Understanding the Proposed 2026 City Budget
On Monday this week, the City Council reviewed the draft 2026 Budget, a careful spending plan shaped by eight weeks of detailed review between City staff and the Personnel & Finance Committee. Transparency and stability remain at the center of this year’s approach as Two Rivers continues to build a sustainable financial foundation for the future.
This year’s proposal emphasizes stability more than expansion. This budget is built around a modest 3% lift in General Fund revenues and a 3% lift in expenses. The focus is on keeping day-to-day operations steady for our 125 full-time City employees. While not an “exciting” budget, it is designed to maintain essential services and protect the progress Two Rivers has made over the last several years.
Like many Wisconsin communities, Two Rivers continues to face rising operational pressures. Health insurance premiums are up 8%, chemical and MMT Route 1 costs continue to climb, and major mandates add new expenses to the General Fund (such as certified Collection System Operator requirements and upcoming bridge inspections).
The City has already trimmed or delayed numerous items to stay within our means: we reduced seasonal hours, scaled-back wage increases for seasonal staff, deferred equipment purchases, and operational changes such as shifting “Snow Watch” responsibilities. Despite these challenges, the proposed budget avoids any reductions in force and still provides for 3% wage increases for City employees, the people who plow your roads, respond to emergencies, patrol your streets, maintain your parks, and keep your water clean.
To keep the 2026 budget balanced, the City relies on a mix of one-time resources and temporary fixes, including industrial land sale proceeds, a portion of debt premium, reduced seasonal staffing, and a one-time cell-tower lease payment. Together, these account for over $600,000 that will not recur in 2027, setting the stage for a more difficult financial picture next year unless new revenues materialize or structural changes are made.
Despite these upcoming challenges, the budget continues to invest in important community priorities, including $2.19 million in capital projects such as resurfacing streets, improving Riverside Park, replacing a 30-year fire truck, and improving the concession building at Neshotah Beach.
Across all funds, the 2026 Budget represents a $42 million investment into Two Rivers’ future, supporting public safety, utility operations, library services, capital improvements, tourism and more.
This year’s proposal also highlights major City goals for 2026: accelerating multi-family housing construction, modernizing industrial recruitment, improving neighborhood pride, transitioning to a new employee health insurance program, and advancing redevelopment of the former Hamilton property.
-City Manager Kyle Kordell
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