Fitchburg Committee of the Whole Meeting – June 24, 2026

The Fitchburg Committee of the Whole convened on June 24, 2026 at 6:32 PM and adjourned at 8:20 PM. The meeting featured a presentation on the city's annual Financial Management Plan by Greg from Ellers, followed by an overview of Tax Increment Financing (TIF) districts and the new Residential Tax Increment District (RTID) provisions. The council also approved the minutes from the May 27, 2026 meeting.

Consent Calendar

• Approval of May 27, 2026 Committee of the Whole minutes: Approved unanimously.

Public Comments & Testimony

• No members of the public appeared for non-agenda items.

Discussion Items

• Financial Management Plan (FMP): Greg from Ellers presented the city's multi-year financial forecast covering 2025–2036. Key points included:
  • The city's unassigned general fund balance was 15.16% of revenues at end of 2025, within the policy range of 15–25%.
  • All financial policy metrics are in compliance: debt service tax rate for GO debt will remain below $1.00 per $1,000 (policy limit $2.25); gross debt service expense will not exceed 23.56% of combined expenditures; general obligation debt outstanding will not exceed 24.75% of equalized value (well under the 60% limit). The city maintains a triple-A Moody's rating.
  • The enterprise utilities exceed the 250 days cash-on-hand metric: water at 1,057 days, sewer at 386 days, stormwater at 270 days.
  • The city's equalized value (TID out) grew at an average of 7.68% per year (discounted five-year history). Growth is attributed to both economic appreciation (assessment increases) and new construction.
  • The projected levy limit gap for 2027 is approximately $575,000, assuming no additional allowable adjustments beyond debt service. The gap is expected to widen over time as expenditure growth outpaces net new construction.
  • The city's total tax rate (city portion) is projected to decline from $5.21 per $1,000 in 2026 to below $5.00 by 2027 or 2028, which will end eligibility for the Expenditure Restraint Incentive Program (ERIP). The ERIP payment declined from $650,000 to an expected $250,000 in the coming year.
  • For a $500,000 home, the city debt service portion of the tax bill was $434 in 2026.
  • Council members asked clarifying questions about fund balance benchmarks, the composition of value growth, the timing of net new construction recognition, and the impact of losing ERIP funds. The presenter noted that the city would lose ERIP as a capital funding source but could employ other strategies.
• Tax Increment Financing (TIF) and New Residential TID Overview: Greg and the city's economic development team provided an overview of TIF basics and recent legislative changes.
  • TIF is the primary economic development tool in Wisconsin, with about 1,400 active TIDs in the state. Fitchburg has TIDs created before October 1, 2024, which remain under previous, more favorable levy limit rules.
  • For new TIDs created after October 1, 2024, the annual net new construction adjustment will be based on 90% of new construction (rather than 100%), and the TID closure adjustment on the levy limit will be reduced from 50% of final incremental value to 10% of new construction (or 25% if closed within 75% of expected termination).
  • The affordable housing extension for TIDs was expanded from one to two years, effective January 1, 2028. At least 75% of funds must benefit affordable housing as defined (cost no more than 30% of household gross income); the remaining 25% can be used for general housing stock improvements.
  • The new Residential TID (RTID) is limited to owner-occupied single-family homes and duplexes meeting specific requirements: single story max 1,500 sq ft, two-story max 2,000 sq ft, lot width and setback limits, lot size max 7,500 sq ft. No multifamily or commercial allowed.
  • Eligible project costs include infrastructure but exclude developer land acquisition, on-site grading, home construction costs, and development incentives. No municipal borrowing is allowed; projects must use pay-as-you-go or cash financing.
  • Council members raised concerns about the financial viability of RTIDs given the small lot sizes and restrictions on financing, and asked whether the city could test the model on a small scale. Questions also arose about the rationale for limiting the RTID to single-family and duplexes, and about the interplay with impact fees.

Key Outcomes

• The council received the Financial Management Plan and noted the projected 2027 levy limit gap of $575,000. No formal action was taken; the report will inform the upcoming budget process.
• The TIF and RTID overview was presented for informational purposes; no resolutions or votes were taken on TID matters.
• Announcements: Next Committee of the Whole meeting scheduled for July 22, 2026. The Mayor announced a Youth Government Camp for ages 11–14 from August 24–27, 2026, with six spots still available.