River Hills Home Values Keep Climbing. The Village Budget Can't Follow Them Without Asking Voters.

River Hills is worth a lot more than it was two years ago. The Wisconsin Department of Revenue put the village's equalized value at $559.9 million in its 2024 report and at $691.2 million in its August 2026 report, an increase of roughly 23 percent. Under state law, the part of that increase that comes from existing homes appreciating gives the village no extra room in its budget.

The number that controls how much the village can spend is much smaller. For buyers comparing North Shore villages, it changes how to read a River Hills tax bill. The village portion follows the calendar of voter-approved referendums and their expiration dates more than it follows home prices. The referendum that has carried the village since 2023 expires in 2027.

The Number That Sets the Budget Is New Construction

Wisconsin's levy limit allows a village to raise its annual operating levy by 0 percent or by the percentage of net new construction from the prior year, whichever is greater. The village explains this in its 2025 tax bill FAQ. The Department of Revenue calculates that percentage by dividing net new construction by the prior year's equalized value. When an existing house goes up in value, that increase isn't counted. What counts is net new construction.

River Hills has very little of it. A bond disclosure prepared by Ehlers said plainly that "River Hills has little to no construction." The last three Department of Revenue reports show the result.

The 2026 report, which the Department of Revenue announced on August 14, 2026, measures construction from calendar year 2025 and sets the limit for the village's 2027 budget. Within that same report, Fox Point came in at 0.245 percent, Bayside at 0.465 percent, Whitefish Bay at 0.558 percent and Brown Deer at 2.057 percent. River Hills' percentage has more than tripled in two reports, and one project accounts for that.

The Grove Is the Growth, and It Was Planned That Way

In 2021, the village bought 53.4 acres along Brown Deer Road and created Tax Incremental District No. 1. In 2023, Cornerstone Development bought the land from the village for $2.5 million to build 51 single-family homes on 25 acres. The other 28 acres became a stormwater retention system built with the Milwaukee Metropolitan Sewerage District. The Ehlers disclosure presented the purchase as a way to protect the village's tax base.

That land is now The Grove in River Hills. Cornerstone markets it as a community of ranch-style standalone condominium homes from 1,900 to 2,800 square feet, with a clubhouse, pool, pickleball, putting greens and walking trails through the 28-acre conservancy. Its sales map, updated August 24, 2026, lists homes starting in the $800,000s and marks Phases 2 and 3. One of the listed homes, a 1,994-square-foot Brighton, carried a price of $884,999.

The homes are selling for more than the village planned on. At the October 7, 2025 board meeting, a Cornerstone representative reported eight parcels sold and an average purchase price of $1.1 million, compared with the $800,000 per home in the agreement. At that point, one buyer had moved in. The village Building Board's October 12, 2026 agenda included new homes on Lots 24, 44 and 48. The Department of Revenue counts new construction inside a TID toward net new construction. That's why the village's percentage has been rising.

Why One Referendum Outweighs the Whole Subdivision

The sizes involved are very different. For 2026, the state set the village's allowable levy increase at 0.592 percent, which came to $15,633. In November 2022, River Hills voters approved an operating levy increase of up to $300,000 per year for 2023 through 2027. One year of that referendum equals about 19 years of growth at the 2026 rate.

The higher 0.761 percent figure will raise the 2027 allowance somewhat. Even so, a 51-home subdivision on the village's only development parcel can't replace $300,000 a year. In his December 2025 letter to residents, Village President Noyes described the situation this way:

"Because of the limitations in the amount by which the levy can be increased under a state law passed in 2010, our revenues have not kept up with the increase in costs to run the Village due to inflation and other factors."

The letter puts the village levy at $4,308,488. That money covers administration, the police department, public works and the village's contributions to the North Shore Fire Department, North Shore Health Department and North Shore Library. The letter adds that the levy cannot go higher without a referendum.

Two Costs That Follow Other Rules

Operating costs are only part of the village line on a tax bill. The village's debt payments went from $815,844 in 2025 to $1,238,093 in 2026, an increase of 51.7 percent. The village says it borrowed to keep repairing roads and replacing equipment, and that this is why the village tax rate rose 12.3 percent. The board's November 2025 budget minutes record a village rate of $7.95 per $1,000 of assessed value for 2025.

Fire service is handled separately. On October 7, 2025, the board approved a resolution allowing member municipalities of the North Shore Fire Department to use an exception to levy limits for fire department charges under 2005 Wisconsin Act 484. The minutes note that the village uses this exception. The Department of Revenue says the adjustment applies only when the increase in total charges stays within CPI plus 2 percent and every participating municipality adopts a supporting resolution. North Shore Fire serves seven municipalities, so all seven boards vote on its budget items.

So the village line runs on three separate tracks. Borrowing pushes up debt payments, and fire charges rise under their own exception, while day-to-day operations stay tied to net new construction unless voters approve more.

A River Hills Tax Bill Comes With Expiration Dates

The village isn't the only taxing body here that depends on referendums. The village's own FAQ lists when each school district's referendum levies end.

• Maple Dale-Indian Hill: two referendums, expiring in 2029 and 2039
• Glendale-River Hills: one referendum, expiring in 2026
• Nicolet: two referendums, expiring in 2028 and 2042
• Village operations: the 2022 increase of up to $300,000 a year, expiring in 2027

The president's letter breaks down a 2025 bill for a $500,000 home in the Maple Dale-Indian Hill district. The total was $13,217.50, and village operations accounted for $3,976.06, or 30.1 percent. In the Glendale-River Hills district, the same home's total was $12,776.48. Milwaukee County's rate, after the sales tax credit, went from $3.50 to $4.01 per $1,000 between 2024 and 2025.

This matters during a purchase. The bill attached to a listing shows which authorizations were in effect last year. It doesn't show whether those authorizations will be renewed, enlarged or allowed to expire.

Where the Village Stands This Fall

At its September 16, 2026 meeting, the village board's agenda included "Discussion and Possible Action on Proposal from Ehlers for 2027 Levy Limit Referendum financial planning services." The president's report on the same agenda listed "Support for Referendum," and the meeting closed with a 2027 budget workshop. That agenda doesn't name an election date, an amount or a purpose, so any new referendum is still at the planning stage. The agenda also set October 16 as the publication date for the 2027 budget hearing notice.

The Department of Revenue's fact sheet explains the next step. The governing body has to pass a resolution that states the amount and percentage of the increase, its purpose and how long it lasts. Voters then decide on it using statutory ballot language. If you're thinking about a River Hills offer this winter, here's what to look for:

• A board resolution on the village meetings page that sets out referendum terms
• The adopted 2027 budget and levy
• Which school district the property is in, since that changes the total bill
• Whether the seller's most recent bill reflects any referendum that has since expired

This post is general information, not tax, legal or financial advice. Please confirm what applies to a specific property with your tax professional or attorney.

A Few Questions Buyers Ask

If my assessment goes up, does the village collect more? The village levy is a total dollar amount that's capped by state law. Assessments determine how that total is divided among property owners. A higher assessment doesn't increase the total.

Has River Hills held a referendum like this before? Yes. Voters approved the operating increase on November 8, 2022, under Village Board Resolution No. 2022-10.

Will The Grove's TID change anything later? The Department of Revenue's Fall/Winter 2026 newsletter describes an adjustment to the allowable levy when a TID closes. For districts created before 2025, like River Hills' TID No. 1, the adjustment is based on half of the district's total value. The district has to close before that adjustment applies.

If you're comparing a River Hills home with one in Fox Point or Bayside and want to see how each tax bill is built, line by line and by expiration date, I'd be glad to go through it with you. Schedule a call with Brynn Woll, or get your instant home valuation and we'll start from your own numbers.