Committee of the Whole

City of Oconomowoc Committee-Of-The-Whole Tuesday, February 06, 2024 - 7:15 PM City Hall - Council Chambers 174 E. Wisconsin Ave. Oconomowoc, WI 53066 (Or immediately following Utility Committee) Notice: If a person with a disability requires that the meeting be accessible or that materials at the meeting be in accessible format, call the City Clerk at least 48 hours prior to the meeting to request adequate accommodations. Tel: (262) 569-2186. 1. Call to order and confirmation of appropriate meeting notification 2. Committee Business a. Discussion and possible action on Status of TIF District #4 3. Adjourn ________________________________ Diane Coenen, City Clerk City of Oconomowoc Notice is hereby given that a majority of the Common Council will be present at the above scheduled meeting to gather information about a subject over which they have decision-making responsibility. This constitutes a meeting of the Common Council pursuant to State ex rel. Badke v. Greendale Village Board, 173Wis. 2d 553, 494 N.W. 2d 408 (1993) and must be noticed as such, although the Common Council will not take any formal action at this meeting. 1  MEMORANDUM FINANCE DEPARTMENT Date: January 31, 2024 To: Mayor and Common Council From: Laurie Sullivan-Murray, Finance Director Re: TIF #4 Status Update RELATES TO THE STRATEGIC PLAN Strategic Goal-IV.C.1 – Village Green Enhancement BACKGROUND TIF District #4, Downtown TIF, was established in September of 2003. The district has completed all the project line items except for the Waterfront improvements line item. The last year for project costs to be expended in TIF #4 is September 2025. Currently, the TIF district has collected enough increment to pay for all the projects that have been completed to date. Since there will be sufficient increment collected in 2024 from the 2023 tax levy, the City needs to decide whether it will do the final projects or close the TIF District. The only project left that is eligible for funding through TIF #4 is the Village Green. ADDITIONAL ANALYSIS The remaining project line budget is $1.2 million. These funds could be used to enhance the Village Green area up to Fowler Lake. Only areas that are within the TIF 4 boundary are eligible. The Village Green bathroom is not an eligible project, but the grading, sidewalks and safety enhancements would be. All funds must be used by September 2, 2025. FINANCIAL IMPACT I have included a copy of the TIF 4 cash flow spreadsheet in the packet. As shown on the spreadsheet, using up to $1.2 million in funding for the Village Green will allow the TIF District to close in 2026, which is five years earlier than its legal life. Using the TIF funding will allow the Village Green project to move forward without the use of debt or levy funding proceeds. Once the TIF closes the City will see a levy capacity increase of approximately $76,000. *see attached calculation. 1 2 RECOMMENDATION Recommendation is to use the funding available in TIF #4 to complete the enhancements to the Village Green. SUGGESTED MOTION Motion to approve funding from TIF #4 to be used for the Village Green project. 2 3  TIF #4 CASH FLOW Projected Contrib/Adv YEAR END Total Debt Capital Developer Other TID Other Debt from other Annual FUND FINAL AUDITED YEAR Principle Interest Service Expenses Pay/Go Expense Total Expense Increment Revenue Proceeds funds Total Revenue Balance BALANCE YE FUND BAL Notes 2003 0 0 0 0 0 0 0 0 0 0 0 0.00 2004 0 0 0 (400,000) (20,521) (420,521) 0 0 0 0 (420,521) (420,520.52) (420,520.52) Adv from General Fund 2005 0 0 0 0 (120,502) (120,502) 43,578 5,136 0 48,714 (71,788) (492,308.20) (492,308.20) 2006 0 (41,871) (41,871) (2,213,467) (305,206) (2,560,544) 141,780 13,457 5,000,000 5,155,236 2,594,692 2,102,384.07 2,102,384.07 2007 0 (190,142) (190,142) (1,622,165) (174,749) (1,987,056) 315,935 87,619 0 403,554 (1,583,502) 518,881.62 518,881.62 2008 0 (200,519) (200,519) (1,309,065) 74,389 (1,435,195) 374,429 14,863 0 389,292 (1,045,903) (527,021.79) (527,021.79) 2009 (5,000,000) (216,260) (5,216,260) (239,674) (150,319) (5,606,253) 301,908 7,937 5,000,000 5,309,846 (296,407) (823,429.19) (823,429.19) 2010 0 (129,343) (129,343) (6,177) (55,014) (190,535) 341,867 6,183 0 348,050 157,515 (665,914.69) (665,914.69) 2011 (5,000,000) (110,871) (5,110,871) 0 (94,758) (5,205,629) 211,229 5,173 5,054,890 5,271,292 65,663 (600,251.47) (600,251.47) 2012 0 (110,886) (110,886) (655,423) (50,990) (817,299) 137,136 28,818 0 165,954 (651,345) (1,251,596.48) (1,251,596.48) 2013 0 (123,071) (123,071) (294,269) (40,560) (457,900) 71,225 5,503 0 3,000,000 3,076,728 2,618,828 1,367,231.05 1,367,231.05 TIF 3 Contribution 2014 (4,985,000) (123,071) (5,108,071) (67,429) (45,778) (5,221,278) 51,341 21,466 0 3,633,949 3,706,757 (1,514,521) (147,290.01) (147,290.01) TIF 3 Contribution 2015 0 (6,738) (6,738) (111,395) (43,654) (161,786) 96,034 12,657 0 108,691 (53,095) (200,384.76) (200,384.76) 2016 0 (5,425) (5,425) (703,898) 0 (46,962) (756,286) 259,822 21,431 281,253 (475,032) (675,417.00) (675,417.00) 2017 (28,656) (28,656) (1,076,877) (38,129) (3,608) (1,147,270) 339,012 19,313 0 358,325 (788,945) (1,464,362.10) (1,464,362.10) Begin Gateway Dev Pay‐Go pymnts 2018 (35,219) (35,219) 0 (75,329) (150) (110,698) 346,029 28,935 374,964 264,266 (1,200,095.63) (1,200,095.63) 2019 (35,219) (35,219) 0 (85,715) (50,150) (171,084) 500,813 42,929 543,742 372,658 (827,437.94) (827,437.94) 2020 (35,219) (35,219) (709,032) (88,514) (185) (832,950) 503,339 37,985 541,324 (291,626) (1,119,064.19) (1,119,064.19) Balance to 2020 Audit 2021 (35,219) (35,219) (276,995) 0 (150) (312,364) 572,455 36,250 608,705 296,341 (822,723.28) (822,723.28) *Reduce Pay/Go to Equal Total $300K 2022 (16,333) (16,333) 0 0 (150) (16,483) 449,524 28,484 478,008 461,525 (361,198.44) (361,198.44) Balance to 2022 Audit 2023 (4,083) (4,083) 0 (150) (4,233) 427,699 37,245 464,944 460,711 99,512.82 99,512.82 Balance to 2023 Financials 2024 (200,000) (150) (200,150) 490,190 30,000 520,190 320,040 419,552.70 419,552.70 Close Out or additional project? 2025 (1,200,000) (150) (1,200,150) 490,190 30,000 520,190 (679,960) (260,407.42) (260,407.42) Last year for project costs 2026 0 (150) (150) 490,190 30,000 520,190 520,040 259,632.46 259,632.46 Close 2027 0 0 490,190 30,000 520,190 520,190 779,822.34 779,822.34 2028 0 0 490,190 30,000 520,190 520,190 1,300,012.22 1,300,012.22 2029 0 0 0 490,190 30,000 520,190 520,190 1,820,202.10 1,820,202.10 2030 0 0 0 490,190 30,000 520,190 520,190 2,340,391.98 2,340,391.98 2031 0 0 0 490,190 30,000 520,190 520,190 2,860,581.86 2,860,581.86 Last year to collect increment $ (14,985,000) $ (1,392,510) ########### $ (9,408,871) $ (287,687) $ (1,128,867) $ (27,202,786) ######### $ 359,404 ######### $ 6,633,949 $ 26,083,721 4  CITY OF OCONOMOWOC - T.I.D. #4 - PROJECT PLAN TO ACTUAL EXPENDITURE COMPARISO 01/31/24 PER CUMMULATIVE PROJECT PLAN PROJECT CAPITAL EXPENDITURES: WATERFRONT IMPROVEMENTS 1,450,000.00 0.00 WI AVE RECONSTRUCTION - CITY SHARE 488,659.00 488,658.66 ROW PROPERTY ACQUISION 2,720,775.00 2,720,774.95 WI AVE RECONSTRUCTION - ENGINEERING 249,775.00 250,036.64 STREETSCAPE IMPROVEMENTS 191,151.00 191,151.00 PARKING LOT RECONSTRUCTION 625,000.00 1,548,528.46 PROPERTY ASSEMBLY 3,456,469.00 3,477,723.72 MISC BUILDING DEMOLITION 718,719.00 465,615.73 RELOCATION EXPENSE 0.00 0.00 SITE IMPROVEMENT LOANS & GRANTS 100,000.00 881,064.36 REHABILITATION & REVITALIZATION LOANS 0.00 0.00 MARKETING 0.00 0.00 CONTINGENCY 106,750.00 0.00 TOTAL CAPITAL OUTLAY 10,107,298.00 10,023,553.52 GENERAL PROJECT ADMINISTRATION: ADMINISTRATIVE COSTS 1,054,290.00 1,024,277.51 TOTAL PROJECT ADMINISTRATION 1,054,290.00 1,024,277.51 FINANCING COSTS: CAPITALIZED INTEREST 558,889.00 558,888.89 BOND DISCOUNT & ISSUANCE 110,890.00 54,889.70 TOTAL FINANCING COSTS 669,779.00 613,778.59 TOTAL PROJECT COSTS 11,831,367.00 11,661,609.62 0.20 11,661,609.62 169,757.38 Y:\TIF Districts\TID 4\2023 Financial Statements\Fin Stmts TID 4 - 202312.31.23 FINAL 5 City of Oconomowoc TID 4 closure Impact Final TID Incremental Value 2023 Value: $ 39,974,200 City TID Out Equalized Valuation: 3,576,119,500.00 Final Vlaue as a Percent of TID Out Equalized Value: 1.118% 50% is for Levy Limit: 0.0056 Levy Limit ‐ 2023 for 2024 (minus adjustments & PP): $ 13,688,953 Levy Limit Adjustment for TID Closure: $ 76,508 Tax Rate Impact: City TID Out Equalized Valuation: 3,576,119,500.00 Levy (Including Adustments): $ 16,132,660.00 City Tax Rate $ 4.511 City TID Out Equalized Valuation (Plus TID 4): 3,616,093,700.00 City Tax Rate After TID Closure: $ 4.461 6