TIF Updates

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1. TIF UpdateWisconsin Clerks, Treasurers & Finance OfficersInstituteJune 27, 2013 2. Overview1. Your TIF Questions2. Past & Current Use of TIF3. Recent Changes4. Issues & Discussion 3. What Is TIF?Simply:A municipal financing tool toaccomplish specific communitydevelopment objectives: Blight Elimination Neighborhood Conservation Industrial Development Mixed-Use Development 4. Past & Current Use of TIFTID Type # Active %TIDs pre-10/1/95 213 18.7%Blight 268 23.5%Rehab/Cons 101 8.9%Industrial post 95 193 16.9%Industrial post 04 77 6.8%Mixed Use (04) 203 17.8%Environmental 16 1.4%Town Ag 3 0.3%Total 1,074Severely9 0.8%DistressedDistressed 56 4.9%1995 835TIDSCreated, 408were stillactive 5. Trends In Use of TIFStatewide, about 4.8% of municipal equalized value is tax incremental value, upfrom 3% in 1990. 6. TID Matrix 7. Recent ChangesFees: Creation: $1,000 Amendment (addition or subtraction): $1,000 Amendment (addition and subtraction same TID):$2000 Amendment (distressed/severely distressed): $500 Project Plan (only) Amendment (no added/subtracted territory): no fee. Yearly maintenance fee: $150 per active TID,payable by May 15th. Electronic payment 8. Recent ChangesNew Filing Deadline Submission deadline of October 31 of year in whichTID was created previously December 31Options for 12% Non-Compliance DOR notification by 12/31 Local legislative body may, within 30 days: Rescind approval of project plan resolution, or Remove parcels from district and resubmit Simultaneous creation/subtraction 2 appraisals showing values for each action 9. Recent ChangesSharing Revenue Between Districts(Allocation Amendment): Same overlying taxing jurisdictions Demonstrate surplus revenue TIDs created after 10/1/95: Recipient must be blight elimination orneighborhood conservation TID, or Recipient TID must have projects to create,provide or rehab low-cost housing or remediateenvironmental contamination Donor TID life cannot be extended 10. Recent ChangesDistressed/Severely Distressed TID TIDs created before 10/1/08, no amendment after10/1/09 Distressed designation allows a max10 yearextension Severely distressed value increment decline >25%-designation allows a max 40 year extension May not add new project costs No overlapping TID Expend funds outside TID boundary Add territory Be a donor district 11. Recent ChangesMixed-Use TID >50% a combination of commercial, industrial orresidential development 25% vacant land allowed if one of the followingapplies: Density at least 3 units per acre Housing located in a conservation subdivision Housing located in a traditional neighborhooddevelopment 12. Recent ChangesExpenditures Within Mile Remain within municipal boundary Project costs must still relate to the purpose forwhich the TID was created Does not capture increment 13. Recent ChangesExtension for Affordable Housing TIDs that have paid off all project costs may extendthe life of the district for one year to benefitaffordable housing and improve the housing stock. At least 75% of increments must be used foraffordable housing and up to 25% to improvehousing stock. City resolution forwarded to DOR no JRB action orpublic hearing required 14. Recent ChangesTown TIF Cooperative BoundaryAgreement Towns that have a cooperative boundaryagreement with a city/village may create a full-featuredTID if: All or part of the town will be annexed City/village annexing approves the creation ofthe TID TID is located solely within the territory to beannexed City/Village may take over a Town TID until itsmaximum life has been reached 15. Recent ChangesMulti-Jurisdictional TID Two or more municipalities may enter into anintergovernmental cooperation agreement andjointly create a multi-jurisdictional TID Agreement determines municipality with lead role Increments and expenditures allocated to eachjurisdiction Towns not allowed to participate in a multi-jurisdictionalTID 16. Example: Sharing RevenuePrairie du Chien TID#5 WorkforceHousing transfer funds fromind TID to ind TID forlow-cost housing City is developer energy star homes bike connectionto high schoolHighSchoolBike TrailUniversialForestProducts100 Emp.37 Single Family Lots 17. Example: Mile RadiusShorewood Hills Marshall Court 18. Example: Mile RadiusShorewood Hills Marshall CourtBefore After 19. Example: Mile RadiusCambridgeVacant Melster CandyProperty Hole in the donutalong KoshkonongCreek Senior housingredevelopment proposal No bridge connectionto downtown - creates adivided community froma pedestrian perspective No communityconnections to regionalbike trails 20. Example: Mile RadiusCambridge TID driven byredevelopmentof MelsterCandy site Connect site &west side withdowntown Connectregional biketrailsConnection toGlacial Drumlin TrailSafe bikecrossings ofHwys 12 & 18 mile radius Existing Cam-Rock Trail 21. Example: Extend for HousingMonona Housing stock 1950s;not meeting needs ofmodern households Losing residents tocommunities w/ newerhomes TID #3 closing generating $120,000 Kept TID open 1 year revenue used to fundRenew Monona 22. Example: Intergovernmental Town Cooperative Boundary TID Multi-Jurisdictional TID 23. Issues & Discussion Annual Filings: TID Assessment Report Assessor/2nd Monday in June Missed Deadline=Missed Increment Statement of Assessment Clerk/10 Days after Board of Review Tax Increment Certification Clerk/May 15 Missed Deadline=Missed Increment 24. Issues & Discussion Annual Reports Provided to Overlying TaxingJurisdictions Not to DOR May 1st Deadline Status of Each TID IncludingExpenditures & Revenues Sample Form:http://www.revenue.wi.gov/forms/govtif/pe-218.pdf 25. Issues & Discussion Periodic Filings: Audit Reports 3 Required 12 Months After: 30% of Project Costs Expended Final Expenditure Termination Only Termination Audit Filed WithDOR All Others Sent to OverlyingTaxing Jurisdictions 26. Issues & Discussion Periodic Filings: Development Agreements If JRB Not Dissolved, Copies Must BeSent To JRB, Otherwise Retained ByMunicipality Not Sent to DOR 27. Issues & Discussion Good Practices Annual Review w/ Governing Body TIF Overview Every 2 Years Case Studies of TIF Projects TIF Role In Implementing StrategicDevelopment Objectives 28. Resources DOR City/Village TIF Manualhttp://www.revenue.wi.gov/pubs/slf/tif/cvmanual.html TID Criteria Matrixhttp://www.revenue.wi.gov/pubs/slf/tif/tif-trix.pdf Sign-up for email updateshttp://www.revenue.wi.gov/html/lists.html This presentation available for download fromour blog sign up while youre there!http://blog.vierbicher.com 29. Questions?Gary Becker, CEcDVierbicher999 Fourier Dr., Suite 201Madison, WI 53717(608) 821-3941gbec@vierbicher.comwww.vierbicher.com