School District Asks Village Of Germantown To Slow Village Center Development Process Until Two Studies Are Complete & Strategic Planning Decisions May Be Jointly Made.
TID 10 Could Cause $500K Negative Effect On School District Revenue Annually If Preliminary Enrollment Guestimate Is Correct. Can Anyone Say Referendum?
Current capacity versus target capacity & district attending ES from agenda packet.
3/11/2025 Germantown School District (GSD) Board meeting agenda packet here.
Recording here.
Min 1:10s meeting starts. Pledge of allegiance. The superintendent, Dr. Chris Reuter runs through the meeting notices and they approve the agenda.
Min 2:40 Discussion Regarding the Impact of Village of Germantown Development Plans on the Germantown School District and Proposed School Board Resolution. President Russ Ewert explains why the GSD & representatives from the village board are meeting.
With the many high density housing development proposals there have been many comments coming in from various avenues and the GSD wants to work collaboratively with the village to meet both entities various needs. It also provides an opportunity for each to understand what each faces.
GSD has authorized two studies that are coming in soon. One regarding the physical capacities of all school educational facilities, the other the forecasting of enrollment.
Min 7:00 Public comments: Three minute allowance.
Appreciate that the school district is completing a strategic plan. The speaker has requested this type of effort from the village for many years. The 2050 plan was incomplete, various neighborhoods did not have the promised planning done, and so we don’t have a true count of what people want to go there. Assumptions have been made in the village center planning that is underway. Not all the residents’ comments have not been included in the iterations of drawings. The evidence is that every meeting newer versions of designs, reflecting comments, are presented. Because lack of strategic planning, the village has put themselves in being reactive. You want something more clear, so that you are clear about what you want, and are not at the mercy of developers. Within the village planning side of things there should be a better job of a more determinant number of buildings and what we want. Last comment, the school district position on the planning commission should be a voting position.
Signed up as a protocol for attending the meeting. Glad this meeting is happening to understand more about the development projects’ effects on the school district and our children’s education.
Headwinds in that a recession may be coming, possibly. These big projects have to make money quickly, which is why the push for the high density rentals. People want to come into the district, just look at how quickly properties in Old Farm sell. The speaker goes through the number of developments and believes that together they will add roughly 1,100 students into the district over the next few years. Developments are: Main Street (Brookstone land swap with park), Village Center and Lannon and County Line road. This would overwhelm the schools. He refers to the Tracy Cross study completed last year, which says that the average .7 children per unit. What is the true number? Even if only one development happened, is there room? He says the school was not approached when these developments came forward.
Speaker thanks them for holding the meeting, and reach across the aisle. Hopefully, the village board will understand more about what the school district needs from a planning standpoint. She describes the rental switch over time in late summer where people move in and out of apartments. Classroom sizes, bus routes, retention of staff due to clarity on their roles to name some issues. She asks that the village puts a pause on the development until there are firm numbers.
Speaker asks the board to think about students with special needs. These types of students often have trouble receiving services in the district to be as successful as possible. He advises getting as much information as possible before decisions are made. There are no numbers on the type of new residents. We saw pretty drawings, but it probably won’t look like them in the end. The goal is to get the best education possible. Has grandchildren in the district.
Dan Knodl, state rep, glad to see the village president at the meeting. He expresses his concerns that the village is actually listening to the school district. We need real numbers as school costs are one of the largest expenses from the state. The district to do proper planning, need a wide open communication. Who will be the residents makes a difference. He has concerns about the property valuation, it’s not correct, in his opinion, and not good. Building schools is significant, meaning a referendum, meaning more taxes.
Min 25:15 Village board presentation - Four areas.
Tax increment districts (TID) and how they work. Village debt levels. Housing developments, the general market. Village information on the schools.
Min 27:29 TID portion starts. Page 4 of agenda packet. He describes how TIDs work, and then goes through some myths with explanations. Several GSD directors ask questions.
He emphasizes that baseline taxes continue as if there was no development. He mentions that he hears comments that the village give developers breaks, which he refutes.
The fact of the TID is a developer break. In no-TID land, the developer foots the bill for utilities, roads, traffic lights and other amenities. The fact of the TID means that many village resources are focused on dealing with the TIDs, like engineering, administration, attorney which removes them from the keeping up with normal day to day services. The fact of the TID, is that if a property builds within the TID, that revenue in taxes takes 20-27 years to make it into the general fund, with those dollars missed in those years not being made up.
He continues on with some recent changes to the TID laws. He discusses how increases in revenue are only allowed when new buildings are built.
This is why new construction OUTSIDE of TIDs is better, we get the taxes immediately.
Min 41:40 They discuss how the mill rates and levy is calculated. He refers to a McIver institute article that he disagrees with. Director Higgenbotham asks what happens when TIDs fail?
Administrator Kreklow talks about how Germantown has not had a failing TID. It would be the developers’ issue if that occurred.
President Wolter chimes in with brownsfield grants due to the BP station possibly being a pollutant.
They speak of the guarantee of the increment by the development agreement. They further go through the history of TIDs and the problems with TID 3. Rescuing TID three did extend it more, but it still closed before 27 years.
The discussion turns to enrollment, declining birthrates and risk with and without more housing. “Additional enrollment does not mean a surplus of revenue.” Director Higgenbotham.
Developer contributions to the school district are not in place, but could they be an option? Possibly.
District has authorized $35K for two different studies regarding physical capacity and enrollment forecasting which should be available soon. These would be helpful to the village for planning.
The presentation picks up again with more TID history.
TID 9 was a combination of bonds and TID redirection of revenue. The bonds were what created the tax increases a couple years ago.
The President reiterates that TIDs are covering partial salary costs, plumping up those values. (Does anyone know if those costs are removed from the final valuation of the TID when the final “Net New Construction” number is calculated? Probably not.)
TID 7 amendment is funding the $40K for High Point Pass, a road for Truck Country and the future Goldendale Park.
The administrator goes on about the DPW building lasting for decades well into the next century. (This is a stretch.)
The presentation turns to equalized value and how much debt the village can go to. Roads come up as a key cost.
Next comes why housing proposals are coming forward. Tracy Cross is mentioned. The claim is that the market is driving this activity. We have lots of open land, are close to the highway, farmers’ retirement account is their land, and market forces are attracting attention. (He doesn’t mention the village give-aways.)
Next comes the current three proposals:
Lannon & County Line Road. Multi family, high density, mix of home-owners & apartments. Total of 283. They used Tracy Cross as the basis for why here. No desire for TID with this proposed development. Homepath Financial currently deciding if they can go forward as they have found lots of rock. Amy Belle ES would be affected by this one, 135 children forecast. No plans yet on this one, later in the summer most likely. President says a development agreement may include rentals not allowed. (Is that legal?)
From Jan 2025 plan commission agenda packet.
Pilgrim & Mequon. Phase one (yellow) includes 300-400 market rate apartments. No subsidized, any grants are for environmental purposes. The types of apartments can be controlled by the village. Developers want studios and one bedroom apartments. Some commercial, not much. What is the total number of residential for all phases? Smaller number of residential in phase two with all first floor commercial and 50-75 units above. Ascension would be 150 units. The area to the south is unknown. So, from 500-625 without knowing the area to the south. Developers will want more, and having this number out there is a problem. Have heard a projection of 6 students.
The discussion goes to what was actually purchased. Financed with general obligation borrowing. (This is different than what he said before, when he said cash reserves from the general fund.)
They further discuss how they may not get the sale price back when the land is sold to a developer. If that were to happen it would become taxpayer subsidized funding. The TID would make up the difference. They discuss the size of the Flower Source property. 48 acres??? The size indicates how many units will be built.
From 3/10/2025 plan commission meeting agenda packet.
Blackstone Creek & Haupt Strasse Park land swap. 350-425 units in first phase per the letter in the Heimat Group from January. Asking for a TID.
From 3/10/2025 plan commission agenda packet.
Other projects: Victory place for 66 rental units, being revised. Mequon Road, 42 rental units, being revised.
Studies will be helpful for planning. 2050 plan includes options to update it, and that information can be included. The village doesn’t not control what proposals come forward.
Demographics - the village is older than most, and Washington County is one of the oldest in the state.
Watertown and Wauwatosa studies show that birthrates are creeping up in younger people. 1 student generated for every 5 houses.
They take a break before the school district presentation.
Min 2:01:20 Superintendent Reuter presents a review of capacity and enrollments. He discusses a presentation at the next school board meeting, 3/17/2025, where their architects will be reviewing the facilities’ capacities. The Roffer enrollment study will be ready at the end of April.
He describes the two neighborhood elementary schools and the two county/rural elementary schools. He shows the capacity for each. Every space is full. MS and HS have different ratios due to the style of teaching. The map shows which schools would be affected by the developments previously identified. See above.
He then reviews the slides showing expenses and revenues. On average they spend roughly $16K per student to educate them. Major source of revenue is from the taxpayer.
K4 through 5th grade can have volatile enrollment due to the turnover of apartment leases end of the summer.
McArthur has the highest volatility due to the apartment factor.
Short term additional students could cause a redistricting of students within the elementary school facilities. An unpopular thing. It also affects transportation routes.
Nothing is apples to apples when looking at other districts’ studies. The combination of factors are different. We are Germantown. He has studied other towns’ reports.
The district impacts other municipalities. They would have to go to Colgate and other places to ask for referendum dollars if circumstances forces the district to do this.
Some districts are not doing a good job of managing their districts. Asking for additional dollars and then closing schools.
The last referendum nut will be paid down in 2-3 years.
They are developing a school district funding 101 video for educating the general public. The district is more limited than the village in how it is funded.
The discussion turns towards new enrollments based on the developments. Guestimating 30-40 new students would head towards McArthur with the village center project. Director Barney asks about the traffic study, the administrator says it accounts for the new traffic. (Does it?)
Immediately, they would have to increase class size if the above number is correct.
“The project appears to be gas pedal to the floor. What is the rush?” Tom Barney.
Development drives that, per administrator Kreklow.
Any child that is in the TID with those revenues being diverted to the infrastructure/developer funding is not being collected and so is a loss. Think of it like open enrollment, not all the funds follow the child. Districts that do this often end up asking for operational referenda. 30 X $16,000 = $480,000 & 40 X $16,000 = $640,000. The math is not this simple, but the general idea is that this adds up to a significant budget effect for the district with TID 10.
Min 2:49:00 Discussion turns to revenue tools in the tool box for managing growth in a village.
“Municipalities are creatures of the state.” Administrator Kreklow. He and President Wolter list off several options.
Min 2:54:00 Director Barney comments on the project timing and the availability of the school district studies. He asks that the village consider slowing down the process until the studies are public and complete. He reads out a resolution to this end.
Not unreasonable.
Mr. Ewert asks for a motion.
Mr. Loth reviews the history of TIDs coming from California, and their application. He mentions that people don’t move to the suburbs for high density housing. It doesn’t match. Prior TIDs have been industrial and create jobs, not students. They are better for the school district. He questions the location of the Flower Source for single family homes. Single family homes create immediate revenue for the school district. Kinderberg Park comes up. The property was sold to be a productive piece of land out of the district’s portfolio. The reduction of the home count meant that the land had to sell for less. He says:
“When it comes to taxes the school district potential revenue is paying for the infrastructure for the next 25 years.” With a TID.
Another point, with voting for TIDs the school district has the most to lose and only has one vote at the Joint Review Board (JRB).
School district has 500+ employees, and is a good employer. The district president, Mr. Ewert, asks for the slow down so that they can complete their strategic planning. He wants data driven decisions. Is it too much to ask?
They review if/whether the process may be slowed. The administrator says that the clock is ticking due to the TID being approved by the village board on 2/17/2025.
The conversation goes towards the JRB scheduled meeting, that was not directed by VB authority.
(There is a clear indication that the village doesn’t want to slow down.)
The school district directors discuss the resolution language and whether they can approve it as read.
They discuss that with this school district resolution the village can still delay the development. Yes, if the village board votes that way.
They vote and it passes.
Min 3:37:30 School District schedule. There is not enough information to make changes. The committee meetings can be flexible.
Min 3:43:10 Member of the audience interrupts the discussion to clarify that the village board on 2/17/2025 only directed the staff to act on purchasing the properties, not start the TID at that meeting.
(Per the minutes page 5, they only voted to close on the properties. See here. That clock can stop. That means that what the administrator and president said is not true.)
Meeting ends.