Number
081744
Version
SUBSTITUTE 2
Reference
Sponsor
ALD. BOHL
Title
Substitute resolution directing the Commissioner of City Development and the City Comptroller to provide information relating to possible use of tax incremental financing to fund public infrastructure projects outside the boundaries of tax incremental districts.
Analysis
This resolution directs the Commissioner of City Development and the City Comptroller to each provide the following information to the Common Council within 15 days of the date of adoption of the resolution:
1. A detailed assessment of the current and prospective financial status of each of the City’s active tax incremental districts.
2. The ability of each active tax incremental district to absorb additional draw-down on its incremental tax revenue amounting to the equivalent of one or two years’ worth of incremental tax revenue (it is anticipated that these additional funds would be used to fund street paving and construction projects within one-half mile of tax incremental district boundaries).
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; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the Commissioner of City Development and the City Comptroller are directed to each provide the Common Council with a detailed assessment of the current and prospective financial status of each of the City’s active tax incremental districts; and, be it
Further Resolved, That the Commissioner of City Development and the City Comptroller are further directed to each provide the Common Council with information on the ability of each active tax incremental district to absorb additional draw-down on its incremental tax revenue amounting to the equivalent of one or two years’ worth of incremental tax revenue; and, be it
Further Resolved, That the Commissioner of City Development and the City Comptroller shall provide the requested information to the Common Council within 15 days of the date of adoption of this resolution.
Requestor
Drafter
LRB09164-3
JDO
05/05/2009