#3 Approve note issue (File Res. #2009-642)FINANCE ADMINISTRATION MEMORANDUM
October 20, 2009
TO: City Council
FROM: Jacob J. Winzenz, Dir. of Admin. Services/Assistant City Manager
SUBJECT: Action on a Proposed Resolution Authorizing the Issuance of $16,405,000 in
Promissory Notes for Financing Various Public Purposes and $9,065,000 in
Promissory Notes to Refund Existing Debt (File Res. #2009-642)
Summary
Attached is proposed Resolution #2009-642 which authorizes the Administration to issue
promissory notes in the amount of $16,405,000 to finance various public improvements
and $9,065,000 to refund existing debt. Of the new debt, $8,965,000 is General Fund debt
and corresponds to the funding included in the 2009 Debt Fund – Major Capital Projects
budget. Wisconsin State Statutes govern the issuance of general obligation debt and
specifically identify those items for which debt may be incurred. We have structured the
resolution so that the individual projects would be grouped into those categories
specifically referenced by State Statutes. Please reference the attached Summary
Schedule (Exhibit I), which indicates in greater detail the individual projects referenced by
the resolution and compares the funding requested with the amount identified in the 2009
Capital Projects Budget. Also attached is a summary schedule of projects submitted for
inclusion in the proposed note issue but which are not recommended for funding at this
time (Exhibit II). Finally, a report is included which describes the scope of the individual
projects (Exhibit III).
City Manager’s Recommendation
The list of projects proposed for funding in this note issue continues to reflect the projects
added by the City Council at their study session.
Suggested Motion
Move to adopt File resolution 2009-642 authorizing the issuance of $16,405,000 in
promissory notes for financing various public purposes and $9,065,000 in promissory
notes to refund existing debt.
Background
The base for the 2009 Note Issue was the Major Capital Projects budget included as part
of the City’s 2009 Annual Budget. The 2009 Major Capital Projects budget anticipated
total capital needs of $17,376,600. Of this amount, it was anticipated that General Fund
portion would be $6,436,600, or 37%.
Earlier this year division and department heads reviewed the proposed 2009 Major Capital
Projects budget and were asked to revise projects as appropriate. These revisions were
then incorporated and presented to the City Council at their retreat in June. At that time
the General Fund portion of the borrowing was estimated to be $8.3 million. This would
have increased the tax levy by approximately 2% and resulted in an annual tax increase of
approximately $27 per year.
The 2009 Capital Projects Budget contained twenty (20) projects for the 2009 note issue
that have not been included in the proposed note authorization resolution:
DESCRIPTION AMOUNT
Street Lights – New Street and Subdivisions $ 100,000
Major Arterials & Connecting Highways – River Street 20,000
Major Arterials & Connecting Highways – Ruger Bridge 20,000
Major Arterials & Connecting Highways – Milwaukee Roundabout 12,000
Major Arterials & Connecting Highways – Jackson Bridge 145,000
Major Arterials & Connecting Highways – Milwaukee Underpass 195,000
Storm Sewer Improvements – Drainage Repairs at CSC 20,000
Storm Sewer Improvements – Fremont & St. Lawrence Upgrade 170,000
Storm Sewer Improvements – Richardson St. Repair 35,000
Storm Sewer Improvements – Laramie Lane Repair 90,000
Skate Board Park 50,000
Bike Trail (Tripp Road to Eau Claire Road) 60,000
Aquatics Facility Improvements (year 3) 325,000
Transit Services Center Construction (year 3) 425,000
General Building Repairs – Hedberg Public Library 50,000
GIS Enhancements 100,000
Pole Camera for Storm Sewer Inspections 20,000
Landfill – Closure of Cell 1 700,000
Sewer Mains – Interceptor Extensions 570,000
Development Incentive – TIF #26 200,000
TOTAL $3,307,000
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?
No additional funding for Street Light – New Street and Subdivisions is necessary at
this time as all proposed fixtures will be paid through special assessments.
?
Funding for design and engineering of River Street, Ruger Avenue Bridge, and
Milwaukee Roundabout will be included in the financing of the construction.
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Jackson Street Bridge has not yet reached a sufficiency rating to be eligible for federal
financial assistance for replacement. This project has been deferred to 2010.
?
Additional funding for Milwaukee Pedestrian Underpass has been deferred pending an
evaluation of other alternatives.
?
Storm Sewer Improvements at City Services Center, Fremont & St. Lawrence,
Richardson Street, and Laramie Lane have been deferred to 2010 due to unanticipated
projects with higher priority.
?
Funding for the Skate Board Park is deferred until 2010.
?
Funding for the Bike Trail extension from Tripp Road to Eau Claire Road is deferred
until 2010.
?
No additional Funding for Aquatics Facility Improvements is proposed at this time.
Previously borrowed funds will be used to renovate/maintain the existing aquatics
facilities ($482,000) with the remainder used on the Ice Skating Center ($648,000).
?
No additional funding for the Transit Services Center Construction is proposed at this
time pending additional Federal funding. A total of $575,000 of the estimated $975,000
local share has already been borrowed for this project.
?
The Hedberg Public Library has sufficient funding from prior note issues to complete
necessary repairs in 2009. Additional funding is not proposed at this time.
?
No additional funding for GIS enhancements is proposed at this time. It is anticipated
additional funding will be necessary in 2010.
?
Funding for a Pole Camera for Storm Sewer inspections is deferred indefinitely.
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Landfill – Closure of Cell 1 has been delayed one (1) year due to lower than
anticipated trash volume, and higher than anticipated compaction due to the addition of
a second landfill compactor.
?
Sewer Mains – Interceptor Extensions has been delayed due to the downturn in
development.
?
Development Incentive – TIF #26 has been deferred until 2010.
Conversely, the 2009 Capital Projects Budget did not contain the following projects, which
have been included in the proposed note authorization resolution:
DESCRIPTION AMOUNT
Storm Sewer Improvements – Highridge Erosion $ 415,000
Storm Sewer Improvements – East Riverwall 50,000
Youth Sports Facility (East of Wuthering Hills) 500,000
Ice Arena 1,000,000
Tallman House Repairs 250,000
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DESCRIPTION AMOUNT
Fire Vehicles 230,000
Landfill – Horizontal Gas Collection 30,000
Landfill – Gas Collection System Upgrades 100,000
Water Mains – Main/Service Insulation 350,000
Sewer Mains – System Replacements 440,000
TIF – Development Incentive (TIF #24) 210,000
TIF – Development Incentive (TIF #34) 100,000
TOTAL $3,675,000
?
Storm Sewer Improvements – Highridge Erosion repairs significant erosion that has
occurred to the greenbelt leading from the Highridge subdivision to the Rock River.
?
Storm Sewer Improvements – East Riverwall repairs damage to the riverwall at 2
locations (near Centerway Dam and near Racine St. Bridge. This damage occurred as
a result of 2008 flood but was not eligible for FEMA reimbursement.
?
Youth Sports Facility – East of Wuthering Hills Drive. This is year 2 of a 2-year funding
commitment. His project was inadvertently omitted from the 2009 Capital Projects
Budget. In addition, $400,000 would be available from lot sales.
?
Ice Arena – funding for this construction of a new Ice Arena was added by the City
Council.
?
Tallman House Repairs provides initial funding to make necessary repairs to the
Tallman House. A architect has reviewed the condition of the facility and repairs are
estimated to cost in excess of $2,000,000
?
The Fire department is proposing to replace a model year 2000 ambulance ($200,000)
and the boat, motor and trailer used for water rescue ($30,000)
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Horizontal gas collection at the landfill is required by the DNR.
?
Gas Collection System Upgrades are proposed at the landfill to mitigate a current odor
problem. Due to changes in landfill construction we are experiencing more odor issues
from this phase than in prior phases.
?
Water Mains – Main/Service Insulation proposes to insulated water mains and services
to prevent freezing which occurred in the winter of 2008 – 2009.
?
Sewer Mains – System Replacements replaces a failed interceptor along Riverview
Drive and a 12-inch main associated with the replacement of the Ruger Avenue bridge
?
TIF – Development Incentive (TIF #24) funds the development incentive previously
approved by the City Council for MGD Fund III and Forward Foundation ($210,000).
?
TIF – Development Incentive (TIF #34) funds the development incentive previously
approved by the City Council for HIS Aviation ($100,000).
Attached to this memorandum are three (3) exhibits. Exhibit I is a listing of all capital
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projects in this proposed Note Issue. The projects highlighted in yellow are those projects
which the City Council previously committed to fund. The projects highlighted in green are
those projects added by the City Council at their study session. Exhibit II is a listing of
projects proposed but not recommended for funding at this time. Exhibit III is a narrative
description of all projects – both those recommended for funding and those not
recommended.
State Statutes specifically identify the procedural process involved in issuing both general
obligation bonds and notes. Unlike the process required for issuing bonds, which requires
separate actions to authorize and establish the bond details, promissory notes can be
approved in one comprehensive resolution. However, we recommend that the Council
follow the two-step process in authorizing and issuing the debt. On Monday, October 12,
2009, the Council adopted File Resolution 2009-641which was the initial resolution for the
issuance of the new debt and established a maximum level of funding. The attached
details resolution will set the final amount of the notes authorized. Prior to the adoption of
the details resolution funding for projects may only be reduced or projects deleted.
We have scheduled the note sale to take place on Monday, November 9, 2009. The bid
opening will be held at 1:00 P.M., and the Council will be requested to award the sale by
adopting the award resolution that evening, which will indicate the “best bidder.” We
anticipate receiving the note proceeds on November 23, 2009.
Analysis
The revised 2009 Note Issue is larger than those of prior years. The General Fund portion
of the proposed Note Issue is $8,965,000. Of this amount $5,285,000, or 59%, are for
projects which the City Council has already authorized and committed to fund. The single
largest of these projects is the Parker Drive Parking Structure at $2.9 million. This project
alone represents 32% of the proposed General Fund borrowing.
A General Fund borrowing of $8,965,000 will have average annual debt service of
$1,033,370 and will cost the owner of the average home assessed at $113,800
approximately $33.78 per year for ten (10) years. However, the impact on the 2010 tax
levy is less than that because some existing debt is being retired in 2009 and staff is
proposing the refunding of four (4) existing debt issues to reduce the interest rate and
extend the term. Based upon the proposed borrowing, debt service is estimated to
increase $225,772, or 4.27%, in 2010 which will increase the property tax levy by .92%. In
2010 the owner of the average home assessed at $113,800 will pay an additional $7.38 in
property taxes for debt service. For comparison purposes, if the proposed 2009 Note
Issue remained at $6,740,000 as initially proposed, debt service in 2010 would have
decreased by approximately $86,000.
Attachments
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RESOLUTION NO. 2009-642
RESOLUTION AUTHORIZING THE ISSUANCE OF $16,405,000
GENERAL OBLIGATION PROMISSORY NOTES, SERIES 2009-A, AND $9,065,000
GENERAL OBLIGATION REFUNDING PROMISSORY NOTES, SERIES 2009-B, OF
THE CITY OF JANESVILLE, WISCONSIN, AND
PROVIDING THE DETAILS THEREOF
Be it resolved by the City Council of the City of Janesville, Wisconsin, as follows:
Section 1. Authority and Purpose
. This resolution is adopted pursuant to
Section 67.12(12) of the Wisconsin Statutes to authorize the issuance of notes for the
improvements or purposes described below.
First, $16,405,000 General Obligation Promissory Notes, Series 2009-A (the "Series
2009-A Notes"), for the following purposes:
(a)$1,965,000 to construct and improve streets;
(b)$1,195,000 to construct and improve storm sewers;
(c)$1,465,000 to acquire, improve and maintain parks and public grounds;
(d)$5,550,000 to acquire, improve and maintain public buildings and
grounds;
(e)$1,245,000 to acquire capital equipment;
(f)$1,750,000 to construct and close landfills;
(g)$1,995,000 to extend and improve the waterworks system;
(h)$615,000 to extend and improve the sanitary sewer system; and
(i)$625,000 to provide financial assistance for community development
Second, $9,065,000 General Obligation Refunding Promissory Notes, Series 2009-B (the
"Series 2009-B Notes" and, collectively with the Series 2009-A Notes, the "Notes"), for the
purpose of refunding certain maturities of outstanding General Obligation Promissory Notes,
Series 2000, Series 2001 and Series 2002, and General Obligation Bonds, Series 2004
(collectively, the "Refunded Obligations").
The foregoing improvements or purposes are each hereby authorized to be made or
undertaken by the City of Janesville, Wisconsin. For the purpose of paying principal of and
interest on the notes, there is hereby levied on all the taxable property in the City a direct, annual,
irreparable tax sufficient for that purpose.
Section 2. Authorization and Terms of Notes
. To meet part of the estimated cost of
the improvements or purposes described in Section 1 of this resolution, there is hereby
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appropriated the sum of $25,470,000. For the purpose of financing said appropriation, (i) Series
2009-A Notes of the City shall be issued and sold in an aggregate principal amount of
$16,405,000, and (ii) Series 2009-B Notes of the City shall be issued and sold in an aggregate
principal amount of $9,065,000. The Notes shall be designated as described in Section 1 and
shall be issuable in the denominations of $5,000 or any integral multiple thereof. Each series of
Notes shall be numbered consecutively from 1 upwards in order of their issuance and may bear
such other identifying numbers or letters as may be useful to facilitate the registration, transfer
and exchange thereof. Each Note shall be dated as of the interest payment date next preceding
the date of issuance thereof, except that (a) if such date of issuance shall be prior to the first
interest payment date, said Note shall be dated as of a date to be established by the subsequent
action of the City Council, (b) if such date of issuance shall be an interest payment date, said
Note shall be dated as of such interest payment date, or (c) if interest due on said Note shall not
have been paid in full, then, notwithstanding any of the foregoing provisions, said Note shall be
dated as of the date to which interest has been paid in full on said Note. The Notes shall mature
and bear interest on the dates and in the amounts established by subsequent action of the City
Council.
The principal of and premium, if any, on the Notes shall be payable in lawful money of
the United States of America at the principal corporate trust office of the bank, trust company or
national banking association designated in Section 7 of this resolution, as note registrar, or at any
additional or successor paying agent or fiscal agent designated by the City pursuant to
Section 67.10(2), Wisconsin Statutes. Interest on the Notes shall be payable in lawful money of
the United States of America on each interest payment date to the registered owners of record
thereof appearing on the registration books maintained by the City for such purpose at the
principal office of the note registrar, as of the close of business on the fifteenth day of the
calendar month next preceding the applicable interest payment date. Interest on the Notes shall
be paid by check or draft mailed to such registered owners at their addresses appearing on the
registration books.
The Notes shall be subject to redemption prior to maturity as provided by subsequent
action of the City Council.
In the event of the redemption of less than all of a series of Notes of like maturity, the
aggregate principal amount thereof to be redeemed shall be $5,000 or an integral multiple
thereof, and the note registrar shall assign each Note of such maturity a distinctive number for
each $5,000 principal amount of such Note and shall select by lot from the numbers so assigned
as many numbers as, at $5,000 for each number, shall equal the principal amount of such Notes
to be redeemed. The Notes to be redeemed shall be the Notes to which were assigned the
numbers so selected, provided that only so much of the principal amount of each Note shall be
redeemed as shall equal $5,000 for each number assigned to it and so selected.
Notice of the redemption of Notes shall be mailed not less than 30 days nor more than
60 days prior to the date fixed for such redemption to the registered owners of Notes to be
redeemed at their last addresses appearing on said registration books. The Notes or portions
thereof specified in said notice shall become due and payable at the applicable redemption price
on the redemption date therein designated, and if, on the redemption date, moneys for payment
of the redemption price of all the Notes or portions thereof to be redeemed, together with interest
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to the redemption date, shall be available for such payment on said date, then from and after the
redemption date interest on such Notes or portions thereof shall cease to accrue and shall become
payable. If there shall be drawn for redemption less than all of a Note, the City shall execute and
the note registrar shall authenticate and deliver, upon the surrender of such Note, without charge
to the owner thereof, for the unredeemed balance of the Note so surrendered, Notes of like
maturity and of the denomination of $5,000 or any integral multiple thereof.
The Notes may be initially issued in temporary form and shall be exchanged for
definitive printed Notes as soon as possible. The temporary Notes shall be executed as provided
herein and shall be in substantially the form set forth in Section 5 hereof.
Section 3. Execution and Authentication of Notes
. The Notes shall be executed in the
name of the City by the manual or facsimile signatures of its City Manager and City Clerk, and
the corporate seal of the City, or a facsimile thereof, shall be thereunto affixed, impressed or
otherwise reproduced thereon.
In case any officer whose signature, or a facsimile of whose signature, shall appear on
any Notes shall cease to hold such office before the issuance of the Notes, such Notes shall
nevertheless be valid and sufficient for all purposes, the same as if the person whose signature, or
a facsimile thereof, appears on such Notes had not ceased to hold such office. Any Note may be
signed, sealed or attested on behalf of the City by any person who, on the date of such act, shall
hold the proper office, notwithstanding that at the date of such Note such person may not have
held such office. No recourse shall be had for the payment of any Notes against any officer who
executes the Notes.
The Notes shall bear thereon a certificate of authentication executed manually by the note
registrar. No Note shall be entitled to any right or benefit under this resolution or shall be valid
or obligatory for any purpose until such certificate of authentication shall have been duly
executed by the note registrar.
Section 4. General Obligations
. The full faith and credit of the City are hereby
irrevocably pledged to the punctual payment of the principal of and interest on the Notes. The
Notes shall be direct and general obligations of the City, and the City shall be obligated to levy
ad valorem taxes upon all the taxable property in the City for the payment of the Notes and the
interest thereon, without limitation as to rate or amount.
Section 5. Form of Notes
. The Notes shall be issued as fully registered Notes and shall
be substantially in the following form, the blanks to be appropriately completed when the Notes
are printed:
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[FORM OF NOTE]
United States of America
State of Wisconsin
County of Rock
CITY OF JANESVILLE
[GENERAL OBLIGATION PROMISSORY NOTE
SERIES 2009-A]
[GENERAL OBLIGATION REFUNDING PROMISSORY NOTE
SERIES 2009-B]
REGISTERED NO. REGISTERED $
Dated Date Interest Rate Maturity Date CUSIP
REGISTERED OWNER:
PRINCIPAL AMOUNT:
The CITY OF JANESVILLE, a municipal corporation of the State of Wisconsin situate
in the County of Rock, acknowledges itself indebted and for value received hereby promises to
pay to the registered owner identified above, or registered assigns, the principal amount specified
above on the maturity date specified above, unless this note shall be redeemable and shall have
previously been called for redemption and payment of the redemption price made or provided
for, and to pay interest on such principal amount from the dated date hereof at the interest rate
per annum specified above, payable in lawful money of the United States of America on
February 1, 2010, and semiannually thereafter on the first days of August and February in each
year until the principal amount shall have been paid, by check or draft mailed to the registered
owner of record hereof as of the fifteenth day of the calendar month next preceding such interest
payment date, at the address of such owner appearing on the registration books maintained by the
City for such purpose at the principal corporate trust office of Wells Fargo Bank, N.A., in the
City of Chicago, Illinois, as fiscal agent pursuant to Section 67.10(2), Wisconsin Statutes, and as
note registrar or its successor (the “Note Registrar”). This note, as to principal and premium, if
any, when due, will be payable in lawful money of the United States of America upon
presentation and surrender of this note at the office of the Note Registrar. The full faith and
credit of the City are irrevocably pledged for the punctual payment of the principal of and
interest on this note according to its terms.
This note is part of a series of notes issued in the aggregate principal amount of
$__________, which are all of like tenor except as to date, maturity, option of redemption and
rate of interest. The notes are being issued for the following purposes: [(i) to construct and
improve streets; (ii) to construct and improve storm sewers; (iii) to acquire, improve and
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maintain parks and public grounds; (iv) to acquire, improve and maintain public buildings and
grounds; (v) to acquire capital equipment; (vi) to construct and close landfills; (vii) to extend and
improve the waterworks system; (viii) to extend and improve the sanitary sewer system; and (ix)
to provide financial assistance for community development][to refund certain prior obligations of
the City], including the costs of issuance of the notes. The notes are authorized and issued under
and pursuant to Section 67.12(12) of the Wisconsin Statutes and under and in accordance with
resolutions adopted by the City Council of the City on October 12, 2009 and entitled:
“Resolution Authorizing the Issuance of $16,405,000 in Promissory Notes for Financing Various
Public Purposes”; on October 26, 2009 and entitled: “Resolution Authorizing the Issuance of
$16,405,000 General Obligation Promissory Notes, Series 2009-A, and $9,065,000 General
Obligation Refunding Promissory Notes, Series 2009-B, of the City of Janesville, Wisconsin,
and Providing the Details Thereof”; and on November 9, 2009, and entitled: “Resolution
Awarding $16,405,000 General Obligation Promissory Notes, Series 2009-A, and $9,065,000
General Obligation Refunding Promissory Notes, Series 2009-B, of the City of Janesville,
Wisconsin, Establishing Interest Rates Thereon and Levying Taxes Therefor.”
The notes maturing on or after February 1, 2017 are subject to redemption prior to
maturity as a whole or in part at the option of the City upon notice as herein provided, in any
order of maturity and by lot within a single maturity, on August 1, 2016, and on any date
thereafter, at a redemption price equal to 100% of the principal amount thereof to be redeemed
plus accrued interest to the redemption date and without premium.
Notice of the redemption of notes shall be mailed not less than 30 days nor more than
60 days prior to the date fixed for such redemption to the registered owners of notes to be
redeemed at their last addresses appearing on such registration books. The notes or portions
thereof specified in said notice shall become due and payable at the applicable redemption price
on the redemption date therein designated, and if, on the redemption date, moneys for payment
of the redemption price of all the notes or portions thereof to be redeemed, together with interest
to the redemption date, shall be available for such payment on said date, then from and after the
redemption date interest on such notes or portions thereof shall cease to accrue and shall become
payable.
This note is transferable only upon such registration books by the registered owner hereof
in person, or by his attorney duly authorized in writing, upon surrender hereof at the office of the
Note Registrar together with a written instrument of transfer satisfactory to the Note Registrar
duly executed by the registered owner or by his duly authorized attorney, and thereupon a new
registered note or notes, in the authorized denominations of $5,000 or any integral multiple
thereof and of the same aggregate principal amount, maturity and interest rate as this note shall
be issued to the transferee in exchange therefor. In like manner, this note may be exchanged for
an equal aggregate principal amount of notes of the same maturity and interest rate and of any of
such authorized denominations. The City or the Note Registrar may make a charge sufficient to
reimburse it for any tax, fee or other governmental charge required to be paid with respect to the
transfer or exchange of this note. No other charge shall be made for the privilege of making such
transfer or exchange. The City and the Note Registrar may treat and consider the person in
whose name this note is registered as the absolute owner hereof for the purpose of receiving
payment of, or on account of, the principal, premium, if any, and the interest due hereon and for
all other purposes whatsoever.
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This note shall not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been duly executed by the Note Registrar.
It is hereby certified, recited and declared that all acts, conditions and things required to
be done, exist and be performed precedent to and in the issuance of this note in order to make it a
legal, valid and binding obligation of the City have been done, exist and have been performed in
regular and due time, form and manner as required by law, that a direct, annual, irreparable tax
has been levied by the City sufficient to pay the interest when it falls due and also to pay and
discharge the principal at maturity, and that the series of notes of which this note is one, together
with all other indebtedness of the City, is within every debt or other limit prescribed by law.
IN WITNESS WHEREOF, the CITY OF JANESVILLE has caused this note to be
executed in its name and on its behalf by the manual or facsimile signatures of its City Manager
and its City Clerk, and its corporate seal, or a facsimile thereof, to be hereunto affixed or
otherwise reproduced hereon.
CITY OF JANESVILLE
By
City Manager
By
City Clerk
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CERTIFICATE OF AUTHENTICATION
Date of Authentication:
This note is one of the [General Obligation Promissory Notes, Series 2009-A][General
Obligation Refunding Promissory Notes, Series 2009-B], described in the within mentioned
resolutions.
WELLS FARGO BANK, N.A., as
Note Registrar
By
Authorized Officer
ASSIGNMENT
For value received the undersigned sells, assigns and transfers unto
the within note and hereby irrevocably constitutes and
appoints attorney to transfer the said note on the books kept
for registration thereof, with full power of substitution in the premises.
Dated
Signature Guaranty:
Section 6. Transfer, Exchange and Registry
. The Notes shall be negotiable, subject to
the provisions for registration of transfer contained herein. Each Note shall be transferable only
upon the registration books maintained by the City for that purpose at the office of the note
registrar, by the registered owner thereof in person or by his attorney duly authorized in writing,
upon surrender thereof together with a written instrument of transfer satisfactory to the note
registrar and duly executed by the registered owner or his duly authorized attorney. Upon the
surrender for transfer of any such Note, the City shall execute and the note registrar shall
authenticate and deliver a new Note or Notes registered in the name of the transferee, of the same
aggregate principal amount, maturity and interest rate as the surrendered Note. Notes, upon
surrender thereof at the office of the note registrar, with a written instrument satisfactory to the
note registrar, duly executed by the registered owner or his attorney duly authorized in writing,
may be exchanged for an equal aggregate principal amount of Notes of the same maturity and
interest rate and of the denominations of $5,000 or any integral multiple thereof.
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For every such exchange or registration of transfer of Notes, the City or the note registrar
may make a charge sufficient to reimburse it for any tax, fee or other governmental charge
required to be paid with respect to such exchange or transfer, which sum or sums shall be paid by
the person requesting such exchange or transfer as a condition precedent to the exercise of the
privilege of making such exchange or transfer. No other charge shall be made for the privilege
of making such transfer or exchange.
The note registrar shall not be required to transfer or exchange any Note after notice of
the redemption of all or a portion thereof has been mailed. The note registrar shall not be
required to transfer or exchange any Note during a period of 15 days next preceding the mailing
of a notice of redemption that could designate for redemption all or a portion of such Note.
The City and the note registrar may deem and treat the person in whose name any Note
shall be registered upon the registration books as the absolute owner of such Note, whether such
Note shall be overdue or not, for the purpose of receiving payment of, or on account of, the
principal of, premium, if any, or interest thereon and for all other purposes whatsoever, and all
such payments so made to any such registered owner or upon his order shall be valid and
effectual to satisfy and discharge the liability upon such Note to the extent of the sums or sums
so paid, and neither the City nor the note registrar shall be affected by any notice to the contrary.
In order to provide for the initial issuance of the Notes in a form that provides for a
system of book-entry only transfers, the ownership of one fully registered Note for each maturity
in the aggregate principal amount of such maturity shall be registered in the name of
Cede & Co., as a nominee of The Depository Trust Company, New York, New York (“DTC”).
In the event that the City determines that the system of book-entry only transfers through DTC
(or a successor securities depository) is not in the best interests of the Beneficial Owners (as
hereinafter defined) of the Notes or is burdensome to the City, the City may notify DTC,
whereupon DTC will notify the DTC Participants (as hereinafter defined) of the availability
through DTC of Note certificates. In such event, the City shall issue and the note registrar shall
authenticate, transfer and exchange note certificates as requested by DTC of like principal
amount, series and maturity, in denominations of $5,000 or any integral multiple thereof to the
identifiable Beneficial Owners, in replacement of such Beneficial Owners’ beneficial interests in
the Notes. For the purposes of this paragraph, the term “Beneficial Owners” shall mean (a) those
persons for whom DTC was created to hold their securities (“DTC Participants”), and (b) the
persons for whom the DTC Participants acquire interests in the Notes as nominees.
Section 7. Note Registrar
. The City has contracted with and designated Wells Fargo
Bank, N.A., Chicago, Illinois, to serve as fiscal agent pursuant to Section 67.10(2), Wisconsin
Statutes, and as note registrar. The City covenants that it maintain at the designated office of
such note registrar a place where Notes may be presented for payment and registration of transfer
or exchange and that it shall require that the note registrar maintain proper registration books and
perform the other duties and obligations imposed upon it by this resolution in a manner
consistent with the standards, customs and practices of the municipal securities business.
The note registrar shall signify its acceptance of the duties and obligations imposed upon
it by this resolution by executing the certificate of authentication on any Note, and by such
execution the note registrar shall be deemed to have certified to the City that it has all requisite
8
4819-1746-6884.1
power to accept, and has accepted, such duties and obligations not only with respect to the Note
so authenticated but with respect to all the Notes. The note registrar is the agent of the City and
shall not be liable in connection with the performance of its duties except for its own negligence
or default. The note registrar shall, however, be responsible for any representation in its
certificate of authentication on the Notes.
The City may remove the note registrar at any time. In case at any time the note registrar
shall resign or shall be removed or shall become incapable of acting, or shall be adjudged a
bankrupt or insolvent, or if a receiver, liquidator or conservator of the note registrar, or of its
property, shall be appointed, or if any public officer shall take charge or control of the note
registrar or of its property or affairs, the City covenants and agrees that it will thereupon appoint
a successor note registrar. The City shall mail notice of such appointment made by it to each
registered owner of Notes within 20 days after such appointment. Any successor note registrar
appointed under the provisions of this Section, other than the Finance Director, shall be a bank,
trust company or national banking association maintaining a corporate trust office in the State of
Wisconsin, the City of Chicago, Illinois, or the Borough of Manhattan, City and State of
New York.
Section 8. Sale of Notes
. The Notes shall be advertised for sale by the City Clerk in the
manner provided herein, and the City Clerk is authorized to circulate an Official Statement
prepared by Wisconsin Public Finance Professionals, LLC, Milwaukee, Wisconsin, and an
Official Notice of Sale.
When the Notes shall have been sold, this Council will adopt the proceedings to award
the Notes, fix the interest rates thereon in accordance with the bid accepted, and levy taxes to
meet principal thereof and interest thereon at maturity as required by law.
Section 9. Application and Investment of Note Proceeds
. Following the sale of the
Notes, the City Manager and City Clerk are hereby authorized and directed to execute and
deliver the Notes to the purchasers thereof upon payment therefor; and the principal proceeds
from the sale of the Notes shall be used only for the purposes and in the manner required by law
and by this resolution. The proceeds may be invested in the manner permitted by law, subject to
the restrictions contained in the next succeeding section.
Section 10. Tax Covenants
.
(a)The City shall not take, nor omit to take, any action that is lawful and
within its power to take, which action or omission would cause interest on any Note to
become subject to federal income taxes in addition to federal income taxes to which
interest on such Note is subject on the date of issuance thereof.
(b)The City shall not permit any of the proceeds of the Notes, or any facilities
financed with such proceeds, to be used in any manner that would cause any Note to
constitute a “private activity bond” within the meaning of Section 141 of the Internal
Revenue Code of 1986 (the “Code”).
9
4819-1746-6884.1
(c)The City shall not permit any of the proceeds of the Notes or other moneys
to be invested in any manner that would cause any Note to constitute an “arbitrage bond”
within the meaning of Section 148 of the Code.
(d)The City shall comply with the provisions of Section 148(f) of the Code
relating to the payment of certain investment earnings at periodic intervals to the
United States of America; provided, however, that such payment shall not be required to
the extent the City receives an opinion of nationally recognized bond counsel (which
opinion may be given in reliance upon a ruling or rulings of the Internal Revenue
Service) to the effect that such payment is not necessary to preserve the exemption from
federal income taxes of interest on the Notes.
(e)The City hereby designates the Notes as "qualified tax-exempt
obligations" within the meaning of Section 265(b)(3) of the Code.
Section 11. Continuing Disclosure
. For the benefit of the beneficial owners of the
Notes, the City covenants and agrees to provide an annual report containing certain financial
information and operating data relating to the City. The annual report shall be filed with the
Electronic Municipal Market Access System ("EMMA") within 180 days after the close of the
City’s fiscal year. The Annual Report may be submitted as a single document or as separate
documents comprising a package. The City may include the information described below by
cross-reference from official statements of debt issues of the City, which have been submitted to
and are available from EMMA. The information to be contained in the annual report shall
consist of the annual audited financial statement of the City for the most recently completed prior
fiscal year and such additional information as noted in the official statement relating to the Notes
under the caption “Continuing Disclosure.” Each annual audited financial statement will
conform to generally accepted accounting principles applicable to governmental units prepared
in accordance with standards of the Governmental Accounting Standards Board.
The City also covenants and agrees for the benefit of the beneficial owners of the Notes
to provide timely notice to EMMA of any failure of the City to file any such annual report within
the 180-day period and of the occurrence of any of the following events with respect to the
Notes, if material: (1) principal and interest payment delinquencies; (2) non-payment related
defaults; (3) unscheduled draws on debt service reserves reflecting financial difficulties;
(4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of
credit or liquidity providers, or their failure to perform; (6) adverse tax opinions or events
affecting the tax-exempt status of the Notes; (7) modifications to rights of Noteholders; (8) Note
calls; (9) defeasances; (10) release, substitution or sale of property securing repayment of the
Notes; and (11) rating changes.
It is found and determined that the City has agreed to the undertakings contained in this
Section in order to assist participating underwriters of the Notes and brokers, dealers and
municipal securities dealers in complying with Securities and Exchange Commission
Rule 15c2-12 promulgated under the Securities Exchange Act of 1934. The chief financial
officer of the City is authorized and directed to do and perform, or cause to be done or
performed, for or on behalf of the City, each and every thing necessary to accomplish the
10
4819-1746-6884.1
undertakings of the City contained in this Section for so long as said Rule 15c2-12 is applicable
to the Notes and the City remains an “obligated person” under the Rule with respect to the Notes.
Notwithstanding any other provisions in this resolution to the contrary, failure of the City
to perform any covenant in this Section 11 shall not constitute an event of default hereunder;
however, any Noteholder may take such actions as may be necessary and appropriate, including
seeking mandamus or specific performance by court order, to cause the City to comply with its
obligations under this Section 11.
The City may amend the provisions of this Section 11 and any provision of this
Section 11 may be waived, if:
(a)such amendment or waiver is made in connection with a change in
circumstances that arises from a change in legal requirements, change in law or change in
the identity, nature or status of the City, or the activities conducted at the financed
facilities;
(b)the undertaking herein, as amended or waived, would have complied with
the requirements of the Securities and Exchange Commission Rule 15c2-12 promulgated
under the Securities Exchange Act of 1934 (the “Rule”) at the time of the primary
offering of the Notes, after taking into account any amendments or interpretations of the
Rule, as well as any change in circumstances; and
(c)the amendment or waiver (i) does not materially impair the interests of
Noteholders, as determined by an opinion of nationally recognized bond counsel expert
in federal securities laws acceptable to the City, or (ii) is approved by the affirmative vote
of Noteholders of at least two-thirds in aggregate principal amount of the outstanding
Notes at the time such consent is given.
Following any such amendment or waiver, the next succeeding annual report shall
explain, in narrative form, the reasons for the amendment or waiver and the impact of the change
on the type of financial information being provided.
Section 12. Defeasance and Payment of Notes
.
(a)If the City shall pay or cause to be paid to the registered owners of the
Notes of a series the principal, premium, if any, and interest due or to become due
thereon, at the times and in the manner stipulated therein and in this resolution, then the
pledge of taxes, securities and funds hereby pledged and the covenants, agreements and
other obligations of the City to the registered owners and the beneficial owners of the
Notes shall be discharged and satisfied.
(b)Any Notes, whether at or prior to the maturity or the redemption date of
such Notes, shall be deemed to have been paid within the meaning of this Section if (i) in
case any such Notes are to be redeemed prior to the maturity thereof, there shall have
been taken all action necessary to call such Notes for redemption and notice of such
redemption shall have been duly given or provision shall have been made for the giving
of such notice, and (ii) there shall have been deposited in trust with a bank, trust company
11
4819-1746-6884.1
or national banking association acting as fiduciary for such purpose either (A) moneys in
an amount which shall be sufficient, or (B) “Federal Obligations” as defined in paragraph
(c) of this Section, the principal of and the interest on which when due will provide
moneys which, together with any moneys on deposit with such fiduciary at the same time
for such purpose, shall be sufficient to pay when due the principal of, redemption
premium, if any, and interest due and to become due on said Notes on and prior to the
applicable redemption date or maturity date thereof.
(c)As used in this Section, the term “Federal Obligations” means
(i) noncallable, direct obligations of the United States of America, (ii) noncallable and
nonprepayable, direct obligations of any agency of the United States of America, which
are unconditionally guaranteed by the United States of America as to full and timely
payment of principal and interest, (iii) noncallable, nonprepayable coupons or interest
installments from the securities described in clause (i) or clause (ii) of this paragraph,
which are stripped pursuant to programs of the Department of the Treasury of the
United States of America, or (iv) coupons or interest installments stripped from bonds of
the Resolution Funding Corporation.
Section 13. Resolution To Constitute a Contract
. The provisions of this resolution
shall constitute a contract between the City and the owner or owners of the Notes. Any pledge
made in this resolution and the provisions, covenants and agreements herein set forth to be
performed by or on behalf of the City shall be for the equal benefit, protection and security of the
owners of any and all of the Notes. All of the Notes, regardless of the time or times of their
issuance, shall be of equal rank without preference, priority or distinction of any of the Notes
over any other thereof except as expressly provided in or pursuant to this resolution. This
resolution and the resolution awarding the Notes, fixing the interest rates and levying taxes for
the payment thereof shall constitute full authority for the issuance of the Notes and, to the extent
that the provisions of this resolution conflict with the provisions of any other resolution of the
City, the provisions of this resolution, as amended, shall control. If any section, paragraph or
provision of this resolution shall be held to be invalid or unenforceable for any reason, the
invalidity or unenforceability of such section, paragraph or provision shall not affect any of the
remaining provisions of this resolution.
Section 14. Notice
. The City Clerk is authorized to publish a notice of the issuance of
the Notes as a class 1 notice pursuant to Section 893.77, Wisconsin Statutes.
Section 15. Effective Date
. This resolution shall become effective immediately upon its
passage, the public welfare requiring it.
12
4819-1746-6884.1
Adopted: October 26, 2009
ADOPTED:
Motion by:
Second by:
APPROVED:
Councilmember Aye Nay Pass Absent
Brunner
McDonald
Eric J. Levitt, City Manager
Perrotto
Rashkin
ATTEST:
Steeber
Truman
Voskuil
Jean Ann Wulf, City Clerk-Treasurer
APPROVED AS TO FORM:
City Attorney, Wald Klimczyk
Proposed by: City Administration
Prepared by: Finance Department
13
4819-1746-6884.1
Exhibit III
2009 NOTE ISSUE
PROJECT DESCRIPTIONS
Construct and Improve Streets - $1,965,000
?
Infrastructure Maintenance and Extension - $1,965,000
This program totals $1,965,000 and has projects that fall into four (4) primary categories:
Street Extensions - $275,000
o
This program totals $275,000 and represents actual bid prices for streets to be constructed
in 2009 in new developments for the Spring Public Works Program. Funding for these
improvements is provided through Special Assessments.
Sidewalks (Repair and Replacement) - $280,000
o
This program totals $415,000 for the installation of new sidewalk; and the repair and
replacement of deteriorated sidewalk and/or sidewalk with other safety deficiencies. Of
the $415,000 required for this program, $85,000 will be assessed to abutting property
owners and the remaining portion ($330,000) will be paid by the General Fund. General
Fund costs include expenses such as curb ramp replacements, sidewalks crossing city
owned property (greenbelts, parks, etc.) and other miscellaneous costs typically paid by
the city at large. No additional funding for the assessable portion of this program is
necessary as sufficient funds remain from prior years borrowings. A portion of the
General Fund costs ($330,000) is available from prior years borrowings ($50,000)
leaving $280,000 in General Fund costs to be included in the proposed 2009 Note Issue.
Curb and Gutter (Replacement & Reconstruction) - $610,000
This program includes $610,000 for curb and gutter replacement approved in the 2009
Spring Public Works Program. Approximately $235,000 of the curb and gutter
replacement cost for 2009 will be assessed to the abutting property owners. The
remaining $375,000 will be provided by the General Fund.
Street Maintenance and Improvements - $800,000
o
The 2009 Budget proposed a $650,000 borrowing to continue the current level of street
maintenance given the levy limits. In addition, the City incurred consultant and staff
costs in preparing plans to qualify additional resurfacing projects for “stimulus” funding.
These design costs total $150,000. This upfront expenditure of funds allowed the City to
receive approximately $2.6 million in stimulus funding.
\\petey\COJHome\Agenda Review\Approved Agenda Items\2009\10-26-2009\Note Issue - Exhibit III.doc jjw 10/07/2009
2009 Note Issue Page 2 of 16
Project Descriptions
Construct and Improve Storm Sewers - $1,195,000
?
System Improvements – $945,000
Four (4) projects are proposed in this category:
2008 Flood Repairs - $180,000
o
Damage repair from the 2008 flood totaled over $3.24 million. Of this amount FEMA
assistance totals approximately $2.13 million. An additional $604,000 was received in
CDBG emergency assistance decreasing the local share to approximately $512,000. A
portion of the City costs ($180,000) are related to repairs to the storm sewer system and
included in this note issue.
Highridge Erosion - $415,000
o
Drainage from the Highridge subdivision to the Rock River has created significant
erosion to the hillside. Improvements are necessary to repair the deep gulleys and to
prevent further erosion and deterioration. Heavy rip-rap and gabion baskets will be
installed as part of this project.
East Riverwall Repairs - $50,000
o
Two (2) failures occurred in the riverwall in the east-side of the Rock River between the
Centerway Dam and Racine Street. The first failure occurred just south of Centerway
when a sinkhole developed near the walkway. The riverwall was undermined forming
the sinkhole. The second failure occurred just north of the Racine Street Bridge. An old
section of limestone block collapsed. Both of these failures have been repaired and the
actual costs is $50,000
Manhole Rehabilitation/Replacement - $300,000
o
This program began in 2008 to repair or replace storm sewer manholes on streets being
resurfaced or reconstructed. This will prevent the need to tear-up a new street surface if
the manhole fails after the street has been resurfaced. Some manholes only need repairs
to the upper portion and other manholes that need total replacement.
?
System Expansion - $250,000
One (1) project is proposed in this category:
Drainage structures - $250,000
o
Funding is provided to extend install storm sewer and install related drainage structures
in new developments. Total cost - $250,000; Assessable portion - $250,000.
2009 Note Issue Page 3 of 16
Project Descriptions
Acquire, Improve & Maintain Parks and Public Grounds - $1,465,000
?
Renovate Playgrounds/Maintain Equipment - $35,000
In 1996, the City began a program to renovate/replace playground equipment in neighborhood
parks. To date, renovations have been completed at 30 neighborhood parks at a cost of
approximately $35,000 for each neighborhood park. The renovation/replacement of playground
equipment will continue in 2009, with improvements proposed for Harmony Grove Park
($35,000).
?
2008 Flood Repairs – $332,000
Damage repair from the 2008 flood totaled over $3.24 million. Of this amount FEMA assistance
totals approximately $2.13 million. An additional $604,000 was received in CDBG emergency
assistance decreasing the local share to approximately $512,000. Funding in the amount of
$332,000 is required and includes repairs to streets, traffic signals, parks, sidewalks, trails,
elevators and other publicly owned property, and anticipated funding for the purchase of
property as part of the Hazard Mitigation Program.
?
Property Acquisitions - $98,000
In 2009 the property at 337 N. Franklin Street was acquired and demolished. This was
completed as part of implementing the Downtown Plan by acquiring blighted properties in the
downtown area as they become available. The acquisition and demolition costs are proposed for
funding in this Note Issue.
?
Property Acquisitions (downtown & neighborhood) - $500,000
Major planning efforts were completed in 2008 and 2009 which recommended that the City
become more active in the acquisition of vacant and/or blighted properties in the older residential
neighborhoods and downtown. Available Community Development Block Grant funds are not
sufficient for this effort. Initial funding in the amount of $500,000 is proposed to create a pool
of funds for such property acquisitions.
?
Youth Sports Facility - $500,000
A partnership was approved with Janesville Youth Baseball (JYB) to develop additional softball
and baseball fields at the Youth Sports Facility East of Wuthering Hills Drive. Total City costs
for this project are estimated to be between $1.3 and $1.4 million and will include infrastructure
improvements such as rough grading of the fields, utilities, roads, parking lots, safety lighting,
and restrooms. Janesville Youth Baseball would be responsible for improvements totaling
approximately $2.5 million including fine grading of the fields, fencing, dugouts, field lighting,
scoreboards, and seeding. A total of eight (8) new fields are proposed. The 2008 Note Issue
included $500,000 for this project. An additional $500,000 is proposed as part of the 2009 Note
Issue. The remaining funding $300,000 - $400,000 will be provided from the sale of the City
lots on Ruger Avenue.
2009 Note Issue Page 4 of 16
Project Descriptions
Acquire, Improve & Maintain Public Buildings and Grounds - $5,550,000
?
Building Maintenance - $250,000
Each year, funds are required for minor building maintenance projects at City facilities. In 2009,
improvements totaling $250,000 are proposed for several public buildings. The locations may
include the Municipal Building, various park and recreational facilities, and fire stations.
?
Ice Arena – 1,150,000
Repairs are either necessary at the existing Ice Arena including or a new facility should be
constructed. Repairs to the existing facility are estimated to cost $1.2 to $1.3 million. A public-
private partnership is being discussed for the construction of a new facility, with the City’s
portion being approximately $2.0 to $2.5 million. Approximately $648,000 is available from
funds previously borrowed for the aquatics facility and could be made available for this purpose.
?
Downtown Parking Structure - $2,900,000
The construction of a parking structure is planned for the downtown on the site of the former
parking garage on the corner of Parker Drive and Wall Street. The structure will be four (4)
levels and accommodate approximately 235 vehicles. Total project cost is estimated to be $2.2
million. Initial funding in the amount of $1,250,000 was provided in the 2008 Note Issue. The
remainder of the funding ($2.9 million) is included in the proposed 2009 Note Issue.
?
Wastewater Treatment Plant Expansion/Renovation – $27,300,000 Clean Water Fund Loan
The City Council previously reviewed a proposed project to renovate and expand the current
wastewater treatment facility. The total cost of this project is estimated to be $32.1 million.
Funding for this project includes $100,000 from the 2006 Note Issue, $2.0 million from the 2007
Note Issue, $2.7 million from the Wastewater Replacement Fund, and $27.3 million from a
Clean Water Fund loan.
?
Tallman House - $250,000
In 2009 an architectural firm was retained to complete a property conditions report on the
Tallman House. This report indicates that repairs in excess of $2,000,000 are necessary and the
facility. The 2009 Note Issue includes $250,000 to begin the funding of these repairs.
?
Central Fire Station and Administration - $1,000,000
The central fire station and administrative offices (Fire Station #1) was constructed in 1957 and
no longer meets the space or operational needs of the Fire Department. Initial funding for design
and site acquisition was provided in 2006 ($150,000) and 2007 ($350,000). Funding for
construction will be phased over several years with the initial $500,000 provided in 2008. The
estimated construction cost is $6,500,000 to $7,000,000.
2009 Note Issue Page 5 of 16
Project Descriptions
Acquire Capital Equipment - $1,245,000
?
Technology Enhancements - $200,000
The City will continue implementation of the Information Technology Strategic Plan. This plan
addresses improving the efficiency of City services and providing citizen satisfaction through the
use of information technology. In 2009, funds are requested from the General Fund ($100,000),
Water Utility ($50,000) and Wastewater Utility ($50,000) to obtain consulting services and
purchase hardware and software for the implementation of specific citywide information
technology priority projects, as determined by the City Manager.
?
Enterprise Resource Planning (ERP) - $400,000
The City is in the process of implementing an Enterprise Resource Planning (ERP) project which
will replace disparate computer applications and integrate them into a single solution reducing
redundant data entry and facilitating the sharing and tracking of information. Phase I of this
project included the replacement of our Land Management/Computer-aided Mass Appraisal
Software and was funded in the 2006 note issue ($350,000). This phase is nearing completion.
Phase II of this project was funded in 2008 and included the replacement of code enforcement,
building permits and inspections, complaint tracking, and planning software ($350,000). This
phase has “gone live”. Funding in the amount of $400,000 for Phase III is proposed for 2009.
This phase will include the replacement of our utility billing, special assessments, licensing,
miscellaneous billing, and tax billing software. This represents the third phase of a four (4)
phase project.
?
Hedberg Public Library Technology Enhancements - $350,000
Radio Frequency Identification provides for "sightless" or no line sight identification of items. It
includes the ability to facilitate circulation, re-shelving and theft detection. In recent years,
circulation and materials management have grown; at the same time library staffing has
remained constant or is being reduced. The use of RFID reduces the amount of time required to
check-out and check-in materials, allows for improved inventory of materials and provides for
better security of materials, especially audiovisual materials. Initial funding in the amount of
$75,000 was provided in 2008 with the remainder of the funding ($350,000) proposed for 2009.
?
Transit Capital Projects – Ne New Funding Needed
Funding is included for several small Transit capital projects ($21,600) including high-cost
capital repair parts (rebuilt engines and transmissions for buses) ($8,000), 10 year scheduled
refurbishment of the Transfer Center ($10,000), replace shop equipment ($2,000), and three
computer replacements ($1,600). Transit projects are funded 80% from the Federal Transit Act
and these costs represent the projects local share (20%). Funding is available from prior note
issues so no additional borrowing is necessary at this time.
2009 Note Issue Page 6 of 16
Project Descriptions
?
Public Safety Equipment - $65,000
Public Safety Equipment for 2009 ($80,000) includes funding to replace mobile data radios in
the police vehicles. The current mobile data radios were purchased in 2001 and have reached the
end of their useful life. In addition, Rock County Communications Center and the 9-1-1
Commission are requiring that all mobile data radios be upgraded to a faster version by January
31, 2010. Of the 25 vehicles currently in the fleet, mobile data radios in six (6) vehicles have
already been upgraded so this proposal upgrades the mobile data radios in the remaining nineteen
(19) vehicles. A portion of these costs ($15,000) are offset by previously borrowed, but
unexpended, funds.
?
Fire Vehicles – $230,000
Funding in the amount of $230,000 is proposed to replace two pieces of fire apparatus.
Scheduled for replacement is a model year 2000 ambulance ($200,000); and the boat, motor and
trailer used for water rescue ($32,000). The current boat used for water rescue is inadequate as it
can become unstable when loaded with a patient.
Construct and Maintain Solid Waste Disposal Facilities - $1,750,000
?
New Landfill – Phase 2 Construction - $270,000
The construction of Cell 2 at the Landfill began 2007 and is now complete with a total project
cost of $1,214,000. Initial funding ($300,000) was provided in 2007 with an additional $300,000
provided in 2008. A portion of the project costs were offset with funding available from prior
years notes for closure of phase 5 and the purchase of a second landfill compactor. The
remainder of the project costs will be provided in 2009 ($270,000).
?
New Landfill – Phase 3 Construction and Leachate Upgrades - $1,180,000
The construction of Phase 3 at the landfill is scheduled for 2009 at a cost of $1,180,000. This is
the third of five total cells designed for the current facility. Construction also includes leachate
pumping system upgrades in Phases 1 and 2
?
Horizontal Gas Collection System - $30,000
A temporary horizontal gas collection system is required by the DNR as a condition of approval
for the operating Sanitary Landfill. The temporary system will allow the City to place the
permanent gas collection header pipe system above the plastic membrane at final closure. This
will significantly reduce long-term maintenance costs related to the permanent system. Initial
funding ($60,000) was provided in 2007 with additional funding ($30,000) provided in 2008.
Funding proposed in 2009 ($30,000) will be used to extend the system.
?
Gas Collection System Upgrades - $130,000
Odor migration from the operating landfill, particularly Cell 1, has become an increasing
problem. In order to minimize the migration, a gas collection system must be installed prior to
2009 Note Issue Page 7 of 16
Project Descriptions
closure of Cell 1 which is now planned for 2011. A portion of this system will become part of
the permanent gas collection system that will be installed with closure of Cell 1.
?
Landfill Scale/Scalehouse Replacement - $140,000
The landfill scale and scalehouse are scheduled for replacement and renovation. Funding in the
amount of $140,000 is proposed. The scale has served its useful life (24 years) and has reached
the point where repairs are not possible. The scalehouse was constructed in 1985 and is in need
of complete interior and exterior renovation. The cost to replace the scalehouse will be
compared to the cost of renovation and the most cost-effective alternative will be implemented.
Construct and Extend Water Mains - $1,995,000
?
System Improvements - $1,688,000
This program totals $1,688,000 and has projects that fall into four (4) primary categories:
Undersize Main Replacement - $378,000
o
Undersize main replacements totaling $582,000 are proposed for 2009. This program is
needed to replace undersized water (replace 1-1/2 inch and 4-inch mains with 6 inch
mains) in the distribution system to meet the WDNR code. There are approximately 12
miles of undersized main in the system. Replacement is done in coordination with street
restoration projects. A portion of the required funding ($582,000) is available from prior
years note issues ($204,000) decreasing the total request for this Note Issue to $378,000.
Funds requested will replace about 3,500 feet of main.
Lead Service Replacement - $350,000
o
In 2005, the Water Utility implemented a lead services replacement program within the
City. This program is similar to the iron service replacement activities the City has
historically undertaken. The actual cost of this program will vary from year to year based
upon the number of lead services under streets that are being reconstructed in any given
year. Currently, there are about 2,400 lead services in the City.
Main Reinforcement - $610,000
o
The Main Reinforcement program totals $670,000 and addresses identified weaknesses in
the existing water distribution system by adding transmission mains or upgrading
distribution mains to transmission mains. In 2009, funding is proposed to complete the
3,300 feet of 12” transmission main constructed on S. Oakhill Avenue started in 2008
($87,000), construction of 2,750 feet of 16 inch main on Town Hall Road ($300,000),
replacement of 2,200 feet of 6 inch main on Chickasaw Drive ($140,000), and
replacement of the 12-inch main associated with the Ruger Ave bridge replacement
($150,000). A portion of the cost of this program is available from prior years
borrowings ($67,000) reducing the total proposed for this note issue to $610,000.
Main/Service Insulation - $350,000
o
2009 Note Issue Page 8 of 16
Project Descriptions
The Loch Lomond Subdivision has several blocks of shallow water main and associated
water services. During the winter of 2008 – 2009 several areas of the community
experienced issues with freezing water mains and services causing the affected property
owners to be without water while the Water Utility made the necessary repairs. This
project insulates those mains and services to prevent freezing in the future. These mains
were installed in the late 1990’s, but this part of the subdivision was not occupied at that
time so the need to insulate them did not become apparent until recently. Over the past
two winters, a number of water services and a water main have frozen.
?
System Expansion – No Additional Funding Needed
Main Extensions – No Additional Funding Needed
o
This program includes the construction of water mains within individual subdivisions and
is expected to total about $250,000 in 2009. Approximately $235,000 will be assessed to
developers with the remainder of the cost ($15,000) being paid by the Water Utility. The
total borrowing is reduced by $250,000 due to carryover funds from the 2008 Note Issue.
Water Laterals – No Additional Funding Needed
o
Laterals provide water service from the water main to the curb stop. Most laterals are
installed to support new residential development. The cost of installing the laterals is
paid through special assessments ($50,000). The total borrowing is reduced by $50,000
due to carryover funds from the 2008 Note Issue.
Transmission Mains – No Additional Funding Needed
o
Transmission mains carry water from the pumping stations and the reservoir to the
distribution systems. In order to provide sufficient water flow to developing areas, new
transmission mains must periodically be constructed. The 2009 budget proposes the
construction of 2,300 feet of 16” main at the Austin Farm Subdivision ($215,000).
Approximately $170,000 of the requested funds will be paid by the Utility with the
remainder ($45,000) assessed to developers. The total borrowing is reduced by $215,000
due to carryover funds from the 2008 Note Issue.
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North Zone reservoir Repair - $150,000
The Wisconsin Department of Natural Resources requires that the City’s water storage reservoirs
be inspected every 5 years and that our elevated storage reservoirs are inspected every 10 years.
The ground storage reservoirs at pumping stations 10 and 12 are due for inspection in 2009.
Additionally, there appears to be a leak in the side of the north zone reservoir. Funds are
requested for inspection of the three reservoirs and repair of the north zone reservoir ($150,000).
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Manhole and Valve Replacement - $157,000
The valve and manhole repair and replacement program totals $165,000 and repairs or replaces
deteriorated water valves and/or water manholes that are contributing to street surface settlement
and deterioration. These manholes and valves are replaces in advance of the City’s street
2009 Note Issue Page 9 of 16
Project Descriptions
restoration program. The total borrowing is reduced by $8,000 due to carryover funds from the
2008 Note Issue.
Construct and Extend Sewer Mains - $615,000
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System Improvements - $175,000
This program totals $175,000 and has projects that fall into two (2) primary categories:
Main Repair/Replacement - $50,000
o
Janesville has approximately 140 miles of clay pipe in the sanitary sewer collection
system that ranges in age from 40 to 100 years. Most of the clay pipe is structurally
sound, but suffers from root intrusion and infiltration of groundwater. The 2009 Note
Issue proposes $750,000 of funding, which will reline about 3 – 3-1/2 miles of sanitary
sewer main. This is the ninth year of a multi-year program, which reduces the potential
for clogged sewers resulting from root growth and also ensures the continued structural
integrity of the clay sewers. The total borrowing is reduced by $700,000 due to carryover
funds from prior years Note Issues.
Inflow/Infiltration Reduction - $125,000
o
This is an ongoing multi-year program to prevent water inflow and infiltration into the
sanitary sewer. It requires about $125,000 annually. This program repairs manholes
located in greenbelts and roadside ditches and relines/replaces portions of sewer laterals
in the public right-of-way near the sanitary sewer they discharge to. Water is kept out of
the manholes by installing rubber seals around the manhole between the casting and cone
section and water tight covers where needed. The sewer laterals are relined from the
inside in much the same way as the sewer mains are presently relined. This program has
focused primarily on sanitary sewer manholes in the past, but its focus has now shifted to
sewer laterals. .
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System Expansion – No Additional Funding Needed
Sewer Extensions – No Additional Funding Needed
o
This program includes the construction of water mains within individual subdivisions and
is expected to total about $250,000 in 2009. Approximately $235,000 will be assessed to
developers with the remainder of the cost ($15,000) being paid by the Wastewater Utility.
The total borrowing is reduced by the entire $250,000 due to carryover funds from the
2008 Note Issue.
Sewer Laterals – No Additional Funding Needed
o
Laterals provide sewer service from the sewer main to the curb for individual properties.
Most laterals are installed to support new residential development. The cost of installing
the laterals is paid through special assessments, but the total borrowing for Special
2009 Note Issue Page 10 of 16
Project Descriptions
Assessments is reduced by the entire $50,000 due to carryover funds from the 2008 Note
Issue.
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System Replacements - $440,000
This program addresses identified weaknesses in the existing sanitary sewer collection system by
adding interceptor sewers or upgrading sewer mains to interceptor sewers. 2009 includes
$290,000 to replace the failed interceptor along the Rock River near Riverview Drive and
$150,000 to replace the 12-inch main associated with the Ruger Ave bridge replacement.
Provide Financial Assistance for Community Redevelopment - $1,485,000
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Development Incentive (TIF 23) - $860,000
Funding is proposed for a TIF development loan in TIF #23 (Downtown - East) previously
authorized by the City Council. A development agreement with 101 Milwaukee St. LLC
provides a development loan in support of a $3.4 million renovation of a downtown office
building in TIF No. 23 ($860,000). Due to limitations on the amount of private purpose debt,
funding for this project cannot be included in the proposed Note Issue. Staff intends to apply for
a loan from the State Trust Fund to finance this project.
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Development Incentive (TIF 24) - $210,000
Funding is proposed in the 2009 Note Issue for a TIF development loan in TIF #24 (Downtown -
West) previously authorized by the City Council. A development agreement with MGD Fund III
and Forward Foundation resulted in the renovation of an historic downtown structure and the
construction of a 7,000 SF historically sensitive addition as part of a revitalization project in TIF
No. 24 ($210,000).
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Development Incentive (TIF 27) - $315,000
Funding is proposed in the 2009 Note Issue for a TIF development loan in TIF #27 (Downtown -
East) previously authorized by the City Council. A development agreement with Assembly and
Test Worldwide provides financing for equipment purchases and employee training for a new
manufacturing equipment design center in TIF No. 27. The project results in the creation of 21
full-time jobs ($315,000).
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Development Incentive (TIF 34) - $100,000
Funding is proposed in the 2009 Note Issue for a TIF development loan in TIF #34 (Airport)
previously authorized by the City Council. A development agreement with HSI Aviation
Holding LLC provides financing for a 20,000 SF helicopter service hangar and the creation of 12
new jobs in TIF No. 34 ($100,000).
2009 Note Issue Page 11 of 16
Project Descriptions
2009 NOTE ISSUE
PROJECTS NOT INCLUDED
Construct and Improve Streets - $406,000
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Infrastructure Maintenance and Extensions - $15,000
Street Lights – New Streets and Subdivisions - $15,000
o
New Streets and Subdivisions primarily supports new residential development and
provides for the installation of street lighting along newly constructed streets ($15,000).
All of these costs are assessed to abutting property owners and are paid at the time of
land division. No need to borrow funds.
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Major Arterials and Connecting Highways - $391,000
River Street Reconstruction (Eng.) - $20,000
o
The reconstruction of River Street from Court Street to Racine Street is scheduled for
2011. Design and engineering was to occur in 2009 with right-of-way acquisition
scheduled for 2010. Funding of design will occur with the borrowing for construction.
Ruger Avenue Bridge (Eng.) - $19,000
o
The Ruger Avenue Bridge sufficiency rating is at a level that requires improvement.
Funding in the amount of $19,000 provides for the local match to a federal grant for the
project. Design will be accomplished in 2009 with construction planned in 2010.
Funding for design will be included in the borrowing for construction.
Milwaukee/Wuthering Hills Roundabout (Eng.) - $12,000
o
An underpass for the recreational trail where it crosses E. Milwaukee Street is proposed
to address public safety concerns. The 2006 Note Issue included $160,000 for this
project. A state grant in the amount of $235,000 has also been awarded for this project.
Funding in the amount of $195,000 is proposed in 2009 bringing total funding available
for this project to $590,000. Funding for design will be included in the borrowing for
construction.
S. Jackson Street Bridge Replacement (Eng.) – 145,000
o
The sufficiency rating for the Jackson Street Bridge is still not low enough to qualify for
federal funding. Any work the City performed at this time would be at local expense.
The total estimated cost to replace this structure is nearly $7.0 million and requires a 20%
local match of approximately $1.4 million.
2009 Note Issue Page 12 of 16
Project Descriptions
E. Milwaukee Street Pedestrian Underpass - $195,000
o
An underpass for the recreational trail where it crosses E. Milwaukee Street is proposed
to address public safety concerns. The 2006 Note Issue included $160,000 for this
project. A state grant in the amount of $235,000 has also been awarded for this project.
Funding in the amount of $195,000 is proposed in 2009 bringing total funding available
for this project to $590,000. The City manager believes other less expensive alternatives
should be evaluated.
Construct and Improve Storm Sewers - $515,000
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System Improvements
Surface Drainage Repairs – CSC - $20,000
o
City Services Center Surface Drainage Repairs in the amount of $20,000 is included to
construct a retention pond on City Services Center property to control the release of
storm water to the mined area east of the site. An existing discharge is severely eroding
the mined embankment and needs improvements
Fremont and St. Lawrence Upgrade - $170,000
o
Upgrades to Freement St. and St. Lawrence Ave.include ($170,000) to replace 1,700 feet
of 12” and 15” pipe on Fremont St. from Oakland Ave. to St. Lawrence Ave. and on St.
Lawrence Ave. from Fremont St. to Randall Ave. The existing system results in frequent
flooding and the pipe is in poor condition. Work will include upsizing pipes to better
manage stormwater.
Richardson Street Repair - $35,000
o
Repairs to Richardson St. include replacing 300 feet of 12” pipe on Richardson Benton
to Sherman. The existing pipe is plugged with excessive roots beyond capabilities of
maintenance equipment. The pipe will be removed and replaced.
Laramie Lane Repair - $90,000
o
The Laramie Lane repair project will replace 900 feet of existing under-sized pipe with
new materials 12” to 18” in size to eliminate flooding problems that have caused erosion
on private property. This work is in the 1000 block of Laramie Lane.
Arbor Ridge Outfalls - $150,000
o
During the rains associated with the 2008 flood event runoff from an adjacent farm field
damaged the storm sewer outfalls in the Arbor Ridge subdivision. Repairs in the amount
of $150,000 are necessary.
2009 Note Issue Page 13 of 16
Project Descriptions
Palmer Drive - $25,000
o
New grates on the upper road are proposed for replacement to prevent reoccurring issues
related to storm drainage.
Pineview - $25,000
o
A storm sewer along Pineview was installed in the incorrect location and is located on
private property rather than in the utility easement. This project relocates that storm
sewer into the easement.
Acquire, Improve & Maintain Parks and Public Grounds - $1,450,000
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Renovate Playgrounds/Maintain Equipment - $35,000
In 1996, the City began a program to renovate/replace playground equipment in neighborhood
parks. To date, renovations have been completed at 30 neighborhood parks at a cost of
approximately $35,000 for each neighborhood park. For the last several years one (1) park has
been renovated each year which is what is still included in the proposed Note Issue. This would
have allowed the renovation of a second park (Pershing Park).
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Skate Board Park - $50,000
A Skate park Citizens Committee was organized in 2003. The committee is currently fund
raising and is considerably short of their goal of $250,000. This financial contribution of
$50,000 to the Skate Park will assist the committee in reaching their goal and building this
recreational facility for the youth of Janesville.
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Bike Trail (Tripp Road to Eau Claire Road) - $515,000
A multi-governmental effort is underway to extend the bike trail from Janesville to Beloit. This
funding will permit the acquisition of abandoned railroad right-of-way south of Tripp Road
where the trail currently terminates. These funds will also allow for the installation of a paved
trail surface. This acquisition of abandoned railroad grade will extend City ownership of the trail
to a point that is contiguous with railroad right-of-way owned by the Hendricks Group. This will
effectively extend the Peace Trail from Tripp Road to Eau Claire Road.
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Aquatics facility Improvements (year 3) - $325,000
In 2006, initial funding ($255,000) was included for aquatics facilities design and improvements.
An 18-member citizen committee, with the assistance of a consultant, reviewed current aquatic
facilities and planned for future aquatic facilities in Janesville, including the location and type of
facilities given the growth and demographics of Janesville. It was anticipated the aquatic
projects will cost a maximum of $5,000,000 with initial funding ($1,255,000) being provided in
2006 and 2007 and additional funding proposed for 2009 ($325,000). This project has been put
on hold and no new funding is proposed. Previously borrowed funds will be used to make
necessary repairs and renovations to the existing facilities ($482,000) and the remainder will be
re-programmed for another purpose ($648,000)
2009 Note Issue Page 14 of 16
Project Descriptions
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Parking Lot Construction - $75,000
In 2008 a blighted multi-family structure at the corner of Court Street and Parker Drive was
purchased and demolished. The site is currently vacant. The construction of a surface level
parking lot containing 14 stalls is proposed on this site. This parking lot will be connected to the
existing public parking lat immediately to the north.
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Wastewater Treatment Plant Land Acquisition - $200,000
Funding was proposed to acquire land around the Wastewater Treatment Plant to be held by the
City ($200,000). The land obtained under this program would not be available for residential or
commercial development. Its primary purpose will be to act as a buffer between nearby
residential properties and the treatment plant.
Acquire, Improve & Maintain Public Buildings and Grounds - $815,000
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Transit Services Center - $425,000
A new Transit Administration and Maintenance Building is proposed to replace the existing
facility located on North Parker Drive. The existing facility was constructed in 1961 as a public
works garage and became the Transit Maintenance Facility in the mid-1960s. An addition was
constructed in 1979 to provide a dedicated area for vehicle maintenance. A new facility is
estimated to cost $6,000,000, with 80% ($4,800,000) funded by the Federal Transit Act and the
remainder ($1,200,000) provided by the City of Janesville. In 2006 and 2007, $100,000 and
$475,000 respectively were provided as the 20% local match for land acquisition and a portion of
the construction costs. In 2009 $425,000 in local funds is proposed for the construction costs.
The remaining portion of the 20% local match will be provided in future years. Federal Funding
in the amount of $2,135,000 has been obligated to this project, including $1.4 million in stimulus
monies. Federal discretionary capital funding in the amount of $1.5 million is anticipated in
each of Federal Fiscal years 2009 and 2010. Additional funding is not necessary in 2009 but will
be proposed in 2010.
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Building Maintenance - $250,000
Funding in the amount of $500,000 was requested for maintenance projects in municipal
buildings and facilities.
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Tallman House Repairs - $515,000
Immediate needs identified in the building needs analysis total $765,000. Funding in the amount
of $250,000 is recommended, leaving a gap of $515,000.
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Hedberg Public Library Building Maintenance- $50,000
The Hedberg Public Library was constructed in 1996 so the building is now eleven years old.
This project proposes funding for ongoing general building maintenance needs ($50,000).
Funding is available from prior note issues for this purpose.
2009 Note Issue Page 15 of 16
Project Descriptions
Acquire Capital Equipment - $195,000
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GIS Enhancements - $100,000
Implementing the GIS is an ongoing process. In 2009 funds are requested to: 1) provide
software and the appropriate licensing to allow GIS utilization outside of Municipal Building
(i.e. water, operations); 2) provide quality control activities to assure accurate system mapping;
3) develop software for recording new construction and maintenance activities; and 4) other GIS
development activities. Funds are requested from the General Fund ($25,000), Water Utility
($25,000), Wastewater Utility ($25,000) and Stormwater Utility ($25,000).
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Pole Camera for Storm Sewer Inspections - $20,000
A pole camera is proposed to facilitate the inspection of storm sewer structures and shorter
sections of piping. It will allow Engineering staff to perform inspections during in-field
investigations, improving overall efficiency of inspections.
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Roll-Off Containers - $30,000
Funding is requested to replace four (4) roll-off containers at the landfill.
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Leisure Services Small Capital Fund - $30,000
Funding is requested for small capital items in the Leisure Services department.
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Multimedia Equipment (Program/Training/Meeting Rooms) - $15,000
Funding is requested to equip the Program/Training/meeting rooms with multimedia equipment.
Construct and Close Landfills - $700,000
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Closure of Cell 1 - $700,000
Closure of a portion of Phase 1 of the operating landfill was anticipated take place in 2009.
The cost of this project is $700,000 which includes installation of a combination
clay/synthetic cap and installation of a landfill gas collection system for Phase 1. This
project has been deferred until 2011.
Construct and Extend Water Mains - $300,000
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System Improvements - $700,000
East Side Water Tower (land acquisition) - $700,000
o
Elevated water storage is necessary on the east-side of Janesville to meet current and
future water demand. The construction of a water tower was proposed to meet these
2009 Note Issue Page 16 of 16
Project Descriptions
needs and funding was requested for land acquisition. This project has been deferred
indefinitely.
Construct and Extend Sewer Mains - $570,000
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System Expansion - $570,000
Interceptor Extensions - $570,000
o
Interceptor sewers carry waste from the collection system to the treatment plant. Several
interceptor sewer mains were planned to serve potential new developments around the
City in 2009 totaling $570,000. However, with the downturn in construction activity
these extensions are no longer necessary.
Provide Financial Assistance for Community Redevelopment - $185,000
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Development Incentive (TIF 26) - $185,000
Funding was proposed in the 2009 Note Issue for two (2) TIF development loans in TIF #26
(Conde Street) previously authorized by the City Council ($185,000). Funding is included for
development loans to 3-D Targets ($125,000) for costs of building upgrades to meet code
requirements for this expanding business. The project will create an additional 5 full-time jobs
in TIF No. 26 ($125,000). A development agreement with PPG Industries provides financing for
manufacturing equipment and the creation of 6 new jobs in TIF No. 26 ($60,000). Due to
restrictions on borrowing for private purposes, funding for this project cannot be included in the
proposed Note Issue. This project will be funded in a future Note Issue.