Number
090259
Version
ORIGINAL
Reference
Sponsor
ALD. BOHL
Title
Resolution directing the Commissioner of City Development, the City Comptroller and the Commissioner of Assessments to provide financing information regarding tax incremental districts likely to be closed out in 2010 and 2011.
Analysis
This resolution directs the Commissioner of City Development, the City Comptroller and the Commissioner of Assessments to provide, for 9 tax incremental districts likely to close out in 2010 or 2011, the following information to the Common Council:
Commissioner of City Development - The expected date at which the amount of tax increment collected will be sufficient to retire the debt incurred for expenditures authorized when the TID was created or amended.
City Comptroller - An analysis of the borrowing schedule for the TID, which is necessary to accurately project the remaining debt service costs for the TID.
Commissioner of Assessments - A forecast of the likely property value of the district in future years, which will indicate whether the existing incremental tax revenues from the district are likely to be sustained.
This information shall be provided within 15 days or 90 days of adoption of this resolution, depending on whether the district is expected to close out in 2010 or 2011, respectively.
Body
Whereas, The Wisconsin Statutes allow for tax incremental financing to be used to fund the costs of public works or improvements outside a tax incremental district (“TID”) but within one-half mile of the district’s boundaries; and
Whereas, This statutory provision presents an opportunity for the City of Milwaukee to use tax incremental financing to fund street paving and construction projects within one-half mile of TID boundaries, thereby freeing up street paving dollars in the City’s regular capital budget for use on street projects in areas more than one-half mile from a TID; and
Whereas, To fund street projects in this manner, the project plans for some or all of the City’s approximately 48 active TIDs could be amended to increase the project costs for each district by the equivalent of one or two years’ worth of the district’s incremental tax revenue; and
Whereas, The success of a tax incremental financing-funded street paving program depends to a considerable extent on the financial status of the City’s various TIDs and their ability to absorb additional project costs; and
Whereas, In an April 22, 2009, letter to Common Council President Willie Hines and Ald. James Bohl regarding a request for detailed information on the current and future financial status of each active TID, including the ability of each TID to absorb additional draw on its incremental value, the Commissioner of City Development recommended the following TIDs, which are expected to close out in 2010, as appropriate for this type of analysis:
1. City Hall Square (TID No. 23).
2. Lindsey Heights/City-financed (TID No. 44).
3. Lindsey Heights/developer-financed (TID No. 44).
4. Erie/Jefferson (TID No. 56).
; and
Whereas, If the financial status of any or all of these 4 TIDs allows for the TID project plans to be amended to provide for additional project costs (i.e., street paving expenditures), thereby keeping the TIDs open beyond 2010, it is critical that the Common Council and City staff have this financial information as soon as possible so that they can take it into consideration as they prepare and deliberate the 2010 Budget; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the Commissioner of City Development, the City Comptroller and the Commissioner of Assessments are directed to provide, for each of the 4 TIDs identified above, the following information to the Common Council within 15 days of adoption of this resolution:
Commissioner of City Development - The expected date at which the amount of tax increment collected will be sufficient to retire the debt incurred for expenditures authorized when the TID was created or amended.
City Comptroller - An analysis of the borrowing schedule for the TID, which is necessary to accurately project the remaining debt service costs for the TID.
Commissioner of Assessments - A forecast of the likely property value of the district in future years, which will indicate whether the existing incremental tax revenues from the district are likely to be sustained.
; and, be it
Further Resolved, That the Commissioner of City Development, the City Comptroller and the Commissioner of Assessments are directed to provide this same information within 90 days of adoption of this resolution for 5 additional TIDs likely to close out in 2011:
1. Third Ward Riverwalk (TID No. 34).
2. West North Avenue (TID No. 40).
3. MidTowne Center (TID No. 42).
4. 875 E. Wisconsin Avenue (TID No. 47).
5. Holt Plaza (TID No. 55).
Requestor
Drafter
LRB09257-1
JDO
06/15/2009