CCR1982024RESOLUTION NO. 24-82
RESOLUTION AMENDING A PROJECT PLAN FOR ~ ~ ~
TAX INCREMENTAL DISTRICT NUMBER ONE
CITY OF MUSKEGO, WISCONSIN
By the Comnon Council of the City of Muskego. .
of Muskego has created Tax Incremental District Number One. City of Muskego.
and
adopted a project plan for Tax Inc ? emental '. District Number One, and
WHEREAS. pursuant to Section 66.46 of the Wisconsin Statutes, the City
WHEREAS, the City of Muskeg Planning Comnission has prepared and
for Tax Incremental District Number One, which:
WHEREAS, the Planning Comnission has prepared an amended project plan
1. Includes a statement listing the kind, number and location of all
proposed public works or improvements within such district;
2. Contains an economic feasibility study;
3. Contains a detailed list of estimated project costs;
4. Contains a description of the methods of financing all estimated
project costs and the time when such costs or monetary obligations
related thereto are to be incurred;
5. Includes a map showing existing uses and conditions of real
property in such district;
6. Includes a map showing proposed improvements and uses therein;
7. Shows proposed changes of:
a. Zoning ordinances
b. Master plan
c. Map
d. Building codes
e. City ordinances
1
8. Contains a list of estimated nonproject costs;
9. Contains a statement of a proposed method for the relocation of any
person to be displaced; and
WHEREAS, the Planning Comnission has held a public hearing and has
notified the chief executive officers of all local government entitles having
the power to levy taxes on property located withiO the district, including the
school board of any school district which includes property within the
district pursuant to Section 66.46(4)(e). Wisconsin Statutes; and,
WHEREAS, the City of Muskego Planning Comnission has submitted such
amepded project plan, a copy of which is attached as Exhibit A, to the Comnon
Council of the City of Muskego;
NOW THEREFORE, BE IT RESOLVED that the Comnon Council of the City of
Muskego finds that:
c 1. Such amended project plan for Tax Incremental District Number 1.
City of Muskego, is feasible, and
the City of Muskego. B 2. Such amended project plan is in conformity with the master plan of
BE IT FURTHER RESOLVED that the Comnon Council of the City of e
Muskego approves such amended project plan for Tax Incremental District
Number 1, pursuant to the provisions of Section 66.46, Wisconsin Statutes.
Adopted this &)a day of
~
Q
Attest:
City Clerk
EHLERS AND ASSOCIATES, INC. .. FINANCIAL SPECIALISTS
FIRST NATIONAL-SO0 LINE CONCOURSE 507 MARQUETTE AVE. MINNEAPOLIS, MINNESOTA 55402 338-8281 [AREA COOE 6121
Tax
C
Project Plan
Amended
ity of Muskego, Wisconsin
Incremental District No. 1
I. Statement of Kind, Number and Location of Proposed Public Works
Tax Incremental District No. 1 (TID No. 1) of the City of Muskego was
created to correct deficiencies in public service which are substantially
constructed a sewer treatment plant and interceptor system in which the City
impairing and arresting the sound growth of the community. The Town of Norway
of Muskego has purchased capacity and which was in operation in 1980. This
system provides the only capacity for municipal sewer in the City of Muskego
until the balance of the city is allowed to connect to the Milwaukee metro
sewer system or is provided some other treatment solution. Therefore,
substantial development is likely to occur in the service area of the Town of
Norway system, which is located for the most part in TID No. 1. Other public
works are necessary to provide for this growth and any direct or indirect
costs of these projects are considered project costs for this tax incremental
district and are eligible to be paid from tax increments of the district. All
materials, construction, installation, acquiring of property or easements,
projects include the cost of engineering, design, survey, inspection,
restoring property to its original condition, apparatus necessary for the
public work, legal and other consultant fees, permits, testing, environmental
studies, judgements or claims for damages and other expenses included as
project costs including but not limited to the following:
A.
B.
C.
0.
Payment to the Town of Norway Sanitary District for capital costs of
the system including principal and interest on debt to finance the
payment.
Nonassessable costs of installing sewer mains within the tax
incremental district including oversized mains, manholes, lift
stations, acquisition of property and other expenses related thereto.
Equipment for fire fighting and rescue service necessary to provide
protection for developing properties in TI0 No. 1. Said equipment is
paid for from the general fund of the city through contracts with a
non-profit corporation fire company.
Acquisition of land and development costs for a public park northwest
other conservation practices as well as providing a public recreation
of Lake Denoon. The project includes preservation of wetlands and
area with playgrounds, athletic fields, picnic areas, trails, roads,
park maintenance equipment and parkimg facilities;
City of Muskego
Tax Incremental District No. 1 Page 2
E.
F.
G.
H.
I.
J.
K.
L.
M.
Widening and paving of Kelsey Drive.
Lake Denoon pollution control and storm water drainage system is
planned to insure that natural wetlands and the quality of the lake is - not impaired with increased development of property. The project
includes ditching, flood control structures, retaining ponds, piping
and other construction necessary for the purpose.
Improvement of South Denoon Road is necessary to provide egress and
access to TID No. 1. The project includes graveling, paving, ditching
and other improvements to upgrade the road to serve as a collector
street.
Lake Denoon water feasibility study is to be conducted to ascertain
steps needed to assure Lake Denoon retains its high quality, aesthetic
and recreational values.
Imputed administrative costs including but not limited to a portion of
the budget for city administration, building inspection, assessing,
zoning, planning, public works, legal and financial fees.
Organizational costs including but not limited to the fees of the
makers and other contracted services, publication and supplies.
financial consultant, attorney, planner, engineers, surveyors, map
premiums, bond legal opinions, ratings, capitalized interest, bond
Capitalized interest, finance fees, bond discounts, bond redemption
insurance and other expenses related to financing.
curb, gutter, bike paths, sidewalks and beautification.
Improvement of North Shore Drive including grading, graveling, paving,
Police equipment - radar, squad walkie talkies, snowmobile, police
boat, and a portion of the cost of a tornado warning system.
City of Muskego
Tax Incremental District No. 1 Page 3
11. Economic Feasibility Study e
The City of Muskego's corporate limits are almost coterminous with those
0 of the former six mile square Town of Muskego in the southeast corner of
Waukesha County. Three large lakes enhance the landscape. Most urban
development is concentrated around the lakes and in the northeast corner
closest to Milwaukee. State Highways No. 15, 24 and 36 connect Muskego to
Milwaukee County and County Highway Y provides connection to the City of
Waukesha. The city is 20 minutes west of General Mitchell Field, serving
Milwaukee with scheduled airline service, and 15 minutes south of the Waukesha
County Airport with nonscheduled service. Muskego has become a regional
retail shopping center with the opening of Parkland Mall, its largest
taxpayer.
Recognizing the need for expanded industrial tax base, the city opened and
partially serviced an industrial park in 1972. All 110 acres in the park are
creative lithographers, was the first industry to locate in the park. This
now serviced with sewer, water and streets. Marek Lithographics, Inc.,
company, with 23 employees, has been located in Muskego approximately 7 years.
Interstate Tool and Engineering Corporation, a tool and die manufacturer
Machine Corporation moved from Milwaukee to the industrial park about 5 years
employing 36, has been located in the industrial park for 6 years. Brodel
ago. This company subcontracts machining. Other businesses in the industrial
park include Robert A. Gumieny, a wholesale beer distributor; Alpine Lanes, a
bowling alley; Lloyd Ham Contractors; Tinti Contractors; and Ludman Machine
Corporation.
Other industries in Muskego include Muskego Rendering Co., which has 36
employees, Reynolds Machine Company, Inc., with 52 employees and Precision
Schrew Thread Corporation with 70 employees,
The city has used a combination of land use zoning, subdivision control
ordinances and long range capital improvement finance planning to control
development within the community. Land use zoning concentrates development in
that portion of the city most adjacent to iqilwaukee. Subdivision ordinances
assure quality construction and restricted density levels. All city capital
self-imposed debt service limit of 0.34?, of assessed value. improvement financing to be repaid from general revenues is limited to a
The city is under an order by the Idisconsin Department of Natural Resources
which prohibits it from allowing additional connections to its sanitary sewer
system. This moratorium against future sewer connections prohibits the city
froln issuing new construction building permits in all but three subdivisions
which were approved prior to the moratorium. Because the city is within the
Milwaukee Metropolitan Sewer Service Area, which is under a court order
specifying discharge standards, the City of Muskego is unahle to expand its
sewer facilities under the regulations of the Department of Natural
Resources. The city and the state are cooperating in seeking judicial review
of this dilemma and the lifting of the sewerage moratorium, subject to a
justified.
determination that expansion of the Muskego temporary treatment plants is
City of Muskeso
4. Tax- Incremental District No. 1
I Building permit data has been as follows: j.
) Single family
Valuation
Multi-family
Valuation
Remodeling and
Valuation
additions
Garages
Valuation
Commercial
Valuation
Other permits
Valuation
1976 -
158
$5,567,368
9
$1,052,000
147
$464,736
39
$112,430
7
$608,506
227
$310,348
1977 -
158
$6,887,885
0
0
169
$507,257
42
$122,624
11
$599,600
158
$293,395
1978 -
94
$5,218,248
0
0
120
$351,878
42
$123,578
14
$1,800,778
130
$295,563
The folloiving is a summary of U. S. Census data for the city.
Population Trend:
1950 U. S. Census 4,157
1960 U. S. Census 8,888
1970 U. S. Census 11,573
1980 Preliminary
U. S. Census 15,020
Page 4
1979 -
68
$3,932,530
0
0
100
$757,506
36
$111,962
5
51,275,000 "
126
$436,648
City of Muskego
Tax Incremental District No. 1
Income/Age/Education Data:
Per capita income
Mean family income
Median family income
Percent below poverty level
Percent above $15,000 income
Median school years completed
Median age
Housing:
Percent owner occupied
Percent one unit structure
Percent built before 1939
Percent built after 1959
Owner median value
Median contract rent
City of
Muskego
$ 3,194
$13.042
$12,581
31.9%
3.8%
.,
12.4
23.8
89 .O%
94.2%
27.7%
23.5%
$22,900
$105
Waukesha
county
$ 3.634
$12,795
$14,285
3.29.
34.3%
12.5
25.4
Page 5
Overall
State
Average
$ 3,046
$11,135
$10,068
7.4%
19.8%
12.1
27.2
83.4%
77.99. 69.1%
70.7%
28.3%
33.3%
52.79.
20.2%
$25,300 $17,300
$122 $91
Citv of Muskeao
Tax- Incremental District No. 1 _I~ Page 7
In addition to general obligation bonds, the city can issue mortgage
revenue bonds to be repaid from revenues of the sener and/or water system,
of the system to the city. There is no statutory or constitutional limitation
including revenues paid by the city that from any source represent the service
on the amount of revenue bonds that can be issued. However, sewer and water
rates of the city are contiolled by the Llisconsin Public Service Commission
and the city must demonstrate to bond underwriters its ability to repay
revenue debt with the assigned rates.
It is anticipated that special assessments may be levied to benefitted
extensions. The city can issue special assessment "B" bonds pledging revenues
properties to pay part of the cost of street, curb, gutter, sewer and water
from special assessment installations to the extent assessment payments are
outstanding. These bonds are not counted against the city's constitutional
debt limit.
e
The creation of a Tax Incremental District allows the city to consider
the use of tax increlnent notes or bonds. This security would be retired from
tax increment revenues generated solely within this tax incremental district.
Any use of this security would require a historic record of tax increment
revenues that would demonstrate the ability of the district to generate
marketability is dependent on a Supreme Court decision.
adequate revenues. To date this security is not marketable and its
the city, all projects outlined in this project plan can be financed and are
feasible.
Based upon the economic characteristics and the financing resources of
e
City of Muskego
Tax Incremental District No. 1 Page 8
TI0 No. 1 has already experienced a considerable increase in property
values from its 1979 base of $3,225,000 to $8,716,130 as of January 1, 1981.
This increase entitled the city to collect $73,688 TIF revenues in 1981 and
$99,509 to be collected in 1982. This historical data was incorporated into
the following pro forma which projects revenues sufficient to retire the debt
already incurred and that proposed to finance all projects of this district.
The pro forma is based upon the following assumptions:
The base value of the district with an adjustment for the exemption
of Line A personal property is $3,225,000.
Private development which results in new tax base will be generated as
of January 1 as follows:
1981182
1983185
$ 750,000
1986190 1,260,000
2,100 ,no0
The 1982 equalized tax rate of $18.09 per thousand will decline at the
rate of 256 per thousand per year.
Property values will continue to increase at the rate of 6% per year
because of inflation.
- T ID l
City of Muskego
Tax Incremental District No. I Page 10
0 Exhibit 1 demonstrates TIF revenues along with capitalized interest and other
debt for TIF projects.
revenues to be collected would be sufficient to retire existing and proposed
Principal and interest payments for Issue 1 in this exhibit represents this
district's proportionate share of $1,310,000 G.O. bonds issued in 1977.
Issue 2 which has entries for principal only represents this district's share
of $670,000 G.O. notes issued in 1979 and $1,225,000 G.O. notes issued in
1980.
to finance projects to be completed during the year. Late in 1982 $8,800,000
The city will issue $3,950,000 short term G.O. promissory notes early in 1982
G.O. promissory notes will be issued for 1983 projects. Both these note
issues will be refinanced with long term G.O. bonds in the fall of 1983.
this district.
Issue 3 represents principal and interest payments of that issue allocated to
e
- .. Ti
City of Muskego
Tax Incremental District No. 1
Project Schedule
Tax Incremental District No. 1
Project - 1979 1980 1981 - 1982
(A) Payments to the Town
of Norway Sanitary
District $111,890
(B) Installation of sewer
mains in TI0 331,500
(C) Fire fighting
equipment & rescue
service 61,000
(D) Public park northwest
of Lake Denoon
(E) Kelsey Drive upgrading
(F) Lake Denoon pollution
control system
(G) Improvements of South
Denoon Road
(H) Lake Oenoon water
feasibility study
(I) Administrative costs
(J) Organizational costs
(K) Finance fees
(L) Improvement of North
Shore Orive 145,630
(M) Police equipment 17,000
Totals 9504,390 $ 13,720 $155,630 $652,000
Page 14
1983 -
50,000
200,ooo $125,000
150,000 150,000
50,000 100,000
125,000
50,000
$ 10,000 s 10,noo m,ooo 10,noo
3,720
1n,ono
$520,000
i
\
City of Muskego
Tax Incremental District No. 1 Page 15
IV. A Description of the iqethods of Financing and the Time when such Costs or e
Monetary Obligation related thereto are to he Incurred
A. In 1977 the city issued $1,310,000 general obligation bonds to
finance in part the payment to the Town of Norway and $320,000 and
$365,000 nonassessable sewer costs for the Lake Denoon area. This
represents 52% of the principal of the issue. Thus, 52% of the
principal and interest on these bonds is the responsibility of
TID No. 1 as follows:
Total principal and interest $1,875,081
Times 52% X .52
TI0 No. 1 share of debt
payments $ 975,042
Transfers of money from the tax increment fund as authorized by
Wisconsin Statutes 66.46(6)(c) shall be made to the sinking fund for
these bonds from time to time until 8975,042 has been paid.
Of this same bond 'issue, 8400,000 was for the construction of a
police building, of which $19.825 principal has been repaid. Thus,
30.5% or $442,650 of the remaining principal and interest on this
loan of $1,451,312.50 is the liability of TI0 No. 7.
B. In 1979 the city issued promissory notes totalling $670,000, a
seven tax incremental finance districts, payment to t'he Town of.
portion of which was used to finance planning costs for the city's
Norway Sanitary District that portion of treatment and interceptor
costs allocated to TID No. 1 and other projects within various
districts. In December, 1980 the city issued 81,225,000
G.O. promissory notes to fund TIF projects completed in 1980 and for
planned 1981 capital projects some of which were eligible project
costs in each of the seven districts. A total of 63.12% principal
and interest of these two issues will be apportioned to the seven
districts as shown below. Transfers of monies 'from the tax increment
time to the sinking funds of these notes until the obligation of the
funds as authorized by W. S. 66.46(6)(c) shall be made from time to
various districts has been met.
TI0 No. I
TID No. 2
TID No. 3
TI0 No. 5
TI0 No. 4
TID No. 7
TID No. 6
Principal and Interest
$406.875
' 5631627
388,325
55,342
I ~~
12,676
22,260
502,410
All proceeds from the 1980 issue are not yet expended, therefore,
final proration of this and future issues will he made and reported
in future annual reports.
City of Muskeqo
Tax- Incremental District No. 1
C. 1982 Promissory Notes
Page 16
0 Short term G.O. promissory notes will be issued early in 1982 to finance
various projects of the seven districts to be constructed or purchased
during 1982. The note issue is calculated as follows:
Project costs
TID No. 1
TID No. 2
TID No. 3
TID No. 4
TID No. 5
~~ ~
TID No. 6
TID No. 7
$ 642.000
"
1,280,500
Total $3,442,865
Note discount 79,000
Finance fees 25,000
Interest during
construction 403,135
Note issue $3,950,000
Total principle and interest of these notes will he apportioned to the
seven districts as shown below:
TID No. 1 18.64
TID No. 2 14.95
TID No. 3 6.68
TID No. 4 18.88
TID No. 6
TID No. 5 3.65 .no
TID No. 7 37.19
It is anticipated these notes will mature in 1984 and will be refinanced
with long term G.O. Bonds to he issued late in 1983.
Citv of Muskeoo
Tax Incremental District No. 1 -
0. 1982 Promissory Notes
Page 17
a Late in 1982 short term G.O. promissory notes will be issued to finance
various projects of the seven districts to be constructed or purchased
during 1983.
The note issue is calculated as follows:
Project costs
TI0 No. 1
TI0 No. 2
TI0 No. 3
TI0 No. 4
TI0 No. 5
TI0 No. 6
TI0 'No. 7
Subtotal
Note discount
Finance fees
Interest during
construction
Note issue
$ 510.000
887,050
84,650
2,037,000
592,300
2,510,350
1,214,700
$7,836,050
45,000
742,950
$8,800,000
176,000
Total principle and interest of these notes will be apportioned to the
seven districts as shown below:
TI0 No. 1
TI0 No. 2 11.32
6.51
TID No. 3
TI0 No. 4
1.08
25.99
TI0 No. 5 7.56
TI0 No. 7 32.04
TIO No. 6 15.50
with long term G.O. Bonds to be issued late in 1983.
It is anticipated these notes will mature in 1984 and will be refinanced
City of Muskego
Tax Incremental District No. 1
E. 1983 G.O. Bonds
Page 18
a It is anticipated that in the fall of 1983 the city will issue long term
General Obligation Bonds to refinance the short term promissory notes
issued during 1982 for 1982 and 1983 projects. This will allow the city
to take advantage of the maximum number of years allowed to generate tax
compatible with today's market demand. It is likely this will result in a
increments without extending any maturities beyond 15 years which is
substantial interest saving, as well as allow the city to issue only
enough long term debt to fund projects actually completed.
Assuming all projects included in the project plans of the seven districts
are completed, the bond issue is calculated as follows:
1982 Promissory notes $ 3,950,000
1982 Promissory notes 8,800,000
Total $12,750,000
Bond discount 303,000
Finance fees 52,000
Capitalized interest 2,045,000
Bond issue ~15,150,ooo
.
9 EXHIBIT - 2. 00
COMPLjTER RI!N FOT: M!JSI!EGU TID
1089
0
0
50, 000
!? 0 , !! iI 0
1.00,0IIO
:I. 0 !I , 0 0 !:I
750, @l!0
SO!!, ??(I
'7 5 0 , I! 0 0
2, 000, 000
I,~OL~,OOO
2,500,0!!0
3 , !I !! I! , 0 0 !I
3,55U,II!!0
1,000,000
\
City of Yuskego
Tax Incremental District No. 1
V. Map Showing Existing Uses (attached)
VI. Map Showing Proposed Projects (attached) a VII. Proposed Changes in Zoning Ordinances
Page 20
There are no changes needed in zoning ordinances to comply with this
plan.
VIII. Proposed Changes in Vaster Plan, Zoning Map, Building Codes and City
Ordinances
There are no anticipated changes in the master plan, zoning map,
building codes and city ordinances because of this project plan.
IX. List of Estimated Nonproject Costs
Private development and improvements $14,100,000
Tot a1
X. Relocation
It is not expected that there will be a need to relocate any person or
business in conjunction with this project plan. In the event
relocation becomes necessary at some time during the implementation
period the city will take the following steps and actions.
Before negotiations begin for the acquisition of property or easements,
all property owners will be provided an informational pamphlet prepared
by the Wisconsin Department of Industry, Labor, and Human Relations
acquisition they will be given a pamphlet on "Relocation Benefits" as
(DILHR) and if any person is to be displaced as a result of the
prepared by the DILHR. The city will provide each owner a full
by the proposed project and a list of all or at least ten neighboring
narrative appraisal, a map showing the owners of all property affected
1andobJnet-s to whom offers are being made.
The city will file a relocation plan with the DILHR and shall keep
records as required in Wisconsin Statutes 32.27.
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