Editor’s note: This story has been edited to clarify remarks from Supervisor Ann Lemmer. The article had incorrectly reported a part of her conversation with an expert. We have also added some remarks from the supervisor. Wausau Pilot & Review regrets the error.
Damakant Jayshi
Sharp differences emerged Thursday at the Marathon County Board of Supervisors meeting regarding the need for a proposed task force to study the impact of tax increment financing on the county’s finances.
The task force was proposed after several county supervisors and residents expressed concern over potential missed revenue from municipalities using tax increment districts, or TIDS, which can have a decades-long lifespan. The county and other tax-levying entities, such as the Wausau School District and North Central Technical College, can only collect taxes at base value when a TID is created, but not on the increased value of the properties within the district.
Municipalities that create a TID use the revenue for redevelopment, effectively depriving other tax-imposing entities from receiving a share of the increased revenue for a period of years. Wausau heavily relies on tax increment financing for economic development and has TIDs that extend 20 years or are extended further. Some have resulted in a loss of revenue, rather than an increase.
During Thursday’s discussion, support and opposition for forming a task force was about even among board members. The proposal will likely come up for a formal vote on Tuesday and will require a two-third majority to pass.
Supervisor Jacob Langenhahn said a lot of property in Marathon County is “locked at base value,” with a total revenue increase in property in the 40 TIDs across the county pegged at more than a billion dollars. But the county cannot earn taxes on any increased revenue for years.
Langenhahn said the municipalities that can create TID still rely on services provided by the county, such as the Marathon County Sheriff’s Department or Social Services. The county is providing such services but not getting a share of the incremental revenue and that is unfair, the Dist. 35 supervisor said.
Supervisor John Robinson said he is not against the financing tool, given that they have value and are allowed by state statute. Robinson, who previously was personally involved in TID creation as a former Wausau mayor, said the task force is needed to examine the county’s role in creating and extending the lifespan of TIDS.
Municipalities do not come to the county board when they want to extend the life of a TID but go to the state legislature, he said. The task force would provide a seat at the table for municipalities and the proposed body could offer an opportunity for collaboration between the county board and the municipalities in the county, Robinson said.
Supervisor Ron Covelli called the task force unnecessary because the board can consult experts to examine the value of TIF and TID as an alternative. He said municipalities that could see an impact from the proposed task force were not consulted on the issue, and suggested inviting municipal leaders to an educational meeting in the future.
Similarly, Supervisor Ann Lemmer also opposed the task force. She said that the Wausau city leaders she had spoken to told her TIF was the only tool at their disposal to “revitalize development” in the city. She added that any report by the task force on TIF might be received with suspicion. Lemmer suggested talking to experts from the area who have offered to speak with the board and educate all members of the board.
Board Chair Kurt Gibbs said the task force was intended only to study the impact of TIF on the county. He cited the example of a Wausau downtown area where a mall once operated under TID. Now that is being redeveloped and the county has no idea how much of the incremental revenue will ultimately be beyond the reach of the county. Gibbs said the intent is to to see if there is any better way to address the concerns related to missed revenue.
Some supervisors expressed concern over the proposed composition of the task force. According to the proposal, the advisory body would have nine members including five county board members, two local elected officials, one representative from a local taxing district and one business community representative.
During public comments, Peter Weinschenk, former editor of The Record-Review, requested the board members vote in favor of the task force, saying TIF “is now an out-of-control monster” and “unsustainable.”
State statutes limit the total value of TIDs in municipalities at 12% of its tax base. Some estimates say the value is over the cap, in both the Marathon County and the City of Wausau.
