by Andy Schoenherr
Editor, Sun Prairie Rising
City officials are proposing a series of service reductions, fee increases, and operational changes over the next three years following the failure of the April 2026 operating referendum.
The proposal, to be presented by Aaron Oppenheimer and the city’s Executive Leadership Team at the May 5th Committee of the Whole Meeting, aims to close a projected $3.5 million budget deficit by 2029 while maintaining core services such as public safety and infrastructure.
Why Cuts Are Needed
The April 7 referendum would have allowed the city to raise an additional $3.95 million annually to maintain current service levels and add limited staffing for police, fire, and library services. With voters rejecting the measure, state law now requires the city to balance its budget without that additional revenue.
Officials say the gap will need to be closed through a combination of:
- Spending reductions
- New or expanded fees
- Operational efficiencies
- Limited revenue adjustments
Even with those changes, the recommendations note that additional cuts may still be necessary if revenues fall short or expenses rise faster than expected.
Focus on ‘Core Services’
The proposal emphasizes maintaining essential services, including:
- Police and fire protection
- Street maintenance
- Code enforcement
At the same time, the plan shifts resources away from programs that are not legally required or considered core government functions.
The language on the referendum ballot specifically asked for increased funding for “the purpose of maintaining current services and increasing staffing in the police and fire departments.” Residents voted NO on that question by a margin of 58-42.
Despite those results, the proposal still includes funding for one additional police officer and one firefighter, and notes, “Without continued investment in staffing, the quality of city services will diminish over time and public safety response times will increase due to rising call volumes.”
Key Reductions and Changes
The proposal outlines a wide range of cost-cutting measures that will impact staffing, programs, and community organizations.
Staffing and Employee Impacts
- Elimination of the following roles (in addition to previously eliminated roles as a result of reorganization): Business Services Specialist, Sustainability Manager, Museum Director, Museum Coordinator and Sustainability Coordinator
- Removal of health insurance benefits for part-time employees working 20+ hours
- Reduction in future wage increases for non-union employees
The proposal notes that the loss of positions will likely be noticed in reduced services, stating “Personnel is the city’s largest expenditure, and our services rely almost entirely on staff, so any cuts to positions will impact service levels.”
Program and Service Cuts
Several city-supported programs and initiatives would be reduced or eliminated, including:
- The Neighborhood Navigator program
- Funding for the Youth and Families Commission
- $50,000 annual contribution to the Media Center
- $10,000 annual contribution to the Affordable Housing Fund
- Contributions to nonprofits such as Prairie Music and Arts and Sunshine Place starting in 2027 and Community Schools starting in 2028
Regarding the reductions to nonprofit organizations, the proposal states, “While staff support and value the services these organizations provide to the community, it is not a core city function.”
The proposal also reduces funding for:
- Recreation programming, meaning the department would either need to increase fees or eliminate program offerings
- Library Collections. As part of the recent expansion, the library included an increase to the collection budget. The proposal reduces the collections budget by $125,000
- Holding Elections, reducing the number of polling places from 8 to 4
What Residents May Notice
While many of the changes are behind the scenes, residents would begin to notice impacts over time, including:
- Fewer library materials or reduced programming
- Higher fees for recreation programs and certain services
- Changes in responsiveness for non-emergency city services
- Reduced support for community-based programs and nonprofits
Officials say some impacts may be gradual, but could become more noticeable as staffing levels and resources tighten.
New Fees and Revenue Changes
In addition to cuts, the city is proposing several new or expanded revenue sources that may directly affect residents and businesses:
- A new EMS “treat-no-transport” fee for calls where no hospital transport occurs
- Fees for accessing police crash reports through an online system
- Redirecting land lease revenue into the general fund
- Using state aid, traditionally reserved for one-time projects, to support ongoing operations
City staff say these changes are intended to ensure emergency resources are used appropriately while helping offset budget pressures.
Other Cost-Saving Strategies
The proposal also includes a number of internal changes designed to reduce costs or shift how expenses are managed, transferring certain costs to the debt service levy.
Officials noted that while some of these strategies provide short-term relief, they may increase long-term costs due to interest or deferred expenses.
No Mention of TIF Impact
The financial projections and recommendations make no mention of two Tax Increment Districts (8 and 9) which are both projected to close in 2026. Combined, these TIDs have generated over $320 million in incremental property value.
Under state law, municipalities are allowed a one-time increase in their levy limits in the year after a TID closes. While the exact dollar impact may vary based on final valuations, the closure of these TIDs should allow for significant additional levy capacity.
How Decisions Were Made
City leaders say the recommendations were guided by three primary factors:
- Protecting services mandated by law or critical to public safety
- Minimizing the impact on residents and employees where possible
- Using community survey data and operational analysis to evaluate programs
Even with those considerations, officials reiterated that any reduction in staffing or funding will affect service levels.
What Happens Next
The proposal is not final and will be reviewed by the Sun Prairie Common Council in the coming months, saying “Staff will need clear guidance from the council to develop a budget that reflects their priorities and goals for our community.”
Key milestones include:
- June: Council goal-setting discussions
- July: Review and potential selection of reductions for the 2027 budget
- October: Mayor’s proposed budget
- November: Final budget adoption
Leaders are encouraging residents to participate in the process through public meetings, listening sessions, and direct outreach to elected officials.
“Staff look forward to working with the city’s elected officials to determine the best path forward to continue providing the services our residents expect,” the proposal says.
Are More Changes Coming?
City officials described the plan as the first phase of adjustments under current financial constraints.
The proposal assumes:
- No additional referendum in the next three years
- No new major revenue sources beyond growth and fees
If those assumptions change—or if revenues fall short—officials say additional reductions may be required.
Long-Term Outlook
Even if all proposed changes are implemented, city leaders say the financial challenges will not disappear.
Officials warned that continued population growth, rising costs, and limited revenue flexibility will make it increasingly difficult to maintain current service levels.
The recommendation summary states, “While the ELT (Executive Leadership Team) was able to identify potential options to bridge the gap over the next three years with the goal of reducing the impact on residents and employees, there are limited budget options available to sustain this within the new levy limit constraints. Long term, the city must reimagine how city services are delivered.”
While police and fire services remain top priorities, leaders cautioned that no area of the budget is entirely immune to long-term pressure.
Bottom Line
The proposal is Sun Prairie city staff’s recommendations in response to the results of the referendum vote. While it balances the budget through 2029, it comes with significant trade-offs.
For residents, the impact may not be immediate or dramatic. But over time, fewer services, higher fees, and reduced community programming could begin to reshape how the city operates—and what it can provide.
City leaders stress that there will still be an annual budget process to adapt to changing conditions, but the coming months will be critical – in determining how those trade-offs are made—and what Sun Prairie’s future will look like.
Sun Prairie City Staff Recommend Service Cuts
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