Port city budget calls for 6.9% tax levy increase

Port Washington residents will have their chance to weigh in on the proposed $13.5 million 2027 operating budget when the Common Council meets at 6:30 p.m. Wednesday, Nov. 4.

City Administrator Melissa Gossett told the Common Council last week that there are some unknowns in the budget, such as the cost of operating the new public safety building.

“This is the first year so we don’t know” the cost of utilities, insurance, technology and maintenance there, she said, adding that those costs are estimated rather than based on experience.

The cost of health insurance also is estimated, Gossett said, noting the city is moving to a new plan this year.

“We don’t know the pricing,” she said.

What is known is that the operating budget reflects a 5% increase from the 2026 budget of $12.8 million, or $646,000.

The tax levy needed to support the budget is $10.8 million, an increase of $697,000, or 6.9%.

Of that amount, $217,000 is needed to pay for increased debt service, the budget notes.

The levy falls within the state’s levy limit requirements.

But because the city’s assessed value increased $165.5 million, or 9.4%, the tax rate will decrease by 2.3%, or 13 cents per $1,000 assessed valuation, to $5.61, Gossett said.

That means the owner of a house valued at $400,000 will pay $2,245 in city taxes, a decrease of $53, she said.

A large portion of the increase in property value is due to the annexation of roughly 1,900 acres for the Vantage Data Centers property, officials have said.

  The proposed budget reflects a number of initiatives, such as the implementation of a new zoning code, restructuring of the public works department and the fact the city will take over operation of Union Cemetery.

The public works department is short at least one person — Director Rob Vanden Noven recently retired and his position has not been filled — the budget notes.

The human resources budget is going up 73%, but much of that increase is expected to be assigned based on evaluations made throughout the year, the budget notes.

The capital budget includes a number of large projects, including $450,000 to improve the bathrooms in Upper Lake Park, $240,000 to upgrade the Pebble House, which serves as the city’s visitors center, and $600,000 to design a new city garage, which is expected to be built in 2028, according to the budget document.

There is also $6.4 million budgeted for the first phase of the Valley Creek restoration project, with money for that work coming from grants rather than taxes.

The budget hearing will be held during the Common Council meeting, after which aldermen are expected to adopt the spending plan and amend the city’s fee schedule for 2027.