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Council closes TID 13 and approves contingency funding to cover shortfall
Summary
City staff reported TID 13, a 23‑year PAYGO district, ran a shortfall due to lower‑than‑expected development and capped admin reimbursements; the council voted to terminate the district and approved a contingency budget amendment (estimated $66–70k pending final audit).
City staff told the Waukesha City Council on May 19 that Tax Incremental District (TID) 13 has reached the end of its statutory life but closes with an accounting shortfall.
Jennifer, a city staff member who presented the overview, said TID 13 was created in 2003 and was the city's first PAYGO district; it was anticipated to spur industrial redevelopment but difficult soils and utility constraints limited development and tax increment. The developer agreement capped administrative reimbursements to the district at $35,000, and staff charged time to the TID expecting future reimbursement that never realized, leaving the district with a negative balance.
Council moved to terminate TID 13 as required by statute. Jennifer recommended using contingency funds to offset unreimbursed staff time and other administrative costs so the district can be closed cleanly; staff estimated the final number after audit will be approximately $66,000–$70,000 and recommended a $70,000 authorization to provide cushion until the final audit.
Council approved the termination and the budget amendment to use contingency funds, with the mayor noting the amendment was pending the final audit and that a two‑thirds majority is required for budget changes; members confirmed the motion passed with the required margin.
What this means: TID 13 will be closed; the city will record the final audit result later this year and reconcile the exact amount charged to contingency. Staff described this as a learning case in PAYGO structuring and noted changes in later TID agreements to avoid similar shortfalls.
