COMMITTEE OF THE WHOLE - MINUTES - 5/24/2007
APPROVED
COMMITTEE OF THE WHOLE – CITY OF MUSKEGO
MINUTES OF MEETING HELD THURSDAY, MAY 24, 2007
Mayor John Johnson called the meeting to order at 6:30 PM and led those present in the
Pledge of Allegiance.
ROLL CALL
Present: Mayor Johnson, City Administrator Sheiffer, Ald. Borgman, Ald. Pavelko,
Ald. Werner, Ald. Melcher, Ald. Schaefer, and Ald. Fiedler. Ald. Snead was excused.
Also present were: Plan Director Jeff Muenkel, Finance Supervisor Sharon Mueller, Plan
Commissioners Mark Noah and Geraldine Jacques; Suzie Lenz from the Community
Development Authority and Frank Waltz from Community Development Authority and
Mayor’s Task Force on Economic Development.
STATEMENT OF PUBLIC NOTICE
Mayor Johnson stated that the meeting was noticed in accordance with the opening
meeting law.
NEW BUSINESS –
Workshop on Bonds and TIF Basics Presentation
Phil Cosson of Ehlers & Associates was present to provide a workshop on Municipal
Bonds, Capital Financing and Tax Incremental Financing as well as a new concept called
Pay-As-You-Go Bonds.
Mr. Cosson gave a power point presentation of the following:
Overview of General fund Debt:
Existing Debt
Growth Projections
2007 Base Case
Overview of Revenue Debt:
Water Utility Analysis
Sewer Utility Analysis
Overview Tax Incremental Law:
Cash Flow Analysis for TID No. 8
Cash Flow Analysis for TID No. 9
Overview of the City Bond Ratings:
Committee Of The Whole Meeting – May 24, 2007 Page 2
Present & Future
Overview of Pay-As-You-Go – Developer Bonds
Plan Director Jeff Muenkel outlined the areas of TID 8 and TID 9 and Mr. Cosson
reviewed the Tax Increment Forecast for TID #8 and TID #9.
It was clarified that there has been one amendment to TID #8 which was basically to
remove the Parkland Mall property.
Mr. Cosson proceeded to explain the Pay-As-You-Go TID Financing. With this “PAYG”
Financing, the Municipality does not issue debt to raise capital for Tax Increment eligible
expenses. The developer would finance costs through private loan. Revenue stream
from Tax Increment would pay back developer through a “Developer Bond”. Risk shifts
from Municipality to Developer. Annually the Municipality appropriates tax increment
revenues received to Developer under the terms of the bond (Annual appropriation).
Municipality can limit the portion of participation for “PAYG”. Municipality can
determine order of application of TIF revenue.
Mr. Cosson indicated that this new “PAYG” Financing is being used by many large
projects in the State of Wisconsin. They are some communities that are using a
combination of both traditional TIF and “PAYG” Financing.
COMMUNICATIONS AND MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW - None
ADJOURNMENT
The meeting adjourned at 7:55 PM.
Respectfully submitted,
Cathie M. Anderson
Transcribing Secretary