“So, before you tonight is the 2025 operating budget and levy,” City Administrator Matt Wolf said Nov. 11 as he presented the 2025 operating budget and levy to the Prescott City Council. The proposed general property tax levy is $2,719,209, reflecting a 3.6% increase.

 “The mill rate is actually expected to go down by four cents,” he said, explaining that the Department of Revenue adjusted the city’s Tax Increment Financing districts from the reassessment in 2023 and increased revenue to offset expenses for departments.

As a result, homeowners can expect small decreases in the city portion of their property taxes. For example, a home valued at $350,000 will see a decrease of about $12.58, and a $450,000 home will see a decrease of approximately $16.17.

Wolf emphasized that these adjustments apply only to the city portion of the tax bill. The levy increase was largely driven by wage increases for 2025, significant increases in insurance premiums—particularly for workers' compensation, as well as health and vehicle insurance costs. Some new revenue came in the form of state shared revenue of $7,822, $8,000 in fire dues from the State of Wisconsin, and $29,837 from the Library Act 150 from Pierce County.

In the proposal for 2025, Wolf explained that the city is planning to use $240,707 from General Fund Reserves “to maintain a lower tax burden and offset expenses.” The future expenses include Public Square Park tennis and pickleball court reconstruction at a projected cost of $132,000, replacements of all police squad computers for $37,681, USH 10 Pedestrian Study for $48,526, and a required 10-year update of the City’s Comprehensive Plan for $22,500.

The City of Prescott is projected to have $421,128 in remaining unassigned funds for year end 2025. State shared revenue increased by 1.8% but State Highway Aid decreased by 4.5%.

Wolf pointed out that because the 2023 reassessment had the mill rate fell below $5, the City of Prescott will be losing the Expenditure Restraint Incentive Program beginning in 2026 at a loss of $28,356. Turning to the utilities, he highlighted that the sewer utility fund has a "very strong position with a fund balance of $4.2 million.”

The sewer budget for 2025 is projected to have a surplus of $193,822. In contrast, the water utility fund is currently "stretched thin" due to ongoing projects. The Wisconsin Public Service Commission will make a final determination on rate increases, but a 29% increase is projected for 2025 and a second step would be approved after the completion of the Well #3 project.

“Again, good work on this budget,” said Alderperson Darlyn Hintz as Wolf asked for any questions. “Good work with looking to the future and taking those bandages off when we needed to; it was difficult, but I appreciate it. We did not raise taxes for our residents, and I think that’s something we should all be proud of.”

Alderperson Adam Granquist commended the effort in putting the budget together, highlighting the transparency and clarity provided throughout the process.

Hintz expressed her disappointment with the school district. She commented, “I voted for the referendum to go through and the number that I voted for doesn’t match the number that I’m seeing with what was presented by our staff after the referendum went through. So there needs to be some reflection and that’s all I’m going to say.”

As the public hearing was closed, the council voted to approve Resolution 45-24 adopting the 2025 City of Prescott budget and levy for 2025.

The council also approved Resolution 46-24 and adopted a revised base stormwater charge for the City of Prescott. Deputy Clerk/Treasurer Beth Lansing told the council that the storm sewer fund has a positive balance with the new loan rates, interest rates and proposed projects.

“Which is great,” Lansing commented. “But if we continue at the rates that we have we do not have enough funds to cover our regular revenues versus expenses for the year.”

The city is recommending a $1 increase to the storm rate, which would make sure that there is enough to pay for everything that is needed and add to the fund balance.

“For the average residential customer that would be $4 a year and the people where it will hit is our commercials and larger buildings,” Lansing concluded.

The council adopted Resolution 47-24, authorizing a payment from TIF 5 to repay the general fund. Lansing explained the details of the revised payment schedule to the council.

"Back in 2020, I believe there was a resolution that was done for prepayment schedule but after reviewing that with our financial advisors and the needs of the city, we’ve decided to revamp that payment schedule,” Lansing explained. “Essentially it’s paying back our general fund $166,000 a year through 2027.”

She clarified that these funds were transferred from the general fund to TIF 5 for startup costs and various projects over the years that they needed coverage on.

“The sooner we can get the general fund paid back we are in hopes of then being able to close the TIF early, if possible.”

Alderperson Maureen Otwell inquired, “How early are you hoping to close?”

Lansing responded that it would possibly be in a year.

The council approved Ordinance 09-24, which amends and adds to City Ordinance Chapter 329-9, governing compost dumping. This marks the third and final reading of the ordinance. Hintz commented her hope that this would be the final reading.

“This is an ordinance that will ensure that the posted rules that we post at the compost are enforceable. That the violations that would occur, if they do, at the compost site that the rules will be a citable offense and also to prohibit commercial entities from dumping at the site,” she said.

To conclude the meeting, Daugherty honored Veterans Day by expressing gratitude to the community’s veterans.

"I’d just like to take this time to thank all of our veterans for their service. Thank you very much," he said, as the council applauded in agreement.