Residents want Janesville to revert back to financing public infrastructure for housing developers.
Deputy City Manager Ryan McCue said when the city paid for this in the past, it came back to bite taxpayers.
His report to the city council said Janesville lost over $2 million in special assessments and interest from this type of funding.
The council voted to end this financing back in 2015 and 2016.
McCue acknowledged that the demand for housing is greater than the supply available, but he said housing developments have increased in each of the last three years without this subsidy.
