River Falls council approves termination of Tax Increment District No. 5; value returns to tax roll

The River Falls City Council voted to approve a resolution terminating Tax Increment District No. 5, finance director Josh Salinger told the council during a presentation explaining the district's history and finances.

Salinger said the district was created on July 26, 1994, covers about 311 acres and that the current assessed value of property in the district is roughly $31,600,000, up from about $467,000 when it was created. "To date, we've brought in a little over $19,000,000 in total tax increment revenue," Salinger said. He said about $14,800,000 has been spent on project costs and debt service and roughly $2,200,000 has been transferred to the general fund, including repayment of a general fund advance of about $1,550,000.

Salinger told the council the district remained active as of Jan. 1, 2025, and that the city will collect tax increment revenue one last time in 2026 (for the 2025 tax year) and make a one-time transfer to the housing reserve fund to support affordable housing before closing the district. He described a one-year extension the council approved the prior year under a statutory provision allowing TID extensions for affordable housing opportunities.

After Salinger's presentation the council moved and seconded a resolution to terminate the district. Council members voted in favor; the chair called the vote "Aye" with no opposition and the motion passed.

Salinger outlined next steps: the council-approved resolution to terminate the district will be followed by a final accounting prepared by a CPA and submitted to the state within one year of termination, and the district's value will be returned to the city tax roll effective Jan. 1, 2026.

The council did not discuss alternative actions during the vote; Salinger answered council questions about chronology and the district's finances before the motion.