CCR1982027RESOLUTION NO. 27-82
RESOLUTION AMENDING A PROJECT PLAN FOR
TAX INCREMENTAL DISTRICT NUMBER FOUR
CITY OF MUSKEGO, WISCONSIN
By the Comnon Council of the City of Muskego.
WHEREAS, pursuant to Section 66.46 of the Wisconsin Statutes. the City
of Muskego has created Tax Incremental District Number Four. City of Muskego.
and
adopted a project plan for Tax Incremental District Number Four, and
WHEREAS, the City of Muskego, Planning Comnission has prepared and
for Tax Incremental District Number Four, which:
WHEREAS, the Planning Conission has prepared an amended project plan
Li
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 improverents and uses therein;
7. Shows proposed changes of:
a. Zoning ordinances
b. Master plan
c. Map
d. Building codes
e. City ordinances
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
EHLERS AND ASSOCIATES, INC.
FINANCIAL SPECIALISTS
FIRST NATIONAL-SO0 LINE CONCOURSE 507 MARQUETTE AVE. MINNEAPOLIS.MINNES0TA 55402 339-0291 [AREA CODE 6721
Amended
Project Plan
Tax Incremental District No. 4
City of Muskego, Wisconsin
i I. Statement of Kind, Number and Location of Proposed Public Works
Tax Incremental District No. 4 (TID No. 4) of the City of Muskego was
created to correct deficiencies in public service which are substantially
impairing and arresting the sound growth of the community. A number of
residences aroung Bass Bay are on leased land and unable to increase in value
sufficiently to sustain sanitary sewer assessments. Septic systems are
deficient and pollution of the bay is apparent. Major sewer, street and lake
improvement programs are necessary to a tax base growth in the district which
provide for this growth and any direct or indirect costs of these projects are
is centrally located in the community. Other public works are necessary to
considered project costs for this tax incremental district and are eligible to
be paid from tax incrments of the district. All projects include the cost of
engineering, design, survey, inspection, materials, construction,
original condition, apparatus necessary for the public work, legal and other
installation, acquiring of property or easements, restoring property to its
consultant fees, permits, testing, environmental studies, judgements or claims
for damages and other expenses included as project costs including but not
limited to:
A. A water quality feasibility study of Big Muskego Lake is considered a
necessary first step in planning for the growth of the area.
B. Sanitary sewer around Bass Bay and road improvements to Kurfz Lane
including laterals, lift stations, manholes, site improvement,
grading, graveling, paving, curb and gutter, sidewalks and bike paths
are necessary to upgrade properties in the district.
C. Pro rata share of sanitary sewer facilities study to evaluate the
Milwaukee Metropolitan Sanitary District or with a treatment plant of
feasibility of providing additional sewer capacity either with the
its own.
0. Pro rata share of a major sanitary sewer interceptor will interconnect
the two sewer treatment plants and eventually connect Muskego sewers
to the Milwaukee metropolitan system or a new facility of the city.
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City of Muskego
Tax Incremental District No. 4 Page 2
E. Improvements to Lannon Road including widening, ditching, grading,
graveling, paving, curb, gutter, sidewalks, bike paths and traffic
signals at Lannon and T. H. 24.
F. Park development including any recommendations from the water quality
feasibility study listed above, weed control, dredging, draining,
stocking or other water controls. Park development shall include
recreation equipment, athletic fields, playgrounds, sodding, planting,
fencing and other improvements including pedestrian, snowmobile, ski
and bike paths.
G. 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.
H. 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
I. Capitalized interest, finance fees, bond discounts, bond redemption
premiums, bond legal opinions, ratings, capitalized interest, bond
insurance and other expenses related to financing.
J. Pro rata share of capital cost 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 a project cost shall not be
financed or expended for any other purpose.
K. Storm sewer bottle neck project.
L. A portion of the cost of a tornado warning system.
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City of Muskego
Tax Incremental District No. 4
11. Economic Feasibility Study
Page 3
The City of Muskego's corporate limits are almost coterminous with those
of the former six mile square Town of Huskego 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.
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
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, lleynolds 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
devleopment Lvithin the community. Land use zoning concentrates development in
ordinances and long range capital improvement finance planning to control
that portion of the city most adjacent to Nilwaukee. ,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.
which prohibits it from allowing additional connections to its sanitary sewer
The city is under an order by the Wisconsin Department of Natural Resources
system. This moratorium against future sewer connections prohibits the city
from 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
sewer facilities under the regulations of the Department of Natural
specifying discharge standards, the City of Muskego is unable to expand its
Resources. The city and the state are cooperating in seeking judicial review
determination that expansion of the Muskego temporary treatment plants is
of this dilemma and the lifting of the sewerage moratorium, subject to a
justified.
City of Muskego
Tax Incremental District No. 4
Building permit data has been as follows:
1976 1977 - -
Single family 158 158
Valuation $5,567,368 $6,887,885
Multi-family 9 0
Valuation $1,052,noo 0
Remodel i ng and
additions 147 169
Valuation $464,736 $507,257
Garages
Valuation
39 42
$112,430 $122,624
Commercial 7 11
Valuation 8608,506 $599,600
Other permits 227 158
Valuation $310,348 $293,395
1978 -
94
55,218,248
0 n
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 8,888
1970 U. S. Census 11,573
1980 Preliminary
U. S. Census 15,020
Page 4
1979 -
68
$3,932,530
0
0
$757,506
100
36
$111,962
5
$1,275,000
126
$436,648
City of Muskego
Tax Incremental District No. 4
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
f 3.194
$13,042
$12,581
3.8%
.~
31.9%
12.4
23 .E
89.0%
94.2%
27.7%
23.5%
$22,900
$105
Waukesha
county
$ 3,634
$14,285
$12,795
34.3%
3.2%
12.5
25.4
77.9%
83.4%
28.32
33.3%
$25,300
$122
Page 5
State
Overall
Average
$ 3,046
$11,135
$10,068
19.8%
7.4%
12.1
27.2
69.1%
70.7%
52.7%
20.2%
$17,300
$91
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City of Muskego
Tax Incremental District No. 4 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
outstanding. These bonds are not counted against the city's' constitutional
from special assessment installations to the extent assessment payments are
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.
City of Muskego
Tax Incremental District No. 4 Page 8
$3,827,400 to $4,460,400 as of January 1, 1981. It is anticipated that once
Property values in TI0 No. 4 have increased from the 1979 base of
Milwaukee Metro Sewer is available sometime in 1984, development will occur at
a rapid pace. The following pro forma demonstrates TIF revenues (both accrued
and anticipated) will be sufficient to retire debt already incurred and that
the following assumptions:
proposed to finance all projects of this district. The pro forma is based on
The base value of the district with an adjustment for the exemption
of Line A personal property is $3,827,400.
Private development which results in new tax base will be generated as
of January 1 as follows:
1981 $ 1oo,noo
1982 1,000,000
1983 250,000
1984 5,000,000
1985/87
1988/92 5,000,000
7,5on,ooo
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.
1,002, h2:'
I. , 1.2 2 , 7 7 9
City of Muskego
Tax Incremental District No. 4 Page 10
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
of $670,000 G.O. notes issued in 1979 and $1,225,000 G.O. notes issued in
Issue 1 which has entries for principal only represents this district's share
1980.
The city will issue 93,950,000 short term G.O. promissory notes early in 1982
to finance projects to be completed during the year. Late in 1982 $8,800,000
G.O. promissory notes will be issued for 1983 projects. Both these note
issues will be refinanced with long term 6.0. bonds in the fall of 1983.
Issue 2 represents principal and interest payments of that issue allocated to
this district.
Issue 3 represents this districts pro rata share of capital cost contribution
for sewerage treatment capacity through hookup to the Milwaukee Metro Sewer
System.
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City of Muskego
Tax Incremental District No. 4
Project Schedule
Tax Incremental District No. 4
Project - 1979 - 1980 1981 - 1982
Page 14
1983 -
Big Muskego Lake water
quality study $16,948
Bass Bay sanitary
sewer
facilities study
Sanitary sever
Major sanitary sewer
interceptor
Improvements to Lannon
Road
$14,850
$650,000 $500,000
297,000
530,000
Park development 500,000
Administrative costs 5,000 5,000 5,000
Organizational costs
contribution for ,any
Capital cost
project providing
sewerage treatment
capacity
Storm sewer bottle neck
project
3,720
1,077,665
200,000
Tornado warning system - 10,000
Totals " $20,668 $19,850 $655,000 $3,119,665
Tax Incremental District No. 4
City of Muskego Page 15
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
$365,000 nonassessable sewer costs for the Lake Denoon area. This
finance in part the payment to the Town of Norway and $320,000 and
represents 522 of the principal of the issue. Thus, 52% of the
TID No. 1 as follows:
principal and interest on these bonds is the responsibility of
Total principal and interest $1,875,081
Times 52% X .51
TI0 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, 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 TID No. 7.
B. In 1979 the city issued promissory notes totalling 5670,000, 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.0. 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
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.
TID No. 1
Principal and Interest
TID No. 2
$406,875
563,627
TID No. 3 388,325
TID No. 4
TID No. 5
55,342
TID No. 6 22,260
12,676
TID No. 7 502,410
All proceeds from the 1980 issue are not yet expended, therefore,
final proration of this and future issues will be made and reported
in future annual reports.
0 City of Muskego
Tax Incremental District No. 4 Page 16
6
C. 1982 Promissory Notes
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
B
a
TID No. 1
TI0 No. 2
TID No. 3
TI0 No. 4
TI0 No. 5
TI0 No. 6
TID No. 7
Total
Note discount
Finance fees
Interest during
construction
Note issue
$ 642.000
125,365
1,280,500
$3,442,865
79,000
25,000
403,135
$3,950,000
"
Total principle and interest of these notes will be apportioned to the
seven districts as shown below:
TI0 No. 1 18.64
TI0 No. 2 14.95
TID No. 3
TI0 No. 4 18.88
6.68
TID No. 5 3.65
TI0 No. 6
TI0 No. 7
. 00
37.19
with long term 6.0. Bonds to be issued late in 1983.
It is anticipated these notes will mature in 1'384 and will be refinanced
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City of Muskego
Tax Incremental District No. 4
0. 1982 Promissory Notes
Page 17
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
TID No. 2
TID No. 3
TI0 No. 4
TI0 No. 5
TI0 No. 6
TID No. 7
Subtotal
Note discount
Finance fees
Interest during
construction
Note issue
$ 510,000
887,050
84.650
2,037;OOO
592,300
1,214,700
2,510,350
$7,836,050
176,000
45,000
742,950
$8,800,000
Total principle and interest of these notes will be apportioned to the
seven districts as shown below:
TID No. 1 6.51
TID No. 2 11.32
TID No. 3
TID No. 4 25.99
1.08
TI0 No. 5 7.56
TI0 No. 6
TI0 No. 7
~~ ~
15.50
32.04
e with long term G.0. 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. 4 Page 18
E. 1983 G.O. Bonds
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 $15,150,000
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City of Muskego
Tax Incremental District No. 4 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 Dol 1 ar Amount
TID No. 2 7.66 $ 951,027 TI0 No. 3 1.28 150,918 TID No. 4 8.68 1,077,665 TI0 No. 5 2.55 316,595 TID No. 6 6.13 761,070 TID No. 7 1.53 189,957
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.
City of Muskego
Tax Incremental District No. 4
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 Flap, 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 $53,850,000
X. Relocation
business in conjunction with this project plan. In the event
It is not expected that there will be a need to relocate any person or
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,
by the I,lisconsin Department of Industry, Labor, and Human Relations
all property owners will be provided an informational pamphlet prepared
(DILHR) and if any person is to be displaced as a result of the
acquisition they will be given a pamphlet on "Relocation Benefits" 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 #4 .-
r ' Legend
(A) Water feasibility study -
(8) Bass Bay sewer & Kurtz Lane
Big Muskego Lake
(E) Improvement of Lannon Road &
road improvement
traffic light e (F) Park development
Other Items Included in District
(C) Sewer study
(0) Pro-rata share of sanitary sewer
(G) Administrative costs
(H) Organizational costs
(I) Financing costs
(J) Share of Milwaukee Metro sewer system
(K) Storm sewer bottle neck project
(L) Tornado warning system
interceptor & impr. of Woods Road