Much to discuss

Over the last several months, we have called on the Marathon City Village Board of Trustees and the Marathon Board of Education to meet and discuss future community planning. There is a new urgency for these meetings to happen.

This urgency follows last week’s announcement by village administrator Andy Kurtz that the village, if it is able to move forward with road and utility work north of STH 29, will likely land a “pretty significant subdivision north of STH 29” within the next 36 months on 100 acres of land already annexed to the village.

Kurtz, flanked by village president Dave Bellanger, reported this possible subdivision while asking the county’s Human Resources, Property and Finance Committee for $1 million in federal American Rescue Plan Act funds to offset the cost of utility upgrades to a business park annex north of STH 29.

It is unknown whether a WHEDA “workforce” housing development planned for the business park annex or a contemplated townhouse development at the location of the current Veterans Park would force a Marathon Public Schools building project, but a major subdivision, along with these other housing projects, certainly would.

The likely project would be a stand-alone Marathon Venture Academy (middle school) on a block of land located west of Marathon High School. We can easily envision a $10 million structure that could accommodate a few hundred students. Students at this new building could possibly use the high school’s gymnasiums, cafeteria, shops and other facilities.

A new school building will require a tax increase. Our back of the envelope calculation is that a $10 million middle school financed with a three percent loan over 20 years would require the school district’s tax rate to increase by $1.47. That’s a stiff increase. If approved, it would raise school property taxes on a $150,000 home by $220 a year. That’s a 14 percent take hike.

Now, maybe the cost of a new middle school is the price Marathon School District needs to pay for growth in the village.

But the numbers don’t look that great. Based on Kurtz’s presentation to county supervisors, we can figure that the district’s taxable property will increase from $457 million to $526 million by 2035. This tax base growth follows from closing out the village’s Tax Increment District (TID) No. 1 and building $22 million outside the district, including the proposed “pretty significant” subdivision.

This tax base growth will radically reduce Marathon school tax rates, but, unfortunately, not enough to offset the cost of a new school. Closing out TID No. 1 and adding new development, including the subdivision, will reduce the Marathon school tax mil rate by $1.34 per thousand. A new middle school, however, will cost an extra 13 cents on the mil rate.

Timing matters here. According to Kurtz, a new Marathon subdivision will be built north of the highway in less than three years. The village won’t close out its TID for 13 years, however, or, according to a rosier forecast, within nine years. This means Marathon school district residents may be forced to pay for a new school for years without getting relief from the village closing out TID No. 1.

There is a lot here for Marathon village officials and school board members to hash out. The school board needs to understand what will happen to its enrollment as the village encourages residential housing on its northern border. It needs to know, too, how the village’s TIDs will affect local property taxes.

Further, the school board needs to understand how it is that the business park it endorsed back in in 2004 now will likely not, as promised, lower district property taxes rates, but, instead, will likely force construction of a new school that will elevate long term staffing and maintenance costs.

The Marathon village and school boards need to meet without delay. Indeed, there is a lot to talk about.