Growth and expansion
You’ve probably heard that Sun Prairie is a growing community and it's the truth. Many people choose to call this community their home, and rapid growth has a major impact on how the city continues to serve the public. Here are some phrases and words that are used when discussing a community’s growth:
Planning
Planning is the process of guiding and regulating the development of a community by outlining the future capital improvements and infrastructure a community requires to grow.
Zoning
Zoning laws divide a jurisdiction's land into districts or zones, each of which has regulations on the types of land use permitted, such as residential, commercial, industrial, or agricultural.
TID (Tax Incremental District)
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A Tax Incremental District (TID) is an area of property within the community where the city would like to see new development or redevelopment occur. When established, incremental property tax income that is created by new development within the TID is redirected in order to fund economic development projects in the district. It is one of the only economic development tools that municipalities have in the state of Wisconsin that helps aid in the development.
TIF (Tax Increment Financing)
Tax Increment Financing (TIF) is the financing mechanism available within a TID that helps fund community development projects. TIF uses the increased property taxes from a revitalized area to pay for improvements.
FAQs
How does population growth impact local government?
Population growth increases demand for public services, infrastructure, housing, and staff capacity. It can strain budgets and resources in the short term, requiring strategic planning and investment to meet community needs.
How does zoning impact the community?
Zoning shapes how land is used and developed, influencing housing options, business activity, traffic flow, and community character. It helps ensure compatible land uses and supports long-term planning goals.
Why are certain areas zoned for specific uses?
Zoning separates uses (residential, commercial, industrial, etc.) to reduce conflicts, promote safety, manage growth, and support infrastructure planning. It also helps guide where new development should occur.
What is net new construction and how does it impact the community?
Net new construction is the total value of new buildings and physical improvements that are added within a community in a year. This includes things like new homes, commercial buildings, or industrial facilities. It can serve as an important metric as it helps determine how much additional property tax revenue the city can collect under state levy limits. Net new construction brings value and opportunities, but it is only part of a larger financial and planning process.
Does new construction raise property taxes?
Net new construction is vital to the overall health and wellbeing of a community and providing the quality of life that residents expect. There is not necessarily a one-size-fits-all answer to this question, and certainly the type and character of new construction plays a role in its fiscal impact. Some uses, such as high value office buildings that don’t generate a great deal of traffic, are very attractive uses that typically provide a positive fiscal return to the city. For most other uses the return may not be as clear, but sometimes there are other significant benefits to consider.
New residents and businesses create service needs, and typically these can be met up to a point. Eventually this creates demands for new or expanded public facilities or additional staff to maintain service levels. So this question is complex without a clear yes or no answer other than noting that diverse new investment to grow and build our community is important both in terms of the fiscal health of the city and quality of life within the community.
Do all developments throughout the city generate tax revenue?
Places like churches and community centers generate no tax revenue but contribute significantly to the cultural and social well-being of a community. Manufacturing and employment uses are often not assessed at a high level on a per square foot basis but provide jobs and significant economic benefits. Low density residential development typically comes with significant infrastructure needs that become expensive to maintain and replace over time, but these areas make up neighborhoods that provide a high quality of life for many residents. Higher density development is much more efficient in terms of tax revenues versus infrastructure impacts, but may result in increased demand for other services. In the short term, most development creates new net-positive property tax revenues to the city.
