Council hears presentation on tax-increment financing and Kewaunee TID 3
Summary
Katrina Becker of Becker Professional Services briefed the Kewaunee Common Council on tax-increment financing (TIF) and the mechanics of tax-increment districts (TIDs), using the city’s TID 3 as an example and outlining project types, timelines and reporting requirements.
Katrina Becker of Becker Professional Services told the Kewaunee Common Council that “TIF is a financing tool that allows a municipality to fund infrastructure and other improvements using future tax revenue from new development and increases in property value.” Becker delivered an overview of tax-increment financing and tax-increment districts and pointed councilmembers to the Wisconsin Department of Revenue’s manual for more detail.
Becker said TID 3, created in 2020, has a base equalized value of about $5,600,000 and that, under her illustrative projection, property values in the district could grow to roughly $64,000,000 by 2040, generating an estimated $11.2 million in incremental tax revenue over the life of the district. She emphasized those figures are projections, not guarantees, and explained the typical TID mechanics: overlying jurisdictions continue to receive taxes on the base value, incremental revenue pays only approved project-plan costs, and when a TID closes the increased value returns to the tax rolls for all jurisdictions to share.
Becker listed kinds of projects commonly funded in TID project plans and those identified in Kewaunee’s plan: developer assistance for sites at 97 Ellis Street and 317 Durell Street, sidewalks to connect the trailhead to the lighthouse, burying power lines, streetscape landscaping on Ellis Street, a farmers market kiosk and plaza, road reconstruction and park work. She described the usual lifecycle of mixed-use TIDs, noting a 20-year maximum life with a 15-year expenditure period and that a TID may be extended in limited circumstances.
Becker also summarized oversight and reporting: a joint review board comprising representatives of overlying taxing jurisdictions and a public member reviews TID financials annually and an audit and state annual report document revenue and expenses. She offered to share slides and other resources and encouraged project-driven TIDs where possible to reduce the city’s exposure to risk.
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