Germantown trustees trim some 2026 budget items, approve public hearing notice

Village of Germantown trustees on Oct. 14 tightened parts of the proposed 2026 budget, approved publication of the statutorily required public hearing notice and directed staff to use modest reductions to reduce planned borrowing. The Committee of the Whole reviewed the capital reserve fund, discussed projected investment earnings, and debated a series of line-item cuts to operating budgets including copier costs, training and highway overtime.

The committee approved moving forward with the public hearing notice as required by state law. Finance Director Matthew told trustees the village would finalize numbers to reflect the committee's actions before publication. "Overall general fund revenues are up roughly 3.5 percent," Matthew said, and he presented updated estimates showing a projected 2026 village tax rate of $4.58 per $1,000 of assessed value, about $25 more a year for a typical $403,000 home compared with the adopted 2025 budget.

The capital reserve fund, established last year to accumulate interest earnings for long-term capital projects, will continue to be funded primarily with interest. Matthew said the village expects roughly $107,000 in interest earnings credited to the capital reserve in 2026 and described the fund's intent as long-term accumulation. "The intent was that it be accumulated for, you know, over a long period of time so that ... there'll be funds available for the future board and residents to be able to offset the cost," he said. The account currently holds about $35,000 in realized earnings year to date, Matthew said; trustees agreed the fund can be used either to pay down borrowing now or to accumulate for future projects.

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