coordinator/Recreation Program Supervisor 0.35 0.35 0.35 0.35 0.35 Recreation Program Supervisor/ Aquatics Coordinator 0.00 0.00 0.35 0.35 0.35 Total Staffing 0.35 0.35 0.70 0.70 0.70 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Revenues Charges for Services 70,574 $ 80,601 $ 94,224 $ 74,075 $ 88,114 $ Transfer from General Fund 24,042 38,521 45,288 60,163 60,732 Total Revenue 94,616 $ 119,122 $ 139,512 $ 134,238 $ 148,846 $ Expenditures Personnel 48,956 $ 68,928 $ 77,988 $ 86,545 $ 96,602 $ Non- Personnel 45,660 50,694 61,524 47,693 52,244 Total Expenditures 94,616 $ 119,622 $ 139,512 $ 134,238 $ 148,846 $ Areas of Emphasis: Continue to improve the quality of life by promoting community wellness. Ensure fiscal stability. Goal: To promote community wellness through a variety of recreational and wellness programming. To continue to examine adequacy and equity of fees for the services and programs provided. Objective: 1. Establish and coordinate the development of fitness programs. 2. Meet 70 percent cost recovery on youth programs. 3. Meet 100 percent cost recovery on adult programs. 4. To achieve a 3 or greater (on a scale of 1 to 5, with 5 being excellent) survey rating from citizens who live in the Village of Grafton. 169 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Adult and youth sports- oriented Number of participants 1,124 1,139 1,100 1,208 1,100 Recreation programs Number of participants 2,782 2,673 2,300 2,614 2,300 Wellness programs Number of participants 228 260 100 226 100 170 171 Parks and Recreational Facilities Fund Fund Purpose To account for impact fees paid by local residential developers to benefit parks and recreational facilities. Fund Description The Park and Recreational Facilities Fund uses impact fees paid by local residential developers for (1) providing new parkland close to new development, (2) creating a plan to ensure the provision of parks and recreational facilities for new residents of all ages and abilities, (3) evaluating the costs associated with acquiring new parkland and the costs associated with installing new equipment into new and existing parklands, and (4) ensuring that park impact fees continue to be affordable. This fund is managed by the Parks and Recreation Department and the Administrative Services Department. 2026 Budget Highlights In 2025, a connecting trail was installed in Blackhawk Valley Park. In 2026, money has been budgeted to purchase parkland property from a developer. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Revenues Impact Fees 315,939 $ 1,676,180 $ 912,068 $ 1,031,908 $ 653,365 $ Other Revenue 53,795 54,129 24,500 69,500 24,500 Total Revenue 369,734 $ 1,730,309 $ 936,568 $ 1,101,408 $ 677,865 $ Expenditures Capital Outlay 1,863,970 $ 143,727 $ 215,000 $ 641,211 $ 1,015,500 $ Areas of Emphasis: Continue to improve the quality of life by implementing the Comprehensive Outdoor Recreation Plan. Goal: To follow the goals of the Comprehensive Outdoor Recreation Plan. Objective: 1. To collect impact fees to finance the goals outlined in the Comprehensive Outdoor Recreation Plan. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Number of paid residential impact fees 90 120 54 64 65 Impact Fee per Resident 384,250$ 511,440$ 230,550$ 280,640$ 285,025$ 172 173 Name and Location of Public Parks COMMUNITY PARKS Lime Kiln Park located at 2020 S. Green Bay Road (28 Acres) Centennial Park located at 1370 17th Avenue (27 Acres) Meadowbrook Park/Family Aquatic Center located at 649 N. Green Bay Rd. (7.5 Acres) Paramount Plaza located in the heart of Downtown Grafton (0.5 Acres) River Island Park located at 1650 Nancy Lynn Court (6 Acres) Veterans Memorial Park located at 1062 13th Avenue (3 Acres) NEIGHBORHOOD PARKS Blackhawk Valley Park located at 2014 Wichita Lane (16 Acres) – Undeveloped Grafton Lions Park located at 1121 Keup Road (16 Acres) Heritage Settlement Park located at 780 Homestead Trail (17 Acres) River Bend Park located at 1987 Creek Drive (10 Acres) Shady Hollow Park located at 1071 Candleberry Circle (2.6 Acres) Wildwood Park located at 1400 1st Avenue (4 Acres) MINI PARKS Acorn Park located at 233 W. Orchard Drive (<1 Acre) Canary Lane Park located at 1220 Canary Lane (<1 Acre) Cheyenne Park located at 2118 Shoshoni Street (<1 Acre) Dellwood Park located at 1646 Dellwood Court (<1 Acre) Mole Creek Park located at 476 Overland Trail (1+ Acres) Pine Street Park located at 1610 North Pine Street (<1 Acre) River Front Park located at 1119 15th Avenue (<1 Acre) Third Avenue Park located at 1023 3rd Avenue (<1 Acre) FUTURE PARK DEVELOPMENTS Future West Side Park is planned to be located north of HWY 60, south of Cedar Creek Road and west of 5th Avenue (Stone Wall Farms) Future North Side Park is planned to be located west of the Ozaukee Interurban Trail, South of Mary Glade Drive 174 Aquatics Fund Fund Purpose To provide swimming pool facilities, recreational swimming opportunities, and instructional services on a year-round basis. Fund Description The Aquatics Fund consists of the delivery of aquatic-based recreation to include; maintenance and operation of the outdoor Family Aquatic Center (FAC), planning and supervision of programs at the indoor pool at Grafton High School, and related aquatic instructional classes, special events, and facility rentals. 2026 Budget Highlights There are no notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Permanent Staffing Recreation Program Supervisor/Aquatics Coordinator 0.00 0.35 0.35 0.35 0.35 Total Staffing 0.00 0.35 0.35 0.35 0.35 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Revenues Charges for Services 147,284 $ 155,942 $ 174,345 $ 178,316 $ 168,100 $ Transfer from General Fund 73,217 103,873 75,135 84,772 101,818 Total Revenue 220,501 $ 259,815 $ 249,480 $ 263,088 $ 269,918 $ Expenditures Personnel 127,368 $ 162,153 $ 152,160 $ 169,322 $ 166,226 $ Non- Personnel 93,133 100,951 97,320 96,766 106,692 Total Expenditures 220,501 $ 263,104 $ 249,480 $ 266,088 $ 272,918 $ Areas of Emphasis: Continue to improve the quality of life by ensuring stakeholders are well informed and engaged on municipal matters. Goal: To provide quality programming for the FAC and indoor pool. Objective: 1. Maintain or improve use of facilities. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Resident participants (classes) 401 431 400 400 400 Sale of annual passes 1,994 2,239 1,500 2,374 2,000 General attendance (Open Swim) 22,139 23,636 22,000 24,485 22,000 175 176 Library Fund Purpose To help meet the informational, recreational, educational, and social needs of the Grafton community. Fund Description The U.S.S. Liberty Memorial Public Library offers resources, programs, and services that help residents enhance their skills in locating, evaluating, and utilizing information effectively. We are committed to meeting the community's needs for self-directed personal growth, development opportunities, and fostering lifelong learning. 2026 Budget Highlights • Town of Grafton revenues which were previously included with intergovernmental charges for services are now part of intergovernmental revenues as the Town of Grafton did not renew the Intergovernmental agreement with the Village. • There is potential for two full-time staff members to take family insurance and therefore it has been budgeted, to be conservative. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Permanent Staffing Director 1.00 1.00 1.00 1.00 1.00 Head of Youth Services 1.00 1.00 1.00 1.00 1.00 Circulation Services Manager 1.00 1.00 1.00 1.00 1.00 Reference Librarian 1.00 1.00 1.00 0.00 0.00 Adult Services Librarian 0.00 0.00 0.00 1.00 1.00 Teen Services Librarian 1.00 1.00 1.00 1.00 1.00 Technical Services Associate 0.00 0.80 0.83 0.80 0.80 Circulation Aide 3.68 2.87 2.87 3.20 3.20 Library Page I 0.30 0.25 0.25 0.28 0.28 Shelver 0.19 0.19 0.19 0.19 0.19 Total Staffing 9.17 9.11 9.14 9.47 9.47 177 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Revenues Taxes 659,013 $ 670,253 $ 680,638 $ 680,638 $ 690,638 $ Intergovernmental Revenues 39,404 40,382 39,400 58,509 219,344 Public Charges for Services 8,385 9,715 9,360 11,380 10,300 Intergov't Charges for Services 191,765 210,288 180,127 180,127 0 Other 900 12,291 0 4,000 0 Total Revenue 899,467 $ 942,929 $ 909,525 $ 934,654 $ 920,282 $ Expenditures Personnel 629,931 $ 643,131 $ 698,089 $ 608,169 $ 697,952 $ Non- Personnel 181,151 206,925 210,554 200,042 216,752 Capital Outlay 87,400 58,335 0 0 0 Other Financing Uses 0 0 0 0 0 Total Expenditures 898,482 $ 908,392 $ 908,643 $ 808,211 $ 914,704 $ Areas of Emphasis: Continue to improve the quality of life. Promote community wellness. Goal: To support the informational, educational, and recreational needs of the community. To provide high quality services to the residents and businesses of the Village of Grafton. Objective: 1. To maximize community usage of the library’s collection and electronic research resources. 2. To offer young readers a variety of reading-related activities and programs. 3. To provide computer and internet access and training for library patrons. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Circulations per open library hours 70 73 63 76 79 FTE per 1,000 population 0.74 0.74 NA 0.74 0.74 178 179 180 Library Donor Fund Fund Purpose To separately account for the spending of a private donation to the library. Fund Description The Library Donor Fund accounts for capital outlay for library capital assets. 2025 Budget Highlights This was a new fund in 2024. It is expected that capital outlays will outpace investment earnings until all the funds are expended. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Revenues Donations 0 $ 720,948.11 $ 0 $ 20,000 $ 0 $ Interest Income 0 18,588 2,500 31,300 31,000 Total Revenue 0 $ 739,536.25 $ 2,500.00 $ 51,300 $ 31,000 $ Expenditures Capital Outlay 0 $ 25,121.84 $ 235,000.00 $ - $ 315,000 $ 181 182 Environmental Fund Fund Purpose To investigate, assess, monitor, and remediate the former Village-related contaminated sites in accordance with Wisconsin Department of Natural Resources (WDNR) requirements. Fund Description The Environmental Fund accounts for the WDNR-required activities associated with contaminated sites which operated for the benefit of Village residents or businesses. In 1997, the Village became aware of private well contamination of adjacent town properties due to the closed Village landfill at Lime Kiln Park. In 1998, the Village became aware of private well contamination of town properties due to a private landfill (Denow) which the Village utilized until the landfill was closed. This fund is managed by the Public Works Department (monitoring) and the Office of the Village Administrator (finance and legal). 2026 Budget Highlights There are no notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Revenues Investment Income 6,171 $ 15,674 $ 15,000 $ 12,000 $ 12,000 $ Miscellaneous/Transfer In 395,949 $ 0 $ 0 $ 0 $ 0 $ Total Revenue 402,120 $ 15,674 $ 15,000 $ 12,000 $ 12,000 $ Expenditures Non-Personnel 49,963 $ 49,913 $ 50,000 $ 50,000 $ 50,000 $ 183 184 American Rescue Plan Fiscal Recovery Fund Fund Purpose To provide tracking for grant funds received through the American Rescue Plan Act (ARPA) for COVID-19 pandemic relief. Fund Description The ARPA fund accounts for the federal grant revenue received and project expenditures as allowed per the Act. 2026 Budget Highlights The final ARPA funds were expended in 2025. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Revenues Federal Grant 282,556 $ 534,570 $ 0 $ 0 $ 0 $ Interest 38,793 24,249 0 0 0 Other 0 0 0 0 0 Total Revenue 321,350 $ 558,820 $ 0 $ 0 $ 0 $ Expenditures Capital Outlays 282,556 $ 609,161 $ 105,870 $ 0 $ 0 $ 185 186 Police K9 Program Fund Purpose To provide professional, impartial, and ethical law enforcement through the utilization of a K9 Officer committed to provide a safe and secure environment through a community partnership. Fund Description Grafton Police Department K9 Fund primarily funded a trained police canine to assist in the prevention and detection of crimes, locating persons sought by the police, and the promotion of a favorable public image of the Police Department. The K9 program was established in the first quarter of 2023. All non-personnel expenses were paid by the K9 Foundation. All personnel expenses were moved to the general fund in 2024. In 2026, all K9 expenses (personnel and non-personnel) will be funded by the general fund. 2026 Budget Highlights The fund is no longer in use. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Revenues Taxes 131,374 $ 0 $ 0 $ 0 $ 0 $ Other 0 0 0 0 0 Total Revenue 131,374 0 $ 0 $ 0 $ 0 $ Expenditures Personnel 91,398 $ 0 $ 0 $ 0 $ 0 $ Non- Personnel 44$ 0 0 0 0 Other Financing Uses 39,932 $ 0 0 0 0 Total Expenditures 131,374 $ 0 $ 0 $ 0 $ 0 $ 187 188 Fire Department County ARPA Grant Fund Purpose To provide tracking for grant funds received from Ozaukee County as a sub-recipient through the American Rescue Plan Act for COVID-19 pandemic relief to support the addition of up to three full- time Firefighter/Paramedic positions. Fund Description This fund accounts for the grant revenue received and reimbursable personnel expenditures. 2026 Budget Highlights All Ozaukee County allocated ARPA funds were fully expended in the first quarter of 2025. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Revenues Grants 178,253.71 $ 369,530 $ 85,000 $ 100,216 $ 0 $ Expenditures Personnel 166,214 $ 369,530 $ 85,000 $ 100,216 $ 0 $ Non-Personnel 0 0 0 0 0 Total Expenditures 166,214 $ 369,530 $ 85,000 $ 100,216 $ 0 $ 189 190 Debt Services Funds Debt Service Fund Fund Purpose To account for the accumulation of resources for the payment of general long-term debt (principal and interest) and related costs. It is the Village’s mission to manage debt in order to allow for necessary purchases of capital equipment and capital improvement projects. Fund Description The Debt Service Fund serves to administer debt service for three types of expenditures: Village capital improvements, redevelopment-related projects, and development-related projects. All of the Village’s capital needs that are not financed by the annual property tax levy or user fees are included in the Debt Service Fund. This fund is managed by the Administrative Services Department. 2026 Budget Highlights While principal and interest payment are decreasing for general borrowing and TID No 3, TID No. 4 principal payments increased $1,215,000 over the prior year. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Revenues Taxes 260,000 $ 300,000 $ 325,000 $ 325,000 $ 325,000 $ Interest Income 7,341 12,533 12,500 9,500 12,500 Other Financing Sources 3,440,501 3,283,588 3,663,523 3,613,523 4,201,760 Total Revenue 3,707,841 $ 3,596,121 $ 4,001,023 $ 3,948,023 $ 4,539,260 $ Expenditures Other Financing Uses 3,620,136 $ 3,688,395 $ 4,036,721 $ 3,931,890 $ 4,472,478 $ Areas of Emphasis: Ensure fiscal stability. Goal: Comply with the Wisconsin Statutory limit and Village policy regarding debt service. Objective: 1. Maintain outstanding debt below the state statutory limit – 5 percent of property base. 2. Maintain outstanding debt at or below 85 percent of the state statutory limit. 3. Maintain outstanding debt at or below 55 percent of the state statutory limit for non- TID related debt. 4. Maintain or improve Moody’s rating. Actual Actual Adopted Estimated Adopted Performance Measurement Percent of Statutory Debt Capacity 33.8% 30.9% 30.2% 21.7% 17.3% Moody's Investor Service Rating Aa2 Aa2 Aa2 Aa2 Aa2 *State statutory limit on general obligation debt only 191 Debt Service Fund Budget 192 Computation of Legal Debt Margin AS OF DECEMBER 31, 2025 Equalized Value of Real Property 2,509,357,300$ Debt Limit, 5% of Equalized Valuation 125,467,865$ (Wisconsin Statutory Limitation) Amount of Debt Applicable to Debt Limitation: Total General Obligation Bonds, Notes Outstanding December 31, 2025 $ 27,255,819 Remaining Legal Debt Margin $ 98,212,046 Percent of Legal Debt Used 21.72% Percent of Legal Debt Available 78.28% Additional amount of debt which can be issued before exceeding self-imposed limit of 85% of statutory debt limit 79,391,866$ 193 Debt Service Fund - Notes and Bonds DEBT SERVICE FUNDS Debt service funds account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related costs. GENERAL OBLIGATION CORPORATE PURPOSE BONDS – 2024 The proceeds of the $3,300,000 bonds were for the public purpose of completing the Village’s street maintenance program and construction of a new pavilion at Veterans Memorial Park. Moody’s Rated Aa2. GENERAL OBLIGATION CORPORATE PURPOSE BONDS – 2023 The proceeds of the $1,080,000 bonds were for the public purpose of completing the Village’s street maintenance program. Moody’s Rated Aa2. GENERAL OBLIGATION REFUNDING BONDS – 2019 The proceeds of the $4,090,000 bonds was for the refunding of General Obligation Bonds issued in 2011 for the private purpose of development incentives. Moody’s Rated Aa2. GENERAL OBLIGATION CORPORATE PURPOSE BONDS – 2018 The proceeds of the $1,210,000 bonds was for the public purpose for the construction of a public plaza in TID No. 3 and refurbishment of railings in TID No. 4 Moody’s rated Aa2. GENERAL OBLIGATION CORPORATE PURPOSE NOTES – 2017 The proceeds of the $340,000 notes was for developer incentive related to TID No.3 projects. Not rated. GENERAL OBLIGATION CORPORATE PURPOSE BONDS – 2016 The proceeds of the $1,130,000 bonds are for the public purpose for the design of a public plaza and developer incentive projects related to TID No. 3 projects. Moody’s rated Aa2. GENERAL OBLIGATION CORPORATE PURPOSE BONDS – 2015 The proceeds of the $9,375,000 bonds are partially used to refund Bonds issued in 2006 for public purpose of TID No. 3, TID No. 5, the renovation and expansion of the Police Station, and the purchase of land for the construction of a new Municipal Services Facility, Bonds issued in 2009 for the public purpose of the construction of a parking lot in TID No. 3, construction of a Municipal Services Facility for the Department of Public Works and Parks and Recreation Department, purchase of land for a future Family Aquatics Center, and the construction of a storm water pond, and the refunding of the 2006 and 2007 BANs associated with TIDs No. 3 and No. 4 and for the public purpose of projects associated with TID No. 3. Moody’s rated Aa2. GENERAL OBLIGATION CORPORATE PURPOSE BONDS – 2015 The proceeds of the $3,510,000 Bonds are partially used to refund Bonds issued in 2009 which were issued for the purpose of refunding Bond Anticipation Notes in 2005 and 2006 for projects associated with TIDs No. 3 and No. 4. Also included in the proceeds are funds for the purchase of property and providing developer incentives related to TID No. 3. Moody’s rated Aa2. 194 GENERAL OBLIGATION COMMUNITY DEVELOPMENT BONDS – 2013 The proceeds of the $9,235,000 Bonds are partially used to refund Bonds issued in 2005 for project costs related to TID No. 3, TID No. 4, and water and wastewater projects. Also included in the proceeds are funds for project costs including the dam repair project related to TID No. 3, reconstruction of a portion of Port Washington Road and construction of a new utility garage and septic receiving station. Moody’s rated Aa2. 195 Debt Service Revenues and Expenditures 196 Annual Debt Service Requirements 197 Debt Service Requirements of Outstanding G.O. Bonds and Notes 198 Impact Fee Fund Fund Purpose To account for fees collected from new development to pay for debt on enlarged or new municipal buildings. Fund Description The Impact Fee Fund accounts for impact fees paid by developers after July 2, 2001, for the 2007 Police Station project and the 2009 construction of a new Municipal Services Facility. The impact fees are assessed against residential, commercial, industrial, and institutional expansions and new construction. This fund is managed by the Administrative Services Department. 2026 Budget Highlights Impact Fee revenues are expected to decrease because the maximum amount of impact fees related to the public works facility was collection in 2025 and due to an anticipated slowdown of development. Other financing uses decreased because of a decrease in debt service requirements. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Revenues Impact Fees 191,564 $ 979,667 $ 448,982 $ 453,924 $ 86,541 $ Interest Income 18,445 47,162 10,000 62,000 40,000 Total Revenue 210,009 $ 1,026,829 $ 458,982 $ 515,924 $ 126,541 $ Expenditures Other Financing Uses 210,009 $ 193,189 $ 600,000 $ 550,000 $ 250,000 $ Areas of Emphasis: Ensure fiscal stability. Goal: To collect revenues to fund debt service associated with new or enlarged municipal buildings. Objective: 1. Meet debt service requirements with impact fees. 2023 2024 2025 2025 2026 Performance Measurement Actual Actual Adopted Estimated Adopted Public Works Annual Amount Collected 111,505$ 522,307$ 189,782$ 149,302$ 0$ Police Station Annual amount collected 80,059$ 457,359$ 259,200$ 304,622$ 86,541$ 199 200 Capital Improvement Funds Capital Improvement Funds Budget Summary 201 TID No. 3 - Downtown Redevelopment Fund Purpose To restore downtown Grafton’s economic vitality by implementing the 55.63-acre Tax Incremental District (TID) No. 3 Project Plan’s capital projects and account for funds received from TIF Increments. Fund Description The TID No. 3 Fund is a Capital Improvement Fund relating to planning and infrastructure improvements for the downtown redevelopment area in order to eliminate blight, encourage economic investment, and increase property values. TID No. 3 is the economic implementation tool used to achieve the goals and objectives identified in the Village of Grafton’s 1998 Downtown Redevelopment Plan and 1999 Downtown Master Plan. The Community Development Authority (CDA) is the committee responsible for fostering the implementation of this plan through the creation of a capital improvement plan and specific development agreements. The 1999 base value of the TID was $21,039,900. 2026 Budget Highlights Increasing TIF increment plus an increase in the TID No. 5 transfer is covering debt service needs. The expenditure period closed in 2022. The TID is expected to close in 2028 with a zero -fund balance. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Revenues Taxes 996,177 $ 1,047,012 $ 1,047,012 $ 1,122,913 $ 1,122,913 $ Intergovernmental Revenues 10,426 10,426 10,426 30,010 30,010 Investment Income 24,345 34,727 20,500 34,000 33,000 Other Revenues 0 0 0 0 0 Other Financing Sources 953,024 959,999 958,144 1,036,690 1,030,340 Total Revenue 1,983,971 $ 2,052,163 $ 2,036,082 $ 2,223,613 $ 2,216,263 $ Expenditures Non-Personnel 4,317 $ 3,400 $ 1,900 $ 1,900 $ 1,900 $ Capital Outlay 73 0 0 0 0 Other Financing Uses 2,043,630 2,044,894 2,187,061 2,187,061 1,879,966 Total Expenditures 2,048,021 $ 2,048,294 $ 2,188,961 $ 2,188,961 $ 1,881,866 $ Areas of Emphasis: Promote quality and sustainable economic and community development. Goal: Providing technical assistance to the CDA in the implementation of the Downtown Master Plan and advancing the economic future of the downtown redevelopment area. Objective: 1. Increase the tax base by encouraging business and residential development. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Total value (000) 93,348$ 98,580$ 98,580$ 98,580$ 98,580$ Cumulative increase (000) 72,308$ 77,540$ 77,540$ 77,540$ 77,540$ Annual % value increase 9.2% 5.6% 0.0% 0.0% 0.0% 202 203 TID No. 4 – South Commercial District Fund Purpose To redevelop the Village’s South Commercial District by implementing the 2003 Tax Incremental District (TID) No. 4 141.3-acre Project Plan’s capital projects and account for funds received from TIF Increments. Fund Description The TID No. 4 Fund is a Capital Improvement Fund relating to the planning and infrastructure improvements for the South Commercial District in order to eliminate blight, encourage economic investment, and increase property values. TID No. 4 is the economic implementation tool used to achieve the goals and objectives identified in the South Commercial District Redevelopment Plan. The Community Development Authority (CDA) is the committee responsible for fostering the implementation of this plan through the creation of a capital improvements plan and specific development agreements. The 2004 base value of the TID was $14,066,100. With the 2006 TID Amendment, the base value of the TID increased to $47,847,400. 2026 Budget Highlights Increase in transfers to the Debt Service Fund (other financing uses) to fund an increase in debt service payments. The TID is expected to close in 2028 with a minimal fund balance 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Revenues Taxes 852,846 $ 1,010,369 $ 1,010,369 $ 1,076,637 $ 1,076,637 $ Intergovernmental Revenues 13,742 13,742 13,742 92,247 92,248 Investment Income 31,248 35,547 30,000 50,000 47,500 Other Revenues 4,070 4,070 0 4,388 4,388 Total Revenue 901,907 $ 1,063,729 $ 1,054,111 $ 1,223,272 $ 1,220,773 $ Expenditures Non- Personnel 15,808 $ 15,050 $ 13,250 $ 11,000 $ 13,250 $ Capital Outlay 12,530 0 0 0 0 Other Financing Uses 807,781 909,359 641,462 641,462 1,830,294 Total Expenditures 836,119 $ 924,408 $ 654,712 $ 652,462 $ 1,843,544 $ Areas of Emphasis: Promote quality and sustainable economic and community development. Goal: To develop and implement redevelopment plans for the South Commercial District. Objective: 1. To increase the tax base by encouraging business and residential development. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Total value (000) 117,625 $ 122,192 $ 122,192 $ 122,192 $ 122,192 $ Cumulative increase (000) 69,778 $ 74,345 $ 74,345 $ 74,345 $ 74,345.00 $ Annual % value increase 14.2% 3.9% 0.0% 0.0% 0.0% 204 205 TID No. 5 – Grafton Commons Fund Purpose To develop the Village’s Grafton Commons by implementing the 2006 Tax Incremental District (TID) No. 5 70-acre Project Plan’s capital projects and account for funds received from TIF Increments. Fund Description TID No. 5 Fund is a Capital Improvement Fund relating to the planning and infrastructure improvements for the Grafton Commons area in order to encourage economic investment and increase property values. TID No. 5 is the economic implementation tool used to achieve the goals and objectives identified in the Grafton Commons Development Plan. The Village Board is responsible for fostering the implementation of this plan through the creation of a capital improvements plan and specific development agreements. The 2006 base value of the TID is $493,500. 2026 Budget Highlights Personal property aid is expected to increase in 2026. The increase in revenues is budgeted to be offset by a larger contribution to TID No. 3. TID No. 5 is expected to close in 2028 with a nominal fund balance. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Revenues Taxes 887,498 $ 900,089 $ 900,089 $ 906,062 $ 906,062 $ Intergovernmental Revenues 34,896 34,896 34,896 88,528 88,528 Investment Income 33,613 28,413 18,000 44,000 40,000 Total Revenue 956,007 $ 963,399 $ 952,985 $ 1,038,590 $ 1,034,590 $ Expenditures Non- Personnel 2,983 $ 3,400 $ 4,250 $ 1,900 $ 4,250 $ Other Financing Uses 953,024 959,999 958,144 1,036,690 1,030,340 Total Expenditures 956,007 $ 963,399 $ 962,394 $ 1,038,590 $ 1,034,590 $ Areas of Emphasis: Promote quality and sustainable economic and community development. Goal: To encourage development of the Grafton Commons area. Objective: 1. Increase the tax base by encouraging commercial development. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Total value (000) 62,655 $ 63,060 $ 63,060 $ 63,060 $ 63,060 $ Cumulative increase (000) 62,161 $ 62,566 $ 62,566 $ 62,566 $ 62,566.00 $ Annual % value increase 8.2% 60.0% 0.0% 0.0% 0.0% 206 207 TID No. 6 – Goldberg Foundry Fund Purpose To develop the Village’s Grafton Commons by implementing the 2024 Tax Incremental District (TID) No. 6 34.9-acre Project Plan’s capital projects and account for funds received from TIF Increments. Fund Description TID No. 6 Fund is a Capital Improvement Fund relating to the planning and infrastructure improvements for an area located primarily northwest of the downtown area. As an area with older industrial and residential development, some properties have fallen into poor condition. The Village seeks to capture future growth in this area, as well as ne w value from development and renovation activities, in order to finance necessary public improvements and offer additional incentives for improving or redeveloping aging, vacant or outmoded parcels within the district. The Village Board is responsible for fostering the implementation of this plan through the creation of a capital improvements plan and specific development agreements. The estimated based value of the TID is estimated to be $13,948,300 as of January 1, 2025. 2026 Budget Highlights. There is an anticipated increase in Other Financing Sources as a result of budgeted borrowings to pay for expenses related to potential environmental remediation. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Revenues Taxes 0$ 0$ 0$ 0$ 3,555$ Investment Income 0 0 0 0 5,000 Other Financing Sources 0 0 0 0 685,000 Total Revenue 0$ 0$ 0$ 0$ 693,555$ Expenditures Non- Personnel 0$ 26,246$ 25,000$ 40,000$ 719,000$ Other Financing Uses 0 0 0 0 20,000 Total Expenditures and Other Financing Uses 0$ 26,246 $ 25,000 $ 40,000 $ 739,000 $ Areas of Emphasis: Promote quality and sustainable economic and community development. Goal: To encourage development of the Grafton Commons area. Objective: 1. Increase the tax base by encouraging commercial development. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Total value (000) NA NA NA NA 490,500$ Cumulative increase (000) NA NA NA NA NA Annual % value increase NA NA NA NA NA 208 209 Capital Project Fund Fund Purpose To account for the financing and expenses associated with large construction projects. Fund Description The Capital Projects Fund accounts for projects that have one or more of the following characteristics: (1) expenditures which take place over two or more years, requiring continuing appropriations beyond a single year; (2) funding with debt because of significant costs to be shared by current and future beneficiaries; (3) a systematic acquisition over an extended period of time; and (4) scheduled replacement or maintenance of specific elements of physical assets. This fund is closely coordinated with the Debt Service Fund since long-term financing may be involved. 2026 Budget Highlights The 2026 street reconstruction project will include 9th Avenue from Hickory Street to Cedar Creek Road, Overland Court, and 8th Avenue from North Street to Power Street. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Revenues Taxes 150,000 $ 100,000 $ 250,000 $ 250,000 $ 400,000 $ Special Assessments 3,769 0 0 0 0 Intergovenmental Revenues 28,464 12,500 145,300 145,300 0 Investment Income 32,718 36,607 28,000 15,000 15,000 Other Revenues 6,000 1,500 124,830 32,688 0 Other Financing Sources 1,096,763 2,362,116 0 0 2,700,000 Total Revenue 1,317,715 $ 2,512,723 $ 548,130 $ 442,988 $ 3,115,000 $ Expenditures Capital Outlay 1,240,876 $ 2,301,935 $ 602,999 $ 510,275 $ 2,744,643 $ Other Financing Uses 183,402 68,238 0 0 42,510 Total Expenditures 1,424,279 $ 2,370,173 $ 602,999 $ 510,275 $ 2,787,153 $ The following is a list of significant projects for 2026 by category. 1. 2026 Sidewalk Rehabilitation Program Project Description: Repair/replacement of hazardous sidewalk areas. In 2026, no replacement work is planned. The plan is to focus on sidewalk replacement every other year so that the sc ope of the project will be larger and will result in more cost-effective project bids. Project Origin/Background: Per 20-year Sidewalk Replacement Plan, replace hazardous sidewalk in one neighborhood of the Village. 2026 Project Cost: $0 2. Street Improvement Program Project Description: 9th Avenue – complete reconstruction: from Hickory Street to Cedar Creek Rd. Project Origin/Background: Street reconstruction needed due to the installation of an up-sized sanitary forced main due to the Shady Hollow development. 2026 Project Cost: $1,576,140 Project Description: Overland Ct – complete reconstruction 9th Ave to end. Project Origin/Background: Street reconstruction needed due to the Sanitary system which currently needs preventative jetting six times per year. 2026 Project Cost: $327,800 Project Description: 8th Ave – reconstruction from North Street to Power Street Project Origin/Background: Street reconstruction needed due to the installation of an up-sized sanitary forced main due to the Shady Hollow development. 2026 Project Cost: $328,830 210 211 212 Equipment Fund Fund Purpose To account for the financing and expenses associated with major equipment purchases as identified by the Capital Improvement Program. Fund Description The Equipment Fund accounts for major equipment purchases that have a usable life of more than five years. 2026 Budget Highlights The 2026 budget capital outlay is significantly lower than prior years as the Department of Public Works planned 2026 purchases are lower than normal so that a large purchase can be made by them in 2027. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Revenues Taxes 525,000 $ 585,000 $ 550,000 $ 550,000 $ 525,000 $ Intergovernmental Revenues 45,701 79,848 103,443 101,615 128,443 Investment Income 20,787 20,109 18,000 16,000 16,000 Other Revenues 50,210 23,075 70,000 67,250 19,500 Total Revenue 641,699 $ 708,032 $ 741,443 $ 734,865 $ 688,943 $ Expenditures Capital Outlay 515,302 $ 629,585 $ 796,507 $ 877,277 $ 551,993 $ Areas of Emphasis: Ensure adequate infrastructure, facilities and equipment. Ensure public equipment are adequate and maintained in a cost-effective manner. Goal: To keep Village vehicles and equipment available for employee use in a cost-effective manner. To reduce operational cost through sustainable measures. Objective: 1. Fund the replacement of public works (PW) equipment to keep the average age of vehicles at or below seven years. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Average age of licensed DPW vehicles 8 8 12 8 9 213 214 215 Fire Department Equipment Fund Fund Purpose Prior to 2025 this fund was set up to account for the costs associated with major Fire Department equipment purchases as identified by the Capital Improvement Program. Effective January 1, 2025 the Village became a part of the Ozaukee Central Fire Department and this fund is no longer used. Fund Description Prior to 2025 the Fire Department Equipment Fund accounted for the purchase of major equipment purchases that had a usable life of more than 5 years. 2026 Budget Highlights In 2024 an Inter-Municipal Agreement was signed which established a joint Fire Department, Ozaukee Central Fire Department (OCFD) between the Villages of Grafton and Saukville and the Towns of Grafton and Saukville. OCFD began with full authority on January 1, 2025. The only activity in 2025 is the contribution of the fund balance to OCFD during 2025. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Revenues Taxes 156,092 $ 156,092 $ 0 $ 0 $ 0 $ Intergovenmental Revenues 5,079 250,971 0 0 0 Investment Income 57,600 66,240 0 0 0 Other Revenues 1,032 0 0 0 0 Total Revenue 219,803 $ 473,302 $ - $ - $ 0 $ Expenditures Capital Outlay 15,416 $ 627,163 $ 1,100,993 $ 1,087,282 $ 0 $ 216 217 Fiduciary Fund Woodlawn Cemetery Perpetual Care Fund Fund Purpose To provide perpetual funding for the maintenance of Woodlawn Cemetery, a Village-owned five-acre cemetery. Fund Descriptions The Woodlawn Cemetery Perpetual Care Fund is one of two funds associated with Woodlawn Cemetery. (The other fund is a Special Revenue Fund - Woodlawn Cemetery Capital Fund.) Proceeds from lot sales are equally divided between the two accounts. Woodlawn Cemetery is located at the corner of North Street and Third Avenue. Woodlawn Cemetery maintenance, lot sales, and record keeping are handled by the Community Development Department. 2026 Budget Highlights No notable changes in 2026. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Revenues Investment Income 7,974 $ 9,086 $ 8,500 $ 9,000 $ 8,500 $ Cemetery Lot Sales 3,825 2,975 3,200 6,300 3,200 Total Revenue 11,799 $ 12,061 $ 11,700 $ 15,300 $ 11,700 $ Expenditures Other Financing Uses 7,974 $ 9,086 $ 8,500 $ 9,000 $ 8,500 $ Areas of Emphasis: Ensure fiscal stability. Goal: Sell cemetery plots to ensure proper funding for maintenance of cemetery grounds. Objective: 1. Sell cemetery plots. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Lot Sold 9 7 8 10 8 218 219 Proprietary Funds Proprietary Funds Budget Summary 220 Water Utility Fund Purpose To provide all Village residents, businesses, and visitors to Grafton with a safe, reliable, and cost efficient supply of drinking water that meets or exceeds all federal and state standards for water quality. Fund Description The Water and Wastewater (W&WW) Utility is responsible for the day-to-day operations, maintenance, planning, and administration of the Utility and its water and wastewater facilities. The Water Division is comprised of a field operations group responsible for the day-to-day operations and maintenance of water supply pumping and water distribution systems; and a utility administration group responsible for overseeing the management of the division including customer service, day-to-day employee direction and supervision, water and wastewater compliance and regulatory reporting, and general Utility planning, budgeting, and project management. 2026 Budget Highlights Significant 2026 budget highlights include the following projects for the water utility: • Annual tower inspection, maintenance and repair contract - $124,000 • Well #4 interior infrastructure coating of the well house - $30,000 • Addition of 50 large meters for annual regulatory testing - $18,000 221 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Permanent Staffing* Administration Assistant Utility Director/Engineering 1.00 1.00 1.00 0.00 0.00 Utility Director/Engineer 0.00 0.00 0.00 1.00 1.00 Field Operations Coordinator 1.00 1.00 1.00 1.00 1.00 Administrative Assistant 0.00 0.00 1.00 1.00 1.00 Office Assistant - Utility 1.00 1.00 1.00 1.00 1.00 Operations Plant Operator - Maintenance 1.00 1.00 1.00 1.00 1.00 Utility Operator 7.00 7.00 7.00 7.00 7.00 Total Staffing 11.00 11.00 12.00 12.00 12.00 *This is the permanent staffing for both Water Utility and Wastewater Utility. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Revenues Operating 2,074,179 $ 2,104,534 $ 2,127,793 $ 2,300,688 $ 2,806,601 $ Non-Operating 1,441,038 298,072 822,000 28,900 561,833 Total Revenue 3,515,217 $ 2,402,606 $ 2,949,793 $ 2,329,588 $ 3,368,434 $ Expenditures Personnel 484,670 $ 412,357 $ 490,083 $ 432,392 $ 468,168 $ Non-Personnel 1,454,809 1,699,189 1,803,402 1,512,426 1,762,246 Non-Operating 80,808 166,538 161,624 222,996 159,094 Total Expenditures 2,020,287 $ 2,278,084 $ 2,455,109 $ 2,167,814 $ 2,389,508 $ Areas of Emphasis: Continue to improve the quality of life by ensuring quality public health and safety services. Goal: To provide adequate safe water to all Grafton residents in a cost-efficient manner. Objective: 1. To monitor increases in water supply costs and maintain the operating and maintenance cost per 1,000 gallons at less than $3.00 per 1,000 gallons pumped. 2. To achieve a score of 5 in compliance reporting as determined by DNR Water System Inspection results using a rating scale of 1 to 5, with 5 being excellent. 3. To achieve 100% compliance with drinking water standards per the annual Consumer Confidence Report (CCR). 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Operating costs/1000 gallons 2.80$ 4.68$ 2.73$ 1.69$ 3.33$ Operating costs/customer 243.13$ 354.64$ 290.97$ 174.43$ 344.66$ CCR compliance results 100% 100% 100% 100% 100% ** Excludes depreciation 222 223 224 225 226 227 228 Wastewater Utility Fund Purpose To provide reliable and cost-efficient wastewater collection and treatment services that meet or exceed all federal and state standards for water pollution control operations. Fund Description The Water and Wastewater (W&WW) Utility is responsible for the day-to-day operations, maintenance, planning, and administration of the Utility and its water and wastewater facilities. Wastewater is comprised of a field operations group responsible for sewer lift stations and sewer collection system operations and maintenance; a wastewater treatment group responsible for treatment plant operations, maintenance, and laboratory services; and a utility administration group responsible for overseeing the management of the division including customer service, day-to-day employee direction and supervision, water and wastewater compliance and regulatory reporting, and general Utility planning, budgeting, and project management. 2026 Budget Highlights Significant 2026 budget highlights include the following projects for the wastewater utility: • Phosphorus Adaptive Management Program - $155,000 • Annual contracted sewer televising - $50,000 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Revenues Operating 4,027,025 $ 4,057,899 $ 4,190,368 $ 4,195,663 $ 4,361,234 $ Non-Operating 1,441,038 298,072 822,000 28,900 453,987 Total Revenue 5,468,063 $ 4,355,971 $ 5,012,368 $ 4,224,563 $ 4,815,221 $ Expenditures Personnel 379,361 $ 433,359 $ 476,794 $ 471,431 $ 503,842 $ Non- Personnel 2,148,884 2,352,079 2,759,781 2,437,352 2,627,100 Non-Operating 410,142 429,607 420,862 345,289 397,990 Total Expenditures 2,938,387 $ 3,215,045 $ 3,657,437 $ 3,254,072 $ 3,528,932 $ Areas of Emphasis: Continue to improve the quality of life by ensuring quality public health and safety services. Goal: To provide wastewater collection and treatment to all utility customers in a cost- efficient manner. Objective: 1. To monitor increases in wastewater system costs and maintain the operation and maintenance cost per 1,000 gallons at less than $3.00 per 1,000 gallons treated. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Performance Measurement Operating costs/1000 gallons* 2.72$ 5.07$ 3.27$ 4.12$ 4.76$ Operating costs/customer* 272.45$ 519.95$ 386.45$ 476.79$ 550.67$ CMAR point total/GPA 4.00 4.00 4.00 4.00 4.00 229 230 231 232 233 234 Utility Capital Projects Department Purpose To upgrade, replace, and add water and sewer facilities and infrastructure as needed to maintain, promote, and advance safe, efficient, and effective water and wastewater operations and service; and to also address compliance issues relative to emerging Environmental Protection Agency (EPA) and Wisconsin Department of Natural Resources (WDNR) regulations. Department Description The Water and Wastewater Utility is responsible for the day-to-day operations, maintenance, planning, and administration of the Utility and its water and wastewater facilities. A utility administration group is specifically responsible for ensuring full compliance with all regulatory requirements in effect and is further responsible for the general Utility planning, budgeting, and project management required to ensure continuous compliance of its water and wastewater systems. 2026 Budget Highlights Major capital projects in 2026 include $3,544,500 for water and sewer main replacements, $237,000 for continued Advanced Metering Infrastructure (AMI) meter conversion/replacements, and $496,000 for upgrades at 9th Avenue Lift Station. 2023 2024 2025 2025 2026 Actual Actual Adopted Estimated Adopted Expenditures Capital Outlay 5,050,309 $ 5,166,622 $ 4,697,206 $ 3,996,262 $ 4,854,504 $ The following is a list of projects: 1. Water and Sewer Main Rehabilitation Project Description: 2026 Water and Sewer Main Rehabilitation Projects Project Origin/Background: Water main replacements, sewer main replacements, and the addtion of force main combinations will be performed on 9th Avenue from Mole Drive to Hickory Street, 8th Avenue from North Street ot Power Street, and Overland Court from 9th Avenue to the end. The addition of the force main is being constructed for additional capacity due to the northwest developments including Stonewall Farms and Shady Hollow. 2026 Project Cost: $3,544,500 Total Project Cost: $3,544,500 Estimated 5 Year Maintenance and Operating Impact: No additional personnel or increase in operating costs in this infrastructure project. 2. AMI Meter Conversion*** Project Description: Replacing existing recycled meters with new meters and replacing existing Orion radio heads with new technology radio heads. This program has been expanded to include all 1.5-, 2-, and 3-inch meters. In 2026 the Utility expects to replace 610 meters as part of the upgrade. The project cost also includes AMI meters for new development as well as the replacement of about 10 large commercial/industrial meters. Project Origin/Background: This meter program will replace the existing equipment and make the meter reading operation more efficient. 2026 Project Cost: $237,000 Total Project Cost: $1,200,453 3. 9th Avenue Lift Station Upgrades Project Description: Construction of necessary upgrades to 9th Avenue Lift Station. Project Origin/Background: This project includes upgrades needed to the 9th Avenue Lift Station due to for additional capacity due to the northwest developments including Stonewall Farms and Shady Hollow. Lift station upgrades include pump upsizing, the addition of one pump, piping upsizing and electrical upgrades. 2026 Project Cost: $496,000 Total Project Cost: $496,000 Estimated 5 Year Maintenance and Operating Impact: No additional personnel or increase in operating costs in this infrastructure project. 235 Water & Wastewater Utility Schedule of Capital Expenditures 236 237 Appendix Tax Rate 238 Personnel Schedule 239 240 241 Total Expenditures by Fund and Department 242 General Fund Summary of Expenses by Category *Does not include Unclassified expenses *Does not include Unclassified expenses 243 244 5 Year Capital Improvement Plan 245 246 247 248 249 Resolution Adopting the 2025 Annual Program Budget 250 Notice of Public Hearing 251 252 Chart of Accounts – Expenditure Classifications Personnel Services 110 Salaries & Wages: Salaries and wages paid to full-time regular employees. 115 Part-Time Wages: Salaries and wages paid to part-time employees. 120 Labor Pool Allocations: Salaries and wages paid to Department of Public Works employees, allocated to a specific activity. 125 Unallocated Labor Pool: Salaries and wages paid to Department of Public Works employees for authorized personal time off, medical leave, bereavement leave and paid holidays. 126 Crossing Guards: Salaries and wages paid to crossing guard employees. 127 Overtime: Payments made to full-time employees for overtime services. 129 Longevity: Wages paid to employees based on years of service. 130 Social Security: Employer's share of social security and Medicare taxes made on behalf of Village employees. 131 Wisconsin Retirement: Employer contributions to the Wisconsin Retirement System made on behalf of Village employees. 132 Insurance - Health: Employer's share of Village employee’s health insurance premium. 136 Insurance - Life: Employer's share of Village employee’s life insurance premium. 190 Stipends: Compensation paid to Fire Department personnel. Non-Personnel Services 210 Contractual Services: All contracted services, including annual maintenance/service contracts, testing fees, copier rental, and legal fees. 218 Contracted Services Well Maintenance : All contracted services related to the maintenance of wells. 219 Other Services: Record utility tax equivalent quarterly. 220 Communications: Telephone, email support fees, long distance charges, cell and mobile connection charges. 225 Utilities: Electric, water, sanitary sewer service, and natural gas. 230 Building Repairs & Maintenance: Cost of repairing building. 240-249 Equipment Repairs & Maintenance: Cost of repairing equipment. 253 310 Office and Computer Supplies: All supplies necessary for use in operating office, paper, desk supplies, printer toner/ink. 311 Postage: All postage, stamps and post office charges for the mailing of letters, packages and parcels. 312 State Seals: Cost of state required seals for building permits. 313 Emergency Management: Salaries and wages paid to full-time regular employees. 316 Wellness Program: Costs associated with the annual Health Risk Assessment and promotional activities for the Employee Health and Wellness Program. 318 Recognition & Awards: Recognition payments, promotional activities, and prizes. 319 Supplies & Expenses: Miscellaneous supplies used while performing an activity. 320 Public Information: Cost of conveying information to citizens through newspaper, newsletter, etc. 322 Printing & Reproduction: Printing of office forms, letterhead, reports, pamphlets and decals. 325 Books, Subscriptions & Dues: Books, magazines, directories, reports and other publications and membership in professional organizations. 330 Training & Conferences: Training, conferences and seminars, including registration, tuition, book fees, meals, lodging and related travel. 335 Local Auto Expenses: Private vehicle expenses for travel within the metropolitan area by Village employees. 341 Ammunition: Ammunition, tear gas, firearms, gas masks and chemicals such as acetylene oxygen, not used for medical, botanical, road or cleaning purposes. 342 Fluids: Gasoline, lubricating oil, grease, antifreeze, etc. 343 Chemicals: Corrosive liquids, etc. 346 Signs: Posts, brackets, signs, lettering, etc. 347 Paints: Paints 349 Janitorial Supplies: Soaps, deodorants, disinfectants, floor wax, scouring powder, brooms, mops, toilet paper, paper towels, cleaning rags, soap and paper towel dispensers, water softener salt, etc. 350 Audio Visuals - Adult: Videotapes, films, records, CDs etc. 351 Audio Visuals - Youth: Videotapes, films, records, CDs etc. 354 Books - Adult: Library books purchased for public use 254 361 Protective Clothing: All clothing purchased that provide safety to public safety employees. 370 Street Materials: Materials and services used to repair or maintain street and public areas. 371 Light Pole Maintenance: Materials and services used to repair or maintain light poles. 375 Shop Supplies & Tools: Purchase or replacement of shop supplies and tools to perform an activity. 380 Emergency Medical Services: Purchase or replacement of supplies and tools for EMS services. 390 Safety Equipment: Equipment designed to prevent inadvertent injury or loss. 391 Duty Gear & Equipment: Gear and equipment purchased for employee assignments. 392 Assignment Supplies: Materials and Supplies needed during police assignments. 393 Uniform Allowance: Cost of purchasing, repairing or allowances for uniforms as well as laundry, dry cleaning and linen services for the above. 394 Small Equipment: Hoes, shovels, rakes, trowels, trash cans, and all tools of a minor nature, costing less than $1,000 per item. 395 Food & Provisions: Cost of purchasing meals and beverages for Village associated activities. 399 Unemployment Claims: Any claims that arise from unemployment compensation. 410 Property Taxes – Water Utility: Record utility tax equivalent quarterly. 510 Insurance - General Liability: Property and liability insurance premiums. 515 Insurance - Worker's Compensation: Workers compensation insurance premiums. 530 Equipment Rental: All costs associated with renting of equipment. 535 Office Equipment Lease & Maintenance: The lease and maintenance contract cost for office equipment. 610-618 Principal Payments: The principal portion of debt payments. 620-629 Interest Payments: The interest portion of debt payments. 690 Paying Agent Fees: Fees paid to fiscal agent for annual servicing of bonds or notes. 695 Financing Charges: Expenditures incurred upon the issuance of bonds or notes. 697 Amortization of Bond Discount: The annual amortization of the discount amount related to the issuance of bonds. 255 710 Donations: Any item donated to the Village. 810 New Equipment: All costs involved in purchasing and placing into use new equipment of with a cost which exceeds $5,000 and with a useful life of more than one year. 815 Replacement Equipment: All costs involved in replacing and placing into use equipment with a cost which exceeds $5,000 and with a useful life of more than one year. 820 Purchase of Property: All costs involved in the purchase of real estate property. 821 Plaza Bricks: All costs involved in bricks purchased for Paramount Plaza. 825 Developer Incentive: All costs involved in developer incentives. 831 Park Development: Costs which exceed $5,000 which are for the development of Parks within the Village and with a useful life of more than one year. 840 Street Construction: All costs involved in the construction or replacement of streets. 846 Street Reconstruction: All costs involved with the reconstruction of streets. 898 Depreciation Expense: Tracking of the depreciation expense of Proprietary Fund capital assets. 910 Reserve for Contingency: Budgeted amount available to transfer to accounts for unexpected expenditures. 920 Wage Adjustment Reserve: Budget amount available to transfer for wage increases. 930 Sundry Unclassified: Miscellaneous expenses which cannot be easily classified. Note: Some account numbers may be used for different purposes in the Proprietary Funds. 256 Glossary ACCRUAL ACCOUNTING: The method of accounting whereby revenues are recorded when earned (whether or not cash is received at that time) and expenditures are recorded when goods and services are received (whether cash disbursements are made at that time or not). APPROPRIATION: An authorization made by the Village Board which permits officials to incur obligations against and to make expenditures of governmental resources for specific purposes. Appropriations are usually made for fixed amounts and are typically granted for a one-year period. ASSESSED VALUATION: A valuation set upon real estate and certain personal property by the Village Assessor as a basis for levying property taxes. ASSETS: Property owned which has monetary value. AUDIT: A comprehensive review of the Village’s financial statements to ensure the financial records are fair and accurate. BALANCED BUDGET: A plan of financial operation where total revenues match total expenditures. It is a goal of the Village to propose and approve a balanced budget annually. BOND: (Debt Instrument) A written promise to pay a specified sum of money (called the principal amount or face value) at a specified future due date (called the maturity date) along with periodic interest paid at a specified percentage of the principal (called the interest rate). Bonds are typically used for long-term debt to pay for specific capital expenditures. The difference between a note and a bond is that the latter is issued for a longer period (over 10 years) and requires greater legal formality. BUDGET: A financial estimate of income and expenditures for a set period of time. BUDGET ADJUSTMENT: A legal procedure requiring Board action to revise budget amounts. Village staff has the ability to adjust certain expenditures within a department budget. BUDGET CALENDAR: The schedule of key dates or milestones which the Village departments follow in the preparation, adoption, and approval of the budget. BUDGET MESSAGE: The opening section of the budget which provides the Village Board and the public with a general summary of the most important aspects of the budget, changes from the current and previous years, and the views and recommendations of the Village Administrator. BUDGET RESOLUTION: The official enactment by the Village Board establishing the legal authority for the Village Trustees to obligate and expend resources. CAPITAL ASSETS: Assets of long-term character which are intended to continue to be held or used, such as land, buildings, machinery, furniture and other equipment. CASH BASIS: The method of accounting under which revenues are recorded when received and expenditures are recorded when paid. 257 CHARGE FOR SERVICE: User charge for services provided by the Village. COMMITTED FUND BALANCE: Net financial resources of a governmental fund that are spendable or available for appropriation, but which have been earmarked by the Village Board for some specific purpose. CONTINGENCY ACCOUNT: A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted. CONTRACTUAL SERVICES: Services rendered to the Village by private firms, individuals, or other government agencies. Examples include equipment maintenance, janitorial services, and professional services. COST CENTER: A fund, major program, department or other activity for which control of expenditures is desirable. DEBT: A financial obligation resulting from the borrowing of money. Debts of governments generally include bonds and notes. DEBT SERVICE: Amount necessary for the payment of principal, interest, and related costs of general long-term debt. DEBT SERVICE FUND: Debt service funds are used to account for the accumulation of resources for the payment of general long-term debt principal, interest and related costs. DEFICIT: The excess of an entity's liabilities over its assets (see Fund Balance). The excess of expenditures or expenses over revenues during a single accounting period. DEPARTMENT: A major administrative subset of the Village which indicates overall management responsibility for an operation or a group of related operations within a functional area. A department is often comprised of several divisions. DEPRECIATION: A reduction in the value of an asset with the passage of time, due in particular to wear and tear, among other things. ENCUMBRANCE: The commitment of appropriated funds to purchase an item for service. To encumber funds means to set aside or commit funds for a future expenditure. ENTERPRISE FUND: A separate government fund designed to account for activities that operate like private businesses, providing goods or services to the public in exchange for user fees and charges. The costs for these services are funded primarily through those user fees, not general taxes, with revenues and expenditures kept separate from other government operations to ensure the service remains financially self-supporting and sustainable. EQUALIZED VALUE: The State's estimate of the full value of property; used to apportion property tax levies of counties, school districts, and municipalities among tax districts. EQUIVALENT RESIDENTIAL CHARGE (ERC): Assessment charge per unit of development based upon sewer usage of a single-family house. EXPENDITURE: Use of financial resource for current operating expenses, debt service, capital outlay, or intergovernmental transfers. 258 FIDUCIARY FUND: An accounting fund that holds assets for other parties in a trustee or custodial capacity, meaning the assets belong to the outside party, not the fiduciary entity itself. These funds are used when a government or organization acts as an agent, managing assets for others according to legal or trust terms, and cannot be used to fund the government's own programs. FUND: An accounting entity with a self-balancing set of accounts containing its own assets, liabilities and fund balance. A fund is established for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. FUND BALANCE: The difference between accumulated revenues and expenditures. The beginning fund balance represents the residual funds brought forward from the previous year. GENERAL FUND: The general fund is the general accounting fund of the Village. It is used to account for all financial resources except those required to be accounted for in another fund. GENERAL OBLIGATION BONDS/NOTES: Bonds/Notes that finance public projects such as streets, sewers, buildings and improvements. The repayment of these bonds is backed by the "full faith and credit" of the issuing government. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES: Criteria used by auditors to determine if financial statements are fairly presented. GOVERNMENT FINANCE OFFICERS ASSOCIATION: A professional organization which provides guidance and training of government accounting, auditing, and financial management. GOVERNMENT FUND: Used to account for the activities primarily supported by taxes, grants and similar revenue sources. The five types of funds include General, Special Revenue, Debt Service, Capital Projects and Permanent Funds. IN LIEU OF TAXES: A contribution by benefactors of Village services who are tax exempt (i.e., certain utilities, non-profit organizations) who chose or must pay a "tax equivalent amount". INVESTMENT INCOME: Income earned on idle funds which are not immediately needed by the Village. INTERGOVERNMENTAL REVENUE: Revenue received from another government in the form of grants and shared revenues. Typically, these contributions are made to local governments from County, State and Federal governments and are made for specified purposes. INTRAFUND TRANSFER: Amounts transferred within a fund from one expenditure category to another, i.e., an adjustment to the appropriation. LABOR POOL (UNALLOCATED): The costs of public works crew that are not chargeable to a department. These costs include time paid for paid time off, medical leave bank, funeral, fire, and jury leave. LIABILITY: Debt or other legal obligations arising out of transactions in the past which must be liquidated, renewed or refunded at some future date. 259 LINE ITEM: A basis for distinguishing types of revenues and expenditures. MAJOR FUND: A significant governmental or enterprise fund that is reported separately in a government's financial statements due to its importance or size. To be considered major, a fund must generally meet two numerical tests: it must represent at least 10% of the corresponding total (assets, liabilities, revenues, or expenditures/expenses) for all governmental or enterprise funds in its category, and at least 5% of the corresponding total for all governmental and enterprise funds combined. MATERIAL RECOVERY RATE: A rate equal to recycling tonnage divided by the sum of total waste. MISCELLANEOUS REVENUES: Revenues which are not required to be accounted for elsewhere. MODIFIED ACCRUAL BASIS: An accounting method under which revenues and other financial resources are recorded when they become measurable and available and expenditures/expenses (with a few exceptions) are recorded when liabilities are incurred. Available is defined as collectible in the current period or soon enough thereafter to be used to pay the liabilities of the current period. All governmental funds, are accounted for using the modified accrual basis of accounting. NET POSITION: The difference between assets and liabilities, which may or may not be available for future spending. NON-MAJOR FUND: A government fund that does not meet the criteria to be classified as a major fund. NON-SPENDABLE FUND BALANCE: The portion of fund balance that is not available for appropriation because it is either legally restricted (e.g., encumbrances) or not spendable (e.g., long-term receivables). OFFICE SUPPLIES: Expendable supplies as well as durable items which cost less than $2,500. OPERATING TRANSFER: Routine and/or recurring transfers of assets between funds. PERMANENT FUND (SOMETIMES REFERRED TO AS FIDUCIARY FUND): Account for resources that are legally restricted. PERSONNEL EXPENDITURES/EXPENSES: Expenditures/Expenses in the operating budget for salaries and wages, as well as related fringe benefit costs. PROGRAM BUDGET: A budget which structures budget choices and information in terms of programs and their related work activities, (i.e., repairing roads, treating water, etc.), provides information on what each program is committed to accomplish in the long run (goals) and in the short run (objectives), and measures the degree of achievement of program objectives (performance measures). PROPRIETARY FUND: Used to account for activities funded primarily through user charges. 260 REFERENDUM: A general vote by the electorate on a single political question that has been referred to them for a direct decision. REVENUE: Funds that the government receives as income. It includes such items as taxes, fees from specific services, receipts from other governments, fines, forfeitures, grants, shared revenues and interest income. SALARIES: Expenditures in the operating budget for salaries and wages paid for services performed by Village employees. SHARED REVENUES: Revenues levied by one government but shared on a predetermined basis, often in proportion to the amount collected at the local level, with another government or class of governments. SPECIAL ASSESSMENT: A compulsory levy made against certain properties to defray all or part of the cost of a specific capital improvement or service deemed to benefit primarily those properties. SPECIAL REVENUE FUNDS: Used to account for the proceeds or specific revenue sources that are legally restricted or committed for specified purposes. TAXES: Compulsory charges levied by a government for the purpose of financing services performed for the common benefit of the people. TAX INCREMENTAL DISTRICT: A district created by local governments under State Statute whereby public improvement expenditures within the district are financed by the levy on the incremental increase in property values. TAX LEVY: The total amount needed from general property taxes to cover operating and debt service as specified in the Village Board Adopted Budget. TAX RATE: The amount of tax levied for each $1,000 of valuation. The equalized (full) value tax rate is calculated using the equalized value of the Village. The assessed value tax rate is calculated using assessed value. TRAINING/CONFERENCES: Items of expenditure for travel and training costs incurred by the Village on behalf of employees. These include mileage, meals, lodging, conferences, conventions. UNCOMMITTED FUND BALANCE: The balance of net financial resources that are spendable or available for appropriation. USER CHARGE/FEE: The payment for direct receipt of a public service by the party benefiting from the service 261 Acronyms ARPA: American Rescue Plan CARES: Coronavirus Aid, Relief and Economic Security CDA: Community Development Authority CE: Capital Expenditures CIP: Capital Improvement Plan/Program CMAR: Compliance Maintenance Annual Report CMOM: Capacity, Management, Operation and Maintenance CP: Capital Projects CPI: Consumer Price Index CPSC: Consumer Product Safety Commission EDGE: Economic Development for Grafton Enhancement, Inc. ERP: Expenditure Restraint Program FTE: Full-time equivalent GAAFR: Governmental Accounting, Auditing and Financial Reporting GAAP: Generally Accepted Accounting Principles GFOA: Government Finance Officers Association G.O.: General Obligation GPA: Grade Point Average GVW: Gross Vehicle Weight LAWCON: Land and Water Conservation LTFP: Long Term Financial Plan LUST: Leaking underground storage tanks MATC: Milwaukee Area Technical College MSF: Municipal Services Facility MOU: Memo of Understanding NIMS: National Incident Management System O&M: Operations and Maintenance OCFD: Ozaukee Central Fire Department RAS: Return Activated Sludge RLF: Revolving Loan Fund SCADA: Supervisory Control and Data Acquisitions SMT: Speed Monitoring Trailer which is jointly owned with the City of Cedarburg SRT: Special Response Team TID/F: Tax Incremental District/Finance ME: Transaction of Information for Police Management of Enforcement WAS: Waste Activated Sludge WDNR: Wisconsin Department of Natural Resources WDOT: Wisconsin Department of Transportation WIS: Wisconsin State Highway WPS: Wisconsin Public Service Corporation WRS: Wisconsin Retirement System WWTP: Wastewater Treatment Plant W & WW: Water and Wastewater Utility