municipal budgets, capital improvements planning & public funding

Wisconsin Rural Water Association

“Municipal Budget Cycle Capital Improvements Planning

and Public Funding”Kurt R. Muchow

Community Development Consultant

Session Agenda

• Municipal Budget / Project Cycle vs. Public Funding

• Capital Improvements Planning

• Conventional Funding Methods

• Public Funding Opportunities

Typical Municipal Budget/Project Cycle2015 2016

J J A S O N D J F M A M J J A S O N D

Budget Planning

Budget Review & Adoption Project Implementation

• Financing• Design / Bidding

Project Implementation• Construction

Municipal Project Cycle vs. Public Funding2015 2016 2017

M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

CDBG PF Grant Award (Construction 2017)

CDBG PF Award (Construction 2018)

CDBG PF Application

CDBG PF Application

CDBG PF Grant Award (Construction 2016)

CDBG PF ApplicationW

DNR Stewardship Application Deadline

WDNR Stewardship Award (Construction

2017)

WDNR Stewardship Application Deadline


2018)

WDNR Stewardship Application Deadline


2016)

WDOT TAP Award (Construction 2018-

2019)

WDOT TAP Application (Bi-Annual)

WDOT TAP Award (Construction 2020-

2021)

WDOT TAP Application (Bi-Annual)

WDOT STP Award (Construction 2017-

2019)

WDOT STP Application (Bi-

Annual)

WDOT STP Award (Construction 2019-

2020)

WDOT STP Application (Bi-

Annual)

WDNR CW

F & SDWL Award (Construction 2018)

WDNR CW

F & SDWL (ITA &

PERF)

WDNR CW

F & SDWL ITA &

PERF

WDNR CW

F & SDWL Final Application

WDNR CW

F & SDWL Award (Construction

2017)

WDNR CW

F & SDWL ITA &

PERF

WDNR CW

F & SDWL Final Application

Municipal Capital Improvements Planning• Goal

– Provide communities with information on the capital improvements needed during the upcoming planning period (typically 5 years) and the proposed method of financing these expenditures.

Municipal Capital Improvements Planning• Definition:

Capital Improvements– “Capital items should

have a useful life of at least 3 years and a cost of $5,000 or more.”

Municipal Capital Improvements Planning• Components:

– Administrative & Policy Guidelines– Financial Analysis– List of Needed Projects & Priority– Estimated Costs– Timetable for Implementation– Sources of Project Funding

Municipal Capital Improvements Planning

• General Suggestions- Include all Departments (Public works, water, wastewater, police, fire, parks, etc)- Create a CIP Committee (Dept. heads, Clerk, Treasurer, Board/Council members)- Understand Outside Influences * WDOT Six Year Plan * New Regulations (WDNR, EPA, etc.) * Private Development- Include Your Professional Advisors (Financial advisor, engineer, planner, etc.)- Update the CIP Annually

Case Study-Viroqua (2015 – 2019 CIP)

• Financial SummaryTable 1: General Financial Comparison (2011)

Category High Low Average Viroqua 1. General Gov’t. Spending Per Capita* $ 144.88 $ 3.80 $ 91.09 $ 93.96 2. Street Maintenance Per Capita $ 181.94 $ 64.40 $ 134.74 $ 171.17 3. Fire-Ambulance Per Capita $ 242.75 $ 22.05 $ 83.44 $ 32.49 4. Police Expenses Per Capita $ 656.71 $ 88.12 $ 201.73 $ 226.81 5. General Obligation Debt ($1,000s) $ 15,455 $ 0.00 $ 6,788 $ 5,068 6. Debt Per Capita $ 3,461 $ 0.00 $ 1,414 $ 1,162 7. Munc. Property Tax Levy ($1,000s) $ 4,373 $ 1,067 $ 2,148 $ 1,720 8. Munc. Property Tax Levy Per Capita $ 998 $ 221 $ 427 $ 394 9. Munc. Property Tax Rate (Per $1,000) $ 13.03 $ 3.56 $ 6.95 $ 7.70 10. Equalized Values ($1,000,000s) $ 629.1 $ 190.9 $ 322.4 $ 237.9 11. Shared Revenues ($1,000s) $ 1,785 $ 163.7 $ 757.3 $ 1,090.8 12. Shared Revenue Per Capita $ 396 $ 32 $ 150 $ 250 13. Average Income/Tax Return** $142,080 $ 30,880 $ 43,930 $ 35,200

*Gen. Govt. Spending Per Capita – Spending for legislative, legal, general & financial administration and general buildings. **Average Adjusted Gross Income per tax return.


• Financial Summary Table 2: Sanitary Sewer Rate Comparison (2010)

Annual Sewer Cost Per Household

Community Population (Based on 55,000 gallons per year) Darlington 2,450 $ 636 Dodgeville 4,692 $ 455 Lancaster 3,855 $ 444 Mauston 4,447 $ 302 Prairie du Chien 5,895 $ 328 Richland Center 5,186 $ 645 Average of Above Communities NA $ 468 Wis. Avg. (2,000 to 5,000 Pop.) NA $ 420 Viroqua 4,362 $ 398


Table 3: Municipal Water Rate Comparison (As of 02/18/13)

Annual Water Cost Per Household Community Population (Based on 75,000 gallons per year) Darlington 2,450 $ 334 Dodgeville 4,692 $ 352 Lancaster 3,855 $ 321 Mauston 4,447 $ 335 Prairie du Chien 5,895 $ 186 Richland Center 5,186 $ 236 Average of Above Communities NA $ 294 Wis. Avg. (Class 3 Utilities) NA $ 316 Viroqua (rate based on 02/26/13 rate increase) 4,362 $ 462

• Financial Summary


• Financial SummaryTable 4: Historic Revenue Trends


• Financial Summary Table 5: General Obligation Borrowing Capacity

Description 2007 2008 2009 2010 2011 2012 Max. G.O. Debt Limit $11,867,725 $12,129,190 $12,479,515 $ 12,085,210 $11,983,000 $11,708,190 Existing G.O. Debt $ 5,254,354 $ 5,265,248 $ 5,690,787 $ 5,553,089 $ 5,068,479 $ 5,736,293 G.O. Debt Capacity $ 6,613,371 $ 6,863,942 $ 6,788,728 $ 6,532,121 $ 6,824,521 $ 5,971,897

Case Study-Viroqua (2015 – 2019 CIP)• Financial Summary

Table 6: Annual General Obligation Debt Service Payments G.O. Loan 2014 2015 2016 2017 2018 2019 2020 1. 2007 $475,000 $ 66,923 $ 64,695 $ 67,440 $ 64,920* $ 64,940* $ 0 $ 0 2. 2007 $1,380,000 $ 60,190 $ 60,190 $ 60,190 $180,190 $180,210 $174,960 $174,648 3. 2009 $820,000 $ 103,175 $101,575 $ 99,929 $ 99,105 $ 98,190 $ 96,140 $ 0 4. 2010 $618,000 $ 84,675 $ 83,200 $ 81,725 $ 82,138 $ 81,475 $ 80,738 $ 80,933** 5. 2012 $237,000 $ 27,360 $ 27,360 $ 27,360 $ 27,360 $ 27,360 $ 27,360 $ 27,360 6. 2012 $2,730,000 $ 424,000 $436,600 $433,488 $199,753 $192,810 $205,560 $207,635 7. Subotal $766,322 $773,620 $770,131 $ 775,955 $644,965 $584,757 $490,575 8. Less Fed. Rebate $ 14,647 $ 12,521 $ 10,379 $ 8,135 $ 5,833 $ 3,457 $ 1,027 9. Less TID No. 3 $ 30,667 $ 30,558 $ 30,438 $ 30,604 $ 30,751 $ 30,547 $ 0 10. Less Sewer Util. $ 21,266 $ 20,828 $ 20,395 $ 20,950 $ 21,487 $ 20,999 $ 21,513 11. Less Water Util. $111,748 $116,756 $120,590 $115,236 $113,783 $118,159 $122.226 12. Total $587,994 $592,958 $588,329 $601,030 $473,112 $411,595 $345,810 *$122,490 balloon payment is due in 2017. Debt service assumes Note is refinanced and paid over two years. **2020 is the last payment for this loan.


• Financial Summary Table 7: Additional 20 Year General Obligation Debt During Planning Period

Principal Amount Year 20 Year Amortization 2017 $1,650,000 2018 $ 790,000 2019 $ 800,000 Subtotal $3,240,000 Less Library & Fire Truck $1,800,000 Net Additional G.O. Debt $1,440,000


• Financial Summary Table 8: Sanitary Sewer Debt

Original 12/31/12 Final

Revenue Bonds & G.O. Debt Amount Balance Payment 1. 2002 CWF Loan $1,710,237 $1,011,584 2022 2. Series 2007D Revenue Bond $1,300,000 $1,225,000* 2027 3. Series 2010A Revenue Bond $1,675,000 $1,605,000* 2029 4. General Fund Debt $ 618,000 $ 109,971 2020

*Ehlers recommended 2007D and 2010A bonds be refinanced in 2019 to reduce debt service cost.


• Financial Summary Table 9: Water Utility Debt

Original 12/31/12 Final

Revenue Bonds & G.O. Debt Amount Balance Payment 1. 2004 SDWL Loan $1,017,329 $ 634,342 2023 2. Series 2007C Revenue Bond $ 600,000 $ 515,000* 2027 3. 2010 General Obligation Loan $ 618,000 $ 140,073 2020 4. 2012 General Obligation Bond $ 618,000 $ 695,000 2020 5. 2013 SDWL Loan (New SDWL for Well No. 6 $1,491,348 $1,491,348 2033

*Will be refinanced as part of Rural Development financing to reduce debt service cost.


• Financial Summary Table 10: Summary of Existing TIDs

End of Latest

TID No. Purpose Creation Date Expenditure Date Termination Date 2 Industrial Development 12/14/1993 12/14/2015 12/14/2020 3 Industrial Development 09/14/1995 09/14/2017 09/14/2022 4 Blight Elimination 04/27/1999 04/27/2021 04/27/2026* 5 Industrial Development 04/25/2006 04/25/2021 04/25/2026** *TID No. 4 may get a four year extension if needed to repay debt **TID No. 5 may get a four year extension if needed to repay debt


Table 12: Existing TID Debt

Original 09/01/13 Final Tax Increment Bonds Amount Balance Payment 1. TID No. 2: 2004 Elegant Stone Products $ 92,310 $ 13,312 2014 2. TID No. 3: 2007 Animal Tracks $ 75,000 $ 26,853 2015 3. TID No. 3: 2010 Dental Office $ 76,461 $ 76,461 ?? 4. TID No. 3: 2011 Sleepy Hollow $ 75,000 $ 75,000 2023 5. TID No. 3: 2011 VEDA $ 1,700,000 $ 1,465,053 2022 6. TID No. 3: 2009 STFL TID Portion $ 265,000 $ ?? 2019 7. TID No. 4: 2005 Viroqua Food Coop $ 208,664 $ 105,926 2017 8. TID No. 4: 2004 Viroqua Food Coop $ 30,000 $ 30,000 2019 9. TID No. 4: 2006 Walgreens.GNI $ 400,000 $ 265,900 2019

Table 13: Existing TID Fund Balances (12/31/12)

Description TID No. 2 TID No. 3 TID No. 4 TID No. 5 Total TIDs Fund Balance ($106,934) $113,020 ($ 15,923) $134,089 $124,252


Table 14: Projected Surplus TIF Revenue Available

Year TID No. 2 TID No. 3 TID No. 4 TID No. 5 2104 $ 0 $ 0 $ 0 $ 45,129 2015 $ 0 $ 0 $ 0 $ 45,129 2016 $ 0 $ 0 $ 0 $ 45,129 2017 $ 12,638 $ 0 $ 0 $ 45,129 2018 $ 39,857 $ 0 $ 0 $ 45,129 2019 $ 39,857 $ 0 $ 10,529 $ 45,129 2020 $ 39,857 $ 0 $ 84,273 $ 45,129 2021 $ 39,857 $ 35,669 $ 84,273 $ 45,129 2022 $ 0 $ 113,207 $ 84,273 $ 45,129 2023 $ 0 $ 250,278 $ 84,273 $ 45,129 2024 $ 0 $ 0 $ 84,273 $ 45,129 2025 $ 0 $ 0 $ 84,273 $ 45,129 2026 $ 0 $ 0 $ 84,273 $ 45,129 Total Projected Surplus $ 172,066 $ 399,155 $ 600,440 $ 720,769

Table 15: Additional TID Debt

Description TID No. 2 TID No. 3 TID No. 4 TID No. 5 Loan Amount $ 145,000 $ 300,000 $ 500,000 $ 615,000* Year Borrowed 2015 2017 2019 2014 *Note: Includes $180,000 of surplus fund balance as of 08/11/14.

Case Study-Viroqua CIPTID Boundary Mapvs. Proposed Projects


• Financial Goals & Strategies (Adopted by Common Council)

• Minimize new G.O. Debt to keep debt service at current levels.

• Do not increase water user rates.• Limit Increases of sewer user rates to +/- 7% to

8%, keep lower than comparable communities.• Maximize use of surplus TIF Revenue.• Maximize use of grants.• Allocate Street Reconstruction Costs to Sewer &

Water Utilities.

Case Study-Viroqua (2015 – 2019 CIP) Funds Available for CIP• General Obligation Debt (No D/S Increase)• $1,440,000 (Based on 20 yr term)• Water Utility (No Rate Increase)• $1,155,000 Rural Dev. Loan• $ 385,000 Rural Dev. Grant• $1,540,000 Total• Sanitary Sewer Utility (7.5% Rate Increase)• $ 800,000 Reserves• $3,700,000 New Debt (CWF Rates)• $ 500,000 CWF Principal Forgiveness• $5,000,000 Total


Funds Available For CIP• Tax Incremental Financing• $1,560,000 New TIF Debt• Finance w/G.O. Loans• DOT LRIP Grant• $221,000 For Northeast Ave.• CDBG Public Facility Grants• $1,000,000 (Assumes Two $500,000 Grants)• Misc. Grants & Contributions• $300,000

City of Viroqua Capital Project Information Sheet

Project Title: Rock Avenue – Decker to W. South Street City Department: Public Works Description: Reconstruction of street, curb & gutter, sidewalk, sanitary sewer, water

main, storm sewer & street lights. Project includes reconstruction of:

Rock Avenue from Decker to W. South Street Terhune Street from Main to Rock West Court Street from Main to Rock West Court Street from Rock to Dunlap J efferson Street from Main to Rock West South Street from Main to Rock

Justification & Priority: Condition of sanitary sewer, water main and street is very poor.

Scheduled for construction in 2015. Project is being implemented in conjunction with construction of the new Library and expansion of the Western Wisconsin technical College.

Priority: 1 2 3 4 5 (Circle One: 1=Highest, 5=Lowest)

Budget: Funding Sources: Capital Purchase = $

General Fund = $ 0 Land Acquisition = $

Sewer Utility (RD Loan) = $ 891,028 A/E Fees = $ 179,900

Water Utility (RD Loan) = $ 728,030 Construction = $ 1,441,379

Borrowing = $ 0 Contingency = $ 144,138

Grants (RD Water 25%) = $ 242,677 Other – Admin & Legal = $ 16,063

TIF (TIDs 2 & 3) = $ 134,116* Other - Interest = $ 80,255

Other = $ 0 Total = $ 1,995,851 Total = $ 1,995,851

Implementation Schedule: Project will be bid early 2015 and constructed in 2015.

Special Project Requirements or Considerations: Rural Development Grant & Loan for Water Main will include both Rock Avenue & Northeast Avenue. Rural Development Sewer Loan will include Rock Avenue & Northeast Avenue. Rural Development eligible water system projects include water main & services and 50% of street reconstruction. Total

estimate Rural Development eligible costs = $970,707. Rural Development grant = 25%. RD Loan = 75%. Rural Development eligible sanitary sewer system projects include sewer main, manholes, laterals and 50% of street

reconstruction. Total estimated Rural Development eligible costs = $891,028. To be with $891,028 of Rural Development Sanitary Sewer Loan. *TID No. 2 & 3 revenue will be used to pay debt service on Rural development sewer loan in an amount equivalent to a $118,800 TIF loan.

Storm sewer & non-eligible total costs = $134,116 100% to be paid with TIF. Submitted By: Steve Clark, DPW

City of Viroqua Police, Fire, Public Works and Parks & Recreation Departments

Five Year Capital Improvement Project List

Project Description 2015 2016 2017 2018 2019 Total Future Projects

A. Police Department 1. Squad Cars 2. Radio System Subtotal Police B. Fire Department 1. SCBA Equip. 2. Storage Building 3. Building Addition Subtotal Fire C. Public Works 1. Tractor & Brush Hog 2. Pickup Truck 3. Dump Truck Subtotal Pub. Works D. Parks & Recreation 1. Seal Coating Trails 2. Park Bowl Bleachers 3. Tractor W/ Mower 4. ¾ Ton Plow Truck 5. Playground Equip. 6. Baseball Lights 7. Swimming Pool Subtotal Park & Rec E. Equip Reserve Fund

$65,000 $0 $65,000

$0 $0 $0 $0

$91,000 $0 $0 $91,000

$7,500 $0 $0 $0 $0 $0 $0 $7,500

$10,000

$32,500 $30,000 $62,500

$0 $0 $0 $0

$0 $25,000 $0 $25,000

$7,500 $100,000 $0 $0 $0 $0 $0 $107,500

$10,000

$32,500 $0 $32,500

$0 $0 $0 $0

$0 $0 $160,000 $160,000

$0 $0 $0 $0 $0 $0 $0 $0

$10,000

$65,000 $0 $65,000

$200,000 $0

$0 $200,000

$0 $0 $0 $0

$0 $0 $35,000 $0 $0 $0 $0 $35,000

$10,000

$32,500 $0 $32,500

$0 $0

$0 $0

$0 $0 $0 $30

$0 $0 $0 $25,000 $200,000 $0 $0 $225,000

$10,000

$227,500 $30,000 $257,500

$200,000 $0 $0 $200,000

$91,000 $25,000 $160,000 $276,000

$15,000 $100,000 $35,000 $25,000 $200,000 $0 0 $375,000

$50,000

$0 $0 $0

$0

$100,000 $125,000 $225,000

$0 $0 $0 $0

$0 $0 $0 $0 $0

$100,000 $2,600,000 $2,700,000

Total Project Costs $163,500 $195,000 $192,500 $300,000 $257,500 $1,108,500 $2,925,000 Funding Sources 1. General Funds 2. Gen. Reserve Funds 3. G.O. Bonds/Notes 4. Water Utility Funds 5. Water Ulility Loan 6. Sewer Utility Funds 7. Sewer Utility Loan 8. Grants 9. Other Contributions 10. Tax Increment Fin.

$72,500 $0 $91,000 $0 $0 $0 $0 $0 $0 $0 $0

$70,000 $0 $75,000 $0 $0 $0 $0 $0 $50,000 $0 $0

$32,500 $0 $160,000 $0 $0 $0 $0 $0 $0 $0 $0

$65,000 $0 $102,000 $0 $0 $0 $0 $100,000 $33,000 $0 $0

$32,500 $0 $125,000 $0 $0 $0 $0 $0 $100,000 $0 $0

$272,500 $0 $553,000 $0 $0 $0 $0 $100,000 $183,000 $0 $0

Total Funding $163,500 $195,000 $192,500 $300,000 $257,500 $1,108,500 Equipment Reserve Fund

Balance $10,000 $20,000 $30,000 $40,000 $50,000 $50,000

Note: The C ity should consult with their financial advisor (Ehlers & Associates) regarding financing future capital projects.

City of Viroqua Infrastructure Projects

Five Year Capital Improvement Project List Project Description 2015 2016 2017 2018 2019 Total Future

Projects A. Street Seal Coating B. Rock Avenue - North 1. Water System 2. San. Sewer System 3. Storm Sewer Subtotal Rock Ave. C. Northeast Avenue 1. Water System 2. San. Sewer System 3. Storm Sewer Subtotal NE Ave. D. Abandon Oak St. Well E. Jefferson Street F. North 14 Lift Station G. Wastewater Treatment H. Center Street 1. Water System 2. San. Sewer System 3. Storm Sewer Subtotal Center Street I. Rock Avenue – South 1. Water System 2. San. Sewer System 3. Storm Sewer Subtotal Center Street J . Washington Street 1. Water System 2. San. Sewer System 3. Storm & Lighting Subtotal Wash. Street K. J Street Lift Station

$84,000

$970,707 $891,028 $134,116 $1,995,851

$0 $0 $0 $0

$0

$0

$0

$0

$0 $0 $0 $0

$0 $0 $0

$0

$0 $0 $0 $0

$0

$84,000 $0 $0 $0 $0

$576,931 $470,695 $192,084 $1,230,709

$100,000

$0

$580,0000

$3,000,000

$0 $0 $0 $0

$0 $0 $0 $0

$0 $0 $0 $0

$0

$84,000

$0 $0 $0 $0

$0 $0 $0 $0

$0

$0

$0

$0

$0 $0 $0 $0

$0 $0 $0 $0

$0 $0 $0 $0

$0

$84,000

$0 $0 $0 $0

$0 $0 $0 $0

$0

$225,000

$0

$0

$0 $0 $0

$0

$0 $0 $0 $0

$0 $0 $0 $0

$0

$84,000

$0 $0 $0 $0

$0 $0 $0 $0

$0

$0

$0

$0

$685,850 $606,810 $120,055 $1,412,715

$173,745 $352,000 $180,055 $705,800

$0 $0 $0 $0

$348,700

$420,000

$970,707 $891,028 $134,116 $1,995,851

$576,931 $470,695 $192,084 $1,230,709

$100,000

$225,000

$580,000

$3,000,000

$685,850 $606,810 $120,055 $1,412,715

$173,745 $352,000 $180,055 $705,800

$0 $0 $0 $0

$348,700

$105,900 $1,250,055

$729,955 $2,580,010

Total Project Costs $2,079,851 $4,994,709 $84,000 $309,000 $2,551,215 $10,018,775 $2,580,010 Funding Sources 1. General Funds 2. Gen. Reserve Funds 3. G.O. Bonds/Notes 4. Water Utility Reserve 5. Water Ulility Loan 6. Sewer Utility Reserve 7. Sewer Utility Loan 8. Grants (RD / CWF / SDWL) 9. Grants (LRIP/CDBG) 9. Tax Increment Fin.

$0 $0 $84,000 $0 $728,030 $0 $891,028 $242,677 $0 $134,116*

$0 $0 $84,000 $0 $525,948 $804,000 $2,025,695 $641,982 $721,000 $192,084

$0 $0 $84,000 $0 $0 $0 $0 $0 $0 $0

$0 $0 $84,000 $0 $0 $0 $0 $0 $0 $225,000

$0 $0 $286,705 $0 $0 $0 $1,307,510 $0 $500,000 $457,000

$0 $0 $522,705 $0 $1,253,978 $804,000 $4,224,233 $884,659 $1,221,000 $1,008,200*

Total Funding $2,079,851 $4,994,709 $84,000 $309,000 $2,551,215 $10,018,775 *Note: Revenue from TID No. 2 & No. 3 will be used to pay debt service on the Rural Development sewer loan in an amount that is

equivalent to a 4118,800 TIF loan. Note: The City should consult with their financial advisor (Ehlers & Associates) regarding financing for future capital projects

Constr Total 12/14/15* 9/14/17* 4/27/21* 4/25/21* Total Water Water Sewer Sewer CWF CWF SDWL SDWL DOT G.O. San. SewerProject Name Year Cost TID No. 2 TID No. 3 TID No. 4 TID No. 5 TID Loan Grant Loan Grant Loan Prin. For. Loan Prin. For. LRIP Loan Reserve

1 Nelson Parkway 2014 $430,000 $0 $0 $0 $398,000 $398,000 $0 $0 $0 $0 $0 $0 $0 $0 $32,000 $0 $0 $0

2 Rock Ave - North 2015 $1,995,851 $134,116 $0 $0 $0 $134,116 $728,030 $242,677 $891,028 $0 $0 $0 $0 $0 $0 $0 $0 $0

4 Northeast Ave 2016 $1,230,709 $0 $192,084 $0 $0 $192,084 $425,948 $141,982 $249,695 $0 $0 $0 $0 $0 $221,000 $0 $0 $0

5 WWTP 2016 $3,000,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,776,000 $500,000 $0 $0 $0 $500,000 $0 $224,000

6 Hwy 14 Lift Station 2016 $580,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $580,000

7 Jefferson St - West 2018 $225,000 $0 $0 $225,000 $0 $225,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

8 J Street Lift Station 2019 $348,700 $0 $0 $0 $0 $0 $0 $0 $0 $0 $348,700 $0 $0 $0 $0 $0 $0 $0

9 Center St. 2019 $1,412,715 $0 $0 $240,000 $200,000 $440,000 $0 $0 $0 $0 $606,810 $0 $0 $0 $350,000 $15,905 $0

10 Rock Ave - South 2019 $705,800 $0 $0 $0 $17,000 $17,000 $0 $0 $0 $0 $352,000 $0 $0 $0 $0 $150,000 $186,800 $0

11 E.D. & Downtown $20,000 $0 $0 $20,000 $20,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

12 Planning $30,000 $0 $0 $15,000 $0 $15,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $15,000 $0 $0

Total $9,978,775 $134,116 $192,084 $500,000 $615,000 $1,441,200 $1,153,978 $384,659 $1,140,723 $0 $3,083,510 $500,000 $0 $0 $253,000 $1,015,000 $202,705 $804,000

***TIF-RD $118,800 $10,884 $107,916 $0 $0

TID Total $145,000 $300,000 $500,000 $615,000 $1,560,000

* End of Expenditure Period ** Colored cell means project is located within one-half mile radius of TID.

TIF dollar amounts shown in white cells means these funds need to be transferred to TID No. 4.***Revenue from TID No. 2 & 3 will be used to pay debt service on Rural Dev Sewer Loan for Rock Ave & Northeast Ave at a rate that is equivalent to a $118,800 TIF loan.

City of Viroqua2015-2019 Capital Improvements Plan

Project Funding Spreadsheet (08-12-14)

CDBG

Tax Incremental Financing Rural Development DNR Env. Improvement Fund

• G.O. Borrowing• $553,000 for Equipment & Vehicles• $552,750 for Infrastructure• Less than maximum goal• Water Utility• $1,153,978 Rural Dev, Loan (Rock & NE Ave)• $384,659 Rural Dev. Grant (Rock & NE Ave)• No Rate Increase• Sewer Utility• $1,140,000 Rural Dev. Loan (Rock & NE Ave)• $3,100,000 DNR CWF Loan (WWTP)• $ 500,000 DNR CWF Prin. Forgiveness (WWTP)• $ 804,000 Reserves (WWTP & Hwy 14 LS)• +/- 8% Rate Increase without Refinancing

Case Study-Viroqua (2015 – 2019 CIP)CIP Summary

• 2020-2024• General Fund• Two Bonds will be paid off (2020 & 2022)• Can borrow +/- $1,450,000 based on 20 year term• Sanitary Sewer Utility• Two Bonds will be paid off (2020 & 2022)• Can refinance 2007 & 2010 bonds in 2019• Can borrow +/- $2,500,000 with future surplus revenue• Water Utility• Two Bonds will be paid off (2020 & 2023)• Can borrow +/- $1,160,000 with future surplus revenue

Case Study-Viroqua (2015 – 2019 CIP)After Five Years – Then What?

Conventional Funding Methods

• Budgeted Funds- General Fund (Local Taxes)- Water Utility (User Rates)- Wastewater Utility (User Rates)- Stormwater Utility (User Rates)


• General Obligation Debt- Debt Service Paid With R. E. Tax Revenue (Can also be paid by TIF Revenue or Utility Revenue)- Secured by Taxing Authority- Most Secure Debt – Lowest Interest Rates- Max. G.O. Debt = 5% of Equalized Value- Project Types: Equipment, Buildings, Streets, Sidewalks, storm sewer, etc.


• Mortgage Revenue Bonds- Debt Service Paid With Sewer or Water Rates- Secured by Utility- Higher Interest rates vs. G. O.- Project Types: Sanitary Sewer, Water or Storm

Sewer Utility Projects


• Special Assessments- Costs Assessed to Benefitting Properties- Statutory Process Including Public Hearing- Assessment Methods: Per Lot, Per Front Foot, Per Acre, etc.- Typical Project Types: Sidewalk, Curb & Gutter, Sewer, Water, etc.


• Impact Fees- Created by Local Ordinance- Charged to Developers or Lots Within New Developments- Typical Projects: Park Fees, Stormwater Fees, Sewer & Water Fees, Library Fees, etc.

Public Funding Opportunities

• What is Public Purpose?– Economic Development– Health & Safety– Blight Elimination & Urban Renewal– Low-Income & Poverty– Affordable Housing– Environmental Protection– Recreation & “The Pursuit of

Happiness”

Public Funding OpportunitiesParks, Trails & Water Recreation

• WDNR Stewardship• WDNR Rec. Boating• County Park Grants• County Conservation

Grants• DOT Alternatives

(MAP21)• Tax Incremental

Financing

Public Funding OpportunitiesWater Resources & Flood Mitigation

• WDNR Urban Non-Point• WDNR Lake Planning &

Protection• WDNR River Planning &

Protection• WDNR Municipal Flood

Control• FEMA Hazard Mitigation• CDBG PF & PF-ED• Tax Incremental Financing

Public Funding OpportunitiesMunicipal Infrastructure

• WDNR Safe Drinking Water

• WDNR Clean Water Fund• Rural Dev. Rural Utilities• Rural Dev. Comm. Fac.• WDOT Local Programs• CDBG PF & PF-ED• WDOT Tran. Econ Assist.• Tax Incremental Financing

Public Funding OpportunitiesEconomic Development

• Tax Incremental Financing• CDBG Planning• CDBG PF & PF-ED• WEDC Programs• Brownfield Programs• Econ. Dev. Admin• Rural Development

Public Funding OpportunitiesFederal Surface Transportation Bill (MAP-

21)• Signed into law July 6, 2012• New “Transportation Alternatives

Program”• Replaces:

• Transportation Enhancement• Safe Routes to Schools• Scenic Byways• Recreational Trails• Bi-Annual Application Cycles

in Odd Years.

Tax Incremental Financing - Basics• TIF = Tax Increment Financing• TID = Tax Increment District• First Authorized in1975, Wis. 66.1105• Currently over 1000 active TIDs in

Wisconsin in over 400 communities

Tax Incremental Financing - BasicsTIF is a tool available to communities that assists in promoting the orderly growth and development of the community. TIF is used as a means to:•promote industrial development•promote mixed-use development•eliminate blighted areas•rehabilitate deteriorating areas

Tax Incremental Financing - Basics

Tax Incremental Financing – General Requirements• The development described in the Project Plan would not

occur without the creation of TID• Improvements in the TID are intended to encourage and

attract business growth and improve the local tax base• The District is contiguous and contains only whole parcels• Planned improvements will enhance the value of property in

the TID• Improvements to the District are likely to encourage and

promote conformity with the City's existing plans and policies• The equalized value of the taxable property of the TID, plus

the aggregate value increment of all existing TIDs does not exceed 12% of the total value of equalized taxable property in the City

TID Creation Process

• Determine need for TIF• Identify TID Type• Identify Area to be included in the TID Boundary• Identify TID Eligible Projects• Perform Economic Analysis• Create a Project Plan• Establish Joint Review Board• Public Hearing & Plan Commission Resolution• Common Council Resolution• Joint Review Board Adoption

Eligible TIF Projects

• Eligible TIF projects can be located within the TID, or within one-half mile radius.

• Eligible projects must benefit TID• Eligible projects include:

- Infrastructure- Land acquisition / demolition- Site development- Development Incentives- Marketing & promotion- Adminitration

Type of Tax Increment Districts

• Industrial Development TID- 50% of area needs to be suitable for and zoned for industrial development- Maximum Life = 20 years - Expenditure Period = 15 Years


• Blight Elimination TID- Typically Older Neighborhoods- 50% of Area Must be Declared Blighted- Requires Formal Designation of Blight- Letter’s Must be sent to Landowners- Maximum 27 year = 27 Years - Expenditure Period = 22 Years

Type of Tax Increment Districts• Rehabilitation/Conservation TID

- Commonly Referred to as Revitalization TID- At least 50% of the property must be suitable for rehabilitation or conservation- No more than 25% can be vacant property- Letter’s Must be sent to Landowners- Maximum 27 year = 27 Years - Expenditure Period = 22 Years


• Mixed-Use TID- Must Have at Least Two Land Uses (Commercial/Residential/Industrial)- No More Than 35% can be Residential- Maximum Life = 20 years - Expenditure Period = 15 Years

PDCH 2008 Street & Utility Reconstruction• City Infrastructure Reconstruction

– 10,000 LF of Street & Utility Reconstruction

– Downtown Enhancement– Total Project Cost = $4.3 Million

• $1.5 M WDNR CWF Loan• $1.7 M WDNR SDWL Loan• $660,000 WDOT Enhancement Grant• $300,000 CDBG Grant• $105,000 Tax Incremental Financing• $50,000 Fundraiser• $0 General Fund

Railroad Crossing Safety Improvements

USH 18 Bypass

Blackhawk Ave.

Enhancements

Downtown Revitalization

Marquette Road Reconstruction

Existing TIDs with Eligible Projects

City of Prairie du Chien2014-2015 TIF ProjectsProject Cost •Lessard St. Extension = $578,000•22nd St. Extension = $1,615,000•Woodridge Acres = $1,050,000•Prairie Mason Redevelopment= $450,000•Godden Pit = $395,000•Northgate Business Park = $1,132,000•Marq. Road Sewer & Water = $1,300,000

Total = $6,600,000

Funding Source•$502,000DNR SDWL•$265,000Sewer Bond•$5,833,000 Surplus TIF Funds

Viroqua Street & Utility Reconstruction• 14 City Blocks of Street & Utility

Reconstruction• Majority Located In Downtown• Total Project Cost = $3,225,000• Project Funding• $1,153,978 Rural Development

Water Loan• $384,659 Rural Development

Water Grant• $1,140,723 Rural Development

Sewer Loan• $326,200 TIF• $221,000 DOT LRIP Grant• All Loans Paid by TIF and Sewer

& Water Utilities. $0 General Fund.

DeForest TID Development• Municipal Funded Private Development

– Project Summary• Private Business Park, 100 acres• $5,000,000 Development Cost

– Village Obligations• Execute Development Agreement• Create TID & Special Assessment• Issue Bonds to Fund Infrastructure• Design & Construct Infrastructure

– Developer Obligations• Execute Development Agreement• Implement Private Development• Repay Village Bond through TIF Revenue & Special Assessment Payments

Lyndon Station Water System• Project Summary

– New Water Tower– Water Distribution System Improvements– Well Rehab & Emergency Generator

• Total Project Cost = $1,820,000– $600,000 CDBG-PF Grant– $1.22M WDNR SDWL Loan

Marathon City Business Park• Project Summary

– 80-acre Business Park– Creation of $9.0M new tax base– Creation of 150 jobs

• Total Project Cost = $3.5M– $250,000 CDBG-PFED Grant– $530,000 DOT-TEA Grants (2)– $2,720,000 TIF

Park Place Apartments, Reedsburg• Project Summary

– 48-unit Senior Housing Apts.

– Downtown Redevelopment

– Blight Elimination

• Total Cost = $6.0M– $640,000 CDBG-

EAP– $300,000 TIF– WHEDA Section 42

Tax Credits

DeForest Business Park• Project Summary

– 115-acre Business Park– Creation of $63.8M new tax base– Creation of over 300 jobs

• Project Scope– Streets & Utilities– Storm Water management– Rail Spurs

• Funding– RDA-Lease Revenue Bonds– $798,000 CDBG-PFED Grants (2)– $300,000 WDOT-TEA Grants (2)– $174,000 WDNR Non-Point Source Grant– Tax Incremental Financing

Village of OregonOregon to Badger State Trail• Project Summary• 1.8 Mile Trail• Total Project Cost = $842,000

• Funding Sources• Village TIF = $120,000• 2011 Dane County PARC Grant = $250,000• 2014 Dane County PARC Grant = $150,000• Town of Oregon & Contributions = $ 35,000• Village Funds =

$287,000

DeForest-Upper Yahara River TrailDescription Phase 2 Phase 3Total Trail Length 1,750 lf 7,500 lf• Boardwalk 1,300 lf 1,700 lf• Paved Trail 450 lf 5,800 lfProject Cost $850,932

$680,000Source of Funds• WDNR Stewardship $243,997

$180,000• WDNR Urban Rivers $ 0

$245,000• Dane County PARC $225,000

$150,000• Federal Rec. Trail $ 45,000 $

45,000• Madison Community Foundation $ 0 $

50,000• Village Funds $336,935 $

0

Monona-Lottes Park• Project Scope• Parking Lot• Boat Ramp• Piers• Navigational Dredging• Restroom & Fish Cleaning

• Total Project Cost• $1.6 Million

• Funding• Dane County PARC Grant = $150,000• WDNR Rec. Boating Grant = $500,000• Developer Park Fees = $150,000• City TIF = $700,000• City General Fund = $100,000

Questions?

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