title
Report from the Finance Director on the 2027-2031 Five-Year General Fund Forecast
body
Submitted by:
John Ruggini
Department:
Finance Department
Issue: In preparation for the 2027 Budget, it is helpful to understand long-term revenue and expenditure trends for the General Fund.
Background: The 2027-2031 forecast was developed using the same methodology as the previous five-year forecast. Revenues and expenditures were grouped into like-categories and forecast assumptions were developed for each category based on historical data or known information such as the state budget. Those assumptions are applied to the 2026 Budget figures. It is important to emphasize that the forecast is policy neutral as it assumes the same services are provided with the same number of personnel and delivered in the same manner.
The model used to project the annual budget gap the City will face is for planning purposes. It is not meant to suggest that the City will not make any service changes, will deficit or will use fund balance. As in prior years, the budget will be balanced in each year. The model does not include any service level changes and does not assume what decision might be made to balance the budget. It does reflect the policy positions included in the Financial Resiliency policy as described below.
It is important to review the assumptions and sources for forecasted information.
Base Assumptions
* A 3.0% property tax levy increase for the operating budget and 0.5% for debt service for a total 3.5% property tax levy increase is assumed for 2027-2031. It is assumed the City loses its ability to exceed levy limit caps in 2030 and that there is $159 million in net new construction in 2031 limiting the 2031 operating budget property tax levy increase to 1.3%
Property Tax Levy Increase Assumptions
Operating Budget Increase
Debt Service Increase
Total Increase
2026-2030
3.0%
0.5%
3.5%
2031
1.3%
0.5%
1.7%
* Per the State of Wisconsin Legislative F...
Click here for full text