Frequently Asked Questions

Without additional funding, the City will not be able to maintain existing service levels or make the investments necessary to improve priority services. 

Facing a budget deficit starting in 2027, difficult decisions will have to be made each year about how to cut services, programs and staffing levels to balance the budget. Decisions about specific cuts would occur at the City Council during annual budget deliberations.

If approved, a $3.95 million increase to the property tax levy would allow the City to hire one additional patrol officer, two full-time firefighters and increase wages for volunteer firefighters. Additional funds would be used to hire a part-time Makerspace Coordinator to deliver programming to Sun Prairie Public Library visitors. 

For the average single-family home in Sun Prairie (assessed at about $381,500 in value), we anticipate an approved referendum would increase property taxes by approximately $82 in 2027 (about $7 per month), with a maximum impact of $264 (about $22 per month).

Per $100,000 in assessed property value, we anticipate this translates to $21.50 annually ($1.80 per month) with a maximum potential impact of $69 annually ($5.75 per month).

In response to community input, the City has reduced long-term costs by more than $1 million, including by eliminating several vacant executive-level positions and by adjusting employee benefits.

The City of Sun Prairie is committed to ensuring fiscal responsibility, regularly identifying and implementing cost-saving and efficiency measures to maintain a balanced budget while investing to improve services and quality of life. 

These measures have included: 

• Reviewing and adjusting vendor contracts to generate savings;
• Partnering with community organizations and volunteers to leverage existing resources and increase impact, encourage efficiencies and foster collaboration;
• Pursuing grants and sponsorships to support City investments, offset costs and allow for the expansion of services and programming without increasing costs; 
• Exploring innovative solutions to generate revenue, such as impact fees, increasing recovery of indirect costs; and
• Instituting an annual $30 Municipal Vehicle Registration Fee or “wheel tax” to generate funds for transportation-related purposes. 

Despite these efforts, without additional funding, the City will not be able to maintain existing service levels or make the investments necessary to improve services.

Even with the $30 wheel tax that provides enough funding to meet needs through 2026, moving forward, projected growth and debt service adjustments will no longer be enough to allow Sun Prairie to continue meeting growing costs to provide existing services – let alone investing in service improvements.

The Sun Prairie Area School District passed an operational referendum in 2024. However, it is important to note that the school district and the City of Sun Prairie are separate governmental entities. Each has the authority to levy taxes and manage budgets independently. This means that the funding from the school district’s referendum is intended solely for the district's use.

Over time and with community growth, the City’s funding needs grow due to increasing costs for contracts, equipment and vehicles, as well as staff compensation. 

Providing public safety and other core municipal services requires having consistent, dedicated and expert staff to meet community needs. To retain and recruit staff to fill City positions and continue providing quality services, Sun Prairie has added staff and must continue offering competitive wages and benefits. State restrictions on property taxes do not allow municipalities to adjust the levy based on inflation.

Property taxes make up the City’s largest revenue stream. Existing sources of revenue and cost-saving measures are not enough to allow the City to meet growing costs or make investments to improve our community. 

By design, Wisconsin municipalities have a limited ability to increase funding to address increased expenses and make investments. 

“Levy limits” established by the State set the amount Sun Prairie can raise through property taxes. The City’s annual property tax increase is restricted to our net new construction – the value of new construction and land improvements within the City during the past year, minus the value of any demolitions or removal of land improvements. This amount is calculated as a percentage of the City’s total property value to get us the percentage tax increase that can be approved by the City Council. 

The legislative intent behind levy limits is to slow the growth of local property taxes. But there’s one major flaw with this approach: the limits imposed do not consider inflation and rising costs associated with a growing community such as ours. 

To put it simply, the allowed increase on property taxes is based on new buildings added each year, not rising costs or growing service needs. On average, Sun Prairie sees a 3% growth in net new construction each year. However, City expenditures have been increasing by an average of 8% each year. Costs like wages, contracts, equipment and maintenance are rising faster than the levy limit. 

Few other funding sources exist to help close projected gaps and balance the budget. Shared revenue (funds from the state) is limited, the City’s $30 wheel tax is helpful but by 2027 will not be enough, and grants and other external funds can only help with specific programs or capital projects. 

For many years, Sun Prairie was able to manage rising costs without exceeding state property tax levy limits because of strong growth and careful financial planning. As new homes and businesses were built, the City’s property value increased, creating limited room to fund services under state law. Temporary flexibility from debt service exemptions also helped absorb rising costs.

That flexibility has now been exhausted. In 2025, both the City’s operational and debt service levies reached their legal limits. Beginning in 2027, projected costs to maintain existing services exceed what the City is allowed to raise through property taxes, even with continued growth.

Tax Increment Financing is a tool used to support redevelopment and infrastructure in specific areas of the City. While TIF has helped Sun Prairie grow its tax base and invest in long-term community improvements, it cannot be used to fund day-to-day services. By law, revenue generated in TIF districts is restricted to paying for eligible project costs within those districts. It does not provide flexible funding to cover rising operational expenses, staffing needs, or service demands across the City.

Major facilities such as the utilities building and the library expansion were planned years in advance and funded primarily through debt, grants and restricted funding sources. These investments allowed the City to build and improve facilities, but they do not provide ongoing funding to operate them or to meet increasing service demands citywide.

The referendum is not about building new projects; it is about ensuring the City can maintain existing services and staff key departments so residents continue to receive the level of service they expect and rely on.

Additional information about the City’s April 2026 referendum can be found online at www.cityofsunprairie.com/referendum. Starting in February, staff and elected officials will be hosting in-person town halls in each district to share more information about the referendum and ask questions. More information will be shared once the times, dates and locations are determined. 

The City will also be sharing information on its social media channels, Sun Prairie Media Center channels, through outreach to local media, in mailers and during information sessions. More details about those meetings will be shared when available.

Sun Prairie voters can cast their vote in one of three ways: through absentee mail-in ballots, in-person absentee voting, or in-person voting on election day, April 7, 2026.

Voting hours on election day are 7:00 a.m. to 8:00 p.m. Wisconsin voters are required to show an acceptable voter ID in order to vote. Additional voting information, including about polling places and requesting an absentee ballot, can be found on myvote.wi.gov

The last city revaluation occurred in 2023. After that was complete, the City Assessors Office scheduled future revaluations – with 2026 being the next planned revaluation year. The fact that a revaluation is occurring the same year as a referendum is being placed on the ballot is simply a coincidence, and there is no connection between the two.

Revaluations are completed not to increase the total revenue to a community, but to make sure that the taxes paid are equitable. In Wisconsin, the measure of equity is fair market value. While a revaluation can cause your taxes to go up, the City cannot use a revaluation to increase the property tax levy.  

When it comes to the city budget, there are two levies to consider.

Total Property Tax Levy = Operating Levy + Debt Levy

First, the operating levy is the amount needed to fund the ongoing, day-to-day governmental operations such as public safety, public works, parks, and library services. The city’s operating levy is limited by state-imposed levy limit laws which sets the amount of property tax Sun Prairie can collect from its residents. The increase in our operating levy is tied to our net new construction – which is the value of new construction and land improvements during the past year.

Second, the debt levy is equal to the amount needed to pay the city’s annual debt service payments (it is equal to the principal and interest due on our municipal borrowing). Think of this as the city’s mortgage payment on our infrastructure investments and improvements. The debt levy can only be used for this payment. Under state law, the debt service levy in not subject to levy limits and can raise as needed to pay back our obligations.

This referendum requests a single, permanent increase to the operating tax levy. If approved, the levy would go up once and establish a new starting point for the City’s annual budget. At the same time, the city anticipates being able to pay down a portion of our debt levy. As a result, the anticipated impact for residents is expected to be lower.