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Brown Deer reviews tax incremental districts and upcoming debt obligations
Summary
Village staff briefed the board on four active TIDs (3–6), saying TID 3 is performing well and will subsidize TID 4, that TID 5 is doing strongly and TID 6 centers on an assisted-living project; staff also reviewed near-term net debt service increases that could raise the levy by about 2%.
Village staff gave the board an annual briefing on the financial status of Brown Deer’s tax incremental financing districts and on future debt obligations, describing current projections and the budget implications for the tax levy.
Tal, a village staff member, summarized the TIDs and said the village has four active districts (numbers 3–6). "TID 3 continues to do really well," Tal said, and staff anticipates using some of TID 3’s growth to help subsidize TID 4. Tal described TID 5 (branded in materials as the MEBA TID) as doing well and said TID 6 currently centers on an Atlas assisted-living project and other potential downtown projects coming before the board.
The presentation was informational; Tal said no board action was required. He noted that some administrative charges for TID 3 and TID 4 remain on the books and that staff will review options during the budget process to reduce reliance on those charges once the TIDs expire.
On future debt, Tal walked the board through a net-debt-service column in the packet and warned the board to focus on years 2026–2028 in light of a recurring pattern of issuing debt every two years. "You can see, you know, about 200 to 300,000 increase every year based on what we have," Tal said, adding that the increase equates to roughly "about a 2% increase alone on the tax levy" attributable to new debt in the near term. He also cautioned that interest rates and higher construction costs compared with a decade earlier will affect long-lived projects such as a library or DPW building.
Trustees asked staff for additional detail on the timing and the size of particular notes; Tal said he would email the board specific schedules for larger notes, including the DPW and library obligations, this week.
The presentation closed with no action required; staff thanked Derek for his work on tracking debt and TID performance and noted the village will continue to address administrative charges and long-term debt planning during the upcoming budget cycle.
