Hearing on tax hike budget set for Nov. 19

Taxpayers will get their chance to weigh in on the proposed 2025 budget for the City of Port Washington — a budget that would result in a 22.4% increase in the tax rate and provide funding for construction of a a new public safety building and increased paramedic service — during a public hearing at 6:30 p.m. Tuesday, Nov. 19.

If aldermen approve a proposed 2025 general fund budget of $12.3 million, an increase of 18% from the 2024 budget, the tax levy would increase 23%, to $9 million, and the tax rate would be $6.95 per $1,000 assessed value.

That means the owner of a house valued at $300,000 would pay $2,085 in city taxes for 2025, an increase of $383.

Aldermen are expected to act on the proposed budget following the hearing.

City Administrator Melissa Pingel told aldermen earlier this month that one of the major factors in the increase was the successful spring referendum that authorized the city to increase the tax levy by $1.175 million to hire six full-time paramedic/firefighters.

That will allow the city to staff its ambulance with paramedics around the clock.

“The city made a decision it was important to us to increase the funding for emergency medical services and fire,” she said.

Wages and benefits for the fire and emergency medical services alone will go up by $1.2 million, Pingel noted. Salary increases for all other city staff members total $250,000.

Other challenges facing the city as it compiled the 2025 budget were inflation — “a pretty common challenge all organizations are facing,” Pingel said — increasing costs for equipment, insurance and technology, as well as cybersecurity, supply chain issues and the city’s aging facilities.

She noted that cybersecurity has become such an issue that she meets with the city police on a weekly basis to deal with issues that spring up.

In addition to the public safety building, other major projects tentatively slated for next year are $2.7 million for street projects, $2.8 million for the lighthouse restoration, $1.5 million to design improvements to Valley Creek, $1.5 million for vehicles and equipment and $1 million to renovate the library.

Pingel said grants are playing an increasingly important role in budgeting, noting they will cover 80% of the lighthouse work, 80% of the Valley Creek project and all of the library work.

Pingel noted that one reason the levy is increasing by such a large percentage is that last year the state increased the city’s shared revenue by about $300,000.

The city’s estimated assessed valuation is up 1.1%, or $14.4 million.

The impact of the increase on taxpayers is significant. The owner of a house valued at $200,000 will pay $1,390 in city taxes next year, an increase of $256, while the owner of a $250,000 house will pay $1,738, an increase of $318.

The owner of a house valued at $350,000 will pay $2,433, an increase of $447, while the owner of a $400,000 house will pay $2,780, an increase of $510.

But property owners will find more than just their taxes increasinge next year.

The city water rate, which increased 44% late last year, is expected to increase another 22.5% late in 2025 or early 2026, bringing the average bimonthly water bill to $170. That money is needed to pay for improvements to the water plant required by the state Department of Natural Resources.

The sewer rates — which are also reflected on the water bills — will also go up 4%, increasing that cost to $73.20 per bimonthly bill.

Tax increases won’t stop next year. In 2026, homeowners are also expected to face significant increases.

The owner of a $300,000 home is expected to see taxes increase another $573 just for the public safety building, increasing their city property taxes by a total of $956 for 2025 and 2026.