Number
121591
Version
SUBSTITUTE 3
Reference
Sponsor
ALD. MURPHY AND KOVAC
Title
A substitute ordinance relating to the city’s clean energy financing program.
Sections
304-26.5 rc
Analysis
This ordinance facilitates owner-arranged financing with a third-party lender for commercial property owners making renovations to improve the energy efficiency to their properties by levying annual installments as a special charge onto the property tax bill.
The city will make all reasonable and customary efforts to collect these special charges once they are levied onto the tax bill and remit them to the lender when collected. The city will be entitled to an administrative fee for services rendered in collecting and otherwise processing these special charge payments.
State law mandates that monies received by the city treasurer as payment on the property tax bill be used to pay obligations on the property bill in the following order:
1. Special charges, delinquent utility charges and personal property taxes.
2. Special assessments.
3. Special taxes.
4. Property taxes.
By levying these annual installments as a special charge onto the property tax bill, this ordinance places a portion of a debt owed by the property owner to a private lender before the owner’s property tax obligation to the city. However, in the event of foreclosure, the city receives all foreclosure proceeds and will pay the private lender only after the city receives full payment for all property taxes and other charges levied against the foreclosed property.
In addition, this ordinance repeals code provisions which effectively guaranteed one year’s principal and interest payments on clean energy financing loans through a grant-funded reserve fund.
Body
The Mayor and Common Council of the City of Milwaukee do ordain as follows:
Section 304-26.5 of the code is repealed and recreated to read:
304-26.5. Clean Energy Financibg.
1. PURPOSE. The city finds that renovatio...
Click here for full text