This presentation provides a history of tax incremental financing in Wisconsin, trends in its use, recent changes and best practices in using TIF for community development.

1. TIF Update
Wisconsin Clerks, Treasurers & Finance Officers
Institute
June 27, 2013

2. Overview
1. Your TIF Questions
2. Past & Current Use of TIF
3. Recent Changes
4. Issues & Discussion

3. What Is TIF?
Simply:
A municipal financing tool to
accomplish specific community
development objectives:
• Blight Elimination
• Neighborhood Conservation
• Industrial Development
• Mixed-Use Development

4. Past & Current Use of TIF
TID Type # Active %
TIDs pre-10/1/95 213 18.7%
Blight 268 23.5%
Rehab/Cons 101 8.9%
Industrial post ‘95 193 16.9%
Industrial post ’04 77 6.8%
Mixed Use (‘04) 203 17.8%
Environmental 16 1.4%
Town Ag 3 0.3%
Total 1,074
Severely
9 0.8%
Distressed
Distressed 56 4.9%
1995 – 835
TIDS
Created, 408
were still
active

5. Trends In Use of TIF
Statewide, about 4.8% of municipal equalized value is tax incremental value, up
from 3% in 1990.

6. TID Matrix

7. Recent Changes
Fees:
• Creation: $1,000
• Amendment (addition or subtraction): $1,000
• Amendment (addition and subtraction – same TID):
$2000
• Amendment (distressed/severely distressed): $500
• Project Plan (only) Amendment (no added/
subtracted territory): no fee.
• Yearly maintenance fee: $150 per active TID,
payable by May 15th.
• Electronic payment

8. Recent Changes
New Filing Deadline
• Submission deadline of October 31 of year in which
TID was created – previously December 31
Options for 12% Non-Compliance
• DOR notification by 12/31
• Local legislative body may, within 30 days:
• Rescind approval of project plan resolution, or
• Remove parcels from district and resubmit
• Simultaneous creation/subtraction
• 2 appraisals showing values for each action

9. Recent Changes
Sharing Revenue Between Districts
(Allocation Amendment):
• Same overlying taxing jurisdictions
• Demonstrate surplus revenue
• TIDs created after 10/1/95:
• Recipient must be blight elimination or
neighborhood conservation TID, or
• Recipient TID must have projects to create,
provide or rehab low-cost housing or remediate
environmental contamination
• Donor TID life cannot be extended

10. Recent Changes
Distressed/Severely Distressed TID
• TIDs created before 10/1/08, no amendment after
10/1/09
• Distressed designation allows a max10 year
extension
• Severely distressed – value increment decline >25%-
designation allows a max 40 year extension
• May not add new project costs
• No overlapping TID
• Expend funds outside TID boundary
• Add territory
• Be a donor district

11. Recent Changes
Mixed-Use TID
• >50% a combination of commercial, industrial or
residential development
• <35% of TID may be newly platted residential
• TID expenditures may be made for residential and
>25% vacant land allowed if one of the following
applies:
• Density at least 3 units per acre
• Housing located in a conservation subdivision
• Housing located in a traditional neighborhood
development

12. Recent Changes
Expenditures Within ½ Mile
• Remain within municipal boundary
• Project costs must still relate to the purpose for
which the TID was created
• Does not capture increment

13. Recent Changes
Extension for Affordable Housing
• TIDs that have paid off all project costs may extend
the life of the district for one year to benefit
affordable housing and improve the housing stock.
• At least 75% of increments must be used for
affordable housing and up to 25% to improve
housing stock.
• City resolution forwarded to DOR – no JRB action or
public hearing required

14. Recent Changes
Town TIF – Cooperative Boundary
Agreement
• Towns that have a cooperative boundary
agreement with a city/village may create a full-featured
TID if:
• All or part of the town will be annexed
• City/village annexing approves the creation of
the TID
• TID is located solely within the territory to be
annexed
• City/Village may take over a Town TID until its
maximum life has been reached

15. Recent Changes
Multi-Jurisdictional TID
• Two or more municipalities may enter into an
intergovernmental cooperation agreement and
jointly create a multi-jurisdictional TID
• Agreement determines municipality with lead role
• Increments and expenditures allocated to each
jurisdiction
• Towns not allowed to participate in a multi-jurisdictional
TID

16. Example: Sharing Revenue
Prairie du Chien TID
#5 Workforce
Housing
– transfer funds from
ind TID to ind TID for
low-cost housing
– City is developer
– energy star homes
– bike connection
to high school
High
School
Bike Trail
Universial
Forest
Products
100 Emp.
37 Single Family Lots

17. Example: ½ Mile Radius
Shorewood Hills Marshall Court

18. Example: ½ Mile Radius
Shorewood Hills Marshall Court
Before After

19. Example: ½ Mile Radius
Cambridge
Vacant Melster Candy
Property
• “Hole in the donut
along Koshkonong
Creek
• Senior housing
redevelopment proposal
• No bridge connection
to downtown - creates a
divided community from
a pedestrian perspective
• No community
connections to regional
bike trails

20. Example: ½ Mile Radius
Cambridge
• TID driven by
redevelopment
of Melster
Candy site
• Connect site &
west side with
downtown
• Connect
regional bike
trails
Connection to
Glacial Drumlin Trail
Safe bike
crossings of
Hwys 12 & 18
• ½ mile radius Existing Cam-Rock Trail

21. Example: Extend for Housing
Monona
• Housing stock – 1950’s;
not meeting needs of
modern households
• Losing residents to
communities w/ newer
homes
• TID #3 closing –
generating $120,000
• Kept TID open 1 year –
revenue used to fund
Renew Monona

22. Example: Intergovernmental
• Town Cooperative Boundary TID
• Multi-Jurisdictional TID

23. Issues & Discussion
• Annual Filings:
• TID Assessment Report
• Assessor/2nd Monday in June
• Missed Deadline=Missed Increment
• Statement of Assessment
• Clerk/10 Days after Board of Review
• Tax Increment Certification
• Clerk/May 15
• Missed Deadline=Missed Increment

24. Issues & Discussion
• Annual Reports
• Provided to Overlying Taxing
Jurisdictions – Not to DOR
• May 1st Deadline
• Status of Each TID Including
Expenditures & Revenues
• Sample Form:
http://www.revenue.wi.gov/forms/govtif/pe-218.pdf

25. Issues & Discussion
• Periodic Filings:
• Audit Reports
• 3 Required – 12 Months After:
• 30% of Project Costs Expended
• Final Expenditure
• Termination
• Only Termination Audit Filed With
DOR – All Others Sent to Overlying
Taxing Jurisdictions

26. Issues & Discussion
• Periodic Filings:
• Development Agreements
• If JRB Not Dissolved, Copies Must Be
Sent To JRB, Otherwise Retained By
Municipality
• Not Sent to DOR

27. Issues & Discussion
• Good Practices
• Annual Review w/ Governing Body
• TIF Overview Every 2 Years
• Case Studies of TIF Projects
• TIF Role In Implementing Strategic
Development Objectives

28. Resources
• DOR City/Village TIF Manual
http://www.revenue.wi.gov/pubs/slf/tif/cvmanual.html
• TID Criteria Matrix
http://www.revenue.wi.gov/pubs/slf/tif/tif-trix.pdf
• Sign-up for email updates
http://www.revenue.wi.gov/html/lists.html
• This presentation available for download from
our blog – sign up while you’re there!
http://blog.vierbicher.com

29. Questions?
Gary Becker, CEcD
Vierbicher
999 Fourier Dr., Suite 201
Madison, WI 53717
(608) 821-3941
gbec@vierbicher.com
www.vierbicher.com