Germantown finance committee reviews 2026 departmental budgets, approves using parks impact fees to reduce trail borrowing

The Germantown General Government and Finance Committee met in a special session to review proposed 2026 departmental budgets and voted unanimously to use parks impact fees to reduce capital borrowing for a $50,000 trail improvement project.

Committee members heard departmental presentations from staff member Matthew, who led the budget review and explained the anticipated revenues and spending changes across recreation, the senior center, the library, special revenue funds and tax incremental districts (TIDs). The vote to apply parks impact fees to the trail project was made during the impact-fees discussion; a committee member moved the action and another seconded. The motion carried unanimously.

Why it matters: using impact fees to pay for part of the trail work will lower the amount the village must borrow and therefore reduce future debt-service obligations tied to that project. Matthew explained that impact fees can be used either to directly pay for capital projects tied to new development or to pay debt service on borrowing for those projects, and cited past uses of impact fees to offset debt for the library and a police evidence storage garage.

Key budget highlights discussed - Recreation: Revenues are projected to increase roughly 1% over the 2025 adopted budget, largely driven by increased donations (about $33,000) for programs such as pavilion concerts. Recreation expenses are projected to rise about 3% because of salary increases; operating costs are down as some park maintenance costs were reallocated to the recreation facility fee fund. Capital asks shown included $55,050 for Kinderberg fence and tennis, $22,050 for a senior-center audiovisual upgrade, and $50,000 for trail improvements (the latter earmarked in staff’s capital spreadsheet as eligible for impact fees).

- Senior center: Committee members reviewed a proposed $22,500 audiovisual and wiring upgrade for the senior center. Staff described the package as a new 98-inch LED TV, updated video and audio hardware (Dolby-capable Blu-ray player, upgraded sound system with wireless subwoofers), a touchscreen controller and rewiring of the building to support modern equipment. Funding options discussed were capital borrowing or paying from the general fund; no formal funding decision beyond the AV item being in the capital list was made during the meeting.

- Library: Staff outlined a proposed $40,000 purchase of two modular study pods to add enclosed quiet spaces; the suggested funding split is a roughly $10,000 village contribution, $10,000 from the library capital fund (including a county match), and the remainder from donations the library has on hand that are earmarked for furniture/building items. Staff said full building soundproofing would cost over $100,000 due to high ceilings and wiring work, so pods were presented as a lower-cost, movable option.

- Impact fees and trail vote: Staff reported fund balances and revenue projections for several impact-fee funds (police, fire, library, parks). For parks, staff recommended applying available impact-fee funds toward the $50,000 trail improvement rather than borrowing for the full amount. A committee member moved to use parks impact fees to reduce the capital borrowing for trail improvements; another committee member seconded. The motion passed unanimously.

- Tax incremental districts and debt service: Staff reviewed several TIDs (6, 7, 8 and 9), noting revenue increases in some districts driven by new assessments and that principal and interest payments continue to take a substantial share of TID receipts. TID 6’s increment is projected to rise to just under $900,000, funding roughly $500,000 in debt service; TID 8 was described as the largest TID, generating roughly $3.5 million annually in increment. Staff and committee members discussed a historic EDWC loan that was repaid from TID increments; staff said the annual county rebate tied to that loan is roughly $105,000 split in two payments each year.

- Health and dental funds; debt fund: The village’s self-funded health plan was presented as essentially flat for 2026, helped by a health fund reserve reported to be over $1 million; dental costs were also shown as stable. Staff noted the village’s recent purchase of the Ascension building and said rent revenue from that property will be used to pay down debt issued for the purchase, with no expected property-tax levy impact. The debt service levy overall is projected to rise about 1.8% (approximately $85,000) compared with the 2025 adopted budget.

Public input and context - Resident Scott Ethlee spoke during citizen input urging that operational cost impacts (for example, utility costs) be reflected earlier when planning new or larger facilities; he noted his concern about an apparent $100,000 increase in DPW utility costs and asked whether TID increment cashflow could be used earlier to pay down debt. Matthew replied that the timing of borrowings and maturities affects whether increments can be used to close a TID earlier. - The committee also received a written email from residents identified as the Schneiders expressing opposition to a previously posted bonus request and raising questions about public employee salaries and the timing of postings; the committee read the email into the record.

Next steps and meeting close: Committee members scheduled their next GGF meeting for Oct. 20; the special meeting adjourned at 8:08 p.m.