CCR1982028\
RESOLUTION NO. 28-82
RESOLUTION AMENDING A PROJECT PLAN FOR
TAX INCREMENTAL DISTRICT NUMBER FIVE
CITY OF MUSKEGO, UISCONSIN
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 Five, City of Muskego,
and
adopted a project plan for Tax Incremental District Number Five, and
WHEREAS, the City of Muskego, Planning Comnission has prepared and
WHEREAS, the Planning Comnission has prepared an amended project plan
for Tax Incremental District Number Five, which:
e 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:
re
a. Zoning ordinances
b. Master plan
c. Map
d. Buflding codes e. City ordinances
I
8. Contains a list of estimated nonproject costs;
9. Contains a statement of a proposed method for the relocation of any
person to be dfsplaced; and
notified the chief executive officers of all local government entities having
the power to levy taxes on property located within the district, Including the
district pursuant to Section 66.46(4)(e). Wisconsin Statutes; and.
school board of any school district which includes property within the
WHEREAS. the Planning Comnission has held a public hearing and has
UHEREAS. 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 Comnon Council of the City of
Huskego finds that:
1. Such amended project plan for Tax Incremental District Number 5.
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 lax Incremental District
Number 5, pursuant to the provisions of Section 66.46, Wisconsin Statutes.
Adopted this (7-r~ day of 3"hL , 1981.
Rayor
Attest:
City Clerk
EHLERS AND ASSOCIATES, INC.
FINANCIAL SPECIALISTS
FIRST NATIONAL-SO0 LINE CONCOURSE 507 MARQUETTE AVE. MINNEAPOLIS.MINNESOTA 55402 339-0291 (AREA CODE 61'
Amended
Tax Incremental District No. 5
Project Plan
City of Muskego, Wisconsin
I. Statement of Kind, Number and Location of Proposed Public Works
Tax Incremental District No. 5 (TID No. 5) 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. This area contains
low lands in need of fill which might be available through the Little Muskego
development is part of the planning goals of the community for this area.
Lake improvement program as well as gravel excavation sites. Low density
Paying for public improvements with tax incremental financing revenues should
assist low density development to become feasible. 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 projects
include the cost of engineering, design, survey, inspection, materials,
construction, installation, acquiring of property or easements, restoring
property to its original condition, apparatus necessary for the public work,
judgements or claims for damages and other expenses included as project costs
legal and other consultant fees, permits, testing, environmental studies,
including but not limited to the following:
A. Buy land for a fire engine house and construction and equipping of a
fire engine house.
E. Pro rata share of sanitary sewer facilities stljdy 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
the two sewer treatment plants and eventually connect Muskego sewers
to the Milwaukee metropolitan system or a new facility of the city.
City of Muskego
Tax Incremental District No. 5
D.
E.
F.
G.
H.
I.
J.
K.
Page 2
provide for emergency vehicle access to the area, hoth within and
Improvement of Jewel Crest Road to open property for development and
without the district. The unnecessary widening of Jewel Crest nrive
will not be included in this project.
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 finance fees.
Organizational costs
makers and other cont
financial consultant,
including but not limited to the fees of the
.racted services, publication and supplies.
attorney, planner, engineers, surveyors, map
Capitalized interest, finance fees, bond discounts, bond redemption
premiums, bond legal opinions, ratings, capitalized interest, bond
insurance and other expenses related to financing.
sewerage treatment capacity, such as a hookup to the Milwaukee
Pro rata share of capital cost contribution for any project provi-ding
metropolitan system, some other joint project or construction of a new
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 he financed
or expended for any other purpose.
Storm sewer.
A portion of the cost of a tornado warning system.
Little Muskego Lake. Engineering and planning costs for this project.
Citv of Muskeqo
0 Tax" Incremental District No. 5 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
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
employing 36, has been located in the industrial park for 6 years. Brodel
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 Hamm 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
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
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 Wisconsin 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
determination that expansion of the Muskego temporary treatment plants is
justified.
The City of Muskego's corporate limits are almost coterminous with those
1
City of Muskeqo e Tax Incremental District No. 5
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
$122.624
11
$599,600
158
$293,395
1978 -
94
$5,218,248
0
0
120
$351,878
42
$123,578
14
81,800,778
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
100
$757,506
36
$111,962
5
$1,275,000
126
$436,648
9
City of Muskego
Tax Incremental District No. 5
1 Income/Age/Education Data:
Mean family income
Per capita 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
B
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
Page 5
Waukesha Overall
State
county Average
$ 3.634 $ 3.046 .~
$14,285 $11,135
$12,795 $10,068
3.2% 7.4%
.~
34.3% 19.8%
12.5
25.4
12.1
27.2
77.9% 69.1%
83.4% 70.7%
28.3% 52.7%
$25.300
33.3%
$17,300
20.2%
$122 $91
e City of Muskego
Tax Incremental District No. 5 Page 7
In addition to general obligation bonds, the city can issue mortgage
revenue bonds to be repaid from revenues of the sewer 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
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 "6" 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.
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.
City of Muskego
Tax Incremental District No. 5 Page a
Property values in TID No. 5 have increased from the 1979 base of
$995,200 to $1,208,300 as of January 1, 1981. It is anticipated that once
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 is $995,200.
Private development which results in new tax base will be generated as
of January 1 as follows:
1982183
1984186
$ 100,000
1987191
2,000,000
1,250,000
AX INCRE:l.iEfJT PRO FORMA FOR: MUSKEGO -. T 111 5
975,200 INFLATION RATE 6,0%
INITIAL INCREMENT 0
.TOTAL NEW CONSTRUCTION 12.1-1-50,OOO
INITIAL TAX RKTF: 17.59 TAX RATE INCREMENT -,25
D
I901 995,200
17g2 1,156,500
1Y83 1,208,300
1.Y81.I. 1 , 280, 79El
1 Y 8 5 I , LIT7 , 6 1.t 6
1986 1,645,105
1 Y 8.7 3 , 7 1.1.3 , 13 1.1
19130 5,968,41.1.0
198Y 8,3:?6,51-t6
1.990 I0,076,13Y
1991 :lI,Y30;i07
) 1.992 13,896,54.9
1YY3 15, 930, 31.112
1Y9Y. 18, 1.89, 1.63
:l.?Y5 19,280,513
1997 2:L , 6.53, 501-1-
1YY.5 20, 437, 3t1-Li
1.972 2:!,763,37? 3 TOTALS
0 1,156,500 15.6
0 1,20f~,300 1u.:1 n Y.,~Ho;~Y~ 17.6
100,0@0 1,645,105 17.1
1.00,000 1,457,646 1.7.3
2,000,000 3,743,811 16.8
2,000,000 :;,768,1+40 16.6
2,000,000 8,326,546 16.3
1,:?50,000 10,076,139 16,:l.
j.,xo,ooo ll,y3a,7o7 I~,.u
1,?50,0@0 13,8Y6,5VY 15.6
1,250,000 1.5,980,34.2 15.3
1,2511,000 18,189,163 15.1
0 19,280,513 14.8
0 2 0 , 11- 3 7 , :3 '4.3 1 1.1. , 6
0 21 ,663,581-t 14.3
0 22, Y63.3YY :14. I
!I 2Lt,34-1,:?03 1.3.8
1:!,l.t5o,ono
IREVENUE
TIF
2 ,.6'78
3,857
5, 021+
0,019
:1 I. , :L 0 7
'+6,287
1 19 , 7 I? I+
82,506
146,112
JOY, 532
323, 10Y
2,7715,103
0
City of Muskego
Tax Incremental District No. 5 Page 10
Exhibit 1 demonstrates TIF revenues along with capitalized interest and other
debt for TIF projects.
revenues to be collected would he sufficient to retire existing and proposed
of $670,000 G.0. notes issued in 1979 and $1,225,n00 6.0. notes issued in
Issue 1 which has entries for principal only represents this district's share
1980.
The city will issue $4,250,000 short term G.O. 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.0. 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..
City of Muskego
Tax Incremental District No. 5 Page 14
Project
Project Schedule
Tax Incremental District No. 5
- 1979 1980 1981 - 1982 - 1983 - -
(A) Land for a fire
engine house 8
construction of the
fire engine house
(B) Sanitary sewer
facilities study
(C) Major sanitary sewer
interceptor
(0) Improvement of Jewel
Crest Road
(E) Administrative costs
(F) Organizational costs
(6) Finance fees
(H) Capital cost
contribution for any
project providing
sewerage treatment
capacity
(I) Storm sewer
(J) Tornado warning system
(K) Little Muskego Lake
engineering R planning
Totals
$ 50,000 $3on,oo0
4,365
162;960
94,000 -
$3,7211 $25,000 $303,365 91,484,560
City of Muskego
Tax Incremental District No. 5 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
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
principal and interest on these bonds is the responsibility of
represents 52% of the principal of the issue. Thus, 52% of the
TI0 No. 1 as follows:
Total principal and interest $1,875,081
Times 52% X .51
TID No. 1 share of debt
payments
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 $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.
6. 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.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 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 Id. 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 heen met.
TID No. 1 $406,875
TID No. 3
TI0 No. 2 563,627
382,141
Principal and Interest
TID No. 4
TID No. 5
TID No. 6
TID No. 7
55,342
48.231
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.
a
City of Muskego
Tax Incremental District No. 5 Page 16
C. 1982 Promissory Notes
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
TID No. 2
TID No. 3
TID No. 4
TIO No. 5
TID No. 6
TIn No. 7
Total
Note discount
Finance fees
Interest during
construction
Note issue
$ 642,000
515,000
260,000
650,000
298,365
1,280,500
$3,645,865
85.000
26,775
"
492,360
Total principle and interest of these notes will be apportioned to the
seven districts as shown below:
TIO No. 1 17.61
TID No. 2 14.13
TID No. 3
TID No. 4 17.83
7.13
TID No. 5 8.18
TID No. 6
TID No. 7 35.12
.no
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
3
B
City of Muskego
Tax Incremental District No. 5
D. 1982 Promissory Notes
Page 17
Late in 1982 short term 6.0. 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
TID No. 1
TID No. 2
TID No. 3
TID No. 4
TID No. 5
TII) No. 6
TID No. 7
Subtotal
Note discount
Finance fees
Interest during
construction
Note issue
235,568
917,960
1,214,700
2,037,noo
2,510,350
19n,nnn
49,000
$8,312,628
948,372
W,~OO,OOO
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 24.50
TID No. 5 11.04
TID No. 6 14.61
TID No. 7 30.21
with long term G.O. Bonds to he issued late in 19R3.
It is anticipated these notes will mature in 1984 and will be refinanced
City of Muskego
Tax Incremental District No. 5
E. 1983 G.0. Bonds
Page 18
It is anticipated that in the fall of 1983 the city will issue long term
General Obligation Ronds 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 8 4,250,ooo 1982 Promissory notes 9.5n0,oon
Tot a 1 w,750,00n Bond discount 330,000 Finance fees 56 ,non Capitalized interest 2,364,000
Bond issue ~1~,50n,non
City of Muskego
Tax Incremental District No. 5 Page 20
$827,700 per year for 15 years or $12,415,500. This cost must be pro rata
It is anticipated Muskego's payments for Milwaukee Metro Sewer will be
shared with the entire sewer service area. The TIOs share a total of 27.83%
divided as follows:
District Percent Dol 1 ar Amount
TID No. 2
TID No. 3
TI0 No. 4
7.66
8.68
1.28
TI0 No. 5 2.55
TI0 No. 6
TI0 No. 7
6.13
1.53
$ 951,027
150,918
1,077,665
316i595
761 io70
189,957
27.83 $3,447,232
These amounts will be transferred from the appropriate TI0 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. 5
V. Map Showing Existing Uses (attached)
VI. Map Showing Proposed Projects (attached)
Page 21
VII. Proposed Changes in Zoning Ordinances
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 $12,450,000
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,
by the Wisconsin 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
narrative appraisal, a map showing the owners of all property affected
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
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.
LITTLE
MUSKE(
LAt
Legend Other Items Included in District
(0) Improvement of Jewel (A) Buy land for fire engine house &
(B) Sewer study
construction & equipping of it
(C) Pro-rata share of sewer interceptor
(E) Administrative costs
(F) Organizational costs
(G) Financing costs
(H) Share of Milwaukee Metro sewer system
(I) Storm sewer
(J) Tornado warning system
(K) Little Muskego Lake planning
Jewel Crest Road