CCR1982026RESOLUTION NO. 26-82
RESOLUTION AMENDING A PROJECT PLAN FOR
TAX INREMENTAL DISTRICT NUMBER THREE
CITY OF MUSKEGO. UISCONSIN
i@ By the Comnon Council of the City of Huskego.
WHEREAS, pursuant to Section 66.46 of the Wisconsin Statutes, the City
of Muskego has created Tax Incremental District Number Three, City of Muskego.
and
WHEREAS, the City of Muskego. Planning Comnission has prepared and
adopted a project plan for lax Increniental District Number Three, and
for Tax Incremental District Number Three, which:
WHEREAS, the Planning Comnission has prepared an amended project plan
I*
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;
f '
F;
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. Buildfng codes
e. City ordfnances
8. Contafns a list of estimated nonproject costs;
a
9. Contains a statement of a proposed method for the relocatfon of any person to be displaced; and
notified the chief executive officers of all local government entlties havlng
the power to levy taxes on property located within the dlstrlct, including the
school board of any school district which fncludes property within the
district pursuant to Section 66.46(4)(e), Wisconsin Statutes; and,
WHEREAS. the Planning Comnission has held a public hearing and has
WHEREAS. the City of Muskego Planning Comnission has submitted such
amended 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 Cmn Council of the City of
Muskego finds that:
1. Such amended project plan for Tax Incremental District Number 3,
City of Muskego, is feasible, and
2. Such amended project plan is in conformity with the master plan of
the City of Muskego.
BE IT FURTHER RESOLVED that the Comnon Council of the City of
Muskego approves such amended project plan for Tax Incremental District
Number 3. pursuant to the provisions of Sectfon 66.46. Wisconsin Statutes.
Adopted this 8-r~ day of 3urJt , 1981.
hayor
Attest:
@ tity Clerk
i
"' EHLERS AND ASSOCIATES, INC.
FINANCIAL SPECIALISTS
FIRST NATIONAL-SO0 LINE CONCOURSE 507 MAROUETTE AVE. MINNEAPOLIS, MINNESOTA 55402 339-8291 [AREA CODE 61i
Amended
Project Plan
Tax Incremental District No. 3
City of Muskego, Wisconsin
I. Statement of Kind, Number and Location of Proposed Public Works
Tax Incremental District No. 3 (TI0 No. 3) of the City of Muskego was
created to promote industry as authorized in Wisconsin Statutes 66.52 to
to relieve the burden of residents and home owners. One industry is already
provide greater employment opportunities and to broaden the property tax base
additional sanitary sewer capacity are necessary for further development of located in the district and upgrading of streets and highways and providing
the district. Other public works are necessary to provide for this growth and
any direct or indirect costs of these projects are considered project costs of
the tax incremental district and are eligible to be paid from tax increments
of the district. All projects include the cost of engineering, design,
survey, inspection, materials, construction, installation, acquiring of
property or easements, restoring property to its original condition, apparatus
testing, environmental studies, judgements or claims for damages and other
necessary for the pub1 ic work, legal and other consultant fees, permits,
expenses included as project costs including but not limited to:
A. Road improvemements to Martin Drive including widening, straightening,
graveling, paving, ditching, curb, gutter, sidewalks and bike paths.
B. Pro rata share of sanitary sewer facilities study to evaluate the feasibility of providing additional sewer capacity either with the
Milwaukee Metropolitan Sanitary District or with a treatment plant of
its own.
C. Pro rata share of a major sanitary sewer interceptor will interconnect
to the Milwaukee metropolitan system or a new facility of the city. the two sewer treatment plants and eventually connect Muskego sewers
0. Muskego Drive improvements and storm water drainage necessary to
provide emergency vehicle access to the district and within the
district. Said improvements will not include the unnecessary widening
of Muskego Drive.
E. Park development including recreation equipment, athletic fields,
playgrounds, fencing, sodding, planting and other site work.
City of Muskego
Tax Incremental District No. 3 Page 2
F. 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.
1
0 G. 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
H. Capitalized interest, finance fees, bond discounts, bond redemption
premiums, bond legal opinions, ratings, capitalized interest, bond
insurance and other expenses related to financing.
I. Pro rata share of capital costs contribution for any project providing
metropolitan system, some other joint project or construction of a new
sewerage treatment capacity, such as a hookup to the Milwaukee
or expanded Muskego owned facility or facilities. This project cost
might take the form of a long-term contract with a joint facility or
debt to pay for capital costs to a metropolitan, jointly owned or city
owned facility. This allocation of project cost shall not be financed
or expended for any other purpose.
J. Police equipment and a portion of the cost of a tornado warning
system.
K. Little Muskego Lake. Planning and engineering costs related to this
project.
L. Little Muskego Lake Drainage.
City of Muskego
Tax Incremental District No. 3 Page 3
11. Economic Feasibility Study
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
Milwaukee County and County Highway Y provides connection to the City of
closest to Milwaukee. State Highways No. 15, 24 and 36 connect Muskego to
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
now serviced with sewer, water and streets. Marek Lithographics, Inc.,
creative lithographers, was the first industry to locate in the park. This
company, with 23 employees, has been located in Muskego approximately 7 years.
employing 36, has been located in the industrial park for 6 years. Brodel
Interstate Tool and Engineering Corporation, a tool and die manufacturer
Machine Corporation moved from Milwaukee to the industrial park about 5 years
ago. This company subcontracts machining. Other businesses in the industrial
bowling alley; Lloyd Hamm Contractors; Tinti Contractors; and Ludman Machine
park include Robert A. Gumieny, a wholesale beer distributor; Alpine Lanes, a
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
devleopment within the community. Land use zoning concentrates development in
that portion of the city most adjacent to Milwaukee. Subdivision ordinances
assure quality construction and restricted density levels. All city capital
improvement financing to be repaid from general revenues is limited to a
self-imposed debt service limit of 0.34% of assessed value.
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
which were approved prior to the moratorium. Because the city is within the
from issuing new construction building permits in all but three subdivisions
Milwaukee Metropolitan Sewer Service Area, which is under a court order
specifying discharge standards, the City of Muskego is unable 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
The City of Muskego's corporate limits are almost coterminous with those
City of Muskego
Tax Incremental District No. 3
e Building permit data has been as follows:
Single family
Valuation
Multi-family
Valuation
Remodeling and
Valuation
Garages
Valuation
Commercial
Valuation
Other permits
Valuation
additions
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
S122,624
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 following is a summary of U. S. Census data for the city.
Population Trend:
1950 U. S. Census 4,157
1960 U. S. Census
11,573
8,888
1980 Prel imi nary
1970 U. S. Census
U. S. Census 15,020
Page 4
1979 -
68
$3,932,530
0
0
100
$757,506
36
$111,962
5
$1,275,000
126
$436,648
City of Muskego
Tax Incremental District No. 3
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
3.8%
31.9%
12.4
.~
23.8
89.0%
94.2%
27.7%
23.5%
$22.900
$105
Waukesha
County
$ 3.634
$14;285
$12,195
34.3%
3.2%
12.5
25.4
77.9%
83.4%
28.3%
$25,300
33.3%
$122
Page 5
State
Overall
Average
$ 3.046
$11,135
$10,068
19.8%
1.4%
12.1
21.7.
69.1%
70.1%
52.7%
$17,300
20.2%
$91
.,. :: , Ii :!. ., .I
I , .I. !! ....... .. ,
City of Muskego
Tax Incremental District No. 3 Page 7
revenue bonds to be repaid from revenues of the sewer and/or water system,
In addition to general obligation bonds, the city can issue mortgage
including revenues paid by the city that from any source represent the service
of the system to the city. There is no statutory or constitutional limitation
on the amount of revenue bonds that can be issued. However, sewer and water
and the city must demonstrate to bond underwriters its ability to repay
rates of the city are controlled by the Wisconsin Public Service Commission
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.
the use of tax increment 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 creation of a Tax Incremental District allows the city to consider
Based upon the economic characteristics and the financing resources of
the city, all projects outlined in this project plan can be financed and are
feasible.
e
City of Muskego
Tax Incremental District No. 3 Page 8
values from its 1979 base of $945,850 to $2,743,100 as of January 1, 1981.
TID No. 3 has already experienced a substantial increase in property
This increase entitled the city to $25,681 TIF revenues collected in 1981 and
$35,700 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 formas is based upon the following assumptions:
The base value of the district with an adjustment for the exemption
of Line A personal property is $945,850.
Private development which results in new tax base will be generated as
of January 1 as follows:
1981 $1 .ooo.ooo
1982 .750;000
1983/85 2,000,000
1986/90 1,250,000
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.
WISCONSIN TAX INCREMENT PRO FORMA FOR: MIJSKEGO
RASE VAILUE
INITIAL INCREMENT
91+5,850 INFLNION RATE 6 I 0%
INITIAL TAX RATE 17.59 TAX RATE INCREMENT -,25
TOTAL NEW CONSTRUCTION 14,000,000
0
YEAR VALUAlION It4CREMENT INCKEMENT VALUATION
PREVIOIJS INFLATION CONSTRUCTION TOTAL
1981
1983
:I902
1985
1 9 0 'I-
1906
1987
1389
1988
1991
1.790
1992
19Y3
1.994
1935
19?6
1997
1(?98
945 * 850
4,892, 11-1-.7
7,105,176
9,616.81.7
14,175,455
1:!,193,826
l8,502,5Q1.
16, 275,982
23, 364, Lt.55
20,862, 67l.l.
21+, 766,323
26,252,302
27,827,4.40
29,497, 08'7
3i, 266,912
TO.TAL..S
0
0
161-1-, 586
234, 4.61.
293,529
431,141
577,o 09
731,630
976,559
1,110, 152
I, 251,762
1, I.I-O:L, 867
L , 1.1.35, 979
1,575,138
I., 669, 646
1,759,82!5
1,876,015
850, 527
0 2,432,320
0 2,74-3,100
1,000,000 3,907,686
7,000,000 7,185,676
750,000 't,892,14'7
2,0011,0IIO 9,616,01.7
2,000,000 12,103,824
1,250,000 I.L1,175,455
:L,2~~0,000 16,275,982
1,250,000 18 I '::02,5 c' 4 1.
:1,250,000 20,862,691.I.
0 27,827,'.I.I.t0
0 29,45'7, 087
0 31,266,91.?
0 33,1LI2,927
TAX
HATE
16.6
18.3
17.6
1'7 I 3
17.1
16.8
16 I 6
16.3
16. 1
15 I 0
15.6
15.3
1 !5 * 3.
1 Lt . El
111. I 6
14.3
11.1. , :t
13.8
- TI11 3
District No. 3 Page 10
I Exhibit 1 demonstrates TIF revenues along with capitalized interest and other
revenues to be collected would be sufficient to retire existing and proposed
8 debt for TIF projects.
Issue 1 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.
The city will issue $4,250,000 short term G.0. promissory notes early in 1982
to finance projects to be completed during the year. Late in 1982 $9,500,000
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 2 represents principal and interest payments of that issue allocated to
Issue 3 represents this districts pro rata share of capital cost contribution
for sewerage treatment capacity through hookup to the Milwaukee Metro Sewer
System.
i
c5
City of Muskego
Tax Incremental District No. 3
Project Schedule
Tax Incremental District No. 3 .. Project
(A) Martin Drive
improvements
(8) Sanitary sewer
facilities study
(C) Major sanitary sewer
interceptor
(D) Muskego Drive
improvements
(E) Park development
(F) Administrative costs
(G) Organizational costs
(I) Capital cost
contribution for any
project providing
sewerage treatment
capacity
(J) Tornado warning system
& Police equipment
Page 14
1979 1981-1 1981 1982 1983 - - - - -
$121.672
f 2,183
P, 43,650
(K) Little Muskego Lake
(L) Little Muskego Lake
rehabilitation 94,nno go,nnn
drainage - 15n,onn
Totals " $125,392 $104,511 $m,non $240,568
City of Muskego
Tax Incremental District No. 3 Page 15
B
IV. A Description of the Methods of Financing and the Time when such Costs or
Monetary Obligation related thereto are to be 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, S2% of the
principal and interest on these bonds is the responsihility of
TID No. 1 as follows:
Total principal and interest $1,875,081
Times 52% X .51
TID No. 1 share of debt
payments $ 975,042
Wisconsin Statutes 66.46(6)(c) shall be made to the sinking fund for
Transfers of money from the tax increment fund as authorized by
these bonds from time to time until $975,042 has been paid.
Of this same bond issue, $400,000 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 TID No. 7.
B. In 1979 the city issued promissory notes totalling $670,000, a
portion of which was used to finance planning costs for the city's
seven tax incremental finance districts, payment to the Town of
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 $1,225,000
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 64.07% principal
and interest of these two issues will be apportioned to the seven
districts as shown below. Transfers of monies from the tax increment
funds as authorized by W. S. 66.46(6)(c) shall be made from time to
time to the sinking funds of these notes until the obligation of the
various districts has been met.
TI0 No. 1
TID No. 2
TID No. 3
TID No. 4
TID No. 5
TIn No. 6
TI0 No. 7
Principal and Interest
$406,875
S63;627
382,141
48,231
55,342
502,410
22,260
All proceeds from the 1980 issue are not yet expended, therefore,
in future annual reDorts.
final proration of this and future issues will be made and reported
City of Muskego
Tax Incremental District No. 3
C. 1982 Promissory Notes
Page 16
Short term G.0. 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 $ 642,000
TID No. 2 515,000
TIn No. 3 260,000
TID No. 4 650,000
TID No. 5 298,365
TID No. 6
TID No. 7 1,280,500
Total $3,645,865
Note discount 85,000
Finance fees 26,775
Interest during
construction 492,360
Note issue $4,250,000
"
b
Total principle and interest of these notes will be apportioned to the
seven districts as shown below:
TID No. 1 17.61
TID No. 2 14.13
TI0 No. 3 7.13
TID No. 4 17.83
TI0 No. 5 8.18
TID No. 6 .on
TID No. 7 35.12
with long term G.O. Ronds 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. 3 Page 17
D. 1982 Promissory Notes
Late in 1982 short term 6.0. promissory notes will be issued to finance
various projects of the seven districts to he constructed or purchased
during 1983;
The note issue is calculated as follows:
Project costs
TID No. 1
TIn No. 2
TID No. 3
TID No. 4
TI0 No. 5
TID No. 6
TID No. 7
Subtotal
Note discount
Finance fees
Interest during
construction
Note issue
B 510.000
Total principle and interest of these notes will be apportioned to the
seven districts as shown below:
TID No. 1 6.14
TID No. 2 10.67
TID No. 3 2.83
TID No. 4 24.511
TID No. 5 11.114
TIn No. 6 14.61
TIn No. 7 30.21
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. 3 Page 18
E. 1983 G.0. Bonds
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
increments without extending any maturities beyond 15 years which is
compatible with today's market demand. It is likely this will result in a
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 $ 4,250,noo
1982 Promissory notes 9,5no,ono
Tot a 1 ~13,750,nno
Bond discount 330,nnn
Finance fees 56,nno
Capitalized interest 2,364,000
Bond issue ~~,5no,nnn
a
YEAR
City of Muskego Tax Incremental District No. 3 Page 20
It is anticipated Muskego's payments for Milwaukee Metro Sewer will be
$827,700 per year for 15 years or $12,415,500. This cost must be pro rata
shared with the entire sewer service area. The TIDs share a total of 27.83%
divided as follows: - District Percent
TID No. 2 7.66
TID No. 3 1.28
TID No. 4 8.68 TID No. 5 2.55
Dol 1 ar Amount
$ 951.027
1503918
316,595
1,077,665
TID No. 6
TID No. 7
6.13
1.53
761,070
189,957
27.83 $3,447,232
These amounts will be transferred from the appropriate TID fund from time to
time until this obligation has been met. The city reserves the right to use
these funds for other sewage treatment facilities should the Milwaukee Metro
solution prove unworkable.
Tax Incremental District No. 3
City of Muskego
3 V. Map Showing Existing Uses (attached)
VI. Map Showing Proposed Projects (attached)
VII. Proposed Changes in Zoning Ordinances
Page 21
There are no changes needed in zoning ordinances to comply with this
plan.
VIII. Proposed Changes in Master 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 $14,000,000
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
(DILHR) and if any person is to be displaced as a result of the
acquisition they will be given a pamphlet on "Relocation Renefits" as
prepared by the DILHR. The city will provide each owner a full
narrative appraisal, a map showing the owners of all property affected
by the proposed project and a list of all or at least ten neighboring
landowners 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.
PROJECT LOCATIONS TID #3
Legend
(A) Martin Drive Rd. improvement
(D) Muskego Drive Rd. improvement
(E) Park development
& storm water drainage
Other Items Included in District
(B) Sewer study
(C) Pro-rata share of sanitary sewer
(F) Administrative costs
(G) Organizational costs
(H) Financing costs
(I) Share of Milwaukee Metro sewer system
(J) Police equip. & tornado warning system
(K) Little Muskego Lake planning
(L) Little Muskego Lake drainage