The City of West Bend Finance Committee on Sept. 8 approved a resolution to terminate Tax Incremental District No. 7, which the committee said has reached the end of its planned term and must be closed out under state law.
John, a city staff member, told the committee the district — created in 1999 — has largely met its objectives, returning increased property values and infrastructure investment to the community. He said the district will collect one more round of taxes that will be applied to outstanding TIF debt and that, after that last collection, the closeout will leave an approximately $250,000 shortfall that previously had been advanced by the general fund.
The committee was given a brief numerical summary: the staff report recorded a base value of about $19,000,000, an increment of about $23,300,000 and a current assessed value of roughly $42,400,000 for properties in the district. Staff said the increment has produced the intended development and that, when the district closes, the full assessed value will return to the tax rolls for the city and other taxing jurisdictions.
Why it matters: closing a TID means the incremental value that had been dedicated to debt service and project costs reverts to the taxing jurisdictions’ general tax rolls. Committee members asked how the $250,000 shortfall affects the city budget; staff clarified that the shortfall represents prior advances and is not an immediate new hit to the current operating budget, though it reduces the amount that would otherwise be returned to the general fund.
Committee action and next steps: the finance committee approved the resolution and staff said the paperwork required by the Department of Revenue will be submitted before the statutory deadline. Staff noted there are limited options to extend a district at this late stage and that one-year extensions are narrowly allowed only for specific purposes such as affordable housing, which was not feasible in this case.
Context and background: TIF districts function by capturing tax revenue on increased property value (increment) to pay for public infrastructure and redevelopment costs. When a TID closes, the captured increment becomes available to all taxing jurisdictions. Staff said the district largely achieved its goals — infrastructure improvements and increased property values — and that the remaining administrative closeout steps will proceed this month.
The finance committee voted to approve the resolution and adjourned. The resolution and required closeout documents will be filed with the Department of Revenue as required by state law.