City Manager Kevin Lehner and Finance Director Dave Godek presented the proposed 2026 budget to the Janesville Common Council on Monday, outlining a $138,132,731 all‑funds budget and a $62,030,031 general fund proposal that maintains current service levels while using a limited amount of fund balance to close a gap.

Godek said the overall proposed budget is a 3.57% increase over 2025. The operating budget is $105,156,389 (up 3.4%), and capital and debt service total roughly $32.98 million. The proposed property tax levy is $42,000,001.76 (an increase of $1,345,002.55, or 3.18%); Finance estimated the impact to a median household would be $30.62 for the year (about $2.50 per month).

Major highlights and changes in the proposed package include:

- Water utility: a proposed 34% rate increase to support cash financing of the water main replacement program; estimated impact approximately $96 annually for the typical residential customer.
- Wastewater: no rate increase proposed for 2026; the utility’s debt service is decreasing.
- Stormwater: rate increase from $163.60 to $172.00 per equivalent runoff unit (ERU) per year; average residential impact about $2.10 per quarter.
- Sanitation: annual solid waste user fee increasing by $3.28 (from $172.78 to $176.08) and landfill tipping fees from $43 to $46 per ton.
- Woodman Sports & Convention Center (WSCC): 2026 is the first full year of operations; preliminary budget shows $2,021,118 in revenues against about $2,100,900 in expenses and includes a potential general fund subsidy of $90,000 and pledged visitor bureau support.

Godek said the council asked staff in July to meet nine budget parameters; staff met eight of nine, with the one unmet item being a fund established to purchase land for future redevelopment. He also outlined that the budget remains under state expenditure restraint limits and that applied fund balance of $201,203 will be used to balance the budget.

Council members were invited to submit amendments ahead of a budget study session on Oct. 23; a public budget hearing is scheduled for Nov. 10 and budget adoption for Nov. 24.

The presentation included detailed line items by fund and program; Godek noted wage and fringe increases, higher computer and utility costs, and continued efforts to cash‑fund capital projects where feasible. He said the city’s fund balance is strong and its bond rating remains high, but staff had worked to close an initial forecast gap of about $1.4 million through a combination of revenue adjustments, reallocations and limited use of fund balance.