Professional Documents
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2013 Voters' Guide Page 2
2013 Voters' Guide Page 2
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COMMUNITY CONVERSATION
9A
Robert Mielke
Residence: Wausau Experience: Incumbent since 2012, works in pest control What can you add to the council? I get along well with others, but Im Robert not afraid to speak my mind. When people Mielke call me, the response they get is always honest, its quick, its professional. Im an independent vote on the council. I surprise people; I dont go with the flow.
A city bus cruises down Thomas Street. DAILY HERALD MEDIA FILE PHOTO
Geraldine Kowalski
Residence: Kronenwetter Experience: Village trustee since 2003; village treasurer for eight years; owns trucking company with her husband What would you bring to the job of village president? Geraldine I have a very extensive background in Kowalski budgeting and accounting the money end of things. With all the years of experience Ive had in business, I look at profits and losses. If you dont have the income, you cant do the expenses. ... Ive been working with the village for 10 years through all of the growth weve had.
s the Thomas Street reconstruction a public works project or economic development? That may seem like a distinction without a difference. However, the technical answer to that question may be the key to whether it is appropriate to use $13 million of tax increment financing or TIF district money for the project. Wisconsin passed its TIF law in 1975, just before Wausau began to debate the construction of the downtown mall. The Wausau Center mall is exactly the kind of central-city revitalization project that the law contemplated. New stores and malls were being built on the outskirts of towns because virgin construction sites were much cheaper than trying to reclaim a previously developed inner-city lot. The law gave cities a financial tool to ameliorate the costs of building on previously used sites. The city could borrow money, use it to contribute to the private developers costs and then share the costs of retiring the debt with the county, the school district and the technical college district. Once the bonds were re-
Keene Winters
Jim Rosenberg
tired, the TIF district could be closed and the improved property could be retired to the general tax rolls of all the taxing jurisdictions. And because the development would mean increased property tax value, all would benefit. The TIF laws were not meant to throw money at projects indiscriminately. To determine whether it was appropriate to use public money in support of a private development, the statutes laid out a but for test. To undertake tax incremental financing, you had to be able to say that but for the intervention of public dollars, the cost of reclaiming a site would be so high that development there would never be commercially viable. Granted, there are variations of how TIF laws are used. (See the Feb. 20 entry on Jim Rosenberg's blog, http:// jimrosenberg. wordpress.com/, for a broader discussion of various uses of TIF dollars.) But in this in-
stance, it's hard to see how the but for test can be applied to a road reconstruction project. The Thomas Street project has no specific private development tied to it. TIF money does not make the site any more competitive with other possible road sites. The city of Wausau cannot plead poverty and declare that TIF money is necessary to complete the project. Its a government; it has the authority to tax and borrow money as needed. The moment a person tries to apply the but for test, it quickly becomes apparent how unwieldy a fit this project is for TIF money. Here is the real key: The Thomas Street project creates no new tax base. On the contrary, it paves over millions of dollars of taxpaying properties. It generates no revenue to repay the $13 million in bonds. So where does the money come from? Nominally, we skim revenue off of other TIF projects and other TIF districts. That means those districts that would otherwise be closed and returned to the general tax rolls are held open longer. The general fund has to make do without that tax base for years and years. So ultimately, or-
EDUCATION SESSION
The UW Extension-Marathon County will hold a public session on current law and best practices on the use of tax increment financing. The session, which is hosted by the Marathon County Education and Economic Development Committee, will be from noon to 4 p.m. April 23 at UW Extension, 212 River Drive, Wausau. For more information, contact Mary Kluz at 715261-1241 or by emailing mary.kluz@ces.uwex.edu. Register by emailing Nancy at UW-Extension at nancy.anderson@co.marathon.wi.us
dinary property taxpayers bear the full costs of non-revenuegenerating TIF projects. If we could make Thomas Street a toll road, this might work. Otherwise, TIF funding is not appropriate for a road construction project.
Keene Winters represents District 6 on Wausau City Council and is a member of the City Finance Committee. Jim Rosenberg is a former longtime City Council member representing District 1, a current county board supervisor and chairman of the County Education and Economic Development Committee.