The Whitewater Finance Committee met on Tuesday, Aug. 26, to discuss the improvement of tax increment financing (TIF) analysis and partnership opportunities with the Whitewater Arts Alliance.
Senior municipal advisor Greg Johnson from Ehlers Inc. presented examples of TIF analyses that were conducted in other Wisconsin communities. Johnson explained how Ehlers uses the “but-for” testing method, which is tests used to review a developer’s financial projections to see if a project is achievable. If the rate of return is too low to attract financing without the city’s help, then a TIF can be justified for use. Ehlers’ review process examines financial sourcing, construction costs, projected income, and expected rates of return. Members of the committee advocated that this data gives policymakers a clearer understanding of the project’s feasibility before committing city funds.
Committee members also discussed the importance of using these standards to avoid the previous uncertainty that arose during prior development projects. A but-for rubric that would quantify project needs was favorably suggested. It was noted that having a third party reviewer such as Ehlers could be beneficial to avoid limiting the community to its own set of guidelines.
The next discussion in the meeting occurred with the Whitewater Arts Alliance. Alliance members shed light on the issues food truck vendors have been facing with acquiring permits, ultimately discouraging them from participating in events. Maintenance issues at the Cultural Arts Center such as needing new awnings, American Disabilities Act (ADA) compliant railings, and Automated external defibrillators (AED’s).
Representatives of the arts alliance also highlighted their contributions to Whitewater’s culture through the Storytelling Festival, Pain Wisconsin, and the annual Fran Achen Juried Photography Exhibition that not only attracts locals but also statewide participants.
The meeting concluded with the members reviewing an amendment to the procurement policy and scheduling of special budget meetings for sometime in October.
