LRB - FISCAL SECTION ANALYSIS
FEBRUARY 5, 2002 AGENDA	ITEM 8, FILE 011362

ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE 	EMMA J. STAMPS

File #011362 is a resolution authorizing an additional $13,762 to be expended from the Special Purpose Account 'Excess TID #19 Funds' for the purpose of making excess TID revenue payments to other taxing jurisdictions.

Background
1. Tax Incremental District 19 (Campus Neighborhood) was established in 1992 for assisting Marquette University in its development of the Marquette Campus Circle Project.

2. Hilltop Enterprises Inc., a non-profit corporation was established by Marquette University to finance and manage the construction and operation of a specified commercial development on its campus.

3. The City of Milwaukee granted the Redevelopment Authority of the City of Milwaukee (RACM) a $6,150,000 grant to assist Marquette University in its development of the Marquette Circle Project.

4. RACM subsequently provided the funds to the Milwaukee Economic Development Corporation (MEDC) which in turn provided a $4,170,000 loan to Hilltop Enterprises Inc.
 
5. Resolution 990814 designated that the $4,786,425.37 loan repayment ($4,170,000 principal and $616,425.37 interest) be deposited in the City's General Obligation (GO) Debt Service Fund to offset City GO debt service costs incurred for this purpose.

Discussion
1. In 2001, TID #19 closed prematurely. A special purpose account was established in order to pay the excess funds from the TID to qualifying taxing districts.

2. The 2001 budget recognized $700,000 for excess TID #19 revenue, whereby the City retained $200,000 and an anticipated $500,000 owed to other taxing jurisdictions.

3. Excess revenue over expenditures came to $755,966 of which $513,762 is owed qualifying taxing jurisdictions other than the City.

4. The Comptroller has certified greater-than-anticipated revenue of $13,762 for TID #19.  This revenue is due qualifying taxing jurisdictions including Milwaukee Public Schools, Milwaukee Area Technical College and the Milwaukee County.

Fiscal Impact
This file authorizes an additional $13,762 expenditure for the purpose of making excess TID revenue payments to other taxing jurisdictions.

The remaining $42,204 ($42,204 above the $200,000 estimated as excess to be retained by the City) will go into the City tax stabilization fund.

cc:	Marianne Walsh	Prepared by: Emma J. Stamps X8666
	W. Martin Morics 	LRB-Fiscal Review
	Mike Daun	February 1, 2002
	Laura Engan
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