OCTOBER 6, 2025 Special Budget meeting was called to order by Mayor TeStrake at 6:00 p.m., in the Council Chambers, City Hall. PRESENT: Derek Wehrman, Natasha Tompkins, Brian Varsho, Scott Koran, Jen Delis, Brian Giles, Rebecca Spiros, Mike O'Reilly, and Andrew Reigel (via Zoom). ABSENT: Mike Feirer The flag was saluted and the pledge given. CITIZEN COMMENTS • None Mayor TeStrake turned the chair over to Alderperson Spiros, Chairperson of the Finance, Budget and Personnel Committee. City Administrator Barg presented the 2026 Budget and started with an overview. • The City's General Obligation debt 1/1/26 will be $53,178,609, or 46.5% the amount permitted by state law and well below the City's adopted maximum of 65%. • City policy sets a goal of unassigned general fund balance of 25-30%. As of 12/31/24 the City has unassigned fund balance of $7,950,418, or 33%. • The City bond rating remains at Aa3, which is very good for a City our size. • TID's are performing well with TID's 4, 7, and 9 likely closing in 2027 or 2028. • Net new construction this year is only 0.59%, down from an already low 1.01% last year. • State aides have increased approximately $300,000; the tax levy may increase $66,325 based on the net new construction. • General fund expenses increased 3.1% over the 2025 budget. • The recommended budget includes a 2% + step staff raise; 2.6% increase in health insurance (staff pays 15%); HSA reduction to $1000/family & $500/single, down from $1200/600. • Two FF/Paramedic positions will be funded by referendum revenue; PW/Engineering positions funded beginning May 2026; Community Development Director, Equipment Operator 1, PT Admin. Assistant (Clerk), 1 Ordinance Officer are not funded. Future Opportunities: • Develop 5-year strategic plan • Identify desired service levels • Increase and expand revenues • Pursue Economic Development Challenges: • Infrastructure needs continue growing • Revenue limits/rising operating costs • Recruitment/retention competition Council was given opportunity to ask questions/raise concerns. Alderperson Reigel asked if there were new revenues included in this budget. There is not. The City has received a grant to explore a storm water charge. Previously, staff has brought forward the idea of street lighting tax or wheel tax but the Council wasn't favorable. Reigel expressed concern that Council wanted to see a draft budget in January and that didn't happen. Now, there isn't time to explore revenue and the only option is to make cuts. Staff did bring forward a preliminary overview in the summer and Council did not provide input at that time. Revenue can be discussed in January but there will not be budget numbers to discuss. Upcoming strategic planning sessions are key to identifying priorities. City Administrator Barg presented on the following budgets with questions from the Council following each section: 1. General Government (page 29 of budget book) (Common Council, Historic Preservation, Municipal Court, City Attorney, City Administrator, City Clerk, Elections, Information Technology, Finance, Property Assessment, Facilities (City Hall), WWP Buffalo Building, Bad Debt/Uncollectible Accounts and Non-Departmental Insurance). Alderperson Reigel wanted to know what cuts were made from these departments to balance the budget? A list will be provided of cuts. Most were decreased based on actual costs of utilities this year and unfilled positions. Alderperson Tompkins asked if the facilities management position is the same service and pay as other custodians? No, this is a different role. 2. Public Safety (page 47 of budget book) (Law Enforcement, Ordinance Enforcement, Crossing Guards, Fire Protection, Fire Prevention and Emergency Management) There were no questions on this section. 3. Public Works (page 59 of budget book) (Public Works Administration, Engineering Administration, Street Division Administration, Highway & Street Maintenance, Snow & Ice Removal, Highway & Street Cleaning, Traffic Control, Street Lighting, Sidewalk Maintenance & Repair, New Sidewalk O/L W/O St. Reconstruction, Storm Sewer Maintenance, Parking Facilities, Airport, Refuse and Garbage, Recycling) Alderperson Wehrman asked what the increases for snow and ice are based on? This is based on previous history, weather projections and The Farmer's Almanac. He also questioned the grant for the storm water study. This is a 50-50 split with the state. Alderperson Tompkins asked questions regarding motor pool. Motor pool fees are rent charged to departments for use of equipment to pay into the 701 fund for eventual equipment replacement. Alderperson Delis asked how motor pool rates are determined? The State DOT recommends rates for machinery and equipment use. Alderperson Spiros asked what percentage of money charged to departments is deposited to the 701 fund? Revenue goes to the 701 fund to purchase future equipment as well as offsetting labor costs associated with use of the equipment. 4. Health & Human Services (page 76 of budget book) (Cemetery) Alderperson Tompkins asked the number of employees being paid in this budget. This is 2 FTE and 2 Seasonal employees. 5. Culture & Recreation (page 80 of budget book) (Library, Oak Avenue Community Center, Second Street Community Center, Parks Operation & Maintenance, Parks & Recreation Administration, Recreation Programs, Special Events, Parades, Holidays, Signs, Zoo Operations, Recreation – Aquatic Program, Fairgrounds, and USWP-Marshfield) There were no questions on this section. 6. Conservation & Development (page 97 of budget book) (Industrial Park Operation, Development Services and Forestry) Alderperson Tompkins asked how many employees were paid in the budget on page 100 besides the Planner and Zoning? This also includes Development Services staff. 7. Other Financing (page 103 of budget book) There were no questions on this section. 8. Special Revenue Funds (page 103 of budget book) (Room Tax – Parks Outlay, Economic Development Fund, Public Safety Funds, Business Improvement District, Shared-ride Taxi Service, Communications, Municipal Court – Spencer, Municipal Court – Stratford, Housing Fund) Alderperson Tompkins asked what revenue goes to 205 Fund since MU will unlikely be contributing in coming years? Visit Marshfield contributes for the Wenzel Plaza Coordinator position. This fund earns its own interest. 9. Debt Service Fund (page 120 of budget book) There were no questions on this section. 10. Capital Project Funds (page 122 of budget book) (Infrastructure Capital Outlay, Public Facilities Capital Outlay, Public Safety Capital Outlay, Airport Capital Outlay, Parks & Rec Capital Outlay. TID 4 – Downtown, TID 5 – Mill Creek, TID 7 – Yellowstone, TID 9 – Forward Bank, TID 10 – Mall Area, TID 11 – Veterans Hwy 10, TID 12 – East Yellowstone, TID 13- South Hume, TID 14 – Bradford Court, TID 15 – Blighted TIF) Alderperson Delis asked the difference in expenses in this budget versus similar expenses in the Public Works budget? This budget accounts for money budgeted from the CIP. 11. Enterprise Funds (page 148 of budget book) (Wastewater Utility, Emergency Medical Services) There were no questions on this section. 12. Internal Service Fund (page 158 of budget book) There were no question on this section. 13. Perpetual Care Fund (page 163 of budget book) There were no questions on this section. Council members were given the chance to ask any additional questions. Alderperson Tompkins asked if the Council could consider spending fund balance to pay a Community Development Director. If we currently have 33% saved when the goal is 25-30%, is that a logical way to spend that money on a position that is needed. Without a place saver, this position will never be filled. Barg responded that the goal is certainly 25-30%, slightly over wouldn't be bad. If that number continues to increase and approaches 40%, citizens should be concerned why taxes are being levied and not spent. Alderperson Reigel appreciates both points made but is concerned we run the risk of the same conversation year after year. He isn't wild about spending savings but this position needs to be filled. Alderperson Wehrman agrees. Maybe this isn't the correct fund but the position is needed. Perhaps Marshfield Utilities would be interested in assisting with this position? Alderperson Delis agrees, this position needs to be filled. Barg stated staff will need to review levy limit and expenditure restraint impact. Staff can bring more information to the next meeting. Alderperson Spiros asked all Council members for additional comments. Alderperson O'Reilly had nothing to add. Alderperson Giles had nothing to add. Alderperson Delis would like information on the unfilled Ordinance position. Alderperson Koran had nothing to add. Alderperson Varsho asked if the PILOT from Marshfield Utilities is known? It is not yet. Alderperson Tompkins had nothing to add. Alderperson Wehrman requested minimum operation expenses. What do the line items mean? What is required in the current budget versus not required. Alderperson Reigel had nothing to add. Council has requested the following at the next budget meeting: • Possible revenue sources to hire a Community Development Director. • A list of all cuts made, by department. The Council was reminded that they can contact staff if they have any questions or want more information. Date/times of upcoming budget meetings: 1. Tuesday, October 14th at 5:00 p.m. (regular Council meeting at 7:00 p.m.) 2. Monday, October 20th at 6:00 p.m. 3. Monday, October 27th at 6:00 p.m. 4. Tuesday, November 25th at 6:00 p.m., Public Hearing and adoption Motion by Delis, second by Koran to adjourn the meeting at 7:48 p.m. Respectfully submitted, Jessica Schiferl City Clerk WNAXLP October 17 2025 LWIX0389845