Finance Committee

City of Oconomowoc Finance Committee Aldermen: Schellpeper, Chairman / Spiegelberg, Secy / Moroni Tuesday, December 05, 2023 - 6:00 PM City Hall - Conference Room 3 174 E. Wisconsin Ave. Oconomowoc, WI 53066 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. Consider/recommend Resolution 23-R3162 Authorizing a Budget Amendment Using TIF 4 Funding for Oz Plaza Construction b. Consider/recommend Resolution 23-R3165 Authorizing Annual Indexing of Impact Fees and Sewer Availability Charges Effective January 1, 2024 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: November 14, 2023 To: Mayor and Common Council From: Laurie Sullivan-Murray, Finance Director Re: Consider/Act on Resolution 23-R3162 for a Budget Amendment for Oz Plaza Construction using TIF 4 Funds RELATES TO THE STRATEGIC PLAN Strategic Goal- IV. Improve our Quality-of-Life Assets, A.4. Plan and construct Oz Plaza Improvements BACKGROUND The City’s Oz Plaza project, a gateway to the Fowler Lake waterfront, is eligible for funding through TIF 4. The district has room in its project budget to offset construction costs for this project. ADDITIONAL ANALYSIS TIF #4 has a project budget for Waterfront improvements of $1,400,000. The final date to spend project dollars in TIF #4 is September 2025. FINANCIAL IMPACT The funding is available for the Oz Plaza project and will not affect the life of the district. RECOMMENDATION Staff recommends that the Council approve a budget amendment to the TIF #4 Fund (Fund 404) SUGGESTED MOTION Motion to adopt Resolution 23-R3162 authorizing a budget amendment for the use of $200,000 of TIF 4 project budget for the Oz Plaza construction. 1 2  RESOLUTION NO. 23-R3162 RESOLUTION AUTHORIZING A BUDGET AMENDMENT USING TIF 4 FUNDING FOR OZ PLAZA CONSTRUCTION WHEREAS, Oconomowoc has the historical significance of being the place of the World Premier of the iconic film Wizard of Oz in 1939; and WHEREAS, in 2019, for the 80th anniversary of this historic event we established the Yellow Brick Road and Oz Character Plaza to symbolize the historic event and create a permanent attraction to Downtown Oconomowoc; and WHEREAS, for the 85th anniversary we would like to expand the number of characters and expand the Oz Plaza to fill the entire park space; and WHEREAS, the City’s Oz Plaza project, a gateway to the Fowler Lake waterfront, is eligible for funding through TIF 4 that could be used to offset construction costs for this project; and WHEREAS, the final date for expenditures in TIF 4 is September 2025, and the TIF has a remaining project budget for waterfront improvements of $1,400,000. NOW THEREFORE, BE IT HEREBY RESOLVED that the Common Council approves the Budget Amendment to use $200,000 from TIF 4 (Fund 404) for the Oz Plaza project. Note: A budget amendment requires a super majority vote for approval. DATED: December 5, 2023 CITY OCONOMOWOC By: _________________________ ATTEST: Robert P. Magnus, Mayor ______________________________ Diane Coenen, Clerk V:\City Projects\Oz Plaza\Use of TIF 4 Funds\Resolution 23-R3162 Authorizing a Budget Amendment from TIF 4 for Oz Plaza Construction.docx 3  MEMORANDUM FINANCE DEPARTMENT Date: November 7, 2023 To: Mayor and Common Council From: Laurie Sullivan, Finance Director Re: Consider/act on Resolution 23-R3165 to Allow for Annual Impact Fee and Sewer Availability Charge Indexing-2024 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 for the indexing of impact fees and sewer availability charges through resolution to keep amounts current for inflation and increases in costs. The City last indexed impact fees and sewer availability charges in 2023. ADDITIONAL ANALYSIS The following charts outline the current fees for 2023 and 2024 fees adjusted for the applicable index increases: City Impact Fees 2023 2024 Highways & Other Transportation Facilities Impact Fees (CCI .0237) Residential dwelling unit $445 $456 Commercial/Institutional per sq. ft. $1.652 $1.691 Industrial per sq. ft. $0.436 $0.446 Law Enforcement Facilities Impact Fee (CCI .0237) Single-family/duplex residential dwelling unit $487 $499 Multi-family residential dwelling unit $326 $334 Commercial/Institutional per sq. ft. $0.672 $0.688 Industrial per sq. ft. $0.129 $0.132 Parks, Playgrounds & Other Recreational Facilities Impact Fee (CCI .0237) Per residential dwelling unit $3,298 $3,376 Per resident at maximum occupancy for institutional residential $1,100 $1,126 development Per residential dwelling unit where 1,500 sq. ft. of land is dedicated for $1,882 $1,926 public parks as a condition of land subdivision (credit up to $1,450) Per resident at maximum occupancy for institutional residential $532 $545 development where 600 sq. ft. of land is dedicated for public parks as a condition of land subdivision (credit up to $581) 1 4  Utility Impact Fees 2023 2024 North Interceptor (adjusted by average annual LGIP rate – .0457) ⅝ or ¾ inch $2,146 $2,244 1 inch $7,985 $8,351 1 ½ inch $19,204 $20,083 2 inch $31,895 $33,356 3 inch or larger (per residential equivalent connection – REC) $2,146 $2,244 Sewer Availability Charge 2023 2024 Sewer Availability Charge (CCI .0237) Existing unconnected development annexed to City prior 6/30/91 (credit of $2,182 $2,234 $2,451) Undeveloped lots in City platted on or before 6/30/91 (credit of $752) $3,842 $3,933 Properties located outside City or properties annexed into City after 6/30/91 ⅝ or ¾ inch $4,577 $4,685 1 inch $17,034 $17,435 1 ½ inch $40,963 $41,929 2 inch $68,038 $69,641 3 inch or larger (per residential equivalent connection – REC) $4,577 $4,685 FINANCIAL IMPACT City impact fees and sewer availability charges are adjusted annually by the Construction Cost Index (CCI). Utility impact fees are adjusted by the average annual Local Government Investment Pool (LGIP) rate ending in September. For the 2024 rate adjustment the following indexes were used: CCI adjustment of 0.0237, LGIP adjustment of 0.0457. RECOMMENDATION Recommend approval of the 2024 index adjustments to the impact fees and sewer availability charges. SUGGESTED MOTION Motion to adopt Resolution 23-R3165. 2 5  RESOLUTION NO. 23-R3165 RESOLUTION AUTHORIZING ANNUAL INDEXING OF IMPACT FEES AND SEWER AVAILABILITY CHARGES EFFECTIVE JANUARY 1, 2024 WHEREAS, the City’s Municipal Code Chapter 13.62 relating to Sewer Availability Charge and Chapter 27.09 relating to Impact Fee Schedules/Calculation have been amended to authorize fee amounts and adjustments by Council resolution; and WHEREAS, the City’s ordinances allow annual indexing of impact fees and sewer availability charges to keep fee amounts current; and WHEREAS, the following charts outline the current fees for 2023 and the proposed 2024 fees adjusted for the applicable index increases. City Impact Fees 2023 2024 Highways & Other Transportation Facilities Impact Fees (CCI .0237) Residential dwelling unit $445 $456 Commercial/Institutional per sq. ft. $1.652 $1.691 Industrial per sq. ft. $0.436 $0.446 Law Enforcement Facilities Impact Fee (CCI .0237) Single-family/duplex residential dwelling unit $487 $499 Multi-family residential dwelling unit $326 $334 Commercial/Institutional per sq. ft. $0.672 $0.688 Industrial per sq. ft. $0.129 $0.132 Parks, Playgrounds & Other Recreational Facilities Impact Fee (CCI .0237) Per residential dwelling unit $3,298 $3,376 Per resident at maximum occupancy for institutional residential $1,100 $1,126 development Per residential dwelling unit where 1,500 sq. ft. of land is dedicated for $1,882 $1,926 public parks as a condition of land subdivision (credit up to $1,450) Per resident at maximum occupancy for institutional residential $532 $545 development where 600 sq. ft. of land is dedicated for public parks as a condition of land subdivision (credit up to $581) Utility Impact Fees North Interceptor (adjusted by average annual LGIP rate – .0457) ⅝ or ¾ inch $2,146 $2,244 1 inch $7,985 $8,351 1 ½ inch $19,204 $20,083 2 inch $31,895 $33,356 3 inch or larger (per residential equivalent connection – REC) $2,146 $2,244 6  Sewer Availability Charge 2023 2024 Sewer Availability Charge (CCI .0237) Existing unconnected development annexed to City prior 6/30/91 $2,182 $2,234 (credit of $2,451) Undeveloped lots in City platted on or before 6/30/91 (credit of $3,842 $3,933 $752) Properties located outside City or properties annexed into City after 6/30/91 ⅝ or ¾ inch $4,577 $4,685 1 inch $17,034 $17,435 1 ½ inch $40,963 $41,929 2 inch $68,038 $69,641 3 inch or larger (per residential equivalent connection – REC) $4,577 $4,685 NOW THEREFORE, BE IT HEREBY RESOLVED, that the City Council affirms and sets forth by Resolution the fee amounts for Chapter 13.62 and Chapter 27.09 of the Municipal Code relating to Sewer Availability Charge and Impact Fee Schedules / Calculation effective January 1, 2024. BE IT FURTHER RESOLVED THAT, the fees set forth in this Resolution shall be in place until such time that the Council authorizes an amendment to such fees. DATED: December 5, 2023 CITY OF OCONOMOWOC By: _____________________________ Robert P. Magnus, Mayor ATTEST: Diane Coenen, Clerk 7