Finance Committee

City of Oconomowoc Finance Committee Aldermen: Spiegelberg, Chairman / Shaw, Secy / Rosek Tuesday, November 05, 2019 - 7:15 PM City Hall - Conference Room 3 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: 569-2186. 1. Call to order and confirmation of appropriate meeting notification 2. Committee Business a. Consider/recommend Budget Amendment for 2019 Grants/Donations Received - 1/1/19 to 9/30/19 b. Consider/recommend Amending §27.09(1)(a)(Table 1); (9)(b) & (c)(Table); (10)(b) & (c)(Table); and (12)(b)2 & 3(Table) of the City of Oconomowoc Municipal Code Relating to Impact Fees c. Consider/recommend Amending §13.62(3)(a)1(Table 1) of the City of Oconomowoc Municipal Code Relating to Sewer Availability Charges 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 DEPARTMENT Date: October 31, 2019 To: Finance Committee, City Council, and Mayor Nold From: Laurie Sullivan, Finance Director Re: Budget Amendment for Grants and Donations to the City RELATES TO THE STRATEGIC PLAN Strategic Goal- N/A BACKGROUND The following unbudgeted grants/donations were awarded and funds received during the first three quarters of 2019. A budget entry is recommended to allow for the additional revenue and expense. ADDITIONAL ANALYSIS N/A FINANCIAL IMPACT Donations received include: Wizard of Oz donations of $29,025, Dietznbach donations of $910, Police donations of $10,177, Watershed program grant of $10,000, Façade grant of $100,000, Parks grant of $660, and Training scholarships of $2,990. RECOMMENDATION Recommend approval of budget adjustment for collection of unbudgeted grants and donations to the City. SUGGESTED MOTION Motion to approve the budget amendments for donations and grants awarded to the City. 1 2 City of Oconomowoc Grants/Donations Received 1/1/19-9/30/19 The following unbudgeted grants/donations were awarded and funds received during the first three quarters of 2019. A budget entry is recommended to allow for the additional revenue and expense. Grant/ Donation Revenue Expense Granting Organization Description Amount Account Account Wisconsin Municipal Clerks Clerk- IIMC Scholarship 2,240.00 * 100-408-8501-502 100-502-2100-330 Association Wisconsin DOT PD- OWI/Seatbelt Grants 2,836.40 * 100-403-3523-503 100-503-3300-116 State of Wisconsin PD- Dispatch Training Grant 6,828.00 100-403-3523-503 100-503-3200-330 State of Wisconsin PD- Internet Crimes Against 403.95 100-403-3523-503 100-503-3300-116 Children State of Wisconsin PD- Drug Recognition Expert 109.50 100-403-3523-503 100-503-3400-330 State of Wisconsin DNR P&R - LacLaBelle Buoys Grant 660.00 100-403-3572-507 100-507-7340-340 Government Informational Tech- 1/2 GIPAW Course 750.00 700-408-8501-579 700-579-1450-330 Processing Association of Wisconsin German Delegation Visiting Dietzenbach Visit 760.00 255-408-8501-509 255-509-9100-340 Group Ellen Schmidt Dietzenbach Visit 150.00 255-408-8501-509 255-509-9100-340 Wisconsin Economic Community Development 100,000.00 100-408-8501-509 100-509-9100-730 Development Corporation Investment Façade Grant Greater Milwaukee Foundation Aerial Seeding Grant 10,000.00 213-408-8505-576 213-576-3714-210 Watershed Program First Bank Financial Centre Wizard of Oz Statues 2,500.00 255-408-8501-509 255-509-9100-340 Ten Point Properties Wizard of Oz Statues 1,000.00 255-408-8501-509 255-509-9100-340 MSI General Corporation Wizard of Oz Statues 1,000.00 255-408-8501-509 255-509-9100-340 Stapleton Realty Wizard of Oz Statues 500.00 255-408-8501-509 255-509-9100-340 Ellyn Zimmerman Wizard of Oz Statues 25.00 255-408-8501-509 255-509-9100-340 Moonlit Movies Wizard of Oz Statues 5,000.00 255-408-8505-509 255-509-9100-340 Oconomowoc Chamber of Wizard of Oz Statues 5,000.00 255-408-8505-509 255-509-9100-340 Commerce Foundation Downtown Oconomowoc Wizard of Oz Statues 5,000.00 255-408-8505-509 255-509-9100-340 Business Association Debbink Family Foundation Wizard of Oz Statues 5,000.00 255-408-8505-509 255-509-9100-340 Oconomowoc Utilities Wizard of Oz Statues 2,500.00 255-408-8505-509 255-509-9100-340 Schiefelbein Family Wizard of Oz Statues 1,500.00 255-408-8505-509 255-509-9100-340 Foundation Total $ 153,762.85 * Amount in excess of budget donation revenue Y:\Financial Statements\2019\Budget Amendments\grants to Council 2019.xlsx\3rd quarter 3  MEMORANDUM DEPARTMENT Date: October 31, 2019 To: Finance Committee, Common Council and Mayor Nold From: Laurie Sullivan, Finance Director Re: Ordinance changes to allow for Impact Fee Indexing RELATES TO THE STRATEGIC PLAN Strategic Goal- II. Improve and Maintain our Infrastructure/Facilities V. Enhance the Effectiveness of our City Government D. Maintain/Improve the City’s financial Sustainability BACKGROUND The City’s ordinances allow indexing of impact fees to keep amounts current for inflation and increases in costs. The City last indexed impact fees in 2019. ADDITIONAL ANALYSIS The following charts outline the current fees for 2019, adjusted for the 2019 Impact Fee Study and the 2020 fees adjusted for the applicable index increases: City Impact Fees 2019 2020 Highways & Other Transportation Facilities Impact Fees (CCI .0126) Residential dwelling unit $377 $382 Commercial/Institutional per sq. ft. $1.400 $1.418 Industrial per sq. ft. $0.370 $0.375 Law Enforcement Facilities Impact Fee (CCI .0126) Single-family/duplex residential dwelling unit $413 $418 Multi-family residential dwelling unit $276 $279 Commercial/Institutional per sq. ft $0.570 $0.577 Industrial per sq. ft. $0.110 $0.111 1 4 Parks, Playgrounds & Other Recreational Facilities Impact Fee (CCI .0126) Per residential dwelling unit $2,796 $2,831 Per resident at maximum occupancy for institutional residential development $932 $944 Per residential dwelling unit where 1,500 sq. feet of land is dedicated for $1,595 $1,615 public parks as a condition of land subdivision (credit up to $1,216) Per resident at maximum occupancy for institutional residential development $451 $457 where 600 sq. feet of land is dedicated for public parks as a condition of land subdivision (credit up to $487) Utility Impact Fees North Interceptor (adjusted by average annual LGIP rate – .0236) ⅝ or ¾ inch $2,061 $2,110 1 inch $7,671 $7,852 1 ½ inch $18,448 $18,883 2 inch $30,640 $31,363 3 inch or larger (per residential equivalent connection – REC) $2,061 $2,110 FINANCIAL IMPACT City Impact fees are adjusted annually by the Construction Cost Index (CCI), Utility fees are adjusted by the September Local Government Investment Pool rate (LGIP). For the 2020 rate adjustment the following indexes were used: CCI adjustment is 0.0126, the LGIP adjustment is 0.0236 RECOMMENDATION Recommend approval of the 2020 indexed adjusted to the impact fees. SUGGESTED MOTION Motion to approve ordinance to index the impact fees as outlined. 2 5  Ordinance No. 19-O_______ AN ORDINANCE TO AMEND §27.09(1)(a)(Table 1); (9)(b) & (c) (Table); (10)(b) & (c) (Table), AND (12)(b)2 & 3 (Table) OF THE CITY OF OCONOMOWOC MUNICIPAL CODE RELATING TO IMPACT FEES _______________________________________________________ The Common Council of the City of Oconomowoc, Waukesha County, Wisconsin, do ordain as follows: Section 1. §27.09(1)(a)(Table 1), §27.09(9)(b) and (c) (Table), §27.09(10)(b) and (c) (Table), §27.09(12)(b)2 and 3 (Table) of the Municipal Code are amended to read: 27.09 IMPACT FEE SCHEDULES/CALCULATION. (1) RESIDENTIAL/NONRESIDENTIAL DEVELOPMENT – 5/8 – TO 2-INCH METER. (a) The following fee schedule (Table 1) based upon meter size shall apply to all residential/nonresidential connections with meter sizes of 5/8-inch up to 2-inch. These fees are a one-time fee and are not subject to a review period. The standard residential meter is the 3/4 –inch meter for the purpose of fee calculation. TABLE 1 Meter Sizes (a) (b) (c) (d) 5/8" and 3/4" 1" 1½" 2" Refer to Refer to Refer to Refer to 2nd Street Lift Station Impact Fee Table 2 Table 2 Table 2 Table 2 North Interceptor Impact Fee $2,110 $7,852 $18,883 $31,363 (9) HIGHWAYS AND OTHER TRANSPORTATION FACILITIES IMPACT FEE. (b) Residential Development. The highways and other transportation facilities impact fee shall be $382 per residential dwelling unit. (c) Nonresidential Development. The highways and other transportation facilities impact fee shall be calculated based on planned building gross floor area according to the fee schedule below. For any properties for which the planned gross floor area is not known at the time that the impact fee is imposed and calculated, the fee shall be calculated based on the gross floor area set forth on the application for a building permit. When actual gross floor area is known, an appropriate charge shall be made if the actual gross floor area is more than what was represented on the building permit application, or credit may be given if the actual gross floor area is less than the gross floor area represented on the building permit application. Land Use Fee Per Square Foot of Gross Floor Area Commercial/Institutional $1.418 Industrial $0.375 6 (10) LAW ENFORCEMENT FACILITIES IMPACT FEE. (b) Residential Development. The law enforcement facilities fee shall be $418 per single-family residential dwelling unit and $279 per multi-family residential dwelling unit. (c) Nonresidential Development. The law enforcement facilities impact fee shall be calculated based on planned building gross floor area according to the fee schedule below. For any properties for which the planned gross floor area is not known at the time that the impact fee is imposed and calculated, the fee shall be calculated based on the gross floor area set forth on the application for a building permit. When actual gross floor area is known, an appropriate charge shall be made if the actual gross floor area is more than what was represented on the building permit application, or credit may be given if the actual gross floor area is less than the gross floor area represented on the building permit application. Land Use Fee Per Square Foot of Gross Floor Area Commercial/Institutional $0.577 Industrial $0.111 (12) PARKS, PLAYGROUNDS, AND LAND FOR ATHLETIC FIELDS IMPACT FEE. (b) Residential Development. 2. For lands for which a dedication of land for public parks was made as a condition of land subdivision under Chapter 18 of the Municipal Code, the parks, playgrounds and lands for athletic fields impact fee shall be reduced by the amount set forth in the table appearing in subsection(12)(b)3. hereof for every 1,500 square feet of land dedicated per residential dwelling unit, up to a maximum credit of $1,216 per residential dwelling unit; or by $487 for every 600 square feet of land dedicated per resident at maximum occupancy for an institutional residential development, up to a maximum credit of $487 per resident. 3. Parks, playgrounds and lands for athletic fields impact fees for 2020 shall be as set forth in the following table. Per resident dwelling unit $2,831 Per resident for institutional residential development $944 Credit for every 1,500 square feet of land dedicated per $1,216 residential dwelling unit Credit for every 600 square feet of land dedicated per resident $487 at maximum occupancy for institutional residential development 7  SECTION 2. EFFECTIVE DATE. This ordinance shall become effective on January 1, 2020, and upon passage and publication as required by law. DATED: _______________________ CITY OF OCONOMOWOC By: ____________________________ ATTEST: David Nold, Mayor _____________________________ Diane Coenen, Clerk Date Adopted: _________________ Date Published: ________________ Effective Date: _________________ 8  MEMORANDUM DEPARTMENT Date: October 31, 2019 To: Finance Committee, Common Council and Mayor Nold From: Laurie Sullivan, Finance Director Re: Ordinance changes to allow for indexed adjustment to the Sewer Availability Charge RELATES TO THE STRATEGIC PLAN Strategic Goal- II. Improve and Maintain our Infrastructure/Facilities V. Enhance the Effectiveness of our City Government D. Maintain/Improve the City’s financial Sustainability BACKGROUND The City’s ordinances allow indexing of the Sewer Availability Charge (SAC) to keep fee amounts current for inflation and increases in costs. The City last indexed impact fees in 2019. ADDITIONAL ANALYSIS The following chart outlines the current fees for 2019, and the 2020 fees adjusted for the applicable index increases: Utility Impact Fees (continued) 2019 2020 Sewer Availability Charge (adjusted by construction cost index – .0126) Existing unconnected development annexed to City prior 6/30/91 (credit of $2,056) $1,851 $1,874 Undeveloped lots in City platted on or before 6/30/91 (credit of $632) $3,257 $3,298 Properties located outside City or properties annexed into City after 6/30/91 ⅝ or ¾ inch $3,881 $3,930 1 inch $14,443 $14,625 1 ½ inch $34,733 $35,171 2 inch $57,690 $58,417 3 inch or larger (per residential equivalent connection – REC) $3,881 $3,930 FINANCIAL IMPACT Sewer Availability Charges are adjusted annually by the Construction Cost Index (CCI). For the 2020 the CCI adjustment is 0.0126. RECOMMENDATION Recommend approval of the 2020 index adjustment to the Sewer Availability Charges. SUGGESTED MOTION Motion to approve the indexed adjustment to the Sewer Availability Charge. 1 9  Ordinance No. 19-O_______ AN ORDINANCE TO AMEND §13.62(3)(a)1 (Table 1) OF THE CITY OF OCONOMOWOC MUNICIPAL CODE RELATING TO SEWER AVAILABILITY CHARGES _______________________________________________________ The Common Council of the City of Oconomowoc, Waukesha County, Wisconsin, do ordain as follows: Section 1. §13.62(3)(a)1 (Table 1) of the Municipal Code is amended to read: 13.62 - SEWER AVAILABILITY CHARGE. 3) SCHEDULE OF SEWER AVAILABILITY CHARGES. (a) Residential/Nonresidential Development - 5/8- to 2-Inch Meter. 1. The following fee schedule (Table 1) based upon meter size shall apply to all residential/nonresidential connections with meter sizes of 5/8-inch up to 2-inch. These fees are a one-time fee and are not subject to a review period. TABLE 1 Meter Sizes (a) (b) (c) (d) 5/8" and 1" 1½" 2" 3/4" Sanitary Sewer Availability Charge, City and $3,930 $14,625 $35,171 $58,417 Extraterritorial Credits: Existing unconnected single-family residence within $2,056 NA NA NA the City limits as of June 30, 1991 Existing vacant lot platted on or before June 30, $632 NA NA NA 1991 SECTION 2. EFFECTIVE DATE. This ordinance shall become effective on January 1, 2020, and upon passage and publication as required by law. DATED: _______________________ CITY OF OCONOMOWOC By: ____________________________ ATTEST: David Nold, Mayor _____________________________ Diane Coenen, Clerk Date Adopted: _________________ Date Published: ________________ Effective Date: _________________ 10