The City of Prescott published the following news release in regards to accusations that the school district presented incorrect tax levy impact numbers related to the recent operating referendum passed by voters Nov. 5:

“Based on discussions with the Prescott School District and information we have seen posted on the front page of their website, we believe at the Prescott School Board meeting on Wednesday, Nov. 20 statements are going to be made that Tax Increment Districts (TIDs) are responsible for a larger increase than expected to the school tax portion for City of Prescott residents. If this is indeed the case, these statements would not be accurate and create a negative perception around the economic development tool of TIDs used throughout the State of Wisconsin. TIDs are an important economic development tool for the city, Pierce County, and all that live here to offset future tax impacts for residents by creating new growth. 

“The City of Prescott has two TIDs created in 2003 and 2006. A third TID is currently under review by the Wisconsin Department of Revenue. These TIDs are used to remove blight in the case of TID #4, which is downtown and to incentivize public and private development in the case of TID #5, which is the Prescott Business Park north of US Highway 10. Any new development after creation of a TID creates a tax increment that can be used for certain projects, which a TID project plan sets upon approval of the district. No significant growth has occurred in either district since 2020-2021. In fact, the Prescott School District’s value increment decreased from $693,273 in 2024 to $530,881 in 2025, which would result in a net decrease in the Prescott School District portion for property taxes. This is precisely one of the reasons that although the City of Prescott property tax levy is increasing by 3.57% for 2025; residents of Prescott are seeing a decrease in their property taxes from the city portion of 1%. This decrease in TID values is a result of the Wisconsin Department of Revenue mandated reassessment of the City of Prescott for 2023 and a one-time valuation adjustment as a result in 2024.

“Further, the City of Prescott is the only municipal entity within the Prescott School District with TIDs, which would result in only the City of Prescott residents seeing a disproportion increase due to a school levy increase. However, the Prescott School District is also made up of Oak Grove, Clifton, Diamond Bluff and Trimbelle townships, which you can see on the map (above). All these districts are seeing an increase to their Prescott School District portion of their property taxes at a greater level than City of Prescott residents for 2024 payable 2025. Prescott residents are seeing the smallest increase in property taxes from the school levy due to the fact that Prescott has TIDs that are outside of the apportionment for the school district, and we have the largest population of all the districts to spread out the costs.

“Finally, the city takes no stance on the referendum passing; the information that was included in the Nov. 11, 2024 City Council packet was simply educational for understanding tax impacts on residents in 2025 as part of our budget approval. The city does believe it is vitally important that our community has a healthy, thriving and successful school district. It is also important thatcorrect information is given out for TIDs as they are an important economic development tool used throughout Wisconsin. With them the city has made efforts to revitalize our downtown and incentivize important growth within our community to offset future tax impacts on our residents. If you have any questions, please give us a call at 715-262-5544.”

Submitted by City of Prescott