By LeAnn R. Ralph
COLFAX — At the annual meeting for the Joint Review Board overseeing the Colfax Tax Increment Financing Districts, board members learned the Colfax TIFs are “right on track.”
State law requires an annual meeting for the Joint Review Boards overseeing TIF districts, and the Colfax meeting was held September 23 at the Colfax village hall.
When a TIF district is formed, property taxes for all of the new valuation in the district go to the village for a period of 20 or 27 years, depending upon the kind of TIF district, instead of being distributed to the usual taxing authorities of village, school district, county and technical college district.
During the life of the TIF, the village can use the property tax money for projects in the TIF, such as building streets and installing sewer and water lines.
Also during the life of the TIF, the property taxes generated by the base value still go to the village, school district, county and technical college district.
The Colfax Joint Review Board includes Scott Gunnufson, village president; David Bartlett, chair of the Dunn County Board; Dan Lytle, representing the Chippewa Valley Technical College District; William C. Yingst Jr., Colfax school district administrator; and Mike Buchner as a member of the public.
Bartlett was absent from the meeting.
Sean Lentz, senior municipal advisor with Ehlers Inc. presented the reports on TIF 3 and TIF 4.
TIF 3 was created on September 10, 2002, as a blighted district.
TIF 3 includes much of Main Street/state Highway 40, mostly on the west side, the south side of Railroad Avenue to Third Avenue and east to Dunn Street, the areas around Bremer Avenue, Willow Street and Elm Street, and a one-block wide area from Fifth Avenue to the village limits, excluding the parcel where the Colfax Health and Rehabilitation Center is located.
The base value of TIF 3 is $4,436,900, and the added valuation (the incremental value) is $3,236,600.
The year-end balance at the end of 2018 was $172,032.
The projected closure of TIF 3, based on current cash flow, is 2024.
TIF 3 was amended in 2006 to include additional property, and the district was amended in 2014 to allow additional project expenditures within a one-half mile radius of TIF 3 within the village, Lentz noted.
TIF 3 is projected to have a tax increment of $87,777 annually from 2018 to 2028.
General obligation bonds of $1.3 million borrowed in 2013 are expected to be paid off in 2024.
A general obligation note of $350,000 from 2016 also is expected to be paid off in 2024.
A promissory note for $410,000 from 2016 is expected to be paid off in 2022.
TIF 4 is a mixed-use district south of the railroad tracks and extends to the village limits on the west, directly west of TIF 3, and extends from Dunn Street nearly to the village limits on the east and includes sections south of City View Villa Court and south of Bremer Avenue with one small section north of Bremer Avenue.
Mixed use includes single-family residential, commercial services, agricultural/forest, railroad, and other transportation and utilities.
TIF 4 was created on February 22, 2006, and has projected closure based on current cash flow in 2026.
The base value of TIF 4 is $1,876,600 with an incremental value of $1,228,000.
The year-end balance at the end of 2018 was $9,514.
TIF 4 shares funds with TIF 3 and is projected to share $33,303 from 2018 to 2024.
The TIF districts are “right on track,” Lentz said.
Part of the business of the annual meeting of the Joint Review Board is to approve a resolution acknowledging the filing of the annual reports for the TIF districts and compliance with the annual meeting requirement.
The Joint Review Board unanimously approved the resolution.