Number
031616
Version
SUBSTITUTE 3
Reference
Sponsor
ALD. MURPHY AND DAVIS
Title
A substitute ordinance relating to authorization of expenditures for tax incremental districts.
Sections
304-93 cr
Analysis
This substitute ordinance establishes a procedure by which the common council may approve expenditures of city funds for a particular tax incremental district.
Body
The Mayor and Common Council of the City of Milwaukee do ordain as follows:
Part 1. Section 304-93 of the code is created to read:
304-93. Tax Incremental Districts-Authorized Funding.
1. PURPOSE. This section is enacted to provide for common council review and approval of expenditures of city funds for any tax incremental district.
2. CITY AUTHORIZED FUNDING. a. In the resolution creating a tax incremental district, the common council shall specify the amount of city funds authorized to be spent to implement the project plan.
b. Effective May 15, 2005, a tax incremental district shall have an authorized funding amount equal to 110 percent of the sum of funding not exceeding $1,000,000 explicitly authorized by resolutions for that district. Nothing in this paragraph shall cause the withdrawal of funding that has been released for a tax incremental district prior to May 15, 2005.
3. FUNDING RESOLUTIONS. A resolution authorizing funds to be expended for a tax incremental district shall contain within the body of the resolution the explicit amount of funds authorized to be expended. Unless the resolution states the amount is in addition to amounts previously authorized, the funding amount shall be deemed to be the new limit on total city funding for that tax incremental district. The city comptroller shall define and add to the resolution the funding amount to cover financing expenses.
4. PROCEDURE FOR INCREASING FUNDING. The expenditure of city funds for a particular tax incremental district in excess of amounts previously authorized for a district shall occur only after common council adoption of a resolution authorizing additional funding, as follows:
a. The department of city development determines that city expenditures for a tax incremental district may exceed those authorized for the district.
b. The department of city development verifies that sufficient budget authority is available to provide additional city funds.
c. The department of city development provides a projection, prepared within the past 18 months, of tax incremental revenues and an analysis of their ability to cover anticipated project costs, including financing costs as defined by the city comptroller.
d. An authorizing resolution shall contain a recital that enumerates:
d-1. Tax incremental district plan's estimate of total tax incremental district expenditures.
d-2. Department of city development's estimate of total tax incremental district expenditures.
d-3. Total authorized expenditures after adoption of the resolution.
e. An authorizing resolution is introduced that includes the information, and complies with the provisions, in paragraphs a to d.
f. Upon adoption of an authorizing resolution by the common council and a request by the department of city development, the comptroller shall release the requested amount of authorized funds for the tax incremental district.
5. ANNUAL REPORT. The city comptroller shall submit its annual TID audit and together with the department of city development shall submit annually to the common council no later than August 1 a report and summary of the status of all tax incremental districts, detailing the amount of expenditures, accomplishments in such districts, projections as to when the districts will be closed out, and the percentage of allowable debt each district represents.
Part 2. File Number 880779, adopted July 26, 1988, authorizing submission of an annual report on tax incremental finance districts, is rescinded.
LRB:
APPROVED AS TO FORM
______________________
Legislative Reference Bureau
Date: ___________________
ATTORNEY
IT IS OUR OPINION THAT THE ORDINANCE
IS LEGAL AND ENFORCEABLE
_____________________________
Office of the City Attorney
Date: _________________________
Department
Drafter
DCD:MJW:mjw
02/08/05
LRB04093-9
BJZ/cac
2/15/2005