Port council OKs budget that delivers tax increase

A Port Washington city budget for 2026 that maintains existing services and includes a 25% increase in the debt service levy to pay for the public safety building was approved unanimously by aldermen Tuesday night.

No one spoke at a public hearing on the $12.8 million expenditure budget, which is 4% more than the 2025 budget.

The levy needed to support the general fund budget is $4.1 million, an increase of 1.3%, but after the debt service levy of $5.4 million and a library fund levy of $604,000 are added, the total tax levy would be $10.1 million, up 12%.

The city’s tax rate is expected to be $5.53 per $1,000 of assessed valuation. This is a decrease from last year because properties in the city were reassessed this year.

Reassessments don’t increase taxes but instead reflect a more accurate gauge of property values and spread the tax burden more fairly. 

For a house valued at $400,000, the city portion of the tax bill would increase by $229, from $1,981 last year to $2, 210 this year.

Ald. Dan Benning, chairman of the General Government and Finance Committee, said this was a “particularly challenging year.”

That’s because the city can only increase the levy by the amount of new construction, in this case 1.34%, Benning said,.

“Our net new construction has not kept up with inflation,” he said, noting utilities and health insurance are among the expenses significantly increasing.

To keep the levy in line, Benning said, the city consolidated some positions, limited hiring and agreed not to buy any new vehicles.

Ald. Mike Gasper noted that the city won’t borrow funds in 2026 for street projects, a significant change from past years when the city would rebuild 1-1/2 miles of streets each year.

“I really hope next year we can get back in the habit (of funding street work) or we’ll just keep falling behind,” Gasper said.

The city’s budget situation will be helped in future years by potential north-side developments made possible by the extension of sewer and water lines for Vantage Data Centers’ Lighthouse campus, Benning said, noting these developments will provide new revenue and some leeway under the state imposed levy limits.

The city will also benefit in the coming years by a deal with Vantage Data Centers that will place the $120 million value of the property it purchased and annexed to the city on the tax rolls next year, which officials said will decrease taxes by $170 per household the following year.