2027 Budget Presentation – Finance

City of Racine 2027 Proposed Budget Navigating Budget Book • Sections: • Executive Overview • Detailed Book • Positions • Fee Schedule • Ordinances • Capital Improvement Plan 2 Quick Tips and Items of Interest 3 Page 1-24 Drafted by: Finance Director 4 Show me the Numbers! Positions Full -Time Equivalents Comparison from 2027 to 2026 Allocations by funding source 5 Fee Schedule Fees by Department 2027 vs. 2026 6 Ordinances Impact Operations New Policy 7 Planning Document 2027 Column is the 2027 Budget 10 year Look out 8 2027 BUDGET AT A GLANCE . $287M Total City Expenditures Up 4.01% from 2026 $98.2M General Fund Up 3.03%; salary & benefit costs rose about 4.85%. $11.04 City Property Tax Rate Estimated rate; down from the prior year . $49M Net New Construction .853% growth $5.135M General Fund Balance Applied Supports General Fund operations in 2027. $18.6M & $35M General Borrowing and Fire Station General down about 10% from 2026 02 Highlights • Employee Recruitment and Retention: 1% increase and step for non-represented employees Contract increases for RPA and Local 321 HSA contributions same as prior year • Position Changes Inspector-Sump Pump Program City Development Reorganization Utilities Reorganization 10 Highlights  Minimal Fee increases  Neighborhood Watch under Community Safety  Support for operations of the King Community Center  Implementation of new utility billing system  Auxillary snow plow driver program  Yard waste move from Pearl Street 11 Challenges 12 Structural Deficit Legacy Costs Levy Limits Net New Construction Structural Deficit 13 Legacy Costs $503,249,686 $421,833,768 $335,432,436 $310,694,646 $278,264,534 $303,872,323 $337,068,554 $266,012,778 $236,042,487 $212,149,205 $- $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Post Employment Healthcare Obligation Levy Limits 15 State Statute limits Operational Levy to last year’s amount plus an allowance for net new construction City of Racine Net New Construction was over $49M or .853%. Levy Limit calculation increased the allowed levy by $353,000. This budget maximizes the allowed Levy. 16 2026 Bud get 2027 Bud get Change e ce t Change G eneral Fund 95,281,808$ 98,172,753$ 2,890,945$ 3.03% Special Revenue Funds 23,510,405 26,975,239 3,464,834 14.74% Debt Service Fund 23,112,264 22,716,841 (395,423) -1.71% Capital Project Funds 25,117,330 23,145,459 (1,971,871) -7.85% Enterprise Funds 29,827,621 29,105,351 (722,270) -2.42% Utility Funds 39,537,566 45,286,877 5,749,311 14.54% Internal Service Funds 39,598,742 41,643,266 2,044,524 5.16% Total Ex penditures 275,985,736$ 287,045,786$ 11,060,050$ 4.01% TOTAL EXPENDITURES 2027 to 2026 Budget 17 General Fund Expenditures 18 2026 $95,281,808 2027 $98,172,753 2027 Increase: $2.89M 2027 % Increase: 3.03% 1. Wage increases in public safety 2. Additional overtime costs in PD General Fund Expenditures 19 General Government 12% Health 4% Public Safety 59% Public Works 14% Education and Recreation 9% Community Development 2% Salary and Fringe Benefits 75% Operating Expenses 14% Interdepartmental Expenses 11% General Fund Revenues 20 2026 Bud get 2027 Bud get Change Percent Change Property Taxes 33,389,229$ 33,528,176$ 138,947$ 0.42% Other Taxes 420,000 420,000 - 0.00% Intergov ernmental Rev enues 42,370,376 43,826,370 1,455,994 3.44% Licenses and Permits 1,933,500 991,250 (942,250) -48.73% Fines and Forfeitures 1,322,000 1,747,000 425,000 32.15% Charges for Serv ices 1,981,570 2,030,000 48,430 2.44% Intergov ernmental Charges for Serv ices 2,320,976 2,455,115 134,139 5.78% Miscellaneous Rev enues 2,358,941 2,788,537 429,596 18.21% Other Financing Sources 4,660,216 5,251,005 590,789 12.68% Bud get Stab ilization Fund Balance Ap p lied 4,525,000 5,135,000 610,000 13.48% Total Rev enues 95,281,808$ 98,172,453$ 2,890,645$ 3.03% General Fund Revenues 2027 to 2026 Budget General Fund Revenues by Type 21 Property Tax Levy Property Tax Rate 23 $16.59 $16.09 $14.93 $14.90 $14.72 $13.66 $12.85 $12.11 $11.74 $11.04 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 $11.00 $12.00 $13.00 $14.00 $15.00 $16.00 $17.00 $18.00 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Dollars Per Thousand Year Fees 24 Bill Bill $ % Fee Type Frequency 2026 2027 Change Change Sanitary Sewer Lateral Fee Tax Bill Annual 97.00$ 97.00$ -$ 0.00% Recycling Fee Tax Bill Annual 93.22$ 93.22$ -$ 0.00% Storm Water Fee Utility Bill Quarterly 200.87$ 200.87$ -$ 0.00% Sewer Utility Fee Utility Bill Quarterly 2.98$ 2.98$ -$ 0.00% Water Utility Fee Utility Bill Quarterly 3.11$ 3.11$ -$ 0.00% Sanitary Sewer Surcharge-Residential Utility Bill Quarterly 31.00$ 31.00$ -$ 0.00% Sanitary Sewer Surcharge-Commercial Utility Bill Quarterly 78.00$ 78.00$ -$ 0.00% Sanitary Sewer Surcharge-Public Utility Bill Quarterly 184.00$ 184.00$ -$ 0.00% Sanitary Sewer Surcharge-Industrial Utility Bill Quarterly 184.00$ 184.00$ -$ 0.00% Reserves Wage Provision Reserves Applied $1.5M • $3.8 M remains No Unassigned Reserves Applied • $25M of unassigned reserves remain $3.635M of Budget Stabilization Reserves Applied • $8.9M of budget stabilization reserves remain $1.38 M of Insurance Fund Reserves Applied • $9.3M of unassigned reserves remain 25 General Fund Reserves 26 $- $- $- $- $- $- $- $21,282,877 $21,694,914 $22,792,450 $23,739,677 $23,820,452 $24,543,188 $25,034,052 $13,232,054 $13,964,338 $12,100,465 $14,765,165 $16,673,258 $14,173,258 $8,973,258 $4,256,575 $4,338,983 $4,563,083 $4,747,935 $4,764,090 $4,340,709 $3,849,845 2021 2022 2023 2024 2025 2026-Estimated 2027-Estimated Wage Provision Budget Stabilization Unassigned Health Insurance Reserves 27 $4,326,676 $3,664,384 $8,185,074 $12,228,651 $14,243,717 $11,650,418 $11,394,177 $11,796,502 $10,713,192 $9,333,192 $1,000,000 $3,000,000 $5,000,000 $7,000,000 $9,000,000 $11,000,000 $13,000,000 $15,000,000 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Long Term Capital Improvement Plan 2027-2036 28 29 2027 Long-Term Debt By Function Function Amount ($) Percent (%) General Administration 100,000$ 0.68% Information Technology 589,000 4.03% Fire and Police Department 2,086,000 14.29% Paving, Sidewalks, Curb, Bridges 4,531,418 31.03% Transit 750,000 5.14% Buildings 1,560,000 10.68% Public Improvements and Equipment 3,103,000 21.25% Parks and Recreation 1,882,591 12.89% 14,602,009$ 100.00% 30 2027 Short-Term Debt By Function Function Amount ($) Percent (%) Information Technology/Other 1,153,200 28.74% Fire Department 135,000 3.36% Police Department 1,965,700 48.99% DPW Capital Equipment 396,000 9.87% Parks and Recreation 362,550 9.04% 4,012,450$ 100.00% General Obligation Outstanding Debt (December 31) 31 32 Monday October 12th 6:00pm • Administrative Manager Presentations Tuesday October 13th 6:00pm • Questions/Discussion Wednesday October 14th 6:00pm • Public Hearing and Questions/Discussion Thursday October 15th 6:00pm • Overflow/Flex Day Monday October 19th 6:00pm • Questions/Amendments & COW Approval • Proposed amendments to Finance by 4:00pm on the 31st. Tuesday October 20th 6:00pm • Adoption by Common Council Process and Rules of Order 33 QUESTIONS- ASK THE DEPARTMENTS IN ADVANCE! QUESTIONS-IN WRITING TO THE CLERK AMENDMENTS- MUST COMPLY WITH RESOLUTION #0489-26 AMENDMENTS- GET DEPARTMENT FEEDBACK AMENDMENTS- WILL BE GROUPED BY TOPIC 35