Joint review board hears plan to fund street improvements
September 2, 2020
A preliminary meeting of the Cashton Joint Review Board, held Wednesday, August 26, was a first step is clearing a path for several street improvement projects in the village.
The proposal is to extend the length of the payback period by three years and use Tax Incremental District (TID) dollars to fund the needed improvements. Legally, the plan has to be approved by parties that would be affected by the decision, including the Cashton School District, WTC, and the county who were all part of the review board process. After some discussion, a unanimous vote was cast to allow the three-year extension. Without the funding, the streets projects likely will not be completed.
They are all projects that need to be done, and “We just don’t have funding for,” Cashton Village President, Bob Amundson said. “There’s no way we can fiscally do these projects…” without the funding, he added.
By extending TID #2 (downtown) and TID #3 (industrial park) for three more years, an estimate of just under $3 million in tax revenue could be generated to complete street and infrastructure work.
New projects included in the proposal include street reconstruction work on Main Street and the alley that runs along the new bank property and Cashton Building Supply. Also, reconstruction work on Albion, Hagen and Park Streets are on the list. Bidding for the projects is underway, but a second Joint Review Board meeting, and approval of the Cashton Village Board are required to move the plan into action.
The proposal to use TID funding was explained as a “one-time opportunity” as the window to utilize it is closing. If the plan is approved, it would extend the payback period until 2029. It is also being promoted as the best, and only way the Village can finance the work.
Tax Incremental Districts are typically created to help a municipality pay for improvements necessary to accommodate the construction of a new business, such as the creation of streets, installation of sewer, water, electricity, etc. Or they can be established to address blight (as in the case of the downtown TID). Generally, tax revenue created by the improvements are used to repay those project debts. Once the TID expires, tax revenue is divided in the same manner property taxes are. With portions going to the school district, WTC, and the county.