Wisconsin cities and villages have the ability to declare certain Tax Incremental Finance Districts (TIDs) "distressed" or "severely distressed."  Legislation allowing for distressed designations was first approved in 2010.

Two changes were recently signed into law changing the distressed TID statutes.  First, communities now have until before October 1, 2015 to designate a TID created before October 1, 2008 as a distressed or severely distressed TID.  Second, the previous requirement that a TID must have been in existence for at least seven years before designating it as distressed or severely distressed is repealed. 

Wisconsin cities and villages may soon have the authority to create Tax Incremental Districts (TIDs) that can cross municipal borders.  These "Multi-jurisdictional TIDs" (MJTIDs) would provide a new avenue for intergovernmental cooperation along jurisdictional boundaries, and in situations where a more regional approach to development or redevelopment would best serve the collective interests of the participating cities and villages.  

Legislation providing for creation of MJTIDs has been passed in the Assembly, and is currently pending in the State Senate.  As currently proposed, a MJTID's boundaries would need to be contiguous and include territory within each of the cities and villages that would be participating.   While each participating community would still collect its respective share of the tax increment based on the value lying within its portion of the MJTID, the collective increment generated could be used to pay project costs anywhere within the MJTID.

Newly Incorporated Village Develops Comprehensive Financial Plan for Village and Utility Districts 

The Village of Summit, incorporated on July 29, 2010, is a community of about 5,067 residents located in Waukesha County, WI.  Although the newly elected Village Board did not have any major financial concerns, one of the top priorities of the Village Board was to complete a thorough review of the Village's financial position.    

In November 2010, the Village hired Ehlers as its Financial Advisor.  Shortly thereafter in March 2011, the Village engaged Ehlers to complete a Financial Management Plan for the Village's General Fund, Silver Lake Utility District, and Summit Utility District #2.  Ehlers facilitated four workshops with the Village Board and staff to develop the Financial Management Plan.

During the month of September 2011, Ehlers Financial Advisors conducted six workshops across Wisconsin explaining the changes to the levy limit law.  Approximately 175 people attended the free sessions.   Each of the levy limit worksheet adjustments was explained in detail and strategies presented to help communities develop a levy limit management policy.  Ehlers developed the workshop materials with input from the Department of Revenue.

If you were unable to attend one of the workshops, the presentation materials can be found here. If you have questions about your levy limit worksheet as you finalize your 2012 budget, please contact an Ehlers Financial Advisor.