Wausau alders adopted a 2027 budget 7-4 on Tuesday that adds about $72 to the city tax on a $200,000 home, rejecting a bid to use reserve funds to slow down new borrowing.
Property Taxes Increase Under 2027 Spending Plan
- The newly adopted 2027 spending plan increases the city portion of property taxes by roughly $72 for a home valued at $200,000, according to Wausau Pilot & Review.
- An amendment proposed by Alder Matt Hoenecke to tap the city’s $16 million reserve fund failed in a 2-9 vote.
- The city plans to borrow approximately $22 million next year while paying down about $18 million, netting a $4 million addition to its overall debt.
City Tax Increase Funds Firefighter-Paramedics
The tax increase covers only the city’s share of the tax bill, Finance Director Maryanne Groat told Wausau Pilot & Review. School district levies, Marathon County levies, and state tax credits remain pending. About 60% of the city tax increase stems from fully funding 12 firefighter-paramedics approved by voters in an April referendum, Finance Committee Chair Michael Martens said.
“So, if you don’t support this budget, tell me what we cut.”
Alder Vicki Tierney told colleagues who objected to the spending plan.
Unassigned Reserves Remain at $16 Million
Hoenecke argued for drawing down reserves to prevent new borrowing from exceeding debt payments. Groat confirmed that unassigned reserves stand at about $16 million. Her figures show Wausau’s unassigned general fund balance equals 32% of general fund spending, placing the city in the lower end compared to 15 Wisconsin cities ranging from 9% in Green Bay to 61% in Eau Claire.
“What are reserves there for if not to cover unexpected costs, revenue shortfalls, or any type of increased costs that we see that we didn’t anticipate?”
Hoenecke told Wausau Pilot & Review during the debate.
Groat recommended against using reserves during the budget cycle, noting the city often borrows less than budgeted once projects finalize at year-end. Alder Kristin Slonski said that the city reserve policy restricts those funds to unanticipated and non-recurring needs. Alder Sarah Watson added that much of the borrowing funds long-term infrastructure, such as lead pipe replacement and road construction.
| Metric | Amount |
|---|---|
| Projected 2027 New Borrowing | $22 million |
| Projected 2027 Debt Paydown | $18 million |
| Net Debt Addition | $4 million |
| Unassigned Reserves | $16 million |
Process Complaints and Final Adjustments
Several alders who do not serve on the Finance Committee criticized the legislative process. Alder Andrew Wiskowski expressed dismay that the council handled the budget with zero deliberation outside the finance committee and held the public hearing on the exact night of the final vote.
“I think this is the wrong time to be approving this budget.”
Alder Bruce Trueblood told Wausau Pilot & Review, pointing to borrowing for tree planting and voting before county numbers arrive.
The adopted budget incorporates October amendments from the Finance Committee, including shifting $150,000 originally proposed by Diny for a city administrator toward a comprehensive government audit.
The final package also removes $50,000 for Flock cameras, $45,000 for alley paving, $150,000 for a downtown one-way street study in Tax Increment District 12, and $20,000 for trail planning in TID 8. Meanwhile, about $2.5 million in private-side lead pipe replacement, $300,000 in asphalt overlay, and $250,000 for 17th Avenue design work were moved into TID 8.
Wiskowski, Trueblood, Hoenecke, and Terry Kilian cast the four dissenting votes against the budget.
“While 27 was a tight budget, 28 might be an even tighter budget.”
Martens told Wausau Pilot & Review.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
