Committee of the Whole — Agenda packet

Budgetary Year 2027 a City of Nekoosa, Wisconsin 2027 Budget August Kickoff Meeting July 28, 2026 Net New Construction 2026 Net New Construction values released 8/15/2026 for 2027 Levy Limit Calculation 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026Net new construction %0.14% 0.12% 0.19% 0.94% 0.23% 0.54% 0.40% 0.33% 0.75% 0.57% 1.21%0.00%0.20%0.40%0.60%0.80%1.00%1.20%1.40% 2 Net New Construction How does NNC relate to the annual budget? Allows for increases of levy (under levy limits): 2021 - $6,231 2022 - $4,611 2023 - $3,565 2024 - $8,747 2025 - $6,769 2026 - $14,411 2 Historical Data – Where the City has been Levy decrease 2015 to 2026 -- (2.78%) General Fund Expenditure increased 2015 to 2024 -- $4.00% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026Change in General Fund Balance(7,890) 16,838 (212,726) (97,071) (156,217) (341,950) (168,160) 342,697 (427,420) -Ending Fund Balance2,094,646 2,111,484 1,898,758 1,801,687 1,645,470 1,303,520 1,135,360 1,478,057 1,050,637 1,050,637Property Tax Levy1,422,786 1,422,786 1,449,573 1,449,573 1,464,831 1,480,905 1,538,012 1,509,500 1,209,500 1,333,099% Change in Levy3.000% 0.000% 1.883% 0.000% 1.053% 1.097% 3.856% -1.854% -19.874% 10.219% (1,000,000) (500,000) - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 2 Historical Data – Where the City has been 89%81%75%59%48%43%29%35%44%46%62%63%62%66%64%53%51%46%39%36%43%24%32%76%55%55%33%23%16%7%9%17%23%40%37%38%42%37%34%29%21%12%14%20%17%23%0%10%20%30%40%50%60%70%80%90%100% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026Total FB % of ExpUnassigned FB % of Exp 2 Historical Data – Where the City has been 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2025 2026Rate per $1000 - City$11. $11. $10. $11. $11. $11. $12. $12. $12. $12. $13. $13. $13. $13. $13. $14. $14. $14. $14. $10. $9.1 $10. $- $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 2 Historical Data – Where the City has been 7.09%11.95%11.20%12.66%10.10%2.90%0.40%-1.70%-2.93%2.84%-0.79%1.86%1.85%1.78%2.39%2.11%2.71%3.04%-1.20%2.59%1.62%1.81%0.00%-4.00%-2.00%0.00%2.00%4.00%6.00%8.00%10.00%12.00%14.00% 20042005200620072008200920102011201220132014201520162017201820192020202120222023202420252026 Water Rate of ReturnWater Rate of Return 2 2026 Budget 2 2027 Budget Preliminary Planning Puporses Only (NNC not released until 8/15) 2 2027 Budget Preliminary Planning Puporses Only (NNC not released until 8/15) Exercise/Walkthrough Assuming NNC of 0.573% (same as 2025) or $7,276: 2026 Levy (not including any debt service) $1,161,148 2027 Levy (not including any debt service) $1,168,424 What does that actually mean for the 2027 budget? The $1,168,424 is the total levy across all levied funds (General, Library, Fire Department) So if you keep the exact same levy in (library and fire department) as 2026: Library $144,294 Fire Department $143,992 ` General Fund would have a maximum of $880,138 to work with for entire general fund of the City Before we compare that with 2026 of $872,862 we need to factor in the applied fund balance of $158,659 to get back to a zero balanced budget. So in reality the actual levy needed in 2026 to fund the budgeted expenditures was $1,030,521 2 2027 Budget Preliminary Planning Puporses Only (NNC not released until 8/15) Exercise/Walkthrough To get the budget in balance in 2027 as compared to the allowable levy the 2026 net expenditures need to be cut by $150,383 Known factors that increase or decrease that amount:  2027 Expenditure Restraint Incentive was not met (due to large increase in budgeted expenditures from 2025 to 2026 budgets – loss of $52,000 from revenue  Fire Department City levy is based on same criteria as FD customers and formula based so an increase is expected. Prior year increases have been around $9,000  Sick leave payouts for retirees – expected to be around $76,000 or more. Total liability is over $500,000  Health Insurance?  Salary Increases? So (very) preliminary we could have an out of balance amount to cut of $250,000-$300,000 ($158,000 of that is carried from 2026 applied amount). 2 2027 Budget Preliminary Planning Puporses Only (NNC not released until 8/15) What happens if the City just does nothing and keeps the expenditures the same or a slight increase from last year and apply $150,000-$200,000 again this year. Actual expenditures would be expected to exceed revenues in 2027 and fund balance would decrease like in 2025. Fund balance in general fund for 2025 is lower than the last 20+ years. Not a bad thing but can’t keep going down or will have cash flow issues. Next Steps: NNC released 8/15 so we can come up with a known levy Examine positions based on City service level Set meetings and workshops as the data comes in