tif updates
TRANSCRIPT
TIF Update
Wisconsin Clerks, Treasurers & Finance Officers Institute
June 27, 2013
Overview
1. Your TIF Questions2. Past & Current Use of TIF3. Recent Changes4. Issues & Discussion
What Is TIF?
Simply:A municipal financing tool to
accomplish specific community development objectives:
• Blight Elimination• Neighborhood Conservation• Industrial Development• Mixed-Use Development
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 Distressed
9 0.8%
Distressed 56 4.9%
1995 – 835 TIDS Created, 408 were still active
Trends In Use of TIF
Statewide, about 4.8% of municipal equalized value is tax incremental value, up from 3% in 1990.
TID Matrix
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
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
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
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
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
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
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
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
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
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
HighSchool
Bike Trail
Universial Forest
Products100 Emp.
Multi-
Fami
ly
37 Single Family Lots
Example: ½ Mile RadiusShorewood Hills Marshall Court
Example: ½ Mile Radius
Shorewood Hills Marshall CourtBefore After
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
Example: ½ Mile Radius
Cambridge• TID driven by
redevelopment of Melster Candy site
• Connect site & west side with downtown
• Connect regional bike trails
• ½ mile radius Existing Cam-Rock Trail
Connection to Glacial Drumlin Trail
Safe bike crossings of Hwys 12 & 18
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
Example: Intergovernmental
• Town Cooperative Boundary TID• Multi-Jurisdictional TID
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
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
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
Issues & Discussion
• Periodic Filings:• Development Agreements
• If JRB Not Dissolved, Copies Must Be Sent To JRB, Otherwise Retained By Municipality
• Not Sent to DOR
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
Resources
• DOR City/Village TIF Manualhttp://www.revenue.wi.gov/pubs/slf/tif/cvmanual.html
• TID Criteria Matrixhttp://www.revenue.wi.gov/pubs/slf/tif/tif-trix.pdf
• Sign-up for email updateshttp://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
Questions?
Gary Becker, CEcDVierbicher
999 Fourier Dr., Suite 201Madison, WI 53717
(608) [email protected]
www.vierbicher.com