Waunakee CDA recommends two-month TID 4 extension to direct $160,716 to affordable housing

The Waunakee Community Development Authority recommended a two-month extension of Tax Increment District 4 so a $160,716 tax increment collected in 2025 (for the 2024 tax roll) can be used for affordable housing, the CDA decided at its Feb. 12, 2025 meeting.

Renee, a staff member, told the CDA the district "collected enough increment last year in 2024 for the 2023 tax roll to technically close," but staff wanted to keep the district open through the end of the expenditure period (listed in the packet as 12/02/2024) to capture TIF-eligible costs tied to soil contamination at the village center. Renee said the 2025 increment for the 2024 tax roll "is more than we need" and that extending the district for a short period would allow the authority to allocate the entire $160,716 to affordable housing. "If we do the TID extension for affordable housing, we only have to do it for about 2 months...and then the entire increment...would go to affordable housing," she said.

Renee told members that if the CDA did not extend the district, the authority would close by April 15 and refund the excess increment — meaning the majority of the $160,716 would be returned to the overlying taxing districts after audit fees. Tricia Brown, a CDA member, called it "a great problem to have" and said the overperformance of the TIF would benefit the community.

A motion to recommend the two-month extension and to use the 2025-collected increment (for the 2024 tax year) for affordable housing passed by voice vote; all five members present voted in favor. Members said staff will place the recommendation on the Village Board agenda for final action.

The CDA record shows the extension is intended to be short and to end before the April 15 tax deadline so the authority will not capture an additional year's increment intended only for affordable housing.