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).