Tuesday, September 18, 2007

Closing TIFs Will Result In Excess Funds Distribution

Several taxing jurisdictions will be receiving a pleasant surprise soon.

The Village of Baldwin has closed two TIF districts-numbers one and three-and there are excess funds in each of them. So the taxing jurisdictions that didn't receive the "increments" in taxes due to the increased valuation in the district during their lives, will receive the excess fund that were collected over expenses. The excess funds will be apportioned based on the average of the municipality's share of tax collections.

TIF district one was created for the village's original industrial park. TIF district three was an overlay of district one with some additional territory.

That is a pretty hefty amount in some cases.

From district one, St. Croix County will receive $49,897; the B-W School District will receive $126,800; VTAE district will receive $14,564; and the Village of Baldwin will receive $91,597.
From district three, St. Croix County will receive $52,931; B-W will receive $156,740; VTAE will receive $18,685; and the Village of Baldwin $119,115.

Each district will retain $5,000 for a final audit.

Sean Lentz of the financial consulting firm of Ehlers and Associates said the excess funds reflects the success of the districts. "They paid off their costs and they have excess funds so they are paying it out. This reflects that those districts did very well over the years." Lentz also commented on the process of forming a new TIF district for the development at the southeast of the I-94/USH 63 interchange. He said the joint review board had been scheduled for last Thursday and that will be followed by state certification. Because the district includes some of the land in the development on the southwest quadrant of the interchange, it will generate some income right away.