#2 Authorize issuance of promissory notes (File Res. #2010-728)ADMINISTRATIVE SERVICES MEMORANDUM
October 5, 2010
TO: City Council
FROM: Jacob J. Winzenz, Director of Admin. Services\Assistant City Manager
SUBJECT: Action on a Proposed Resolution Authorizing the Issuance of $6,765,000
General Obligation Promissory Notes, Series 2010-A, and $1,055,000
Taxable General Obligation Promissory Notes, Series 2010-B, of the City of
Janesville, Wisconsin, and Providing the Details Thereof (File Res. #2010-
728)
Summary
On September 27, 2010, Council approved Resolution #2010-727 authorizing the issuance
of $7,820,000 in promissory notes to fund our annual Capital Improvement Program. The
General Fund portion of the proposed Note Issue is $3,535,000. If this is approved it will
result in average annual debt service of approximately $400,000. However, in 2011 some
debt is being retired which results in a net increase in debt service of approximately
$143,000. For the owner of an average home assessed at $114,000, this will result in a
property tax increase of $4.66.
Recommendation
Staff recommends that the City Council adopt File Resolution 2010-728 approving the
issuance of $7,820,000 on Promissory Notes.
City Manager’s Recommendation
The City Manager concurs with staff’s recommendation.
Analysis
The following table indicates the amount of proposed note proceeds that each Fund would
receive.
2010 CAPITAL BUDGET/NOTE ISSUE
General Fund:
Public Works Program$1,125,000
Street Maintenance and Improvements550,000
Renovate Playgrounds/Maintain Equipment35,000
Bike Trail (Tripp Road to Eau Claire Road)60,000
Downtown and Neighborhood Property Acquisitions200,000
Review of Oakhill Cemetery Structures15,000
Transit Services Center (Year 5)300,000
Building Maintenance350,000
Oakhill Cemetery Maintenance Building100,000
Riverside Park Storage Building100,000
Oakhill Cemetery Chapel/Carport Repairs55,000
Tallman House250,000
Golf Course Capital100,000
Technology Enhancements100,000
ERP Phase IV (Accounting, Payroll, Human Resources)100,000
GIS Enhancements25,000
Transit Capital Projects25,000
Parks Capital45,000
$3,535,000
Special Assessments (includes Water and Wastewater)485,000
Water Fund970,000
Wastewater Fund325,000
Stormwater Fund1,125,000
Sanitation Fund240,000
Hedberg Public Library85,000
TIF/Industrial Development Fund1,055,000
TOTAL$7,820,000
The table below indicates the history of note sales over the last five years. The proposed
2010 issue is approximately 52% below the average annual amount issued between the
years 2005–2009.
HISTORY OF G.O. NOTE SALES
5-Issue
Fund20052006200720082009
Average
General Fund
$6,268,000$6,460,000$4,935,000$6,395,000$7,965,000$6,404,600
Special Assessments
2,870,0004,275,0002,790,0001,535,000760,0002,446,000
Water Utility
Assessable
1,090,0001,700,000650,0001,060,0000900,000
Non-Assessable
425,0003,685,000725,0001,990,0002,145,0001,794,000
Subtotal Water
1,515,0005,385,0001,375,0003,050,0002,145,0002,694,000
Wastewater Utility
Assessable
945,0002,205,000810,000700,0000932,000
Non-Assessable
1,170,0001,555,0003,040,0001,185,000765,0001,543,000
Subtotal WW
2,115,0003,760,0003,850,0001,885,000765,0002,475,000
Stormwater Utility
Assessable
750,0000375,000
Non-Assessable
25,0001,045,000535,000
Subtotal Storm
750,000140,00020,000775,0001,045,000910,000
2
Sanitation Fund
000465,0001,750,000443,000
Tax Incremental
Districts
395,000620,00070,000915,000625,000525,000
Golf Courses
000000
Benefits Internal
Service Fund
795,0000000159,000
Library
742,000160,000125,000225,000350,000320,400
TOTAL
$15,450,000$20,800,000$13,165,000$15,245,000$15,405,000$16,377,000
NOTE - Does not include
• Water and Wastewater Utility Revenue Bonds
• Amount borrowed in 2006 to refund 1999 Promissory Notes $3,175,000
• Amount borrowed in 2009 to refund 2000, 2001, 2002, & 2003 Promissory Notes $9,065,000
The 2010 General Fund Budget contains a debt service appropriation of $5,368,643.
Based upon previously issued General Obligation Debt, our 2011 General Fund debt
service appropriation would be $5,089,204. However, proposed in the 2011 budget is a
reallocation of golf course debt from the Golf Fund to the General Fund, and a reallocation
of sanitation debt from the General Fund to the Sanitation Fund. The net effect of these
changes is a reduction in 2011 General Fund debt service of $530,303 to $4,558,901.
However, we anticipate having to budget approximately $438,620 for debt service, based
on an average estimated 2.8% interest rate, related to the proposed 2010 Note Issue.
Therefore, our total 2011 debt service appropriation will be approximately $4,997,521 or
$371,122 (6.9%) less than the amount budgeted for this year.
The General Fund’s share of the authorized issue will be repaid over a term of ten
years. Based upon an anticipated 2.8% interest rate, Graph I presents the impact that
the proposed issue will have on future annual debt service tax levies. Please note that
the amount reported for 2015 does not include our $2,103,000 principal payment
related to the 2005 taxable note issue (WRS refinancing).
3
GRAPH I
DEBT SERVICE PAYMENT SCHEDULE
General Fund
Payment Amount
(in thousands of dollars)
6,000
5,000
4,000
3,000
2,000
1,000
0
'08'09'10'11'12'13'14'15'16'17'18
Years
Current Proposed
The Special Assessments Projects (non-Water/Wastewater) account will receive $285,000
of note proceeds. We have structured the proposed debt retirement schedule so that the
principal will be repaid over a term of six years (2011-2016). Please refer to Graph II,
which presents the impact that the proposed note issue will have on the corresponding
Special Assessments Projects debt service requirements.
GRAPH II
DEBT SERVICE PAYMENT SCHEDULE
Special Assessments
Payment Amount
(in thousands of dollars)
3,500
3,000
2,500
2,000
1,500
1,000
500
0
`10`11`12`13`14`15`16`17`18`19`20
Years
CurrentProposed
The Water Utility is expected to receive note proceeds totaling $970,000. We have
structured the proposed debt retirement schedule so that the Water Utility will repay the
principal over a term of ten years. We have prepared Graph III, which indicates the
effect that the proposed note issue will have on the Water Utility’s annual debt service
requirements. Please note that the amount reported for 2016 does not include our
4
$950,000 principal payment related to the 2006A note issue (Water Tower). We have
projected that the Utility’s 2011 debt service payment will increase decrease $39,924,
or 1.26% from the amount paid in 2010.
GRAPH III
DEBT SERVICE PAYMENT SCHEDULE
Water Utility
Payment Amount
(in thousands of dollars)
3,500
3,000
2,500
2,000
1,500
1,000
500
0
`10`11`12`13`14`15`16`17`18`19`20
Years
CurrentProposed
The Wastewater Utility is expected to receive note proceeds totaling $525,000. Please
refer to Graph IV, which presents the impact that the proposed note issue will have on
the Wastewater Utility’s annual debt service requirements. We have projected that the
Utility’s 2011 debt service payment will increase $330,143, or 10.1% from the amount
paid in 2010.
GRAPH IV
DEBT SERVICE PAYMENT SCHEDULE
Wastewater Utility
Payment Amount
(in thousands of dollars)
6,000
5,000
4,000
3,000
2,000
1,000
0
`10`11`12`13`14`15`16`17`18`19`20
Years
CurrentProposed
The Stormwater Utility is expected to receive note proceeds of $1,125,000. Please refer to
Graph V, which presents the impact that the proposed note issue will have on the
5
Stormwater Utility’s annual debt service requirements.
GRAPH V
DEBT SERVICE PAYMENT SCHEDULE
Stormwater Utility
Payment Amount
(in thousands of dollars)
600
500
400
300
200
100
0
`10`11`12`13`14`15`16`17`18`19`20
Years
CurrentProposed
The Hedberg Public Library is expected to receive note proceeds in the amount of
$85,000. We have prepared Graph VI to illustrate the effect that the proposed note
issue will have on the Library’s annual debt service requirements. Please note that the
amount reported for 2015 does not include our $341,000 principal payment related to
the 2005 taxable note issue (WRS refinancing). We have projected that the Hedberg
Public Library 2011 debt service payment will increase $7,934, or 3.4% from the
amount paid in 2010.
GRAPH VI
DEBT SERVICE PAYMENT SCHEDULE
Hedberg Public Library
Payment Amount
(in thousands of dollars)
300
250
200
150
100
50
0
`10`11`12`13`14`15`16`17`18`19`20
Years
CurrentProposed
The Sanitation Fund is expected to receive note proceeds in the amount of $240,000.
Prior to 2008, Sanitation fund projects had been funded through the General Fund. The
6
2011 budget proposes to transfer all the pre-2008 sanitation debt from the General
Fund to the Sanitation Fund. The 2010 note repayment has been structures so that the
principal will be retired within ten years. We have prepared Graph VII to illustrate the
effect that the proposed note issue.
GRAPH VII
DEBT SERVICE PAYMENT SCHEDULE
Sanitation Fund
Payment Amount
(in thousands of dollars)
1,000
900
800
700
600
500
400
300
200
100
0
`10`11`12`13`14`15`16`17`18`19`20
Years
CurrentProposed
The TIF District #23 (Downtown) will receive $865,000. We have prepared Graph VIII to
illustrate the effect that the proposed note issue will have on the TIF #23 annual debt
service requirements.
GRAPH VIII
DEBT SERVICE PAYMENT SCHEDULE
TIF 23 -Downtown
Payment Amount
(in thousands of dollars)
140
120
100
80
60
40
20
0
`10`11`12`13`14`15`16`17`18`19`20
Years
CurrentProposed
7
The TIF#26 District (Reuther Way/Conde Street) will receive $190,000 for TIF
development loans. We have prepared Graph IX to illustrate the effect that the proposed
note issue will have on the TIF #26 annual debt service requirements.
GRAPH IX
DEBT SERVICE PAYMENT SCHEDULE
TIF 26-Reuther way/condest
Payment Amount
(in thousands of dollars)
1,400
1,200
1,000
800
600
400
200
0
`10`11`12`13`14`15`16`17`18`19`20
Years
CurrentProposed
Graph X presents the impact that the proposed note issue will have on the City’s total
General Obligation Debt Service requirements. Please note that the amount reported
for 2015 does not include our $3,000,000 principal payment related to the 2005 taxable
note issue (WRS refinancing) or the $950,000 related to the water tower borrowed with
issue 2006A. These notes will be refinanced to extend the term of the debt.
GRAPH X
DEBT SERVICE PAYMENT SCHEDULE
General Obligation Debt-all Funds
Payment Amount
(in thousands of dollars)
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
`10`11`12`13`14`15`16`17`18`19`20
Years
CurrentProposed
The Council Policy Statement – “Debt Management” references the several debt ratios,
8
which are used by investors and financial rating analysts when they review the City’s credit
worthiness. These ratios are: Applicable to Legal Debt Margin; Debt Per Capita – All
Funds (G.O. & Revenue Debt); Debt as Percentage of Equalized Value; and General Fund
Debt Service as Percentage of Total Actual Expenditures. Attachment I illustrates these
ratios. It should be noted that we are proposing to issue $7,820,000 in debt, whereas, the
total amount of existing debt principal scheduled to be retired this year will total
$14,917,519.
During the Council Meeting of October 11, 2010, the Council will consider Resolution
#2010-728 which will finalize their consideration of City projects, which are proposed to be
financed by the issuance of long-term debt (Exhibit I).
It should be noted, regarding the General Fund debt service requirements, based upon an
average estimated interest rate of 2.8% and a term of ten years, each $100,000 of note
proceeds will result in an average annual debt service payment of approximately $11,300.
For Council’s reference, also attached is a Memorandum Report, which describes the
scope of the individual projects (Exhibit II). This attachment was also included with the
previously adopted Resolution #2010-727, which authorized the issuance of these notes.
If you should require any additional information concerning the overall fiscal impact that
the proposed 2008 G.O. Note Issue will have on the City’s finances, please feel free to
contact me at your convenience.
Attachments
J:\Finance & Administration\Finance Administration\Debt\Note Issue\Spring 2010\Details Memo.doc
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RESOLUTION NO. 2010-728
RESOLUTION AUTHORIZING THE ISSUANCE OF $6,765,000
GENERAL OBLIGATION PROMISSORY NOTES, SERIES 2010-A, AND $1,055,000
TAXABLE GENERAL OBLIGATION PROMISSORY NOTES, SERIES 2010-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, $6,765,000 General Obligation Promissory Notes, Series 2010-A (the "Series
2010-A Notes"), for the following purposes:
(a)
$1,740,000 to construct and improve streets;
(b)
$1,220,000 to construct and improve storm sewers;
(c)
$110,000 to acquire, improve and maintain parks and public grounds;
(d)
$1,505,000 to acquire, improve and maintain public buildings and
grounds;
(e)
$805,000 to acquire capital equipment;
(f)
$240,000 to construct and close landfills;
(g)
$795,000 to extend and improve the waterworks system; and
(h)
$350,000 to extend and improve the sanitary sewer system.
Second, $1,055,000 Taxable General Obligation Promissory Notes, Series 2010-B (the
"Series 2010-B Notes" and, collectively with the Series 2010-A Notes, the "Notes"), for the
purpose of providing financial assistance for community development.
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
appropriated the sum of $7,820,000. For the purpose of financing said appropriation, (i) Series
2010-A Notes of the City shall be issued and sold in an aggregate principal amount of
$6,765,000, and (ii) Series 2010-B Notes of the City shall be issued and sold in an aggregate
principal amount of $1,055,000. 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
1
4831-2213-2999.1
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 the date of its initial delivery, (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 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:
[FORM OF NOTE]
United States of America
State of Wisconsin
County of Rock
CITY OF JANESVILLE
[GENERAL OBLIGATION PROMISSORY NOTE
SERIES 2010-A]
[TAXABLE GENERAL OBLIGATION PROMISSORY NOTE
SERIES 2010-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, 2011, 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
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; and (viii) to extend and improve the sanitary sewer system] [to
provide financial assistance for community development], 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 September 20, 2010 and entitled: “Resolution Authorizing the Issuance of
$7,705,000 in Promissory Notes for Financing Various Public Purposes”; on October 11, 2010
and entitled: “Resolution Authorizing the Issuance of $6,765,000 General Obligation Promissory
Notes, Series 2010-A, and $1,055,000 Taxable General Obligation Promissory Notes, Series
2010-B, of the City of Janesville, Wisconsin, and Providing the Details Thereof”; and on October
25, 2010, and entitled: “Resolution Awarding $6,765,000 General Obligation Promissory Notes,
Series 2010-A, and $1,055,000 Taxable General Obligation Promissory Notes, Series 2010-B,
of the City of Janesville, Wisconsin, Establishing Interest Rates Thereon and Levying Taxes
Therefor.”
The notes maturing on or after February 1, 2019 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 February 1, 2018, 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.
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
CERTIFICATE OF AUTHENTICATION
Date of Authentication:
This note is one of the [General Obligation Promissory Notes, Series 2010-A][Taxable
General Obligation Promissory Notes, Series 2010-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.
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
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”).
(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
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 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
ADOPTED:
Motion by:
Second by:
APPROVED:
Councilmember Aye Nay Pass Absent
Brunner
McDonald
Eric J. Levitt, City Manager
Perrotto
Rashkin
ATTEST:
Truman
Steeber
Voskuil
Jean Ann Wulf, City Clerk-Treasurer
APPROVED AS TO FORM:
Wald Klimczyk, City Attorney
Proposed by: Administrative Services
Prepared by: Administrative Services
Attachment III
JJW - 09/28/2010
City of Janesville
Proposed 2010 Note Issue - City Manager Recommended Projects
Proposed 2010 Note Issue
Major Capital
Special Hedberg
Projects
Prior Years Assessment Water Wastewater Stormwater Sanitation Public Total Note
ProjectOther LoansTotal ProjectBudget
BorrowingsGeneral FundFundUtility FundUtility FundUtility FundFundLibraryTIF FundsIssue
Construct and Improve Streets
New and Replacement Sidewalks$175,000$65,000$240,000$240,000$1,295,000
Curb and Gutter Replacement & Reconstruction$600,000$600,000$600,000$500,000
Street Maintenance and Improvements$550,000$550,000$550,000$650,000
Major Arterials and Connecting Highways
Ruger Avenue Bridge$220,000$220,000$220,000$125,000
S. Jackson St. Bridge (Feas. Study & Eng.)$130,000$130,000$130,000$130,000
Subtotal$1,675,000$65,000$1,740,000$1,740,000$2,700,000
Construct and Improve Storm Sewers
System Improvements
Channel/Pond Enhancements$200,000$200,000$200,000$200,000
Storm Sewer Enhancements$360,000$360,000$360,000$400,000
Storm Sewer Repairs$190,000$190,000$190,000$350,000
Manhole rehab./Replacement$250,000$250,000$250,000$250,000
System Expansion
Channels/Ponds$120,000$120,000$120,000$400,000
Storm Sewers$100,000$100,000$100,000$300,000
Subtotal$220,000$1,000,000$1,220,000$1,220,000$1,900,000
Acquire, Improve & Maintain Parks and Public Grounds
Replace Playground Equipment$35,000$35,000$35,000$70,000
Bike Trail (Tripp Road to Eau Claire Road)$60,000$60,000$60,000$60,000
Consultant Review of Oakhill Cemetery structures$15,000$15,000$15,000
Subtotal$110,000$110,000$110,000$130,000
Acquire, Improve & Maintain Public Bldgs. and Grounds
Transit Services Center Construction (year 5)$300,000$300,000$300,000$400,000
Building Maintenance$350,000$350,000$350,000$350,000
Property Acquisitions (downtown & neighborhood)$200,000$200,000$200,000$500,000
Oakhill Cemetery Maintenance Bldg.$100,000$100,000$100,000$190,000
Riverside Park Storage Bldg.$100,000$100,000$100,000
Oakhill Cemetery Chapel/Carport Repairs$55,000$55,000$55,000
Tallman House$250,000$250,000$250,000$500,000
Golf Course Capital$100,000$100,000$100,000
General Building Repairs - Hedberg Public Library$50,000$50,000$50,000$50,000
Subtotal$1,455,000$50,000$1,505,000$1,505,000$4,440,000
Acquire Capital Equipment
Technology Enhancements$100,000$50,000$50,000$200,000$200,000$200,000
ERP Phase IV (General Ledger, Payroll)$100,000$100,000$100,000$100,000$400,000$400,000$400,000
Library Computer Replacements$35,000$35,000$35,000$35,000
GIS Enhancements$25,000$25,000$25,000$25,000$100,000$100,000$100,000
Transit Capital Projects$25,000$25,000$25,000$26,840
Parks Capital$45,000$45,000$45,000$35,000
Public Safety Equipment$0$0$100,000
Subtotal$295,000$175,000$175,000$125,000$35,000$805,000$805,000$896,840
Construct and Close Landfills
Odor Remediation Project$240,000$240,000$240,000
Subtotal$240,000$240,000$240,000
Construct and Extend Water Mains
System Improvements:
Undersized Main Replacement$130,000$470,000$470,000$600,000$300,000
Attachment III
JJW - 09/28/2010
City of Janesville
Proposed 2010 Note Issue - City Manager Recommended Projects
Proposed 2010 Note Issue
Major Capital
Special Hedberg
Projects
Prior Years Assessment Water Wastewater Stormwater Sanitation Public Total Note
ProjectOther LoansTotal ProjectBudget
BorrowingsGeneral FundFundUtility FundUtility FundUtility FundFundLibraryTIF FundsIssue
Lead Service Replacement$300,000$0$300,000$400,000
Manhole and Valve Replacement$40,000$0$40,000$165,000
Main Reinforcement (Black Bridge Road)$1,175,000$325,000$325,000$1,500,000$1,500,000
Subtotal$1,645,000$0$795,000$795,000$2,440,000$3,165,000
Construct and Extend Sewer Mains
System Improvements:
Sewer Main Repair/Replacement$0$805,000$805,000$750,000
Inflow/Infiltration Reduction$0$265,000$265,000$125,000
Siphon Improvements$925,000$75,000$75,000$1,000,000$0
System Expansion
Sewer Extensions$200,000$75,000$275,000$275,000$400,000
Subtotal$925,000$200,000$150,000$350,000$1,070,000$2,345,000$1,275,000
Provide Financial Assistance for Community Redevelopment Under Sec. 66.46 (TIF)
Development Incentives (TIF #23) - Taxable$865,000$865,000$865,000$0
Development Incentives (TIF #26) - Taxable$190,000$190,000$190,000$185,000
Subtotal$1,055,000$1,055,000$1,055,000$185,000
Grand Total$2,570,000$3,535,000$485,000$970,000$325,000$1,125,000$240,000$85,000$1,055,000$7,820,000$1,070,000$11,460,000$14,691,840
Projects which the City Council has committed to fund.
Attachment IV
2010 Note Issue
Project Descriptions
Construct and Improve Streets - $1,740,000
(a) New and Replacement Sidewalks - $240,000
This program totals $240,000 (General Fund - $175,000; Assessable - $65,000) to
construct new sidewalks and to replace deteriorated sidewalk and/or sidewalk with
other safety deficiencies. General Fund costs for new and replacement sidewalk
include curb ramps, sidewalk crossing city owned property (greenbelts, parks, etc.)
and other miscellaneous costs typically paid by the city at large.
(b) Curb and Gutter Replacement and Reconstruction - $600,000
This program totals $600,000 to replace damaged curb and gutter as well as
eliminate areas of water ponding in conjunction with the street reconstructions and
resurfacing programs. In the past half of this program has been funded through
Special Assessments against the abutting property owners. As proposed for 2010
costs for curb replacement and reconstruction will be paid by the city at-large and
will no longer be assessed against abutting property owners. Curb & Gutter
functions as part of the street and having the City at-large pay for these costs is
consistent with the street rehabilitation program approach.
(c) Street Maintenance and Improvements - $550,000
This program includes funds to maintain City streets and make various other
improvements to the street network such as intersection and railroad crossing
improvements. In 2010 $550,000 is proposed for this program.
(d) Major Arterials and Connecting Highways - $350,000
This category proposes a total of $350,000 in funding for 2010. There are several
projects that provide for preliminary engineering on projects. This funding provides
the local match to federal funding in most cases.
The Ruger Avenue Bridge sufficiency rating is at a level that requires
improvement. Funding in the amount of $220,000 provides for the local match to
a federal grant for the project. Construction is currently underway with
completion anticipated later this fall.
The Jackson Street Bridge sufficiency rating is at a level that requires
improvement. The total cost for this project is estimated to be $6,986,000 with
80% ($5,573,000) provided in federal funding and 20% ($1,413,000) from local
funding. This 2010 budget proposes that design and engineering be commenced
in 2010. The first installment of $130,000 for the local match to federal funding
for preliminary engineering is also included.
Attachment IV
Construct and Improve Storm Sewers - $1,220,000
(a) System Improvements - $1,000,000
System Improvements total $1,000,000 for enhancements to the existing storm
drainage system. Proposed projects include:
Drainage Channel/Pond Enhancements are necessary to address capacity
deficiencies or other problems which require enhancements to properly manage
current and projected stormwater flow. Enhancement projects in 2010 are
expected to cost $200,000. This will include the third year of a 10-year program
to enhance the drainage channel within the greenbelt system and surface
drainage improvements near the City Services Center ($20,000).
In addition to routine maintenance of storm sewer infrastructure, areas within the
system can develop capacity deficiencies or other problems which require
enhancements to properly manage current and projected stormwater flow. Storm
Sewer enhancement projects in 2010 are expected to cost $360,000. Planned
projects include: Palmer Drive ($80,000), City Services Center Surface Drainage
($20,000), Kiwanis Pond ($60,000) and Fremont Street ($200,000). Planned
projects may change based upon need.
Storm sewer repair projects totaling $190,000 have been identified for 2010.
Planned projects include: Laramie Lane ($115,000), Richardson Street
($35,000), Franklin Street Concrete Channel ($20,000), Palmer Drive ($10,000)
and Memorial Bike Trail ($10,000). Projects can change if other repairs are
identified and are considered higher priority.
Rehabilitating or replacing manholes in conjunction with street resurfacing and
reconstruction projects prevents future failures of the structures after a new street
surface has been placed. In 2010 funding in the amount of $250,000 is
proposed. Some manholes only need repairs to the upper portion and other
manholes that need total replacement.
(b) Storm Drainage Channels/Ponds storm drainage channels and ponds to serve
new developments. Cost - $120,000; Assessable Portion - $120,000.
(c) Storm Sewer Extensions storm sewer mains extended to serve new
developments. Cost - $100,000; Assessable Portion - $100,000.
Acquire, Improve & Maintain Parks and Public Grounds - $110,000
(a) Replace Playground 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.
Attachment IV
The renovation/replacement of playground equipment will continue in 2010, with
improvements proposed for Pershing Park ($35,000).
(b) Bike Trail (Tripp Road to Eau Claire Road) - $60,000
A multi-governmental effort is underway to extend the bike trail from Janesville to
Beloit. This $60,000 in funding will allow for the installation of a gravel trail surface
on land currently owned by the City. This will effectively extend the Peace Trail from
Tripp Road to Eau Claire Road.
(c) Consultant Review of Oakhill Cemetery Structures - $15,000
$15,000 is requested to hire a consultant to review the four Oakhill Cemetery
structures to develop an itemized list of projects necessary to ensure the
continuation of the structures. This review will examine the facilities using a historical
point of view. These buildings are in very poor condition and staff wants to be pro-
active in developing a maintenance program.
Acquire, Improve & Maintain Public Buildings and Grounds - $1,305,000
(a) Transit Services Center - $300,000
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 $6,275,000, with
$1,400,000 provided by 2009 ARRA funds requiring no local match, 80%
($3,900,000) funded by the Federal Transit Act and the remainder ($975,000)
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 2010 $300,000 is proposed. The final share of the local
match will be included in the 2011 Note Issue.
(b) Building Maintenance - $350,000
Each year, funds are required for minor building maintenance projects at City
facilities. In 2010, improvements totaling $350,000 are proposed for several public
buildings. The locations may include the Municipal Building, various park and
recreational facilities, and Senior Center.
(c) Property Acquisitions (downtown & neighborhood) - $200,000
Major downtown and neighborhood planning efforts have recommended that the City
become more active in the acquisition of vacant and/or blighted properties in the
downtown and older residential neighborhoods. Available Community
Development Block Grant funds are not sufficient for this effort. Funding in the
amount of $200,000 is proposed for such property acquisitions.
Attachment IV
(d) Oakhill Cemetery Maintenance Building - $100,000
$100,000 is requested to construct a maintenance and operations building for
Oakhill Cemetery. The current seasonal building is undersized, does not have room
for all of the existing equipment, and has no heat/water. A new building would
accommodate equipment and provide for better year-round usage, as cemetery
operations dictate.
(e) Riverside Park Storage Building - $100,000
$100,000 is requested to construct a maintenance building for Riverside Park. The
current building is a former 1928 restroom building and is not large enough to
accommodate service work or volunteer activities. A new structure would better
accommodate equipment and maintenance operations.
(f) Oakhill Cemetery Chapel/Carport Repairs - $55,000
$55,000 is necessary to complete immediate repairs to the cemetery carport and
chapel. Repairs will include outside tuck pointing, caulking of windows/door frames
and coping joints, roof repairs and carport foundation repairs. This work must be
done if we wish to continue to have these structures present at the cemetery.
(g) 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. Funding in the amount of $250,000 was provided in
2009. The 2010 budget includes $250,000 to continue funding these repairs.
(h) Golf Course Capital - $100,000
The current lease for the golf course facilities expires on December 31, 2010. Due
to changes in the golf industry locally and nationally we will be changing from a
lease of the golf facilities to a management contract. Under the terms of the lease,
the lessee must provide the equipment to maintain the courses. However, under a
management contract the owner of the courses (the City) must provide such
equipment. Funding in the amount of $100,000 is included to begin acquiring
maintenance equipment. It is anticipated that additional funding will be necessary in
2011.
(i) Building Repairs at Hedberg Public Library - $50,000
The Hedberg Public Library was constructed in 1996 so the building is now fourteen
(14) years old. This project proposes funding for ongoing general building
maintenance needs ($50,000).
Attachment IV
Acquire Capital Equipment - $805,000
(a) 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 2010, 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.
(b) ERP Phase IV - $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; phase II of this project
included the replacement of code enforcement, building permits and inspections,
complaint tracking, and planning software; phase III of this project included the
replacement of our utility billing, and miscellaneous billing. Funding in the amount of
$400,000 for Phase IV is proposed for 2010 to replace our accounting, payroll, and
human resources software. Funds are requested from the General Fund
($100,000), Water Utility ($100,000), Wastewater Utility ($100,000) and Stormwater
Utility ($100,000).
(c) Library Technology Upgrades - $35,000
Funding is proposed to upgrade the automation system to include a Fines Payment
Module ($10,500), to replace outdated computers ($21,000), and to upgrade the
hardware and software in the computer lab ($3,500).
(d) GIS Enhancements - $100,000
Implementing the GIS is an ongoing process with the continuing goals of increasing
efficiency, providing updated geographic information and creating high-quality
products for city departments and the public. In 2010 funds are requested to
enhance the GIS, through increased staff utilization using additional software
licenses, improved quality control efforts, establishing and maintaining public GIS
access through a website and other services, expanded data acquisition and access
for internal use, and 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).
(e) Transit Capital Projects - $25,000
Funding is included for several small Transit capital projects ($25,000) including
Attachment IV
capital repair parts ($7,500), refurbish the Transfer Center ($9,000), replace
supervisory van ($5,000), replace shop equipment ($2,000), replace
printer/copier/fax ($500), and replace 100 bus stop signs ($1,000). Transit projects
are funded 80% from the Federal Transit Act and these costs represent the projects
local share (20%).
(f) Parks Capital - $45,000
Parks Capital ($30,000) provides funding to purchase an impoundment system to
flood the Traxler Park ice skating land rink. This will increase the timeliness of when
the land rink can open each year. Water would be pumped from the lagoon area,
into a cooling pond that would send the water into the bermed skating area. This
system would reduce the hours spent by staff spraying the current land rink and
would allow the ice to form concurrently with staff working on snow removal.
Construct and Close Landfills - $240,000
(a) Odor Remediation Project - $240,000
Current operations at the sanitary landfill have resulted in increased odors and
complaints from residents. This project constructs additional gas well and places a
temporary membrane cap on the landfill to allow additional gas to be drawn from the
landfill. This gas, rather than escaping into the air, will be used to generate electricity.
Construct and Extend Water Mains - $795,000
(a) System Improvements - $795,000
Undersize main replacements totaling $600,000 are proposed for 2010. Of this
funds borrowed in prior years. This program is needed to replace undersized
water mains (replace 1-1/2 inch and 4-inch mains with 6 inch mains) in the
distribution system. There are approximately 9 miles of undersized mains in the
system. Replacement is done in coordination with street restoration projects.
Funds requested will replace about 6,000 feet of mains.
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. In 2010, the Water Utility proposes to replace 150 lead
services ($300,000). No funding is included is this Note Issue as funds will be
reallocated from prior years projects.
Prior to street reconstruction, the condition of the water manholes and valves in
the street are evaluated. Old, deteriorated manholes are either rehabilitated or
replaced prior to the street work. This helps insure the long term integrity of the
Attachment IV
street so that a newer street surface would not have to be dug up shortly after the
work to replace a failing manhole. For 2010 $40,000 is proposed for this
program. No funding is included is this Note Issue as funds will be reallocated
from prior years projects.
The Main Reinforcement program addresses identified weaknesses in the
existing water distribution system by adding transmission mains or upgrading
distribution mains to transmission mains. In 2010, Phase I of the Blackbridge
Road main is scheduled. The total project estimate is $3,000,000 with
$1,500,000 proposed for 2010. Of this amount $325,000 is included in the
proposed Note Issue and $1,175,000 is available from funds borrowed in prior
years.
Construct and Extend Sewer Mains - $350,000
(a) System Improvements - $75,000
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. Proposed for 2010 is $805,000 in 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. No
funding is included in the proposed Note Issue as money was previously
borrowed through the Clean water Fund loan program.
This is an ongoing multi-year program to prevent water inflow and infiltration into
the sanitary sewer system. This program has focused primarily on sanitary
sewer manholes in the past, but its focus has now shifted to sewer laterals. For
2010 funding in the amount of $265,000 is proposed. No funding is included in
the proposed Note Issue as money was previously borrowed through the Clean
water Fund loan program.
Siphons are used to move sewage from one side of the Rock River to the other.
The City has four (4) siphons and they were in need of repairs to increase their
reliability and the ability of our crews to maintain them in the event of a blockage.
Funding in the amount of $1,000,000 is proposed for this project. No funding is
included in the proposed Note Issue as money was previously borrowed through
the Clean water Fund loan program.
(b) System Expansion - $275,000
Subdivision Sewer Extensions sewer mains extended to serve new
developments. Cost - $275,000; Assessable Portion - $200,000.
Attachment IV
Provide Financial Assistance for Community Redevelopment - $1,055,000
(a) Funding in the amount of $865,000 is included for development loans in TIF No. 23.
Development loans were made to SARA Investments for the rehabilitation of the
building located at 101 E. Milwaukee Street.
(b) Funding in the amount of $190,000 is included for development loans in TIF No. 26.
Development loans have been made to 3-D Targets ($128,000) for costs of building
upgrades to meet code requirements for this expanding business and PPG
Industries to finance manufacturing equipment and the creation of 6 new jobs in TIF
#26 ($62,000). These projects will create an additional 11 full-time jobs in TIF #26.