Are the procedures (ex: notices, public hearings, resolutions) for creating a town TID under state law (sec. 60.23, Wis. Stats.), different from those for a city or village?
No. The procedures are the same because the town chose to exercise all powers of a city, under sec. 66.1105, Wis. Stats. See the
What additional requirements must a town meet compared to a city or village when creating a TID under sec. 60.23 Wis. Stats.?
There are three additional requirements:
- Prior year
Equalized Value — must be at least $500,000,000
- Prior year population — must be at least 3,500 based on the Wisconsin Department of Administration's most recent
Annual Population Estimates
- Sewer service — is or will be provided before use or operation of any improvements
Note: The project plan should show that the town meets these requirements.
State law (sec. 60.23(32)(f)2., Wis. Stats.) requires the town to select option (a), (b) or (c). What impact do these three options have on the project plan?
Option (a) — (sec. 60.23(32)(f)2.a.)
- At least 51 percent of the public infrastructure improvement value must be financed by a private developer or entity
- Development agreement is required to receive cash grants which will solely repay the developer or entity for public infrastructure costs
Option (b) — (sec. 60.23(32)(f)2.b.)
- Town expects all project costs to be paid within 90 percent of the TID's remaining life
Option (c) — (sec 60.23(32)(f)2.c.)
- Expenditures may be made only within the first half of the TID's remaining life
- Joint Review Board can approve additional expenditures; however, the vote must be unanimous, and the expenditures cannot exceed the original expenditure period
Is debt service included in the timeframe for Option (b) or Option (c)?
Option (b) — the creation project plan must demonstrate the TID will have sufficient revenue to pay off debt and all project costs within 90 percent of the TID's maximum life. After all project costs are paid, the TID must terminate.
Option (c) — the municipality may only take on project costs within the first half of the TID's remaining life. Debt payments may continue through the TID's maximum life.
Does a town have to choose option (a), (b) or (c) each time it amends a TID, or do the options only apply when creating a TID?
A town must select an option (a, b, or c) when creating the TID, and document the selection in the project plan. If the town completes an amendment, it must reconfirm the TID's original creation option or select a different option.
What limitation percentage affects a town?
12 percent — if the TID is created under sec. 60.23, Wis. Stats., the 12 percent limitation is used because the town chose to exercise all powers of a city under sec. 66.1105, Wis. Stats.
5 or 7 percent — if the TID is created under sec. 60.85, Wis. Stats., the 5 percent or 7 percent limitation is used.
Value Limit Common Questions for more information.
Can a town TID still be created under sec. 60.85, Wis. Stats.?
Yes. A town may create a TID under sec. 60.85, Wis. Stats. For more information, review the
Town Creation web page.
FOR QUESTIONS OR COMMENTS CONTACT:
WISCONSIN DEPARTMENT OF REVENUE
Office of Technical and Assessment Services
PO Box 8971
Madison, WI 53708-8971
Phone: (608) 266-7750
Email additional questions to firstname.lastname@example.org