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Don’t decisions by the city affect taxes collected by the school district? For example, if the city creates a TIF district, exempting it from all property taxes for a period of time, doesn’t the school district not get the taxes by those new developments until the TIF expires? Trying to understand. Thanks!
Not exactly. First, properties in the TID continue to pay taxes to the school district on their pre-TID value. For example, in the Town Center, properties continue to pay the district about $328,000 in taxes per year. Second, if those developments never occurred, then the district would never receive taxes on the developments. In the case of the Town Center, the school district agreed to defer collecting additional taxes until the TID closes, realizing that most or all of the development would not have occurred. After all, these properties did not redevelop before the TID because of contamination and demolition costs. When the TID closes, the school district will receive a great boost of additional revenues (about $1,2 million each and every year). You are correct on one point. By creating a careful and intelligent TID, the city can assist the school district. Read more here: https://wirth4mequon.com/2019/02/14/how-the-town-center-helps-our-schools/