Rhinelander property owners would pay about $48 more in city taxes per $100,000 of assessed value next year under the proposed 2027 budget. The budget raises the city’s general property tax levy by $500,000, from $4.8 million to $5.3 million.
City staff presented the budget to the Common Council at an Oct. 14 workshop. They said it took about $389,000 in cuts on top of the levy increase to balance it. Those cuts include freezing a vacant firefighter position and funding a vacant police officer position for only six months. Not enough council members attended to form a quorum. None was needed, because workshops take no votes.
A public hearing on the budget is set for 6 p.m. Monday, Nov. 9, at City Hall.
Tax impact
The general levy has been $4.8 million since 2022, according to finance director Wendi Bixby. Counting the levies for the library, airport and general fund debt service, the total city levy would rise from $6,181,383 to $6,666,836. That’s an increase of $485,453, or about 7.85%. The library levy drops $11,432 to $292,772, and the debt service levy dips $3,115 to $876,983. The airport levy stays at $197,081.
The city tax rate would go from about $12.01 to $12.50 per $1,000 of assessed value. On a $100,000 property, the city portion of the bill would go up $48.43, from $1,201.15 to $1,249.59.
Levy limit room shrinks
State levy limits restrict how much the city can raise taxes. Rhinelander has stayed well below its limit for years. This budget would leave about $98,000 of unused levy capacity. Between 2020 and 2025, the city left roughly $400,000 to $530,000 unused each year, staff said.
Gitter compared skipping smaller annual increases to putting off utility rate cases. If a city doesn’t keep up small increases, he said, “eventually you’re going to have a 50%, 80% increase.”
The budget also complies with the state’s expenditure restraint program, which allowed the city to raise spending 3.8% for 2027. Bixby said the city could have spent about $56,000 more under the program but didn’t have the revenue.
The cuts
Staff said the cuts came after their first budget drafts, once income statements came in. Among them:
A vacant firefighter position was frozen for 2027, saving about $110,000.
A vacant police officer position is funded for six months instead of 12, saving about $63,000.
A planned part-time finance position was dropped, saving about $33,000. The work will be combined with an HR position the council approved at its last meeting.
Fire and ambulance overtime was reduced from this year’s projected spending.
The Oneida County Economic Development Corp. asked for $49,000. The budget gives it $30,000, which is still $3,000 more than this year.
Pickleball court resurfacing at Pioneer Park moved to borrowing. Skate park maintenance and some clerk costs moved to other funds.
The city will move $120,000 into the recycling fund in 2027, down from $171,870 this year. That will spend the fund’s balance down from about $74,100 to about $14,600.
Bixby said the recycling cut is a one-time move. Next year the transfer will need to go back up to about $160,000.
Police position debated
The police officer position drew the most discussion. Both vacant positions, police and fire/EMS, have been open all year, staff said.
Police Chief Josh Chiamulera was not present for the workshop. He has pushed to keep the position because two officers may retire or leave, staff said. Mayor Kris Hanus asked council members whether they’re comfortable funding a job for six months, and if so, which half of the year.
“Who would be interested in six-month employment?” he said. “We’re not necessarily being guaranteed employment after.”
Hiring in the second half of the year would give new administrator Angela Gorall and the police chief time to find funding, Hanus said. The chief favors the first half, because new officers need training time with experienced officers. Another speaker backed the second half, saying the department may not use all of its budgeted overtime in the first six months.
Where costs are growing
Public safety spending rises $313,947, staff said. That reflects positions held open this year after the retirement of former chief Lloyd Gauthier, union contracts and health insurance. Police alone go to about $2.74 million.
Health insurance costs go up about $168,000 and salaries about $165,000. Staff said the city’s health insurance rate is rising about 15% again. Bixby said the city looked at self-funding its insurance, but the risk and the cost of stop-loss coverage made it more expensive.
General government rises $76,571, including the new city administrator. Inspections rise $65,489, or about 17%, because of a new part-time seasonal code enforcement position and SafeBuilt costs. The budget sets aside $150,000 for the SafeBuilt contract. Streets go up about $79,000.
“Those little decisions add up and compound over time,” Hanus told council members. The presenter said health care, employee retention and public safety are growing faster than 3.8% a year. That squeezes parks, plowing and other general fund services.
One-time help from loan fund
The 2027 budget also counts on about $114,000 in one-time money from closing the downtown revolving loan fund. A subcommittee voted to dissolve it, and the full council agreed. The fund has no outstanding loans. Its roughly $226,000 balance would be split evenly between the city and the organization that helped start it. Because that money won’t come again, Hanus said, the 2028 budget will start about $113,000 behind.
Revaluation
The citywide revaluation now underway won’t affect 2027 tax bills, staff said. Most property owners should expect their city taxes to rise this year. Next year, after new assessments, some will pay more and some less.
City officials said Rhinelander’s borrowing capacity remains healthy after a recent bond rating upgrade. The city plans to keep borrowing about $1 million every other year for capital projects. The 2027 capital budget includes $1.05 million in new notes.
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