Loading...
PCR1982053Resolution No. P.C. 53 - A2 RESOLUTION AMENDING A PROJECT PLAN FOR TAX INCREMENTAL IlISTRICT NUMRER 5 PLANNING COMMISSION OF THE CITY OF IrUSKEGO. UISCONSIN WHEREAS. the Planning Conmission adopted resolution P.C. 8 - 82 amending a project plan for Tax Incremental District No. 5; and UHEREAS. the Comnon Council referred resolution P.C. 8 - 82 back to the Planning Comnission for reconsideration; and 40 - 82 directing Ehlers and Associates to prepare an amended project plan for Tax Incremental Oistrict No. 5; and UHEREAS, on May 4, 19A2 the Planning Comnission approved resolution UHEREAS. the Planning Comnission has notified the chief executive officers of all local government entities having the power to levy taxes on property within the district, including the school board of any school district which includes property within the district; and WHEREAS. a public hearing has been properly noticed and held by the opportunity to express their views on the proposed amended project plan; and Planning Comnission wherein interested parties were afforded a reasonable WHEREAS. the Planning Comnission has prepared an amended project plan for Tax Incremental Olstrict Number 5, which will: Update the project plan to reflect actual costs of projects completed; delete, add and reschedule projects; reduce costs and add to costs of various projects as outlined in the amended project plan (copy attached). UHEREAS, the proposed amended project plan, a copy of which Is attached as Exhibit A, shall not extend the implementation more than five years after the dfstrlct was created; and . .' YHEREAS, the amended project plan has been compared with the city master plan; 1. Such amended profect plan for Tax Incremental Distrlct Nunher 5, City of Muskego is feasible, and 2. 5uch amended project plan is in confonity with the master plan of the City of Huskego. BE IT FURTHER RESOLVEO that the Planning Comntsston of the Clty of Muskego approves such amended project plan for Tax Incremental ntstrlct Number 3, pursuant to the provtslons of Sectton 66.46. Wlsconstn Statutes, and recomnends to the Comnon Counctl the adoption of the amended project plan. Passed and adopted thlr 141 day of J"uc , 1982. ayneII;. mentine, &2Lcc yor COUNTY OF WAUKESHA) CITY OF MUSKEGO 1. the undersigned. being the duly qualified and acting City Clerk of the City of Muskego. Wisconsin. no HEREBY CERTIFY that I have carefully compared the attached and foregoing resolution of the Planning Comnission of the City of Muskego. Wisconsin. which was approved and recomnended to the Comnon Council by the Planning Comnission on June 1. 1982. and that the same is a full, true and correct transcript thereof insofoar as said resolution related to approving an amended project plan for Tax Incremental Oistrict a Number 3, City of Huskego. UisconSfn. UITNESS My hand officially and the official seal of said city this City Clerk (CITY SEAL) EHLERS AND ASSOCIATES, INC. FINANCIAL SPECIALISTS FIRST NATIONAL-SO0 LINE CONCOURSE 507 MARQUETTE AVE. MINNEAPOLIS, MINNESOTA 55402 339-8291 IAREA COO€ 6721 Amended Tax Incremental District No. 5 Project Plan City of Huskego. Wisconsin I. Statement of Kind, Number and Location of Proposed Public Works created to correct deficiencies in public service which are substantially Tax Incremental District No. 5 (TIn No. 5) of the City of Huskego was 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 Lake improvement program as well as gravel excavation sites. Low density development is part of the planning goals of the community for this area. 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 construction. installation, acquiring of property or easements, restoring include the cost of engineering, design, survey, inspection, materials, 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 0 including but not limited to the following: A. Buy land for a fire engine house and construction and equipping of a fire engine house. 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 the two sewer treatment plants and eventually connect Huskego 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 Improvement of Jewel Crest Road to open property for development and provide for emergency vehicle access to the area, both within and without the district. The unnecessary widening of Jewel Crest hive will not be included in this project. the budget for city administration, building inspection, assessing, Imputed administrative costs including but not limited to a portion of zoning, planning, public works, legal and finance 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 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 providing 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 be financed or expended for any other purpose. 0 Storm sewer. A portion of the cost of a tornado warning system. Little Muskego Lake. Engineering and planning costs for this project. 0 City of Muskego Tax Incremental Oistrict No. 5 Page 3 11. Economic Feasibility Study The City of Muskego's corporate limits are almost coterminous with those Waukesha County. Three large lakes enhance the landscape. Most urban of the former six mile square Town of Nuskego in the southeast corner of 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 luskego 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 park include Robert A. Gumieny, a wholesale beer distributor; Alpine Lanes, a ago. This company subcontracts machining. Other businesses in the industrial bowling alley; Lloyd Ham Contractors; Tinti Contractors; and Ludman Machine Corporation. Other industries in Yuskego 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 devleoprnent within the comnunity. 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 selfiimposed debt service limit of 0.34% of assessed value. 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 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 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 determination that expansion of the Muskego temporary treatment plants is justified. of this dileka and the lifting of the sewerage moratorium, subject to a City of Muskego 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 S112.430 7 $608,506 $310,348 227 - 1977 158 $6,887,885 0 0 169 $507.257 42 $122,624 11 $599.600 $293.395 158 1978 - 94 $5.218.248 0 0 120 $351.878 42 $123,578 14 $1,800,778 $295,563 130 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. 5. 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. 5 Income/Age/Education Data: Per capita income Mean family income Median family income Percent above $15,000 income Percent below poverty level 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 d 3.194 j13;042 $12,581 31.9% 3.8% ~. 12.4 23.8 89.0% 94.2% 27.1% $22.900 23.5% $105 Waukesha County $ 3,634 $14,285 $12,795 3.2% 34.3% 12.5 25.4 17.9% 83.4% 28.3% 33.3% $25,300 $122 Page 5 State Overall Average $ 3,046 $11,135 $10,068 7.4% 19.8% 27.2 12.1 69.1% 52.7% 70.7% 20.2% $17,300 $91 Tax Incremental District No. 5 City of Huskego 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 rates of the city are controlled by the Wisconsin Public Service Carmission 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 properties to pay part of the cost of street, curb, gutter, sewer and water extensions. The city can issue special assessment "E" bonds pledging revenues from special assessment installations to the extent assessment payments are outstanding. These bonds are not counted against the city's constitutional debt limit. The creation of a Tax Incremental District allows the city to consider the use of tax increment notes or bonds. This security would be retired from Any use of this security would require a historic record of tax increment tax increment revenues generated solely within this tax incremental district. revenues that would demonstrate the ability of the district to generate adequate revenues. To date this security is not marketable and its 0 marketability is dependent on a Supreme Court decision. 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. 5 Page 8 $995,200 to $1,208,300 as of January 1, 1981. It is anticipated that once Property values in TI0 No. 5 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 proposed to finance all projects of this district. The pro forma is based on the following assumptions: 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 $ 100,000 1984186 2.000.000 1987191 1,250,000 The 1982 equalized tax rate of $18.09 per thousand will decline at the rate of 25t per thousand per year. Property values will continue to increase at the rate of 62 per year because of inflation. W'ISCONSIN 'TAX INCREMENT PRO FORMA FOR: MUSKEG0 - TID 5 BASE VALUE 995.200 INFLATION RATE 6.0X INITIAL INCREMENT INITIAL TAX RATE 17.59 TAX RATE INCREMENT "25 0 1OTAL NEW CONSTRUCTION 12,450,000 YEAR 1981 1982 1984 1985 1983 1986 1987 a:: 1991 1790 1992 1,156,500 995,200 1,2oa,3ou 1,280, 798 1,457,646 3,743,011 1.6Q5.105 5,768, 1140 a, 3~~51.~6 13,896,549 1993 15,9ao,34:! 10,076,139 11,930,707 1974 18,189,163 1995 1Y,280,513 1997 21,663,581-t 1Y96 20, 437,343 PREVIOUS INFLATION VALUATION INCREMENT 0 0 72,498 87, 459 76,848 98,706 224,629 358,106 499,593 604,568 715,842 958,821 1,156,831 1,091,350 1,726,241 833,793 1,299,815 1992 22,963,399 1,377,804 TOTALS CONSTRUCTION TOTAL INCREMENT VALUATION 0 1,156,500 100,000 1,457,646 0 1,280,798 100,000 1,645,105 2,000,000 5,968,440 2,000,000 8,326,546 1,250,000 10,076,139 1,250,000 13,896,549 1,250,000 11,930,707 1,250,000 15,980,342 1,250.000 18.189.163 o 1,208,300 2,000,ooo 3,7113,811 0 19,280,513 0 20,1137,343 0 21,663,564 0 22,963,399 0 24,341,203 12,450,000 RATE TAX 16.6 17.6 18.1 17.3 17.1 16.8 16.6 16.3 16.1 15.6 15.8 15.3 15.1 14.6 14.8 111.1 14.3 13.8 REVENUE TIF 2 ,.678 3,857 5, 024 11,107 8,019 46,287 82,506 119,794 146,112 173,218 201,132 229,872 259,457 271,354 283,661 296,385 309,532 323,109 2,773,103 EXCLUSIVE PROGRAM BY EHLERS K ASSOC, INC. D 2 F 9 City of Muskego Tax Incremental Oistrict 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 Issue 1 which has entries for Drincioal onlv reDresents this district's share of f670,OOO G.O. notes issued in 1979 and Si,225,000 6.0. notes issued in 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. 80th these note issues will be refinanced with long term 6.0. 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. L? n G W .. cm m PC G. .ci* cc, 00ccs c 4 0 City of Huskego Tax Incremental District No. 5 Project (A) Land for a fire engine house t 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 (G) Finance fees (H) Capital cost contribution for any project providing sewerage treatment capacity (I) Storm sewer (J) Tornado warning system (K) Llttle Huskego Lake engineering 8 planning Totals Project Schedule Tax Incremental District No. 5 Page 14 1979 19RO 1981 19R2 1983 - - - - - 53.720 50,noo s3on.0011 4.365 162.960 5.000 5.0no 5.~00 0 City of Muskego Tax Incremental District No. 5 Page 15 IV. A Oescription 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 S1.310,000 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 principal and interest on these bonds is the responsibility of represents 52% of the principal of the issue. Thus. 52% of the TID No. 1 as follows: Times 52% Total principal and interest s1,m.081 X .51 TID No. 1 share of deht payments s 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 $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 51,451,312.50 is the liability of TID No. 7. E. 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 costs in each of the seven districts. A total of 64.07% principal planned 1981 capital projects some of which were eligible project 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 bl. 5. 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. 2 563,627 TID No. 3 382,141 TID No. 4 TID No. S 55,342 TID No. 6 48.231 TID No. 7 502.410 5406 ,875 22.260 All proceeds from the 1980 issue are not yet expended. therefore. final proration of this and quture fssues will be made and reported In future annual reports. City of Muskego Tax Incremental District No. 5 C. 1982 Promissory Notes Page 16 Short term G.O. promissory notes will be issued early in 1982 to finance during 1982. The note issue is calculated as follows: various projects of the seven districts to be constructed or purchased Project costs TID No. 1 TI0 No. 2 TI0 No. 3 TID No. 4 TID No. 5 TID No. 7 TID No. 6 Total Note discount Finance fees Interest during construction Note issue $ 642,000 m,nnn 2m.noo 650,000 298.365 1.28o.500 " $3,645.865 85,000 26,775 492,360 $4,250,000 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 TID No. 3 7.13 TID No. 5 TI0 No. 4 17.83 8.18 TIn No. 6 TID No. 7 35.12 .no ' It is anticipated these notes will mature in 1984 and will be refinanced with long term 6.0. Bonds to be issued late in 19133. 0 Tax Incremental District No. 5 City of Muskego 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 be constructed or purchased during 1983. The note issue is calculated as fallows: Project costs TID No. 1 TID No. 2 887,050 TID No. 3 235,568 TIn No. 4 2,037,noo TID No. 6 TIn No. 5 917,960 1,214,700 TIn No. 7 2,510,350 Subtotal Note discount $8,312,628 Finance fees 49.000 Interest during construction 948,372 Note issue ~9,500,ono s 510,noo 19o.nno \ Total principle and interest of these notes will be apportioned to the seven districts as shown below: TI0 No. 1 6.14 TID No. 2 TID No. 3 10.67 2.83 TII) No. 4 TIO No. 5 24.50 TID No. 6 TID No. 7 30.21 14.61 11.04 with long term G.O. Bonds to be issued late in 1983. It is anticipated these notes will mature In 1984 and wlll be refinanced City of Muskego Tax Incremental District No. 5 Page 18 E. 1983 G.0. Bonds 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 compatible with today's market demand. It is likely this will result in a increments without extending any maturities beyond 15 years which is enough long term debt to fund projects actually completed. substantial interest saving, as well as allow the city to issue only Assuming all projects included in the project plans of the seven districts are completed, the bond issue is calculated as follows: 1982 Promissory notes $ 4,250.000 1982 Promissory notes 9,500, on0 Tot a 1 f13.75n.m Bond discount 330,000 Finance fees 56,non Capitalized interest 2,364,000 Band issue s~~.~oo,ooo EXHIBIT - 2. 00 COMPUTER RUN FOR KUSKEGO TII:I UEHT SERVICE PLANNING 61 1/82 PRINCIPAL 816,500,Ooo INTEREST RATE 9 I 7500% KIENOM I HLOCK 5000 UATE OF BONKIS 1993 FIRST MA'rIJR:l:.TY 1 986 INTEIIEST 1S'l YR 1.250 TIMES YEAR?; INTEREST' TOTALS PRIHCIPAL IN'TEREST T n 'r n I., G'JF UEBT SERVICE FROM 1983 TO 1998 AVE IlEBT SERVICE FROM 1986 TU 199R 2,58l,J56 2,478,488 5OilD YEARS 212,075. 0000 ZI',:E MATURITY 12 I 0530 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 TIDs share a total of 27.83% divided as follows: District Percent Dol 1 ar hunt TI0 No. 2 7.66 TI0 No. 3 1.28 TID No. 4 8.68 TI0 No. 5 2.55 TI0 No. 6 6.13 TI0 No. 7 1.53 27.83 $ 951.027 150,918 1.077.665 316,595 761.070 189,957 $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. 5 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. 4 IX. List of Estimated Honproject Costs Private development and improvements $12,450,000 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 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 Hisconsin Statutes 32.27. LITTLE MUSKE( LA).