The Fort Atkinson City Council on Aug. 19 voted to extend the life of Tax Increment District Number 6 and Tax Increment District Number 7 for one year so the 2026 increment can be deposited into a dedicated affordable housing fund. City Manager Hausman presented the staff report and recommended approval.

City Manager Hausman said the council previously closed TID 8 in April 2025 and that the city currently has active TIDs 6, 7, 9 and 10. He said state statute allows a council to extend a TID for one year after it has recovered its costs so the increment can be used for affordable housing and noted that “affordable housing is defined by state statute as housing that costs a household no more than 30% of a household’s gross monthly income.”

The staff report in the meeting packet showed that the 2025 increment already in the affordable housing fund from TID 8 is about $1.1 million; the expected 2026 increments were listed as roughly $160,000 for TID 6 and $460,000 for TID 7, producing a combined anticipated total of about $1.7 million for affordable housing projects and programs if the resolutions were adopted. Hausman said the dollars currently sitting in the affordable housing fund will not be spent without future council approval of projects and programs.

Hausman said staff has reached out to a consultant to prepare scope and proposals to help develop program policies, applications and administrative processes so the city will have the framework to deploy the funds once the increments are available. He told the council there is no required timeline in statute for spending the increment; the money can remain in the fund until the council designates its use.

Both separate resolutions—one for TID 6 and one for TID 7—were moved, seconded and approved by voice vote during the Aug. 19 meeting.

The council did not adopt program guidelines at the meeting; managers said development of policies and applications will follow and staff will return with those details before any expenditures are made.