Viroqua approves 2026 budget that raises wages while lowering mill rate through targeted cuts and savings

By Tim Hundt

Nov. 25, 2026

VIROQUA, WIs. – Viroqua passes 2026 budget, holding the line under levy limits while prioritizing wages, core services, and a modest SMRT bus contribution

Viroqua’s City Council on Tuesday approved the 2026 general fund budget and the 2025 tax levy payable in 2026, closing a difficult year of tradeoffs under state levy limits. The plan raises the levy about 4.7% but keeps the city’s mill rate moving down as equalized value climbs, softening impacts for many homeowners. A closed tax-increment district added value to the tax base, helping “more shoulders carry the log,” City Administrator Nate Torres said, using a metaphor he repeated during deliberations.

Key takeaways

• Total levy approved: $2,945,968. The levy increased roughly 4.7% year over year.
• Mill rate trend: Down, as citywide equalized value rose about 13%, spreading the levy across a larger tax base.
• Budget centers on wage adjustments to catch up to inflation-era gaps, while trimming non-core lines and resetting realistic baselines to avoid midyear fixes.
• SMRT bus: a small placeholder is added now; the council aims to revisit in January to consider increasing support once insurance and aid numbers settle. Members voiced readiness to donate one month of stipends to help close the gap if needed.

Impact on an average home:

• Because the levy rose about 4.7% while equalized value rose faster (about 13%), the mill rate declines.
• Example: If an average home rose in equalized value roughly in line with the city (about 13%), the lower mill rate would largely offset the higher levy, resulting in a bill that is about flat to slightly down. Individual results will vary if a specific home’s value rose more or less than the citywide average or due to shifting assessments.

Torres’ presentation: major points

• Levy limits and cushion: “We are essentially right butted up against our full debt service exemption,” Torres said, emphasizing only a small margin of error to avoid penalties and midyear cuts.
• Expenditure restraint: Spending growth remains below the state’s threshold (about 1.81% versus a 3.6–3.8% cap), preserving a key state payment the city relies on.
• Wage priorities: After several years when COLAs lagged inflation, the city prioritized wage adjustments across departments to stabilize staffing and retention. “Each department head asked for quite a bit more… unfortunately, we just could not provide them with everything.”
• Honest baselines: Police, public works and other departments reset line items like fuel, maintenance and supplies to realistic levels. “This year was challenging… We had a lot of tough conversations” to avoid “optimistic” budgets that require midyear corrections.
• Revenues and shocks: State highway aid fell by roughly $19,000–$20,000 after a DOT lane reconfiguration affected the formula; staff are appealing the calculation. Intergovernmental revenues were corrected downward to match actuals after utility assessment changes hit this year.
• Debt service: Stable year over year; new 2025 borrowing begins repayment in 2026 while a pair of older notes drop off, resulting in about a $10,000 net increase in debt service costs.

Department snapshots:

• Fire: Adds a new fire officer while shifting some tasks in-house; townships will shoulder a share of salary and some utilities under updated cost-sharing.
• Library: Focus on wages; other operating lines remain flat, a continued concern raised by library advocates.
• Police: Union wage increases and previously underbudgeted needs are addressed; the previously debated second-shift dispatch reduction continues as part of long-term cost alignment.
• Public Works: Seasonal and staffing wage pressures remain; about $12,000 in equipment/supplies cuts were offset by salt costs returning to normal after a one-time savings last year.
• Parks & Rec/Eckhart (Dragon) Park: The community-led rebuild advances on a 2026 timeline using set-asides, donations and grants to avoid levy spikes; council authorized the leadership team to set dismantle/build timing, with contracts still returning to the council for approval.

Council and mayor on the big picture

Torres on levy strategy and taxpayer impact: “Even though our levy… is going up, the mill rate… is going down because everybody’s values… are going up at a much higher rate than what [we’re] asking for,” he said, while cautioning that individual results vary. On TID 3’s closure, Torres told the council the returning value means “more guys and gals… helping carry the log,” easing the per-thousand tax rate despite a larger overall levy.

The city has taken on a number of large capital projects for buildings and facilities that reached the end of their life. A new police station, new city hall, new fire station and increased street maintenance were all tackled in the last five years and the city has managed to keep the mill rate relatively steady through that period of growth. A large chunk of the fire station cost was offset by $5.25 million congressionally directed spending grant though Senator Tammy Baldwins Office.

In a previous budget discussion Running acknowledged those projects have added to the debt levy but the city was faced with few options in many cases. Running echoed the need to pair realism with restraint and to keep service steady even as costs rise. Throughout the budget season, Running framed the past few years as a period of taking on overdue, necessary work on projects that had to get done because infrastructure and facilities “were just worn out.”

SMRT bus returns to the table

La Crosse County adminsisters the SMRT buss program through a federal grant that use to contract the service through Running Inc. The buss service serves residents in La Crossse, Monroe, Crawford and Vernon Counties. La Crosse County had voted to end their support of the program and that caused many other who contributed to the program to take their contribution out of their budgets. After La Crosse County reversed course due to public outcry, other contributors restored their funding, including Vernon County that put $15,000 back into their budget.

Viroqua was faced with the choice of restoring their $5,000 yearly contribution.

Council Member Cyndy Hubbard pressed to contribute this year rather than wait. “I still would like to see us give even $500 to the Smart Bus,” she said, citing local ridership and county support returning at the “11th hour.”

Council Member Tanja Birke proposed a solution that acknowledged both constraints and community need.

“I would like to suggest that we as a council respond to the need… and donate a month of our stipends,” estimating roughly $3,000 combined, while maintaining the adopted budget. Birke said Vernon County and Viroqua residents are some of the heaviest users of the SMRT bus and she heard from many of them.

Others on the council including the Alderperson Cyndy Hubbard and Mayor Running voiced readiness to join Birke in donating one months pay if needed. In the end the council took a wait and see approach to the SMRT bus with Torres promising to revisit the issue once the city gets firm numbers of insurance costs and other areas the city is in the process of renegotiating.

Other actions tied to budget pressures and service delivery

• Shared-ride taxi fares and agency/parcel fees were aligned with levy constraints and grant mechanics, approved with separate motions per grant requirements.
• Domain modernization: To comply with election security rules, the city will transition to a .gov domain (cityofviroquawi.gov), with email forwarding and aliases to ensure continuity.
• Eckhart (Dragon) Park: Fundraising continues; council empowered the community leadership team to set dismantle/build dates to keep momentum while large contracts still come to the council.