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Finance committee recommends early closure of TID 10, citing fulfilled project costs and projected surplus
Summary
City staff recommended closing Tax Increment District (TID) 10 early after project costs were satisfied; staff said the district generated roughly $114–115 million in new assessed value and that surplus increment (about $1.1 million projected) would be distributed to overlapping taxing jurisdictions.
City staff presented slides to the Muskego City Finance Committee on April 14 recommending early termination of Tax Increment District (TID) 10, which was created in 2008 and amended in 2009 to support industrial and commercial development along Morland Road. Staff said the district encompasses about 126 acres and funded public investments including utilities, road and intersection improvements, grading, lighting and water infrastructure to enable development.
Staff said the district has largely fulfilled its purpose, citing major private development within the Morland Commerce Center, including GE Healthcare, Walmart and Ace Hardware, and reported that all project costs have been satisfied with a projected surplus of approximately $1.1 million. Staff presented figures indicating roughly $114–115 million in new assessed value has been created and estimated that returning that value to the tax rolls at closure would generate roughly $1.3 million annually for all overlapping jurisdictions.
A presentation attendee asked whether the fund balance of roughly $301,768 could be used for capital this fall; staff confirmed the one-time distribution and ongoing revenue would be available to jurisdictions according to their tax rates. Committee members moved and seconded to recommend approval of early closure to the full council; the committee approved the recommendation by voice vote.
If the council approves closure, staff said excess increment at closing would be distributed to the overlying taxing jurisdictions based on their tax rates and the city’s proportional share could be applied to capital projects, general fund purposes or levy reduction. Staff noted the district is substantially built out with limited remaining opportunities for eligible TID expenditures.
Next steps: The committee’s recommendation will be forwarded to the Muskego City Council for final action. If the council approves early termination, distributions to taxing jurisdictions would be scheduled according to closing calculations and tax roll timing.
