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Full Agenda Packet REVISED 8/18/11 CITY OF JANESVILLE CITY COUNCIL MEETING AGENDA MONDAY, August 22, 2011 7:00 P.M. 1. Call to Order and Pledge of Allegiance. 2. Roll Call. 3. Regular City Council meeting minutes of August 8, 2011. “C” 4. Licenses; and Recommendations of the Alcohol License Advisory Committee. (Refer to separate agenda.) “C” 5. Action on a financial gain request from Janesville Area Convention and Visitors Bureau to host an Art Infusion event in downtown Janesville on September 16, 17 and 18, 2011. “C” 6. Action on a financial gain request from USA Water Ski and Wakeboard to conduct a USA Wakeboard Collegiate Midwest Regional event on September 17 and 18, 2011 at Traxler Park. “C” 7. Financial statement for the month of July, 2011. “C” OLD BUSINESS 1. Requests and comments from the public regarding items on the Agenda not requiring a public hearing. 2. Second reading, public hearing and action on a proposed ordinance prohibiting the possession of any firearm in any City building or structure except as allowed by law for sworn law enforcement and peace officers, with penalties for violations thereof as set forth in JGO 9.88.040. (File Ord. No. 2011-493) 3. Second reading, public hearing and action on a proposed ordinance deleting and recreating electoral ward boundaries. (File Revised Ord. No. 2011-497) ----------------------- “C” – This designation indicates an item that the City Council will take up under a Consent Agenda. City Council Agenda – August 22, 2011 Page 2 OLD BUSINESS (CONTINUED) 4. Action on a proposed resolution assigning wards to polling places. (File Res. No 2011-830) 5. Action on a proposed resolution approving the project plan for Tax Increment Finance District No. 35, land located at the southwest corner of STH 11 and Beloit Avenue. (File Res. No. 2011-816) NEW BUSINESS 1. Action on a proposed resolution authorizing the acquisition of property located at 1116 Hamilton Avenue. (File Res. No. 2011-829) 2. Authorization for the City Manager to issue a change order in the amount of $750,000 to the Wastewater Treatment Plant construction contract in order to proceed with energy enhancing modifications to produce additional electricity and fuel for municipal vehicles. 3. Adoption of financial policies on debt management and fund balance and resolution 2011-828 to approve commitment of fund balances. (File Res. No. 2011-828) 4. Requests and comments from the public on matters which can be affected by Council action. 5. Matters not on the Agenda. 6. Consideration of a motion to convene into closed session, pursuant to Wisconsin Statute Section 19.85 (1) (e), for the purpose of deliberating and setting the negotiation terms, conditions, and parameters for the potential sale of NSP rehabilitated properties located at 414 North Washington, 212 Madison, and 407 Lincoln since competitive and/or bargaining reasons require a closed session. The use of audible cell phone ringers and active use and response to cellular phone technology by the governing body, staff and members of the public is discouraged in the Council Chambers while the Council is in session. PROCEEDINGS OF THE CITY COUNCIL CITY OF JANESVILLE, WISCONSIN REGULAR MEETING AUGUST 8, 2011 VOL. 62 NO. 11 Regular meeting of the City Council of the City of Janesville held in the Municipal Building on August 8, 2011. The meeting was called to order by Council President Brunner at 7:00 PM. Jon Wangerin and Larry Barton led the Council in the Pledge of Allegiance. Present: Council President Brunner, Councilmembers Dongarra-Adams, Liebert, McDonald, Rashkin, Steeber and Voskuil. CONSENT AGENDA Regular City Council meeting minutes of July 25, 2011 Licenses; and Recommendations of the Alcohol License Advisory Committee. (Refer to separate agenda.) Authorization for the Administration to deny a liability claim from Amanda Stewart-Ryan in the amount of $16,740.52. Council President Brunner removed Sneakers Bar’s request for outdoor lighting and changing the times for serving and consuming of alcohol on the volleyball courts from the Consent Agenda. He stated that all other items on the consent agenda would be approved if there were no objections. There were none. Councilmember Rashkin left the meeting. Based on information provided to the Council, Councilmember Voskuil moved to allow Sneaker’s to have outdoor lighting until 9 p.m. and to not change their alcohol serving restrictions, seconded by Councilmember McDonald and passed by the following vote: Aye: Brunner, Dongarra-Adams, Liebert, McDonald, Steeber and Voskuil. Absent: Rashkin. Councilmember Rashkin returned to the meeting. Special recognition: Action on a proposed resolution in commendation of Emil Dallman’s 28 years of service to the City of Janesville. Councilmember Steeber moved to adopt said resolution, seconded by Councilmember Rashkin and passed unanimously. (File Res. No. 2011-826) Action on a proposed resolution authorizing the City Manager to enter into an Agreement with JNB Signs for the acceptance of a sign donation at the Ice Arena. Councilmember Voskuil moved to adopt said resolution, seconded by Councilmember Steeber and passed unanimously. (File Res. No. 2011-824) Appreciation for support in YWCA Walk-a-Mile in Her Shoes event. Jon, Ethan and Leah Wangerin and Larry Barton invited the Council to the event on August 26, 2011 and thanked Police Chief Moore, the Janesville Police Department and the City Council for their support. OLD BUSINESS 1. Requests and comments from the public regarding items on the Agenda not requiring a public hearing. Marv Wopat, representing the Family Fun Fest, spoke in favor of waiving the fees for Family Fun Fest (NB #1.) Council President Brunner combined the public hearing and action on New Business Items #2 and #3. Proposed ordinances establishing a Historic Overlay District on land located in the vicinity of Downtown Janesville (File Ord. No. 2011-489), creating the Historic District Plan for the Downtown Historic Overlay District (File Ord. No. 2011-490) received their second reading and public hearing. Bruce Dennis, 216 Terrace St., Chair of the Historic Commission, and Roger Merry, 515 St. Lawrence Ave., requested that the ordinances be sent back to the Historic Commission and Plan Commission for additional review. John Holzhuter, representing FTW Properties LTD and One Parker Place LLP, requested the property located at 115 E Court St. be excluded from the Historic Overlay District. Nancy Johnson, representing Brennan, Steil SC spoke against the ordinances. Jackie Wood, 119 S. Wisconsin St., Bruce Monson, 602 E Milwaukee St., Rich Fletcher, 1214 Ravine St., Jim Dumke, 2831 Carrousel Ln., and Daniel Atwood, 215 Division St., spoke in favor of the ordinances. Jim Alverson, 225 Pease Ct., stated that his experience with the Historic Commission on restoring property was very good. Councilmember Steeber moved to refer the items back to the Plan Commission and Historic Commission for further discussion and modification prior to Council action on the Ordinance, seconded by Councilmember Rashkin and passed unanimously. NEW BUSINESS 1. Action on a Request from Partners in Prevention to waive special event fees for Family Fun Fest. Councilmember Rashkin moved to waive the fees except a $148 equipment fee, seconded by Councilmember Dongarra-Adams. Councilmember Voskuil offered a friendly amendment that the $25 recycling bin fee should not be waived which was accepted by the maker and seconder. The motion, as amended passed by the following vote: Aye: Brunner, Dongarra-Adams, Liebert, McDonald, Rashkin, and Voskuil. Nay: Steeber. 2. Action on a proposed resolution authorizing the acquisition of a municipal utility easement from the Elks Lodge at 2100 North Washington Street (File Resolution No. 2011-827) and authorization for the City Manager to enter into an Agreement with the Elks Lodge to take ownership of their private force main. Councilmember McDonald moved to adopt said resolution and take ownership of the main, seconded by Councilmember Voskuil and passed by the following vote: Aye: Dongarra-Adams, Liebert, McDonald, Rashkin, Steeber and Voskuil. Pass: Brunner. 3. Action on a proposed resolution implementing City of Janesville “pick-up” of employee retirement contributions pursuant to Internal Revenue code §414(h)(2). Councilmember Steeber moved to adopt said resolution, seconded by Councilmember Dongarra-Adams and passed unanimously. (File Res. No. 2011-823) 4. Proposed ordinances annexing property located at 2006 North County Trunk E (File Ord. No. 2011- 495) and zoning said property to B2 upon annexation (File Ord. No. 2011-496) were introduced, scheduled for a public hearing on September 26, 2011 and the zoning ordinance was referred to the Plan Commission for a recommendation. 6. A proposed ordinance deleting and recreating electoral ward boundaries was introduced and scheduled for a public hearing on August 22, 2011. (File Ord. No. 2011-497) 7. Requests and comments from the public on matters which can be affected by Council action. No one spoke. 8. Matters not on the Agenda. Councilmember McDonald asked when the Council would discuss the City’s financial policies and was informed that it will be on the August 22, 2011 agenda. 9. Councilmember Steeber moved to convene into closed session, pursuant to Wisconsin Statute Section 19.85 (1) (e), for the potential acceptance of an offer to purchase lots 6 and 7 at 3201 and 3207 Rockport Park Drive for $15,000 recently tendered by Jeremy Jorgenson; since competitive and/or bargaining reasons require a closed session. The motion was seconded by Councilmember Rashkin and passed unanimously. There being no further business, Council convened into closed session at 9:10 p.m. These minutes are not official until approved by the City Council. Jean Ann Wulf City Clerk-Treasurer JANESVILLE CITY COUNCIL LICENSE AGENDA 8/22/2011 RECOMMENDED A. ELECTRICIANS–ORIGINAL Michael E. Kelliher 1416 Poplar Dr., Waukesha, WI Dan Wienke 8507 N. Pleasant Prairie, Evansville, WI CITY MANAGER MEMORANDUM August 12, 2011 TO: City Council FROM: Tyler Burkart, Administrative Intern SUBJECT: Art Infusion Event – Financial Gain Permit Request Leisure Services requests the City Council approve a financial gain permit for the Janesville Area Convention & Visitors Bureau (JACVB) for their Art Infusion event. Staff Recommendation Staff recommends the approval for the JACVB to receive a financial gain permit for their Art Infusion event September 16-18, 2011. JACVB have already completed the special event application and paid all the appropriate fees (See Attachment). City Manager Recommendation The City Manager recommends approval of the financial gain permit. I believe this is a potentially exciting event to bring activity to the downtown area on the th weekend of September 16. It is my understanding that all activities including buskers’ activities will be coordinated through the JACVB in accordance with this permit. Suggested Motion “I move to approve the financial gain request from the JACVB for the buskers and street vendors during the Art Infusion event.” Background Art Infusion will be taking place September 16-18, 2011 along the Janesville Mile. The event is sponsored by the JACVB and will partner with the Janesville Performing Arts Center (JPAC) and other local non-profits. Art Infusion plans on having sidewalk chalk art, performance art, buskers (street performers), flash mob contests, and food during the event. It’s free admission for any attendees over the three day event. The event plans to close a part of Main Street from Court Street to St. Lawrence Ave. as well as some of the sidewalks along the street so that artists can display and work on their art. Their goal is to bring in 500 adults to stay overnight in Janesville and have approximately 4,500 visitors throughout the three days at the event. 1 Analysis One issue that arises with this event is the issue of financial gain on city streets and property. It is City staff’s interpretation that the event will be able to have buskers and street vendors legally as long as an agreement is made between those individuals and the JACVB. Other individuals that attend the event wanting to perform for gratuities without establishing a pre-determined agreement will need to discuss terms with JACVB at the event before they start performing or selling. Since the event plans to block off a small portion of Main Street and some of the sidewalks, the City will send out press releases to inform the public of these closures. A recycling plan has been established by JACVB for the event, as well. Finally, JACVB has asked the Police Department to have an increase of patrol in the vicinity, and the Police Department has agreed to the request. Attached Forms cc: Eric Levitt, City Manager Jacob J. Winzenz, Asst. City Manager / Director of Admin. Services 2 LEISURE SERVICES DEPARTMENT MEMORANDUM August 12, 2011 TO: City Council FROM: Shelley Slapak, Acting Recreation Director SUBJECT: Action on a Financial Gain Request from USA Water Ski and Wakeboard Introduction USA Water Ski and Wakeboard has submitted an application requesting approval to hold the USA Wakeboard Collegiate Midwest Regional Event in Janesville. The event is a collegiate national qualifier event for wakeboarding. In 2011, the host school is the University of Wisconsin-Madison, Water Ski and Wakeboard team. Approximately seven other teams would participate. The event would be conducted in Traxler Park, utilizing the area of the Rock River where the Rock Aqua Jays hold their performance. They will not be using the ski jumps. The event is scheduled to take place on Saturday, September 17 and Sunday, September 18 from 8AM-6PM. Joel Shapiro, President of the Rock Aqua Jays is aware of this event and in support of it. There will be a safety director on site with certified lifeguards. According to Chapter 12.62, in section 12.62.02 of the Janesville Municipal Code, the City Council must approve all first time special event applications involving financial gain. Attached is a copy of the application and map of requested use. Background USA Water Ski and Wakeboard has provided the Leisure Services Department with a completed application, map of proposed use area, certificate of liability insurance, copy of recycling plan. They have also paid the appropriate event fee. Staff Recommendation Leisure Services has reviewed this application, and staff recommends that the City Council approve the request from USA Water Ski and Wakeboard to conduct the Collegiate Midwest Regional Event for Wakeboarding. City Manager Recommendation The City Manager concurs with the Recreation Division recommendation. Suggested Motion I move to approve the financial gain request from USA Water Ski and Wakeboard to conduct the Collegiate Midwest Regional event for USA Wakeboard in the City of Janesville. Please contact me if you have questions or concerns regarding this event. Attachments Cc: Eric Levitt, City Manager Jacob J. Winzenz, Assistant City Manager/Director of Administrative Services 1 ACCOUNTING DIVISION MEMORANDUM August 16, 2011 TO: City Council FROM: Patty Lynch, Comptroller SUBJECT: Financial Statement for the Month of July 2011 The City prepares its Financial Statements in accordance with generally accepted accounting principals using the modified accrual method of accounting and is audited annually by Baker Tilly Virchow Krause, LLP. We prepare interim financial statements for the Council’s review on a monthly basis. Division and Department Heads are responsible for monetary expenditures to ensure budget compliance. Revenues and expenditures are projected to year-end in June and September. Key operating funds include the General Fund, Water and Wastewater Utilities, and Sanitation Fund. A summary of their performance to budget, as compared to a three- year average, are presented in the following graphs. EXPENDITURE SUMMARY The graph below indicates that expenditures are being made according to budget. Year-To-Date July ExpendituresCompared to Three-Year Average Current YTD 3 Yr. Avg. 70% 60% Percent of Total Budget 50% 40% 30% 20% 10% 0% General FundWater -Wastewater - OperatingOperatingSanitation July 2011 Financial Statements August 16, 2011 Page 2 REVENUE SUMMARY The graph below indicates revenue for the General Fund, Water Utility, and Wastewater Utility has been earned as anticipated. Santiation revenue is below trend due to less tonnage received at the landfill. Year-To-Date July RevenuesCompared to Three-Year Average Current YTD 3 Yr. Avg. 70% 60% Percent of Total Budget 50% 40% 30% 20% 10% 0% General FundWaterWastewaterSanitation Other items of interest in the Financial Statement are as follows: Proprietary Funds (page 4)  The Water Utility has a deficit operating cash balance of $2,011,407 at July 31, 2011. Water sales are 14% below projections. The 3% increase in water rates effective May 11, 2011 was intended to partially address the cash deficit.  The Stormwater Utility has a deficit operating cash balance of $157,440 at June 30, 2011. This is because revenue is billed on a quarterly basis after expenditures have been made.  Transit reports a negative cash balance of $749,520 due to the timing of grant reimbursements after expenditures have been made. Special Revenue Fund Balance (page 5)  TIF 3 has a positive balance of $163,948. The positive balance will be used to repay the general fund advance plus accrued interest.  Many TIF funds have deficit cash balance, however TIF projections indicate that the districts will reach a positive fund balance before the districts expire. July 2011 Financial Statements August 16, 2011 Page 3  Computer Value Reimbursement was received in July; for Hedberg Public Library $13,125, and various TIF districts $117,830.  Landfill long-term care of site #3023 ($49,305) will be reimbursed by an insurance policy we have in place for post closure care. Capital Projects Fund (page 6)  The City incurred expenditures in conjunction with road projects on Highway 11 from Wright Road to Highway 14 ($186,800). These costs will be funded with either future special assessments or General Obligation note issue. General Fund (page 7 & 8)  Scheduled State Aid was received in July including Shared Revenue $1,499,313, Highway Aids $657,142, and Computer Value Reimbursement $105,658.  Miscellaneous revenue is over budget due to the dissolution of TIF 14 $427,121.  Street Cleaning is over budget $17,500 due to tree clean-up following the 7/11/11 storm. Council Policy Statement #68- Investment of City Funds City Council Policy 68 requires that the Administration submit a mid-year investment report. Please find attached the report that recaps our investment results as of June 30, 2011 (Exhibit 1). A representative of the Administrative Services Department will be available at the Council Meeting on August 22, 2011 to respond to any questions Council may have relative to these reports. Once Council is satisfied, acceptance of the Financial Statement by consent and placing them on file would be in order. /Attachments cc: Jacob J, Winzenz, Director of Administrative Services/Assistant City Manager Eric J. Levitt, City Manager CITY MANAGER’S OFFICE MEMORANDUM August 15, 2011 TO: City Council FROM:Wald Klimczyk, City Attorney Becca Smith, Management Analyst Tim Wellnitz, Assistant City Attorney SUBJECT: Second reading, public hearing, and action on a proposed ordinance prohibiting the possession of any firearm in any City building or structure except as allowed by law for sworn law enforcement and peace officers, with penalties for violations thereof as set forth in JGO 9.88.040 (File Ordinance 2011-493) Request Councilmembers Sam Liebert and Yuri Rashkin requested the Administration draft a policy prohibiting firearms within the Municipal Building. Staff expanded the proposed policy to include other city facilities and recommends an ordinance be established, instead of a policy statement. Staff Recommendation Staff has no recommendation. Police Department Recommendation The Police Department recommends adoption of the ordinance. City Manager Recommendation After reviewing the concerns with liability if the City enacts an ordinance on bringing firearms into a City owned facility, I will not be making a recommendation. I understand the desire to prohibit firearms in Municipal facilities, however based on the provisions in the State law it is difficult to recommend moving forward with the ordinance at this time. Ordinance 2011-493 Ordinance 2011-493 prohibits individuals from bringing firearms onto property owned, occupied, or controlled by the City of Janesville, including the Municipal Building and Hedberg Public Library. Individuals would be able to have firearms on the city-owned bike trail or in open spaces within the park system as provided by state law. This ordinance exempts sworn Wisconsin or Federal law enforcement or police officers. This ordinance also exempts any city property where this ordinance is not “signed” stating the property prohibits firearms. Individuals found possessing firearms on city property may be fined a penalty ranging from $200-$10,000. Pros & Cons of Approving Ordinance 2011-493 Pros: 1. Public may feel safer, more welcomed and less intimidated if they know firearms are not present at city facility; 2. There will be less opportunity for firearms accidents if they are not as prevalent at city facilities; 3. This will make the policy in other city buildings consistent with the prohibition in state law for carrying firearms in a police building. Cons: 1. This ordinance is different than the state law policy adopted by the Wisconsin legislature, which generally allows individuals to openly carry a firearm or carry a concealed firearm with a permit. 2. There is an unknown potential that there could be additional duties or liability imposed upon the City for adopting the ordinance. CC: Eric Levitt, City Manager Jacob J. Winzenz, Assistant City Manager ORDINANCE NO. 2011 - 493 An ordinance prohibiting the possession of any firearm in any City building or structure except as allowed by law for sworn law enforcement and peace officers, with penalties for violations thereof as set forth in JGO 9.88.040. THE COMMON COUNCIL OF THE CITY OF JANESVILLE DO ORDAIN AS FOLLOWS: SECTION I. Chapter 9.88 of the Code of General Ordinances of the City of Janesville is hereby created to read as follows: “Chapter 9.88 NO FIREARMS OR WEAPONS INSIDE CITY BUILDINGS Sections: 9.88.010 Prohibition. 9.88.020 Exceptions. 9.88.030 Definitions. 9.88.040 Violation--Penalties. 9.88.010 Prohibition. A. No person may possess or bring any concealed or unconcealed firearm or weapon into or upon any City owned, occupied, or controlled building or structure at any time. B. No person may cause any concealed or unconcealed firearm or weapon to be brought into or present upon any City owned, occupied, or controlled building or structure at any time. 9.88.020 Exceptions. A. The prohibitions set forth in JGO 9.88.010 do not apply to sworn Wisconsin or Federal law enforcement or police officers. B. The prohibitions set forth in JGO 9.88.010 do not apply to City owned, occupied, or controlled buildings or structures not containing a “sign” as defined in this Chapter. 9.88.030 Definitions . A. “Building” shall have the meaning as set forth in JGO 18.20.090, as from time to time amended or renumbered, to-wit: “…any structure built for the support, shelter, or enclosure of persons, chattels, or movable property of any kind and which is permanently affixed to the land but shall not include fences.” Buildings shall include each City owned, occupied, or controlled building and structure as contemplated by, but not limited to, those enumerated and described in Wis. Stats. Section. 943.13(1m)(c) 4., as from time to time amended or renumbered, that contain a “sign” providing notice of the prohibitions. B.“City” shall mean the City of Janesville, a Wisconsin municipal corporation. C.“Federal” shall mean employed by the United States of America or a Federal agency. D.“Firearm” shall mean all weapons that act by force of gunpowder within the scope of Wis. Stats. Sec. 167.31(1)(c) and shall also include all devices, items, and weapons enumerated in JGO 9.87.010 such as bows, etc., both as from time to time amended or renumbered. E. “Law enforcement officer” shall mean those defined as “Police Officers.” F. “Police Officer” shall mean any sworn: City of Janesville police officer, Rock County sheriff, undersheriff, deputy sheriff, game warden, state patrol officer, state game warden, other sworn Wisconsin law enforcement officer, or sworn Federal law enforcement agent.” G. “Sign”, “signs,” and “signed” shall mean City Manager authorized written information that provides notice of the prohibitions set forth in this Chapter prominently posted near all of the entrances open to the public for that building so that any individual entering the building can be reasonable expected to see the notice “sign” or “signs.” See also: Wis. Stats. 943.13(2)(bm) 2., am., as from time to time amended or renumbered for guidance as to notice and signs. H.“Structure” shall have the meaning as set forth in JGO 18.20.860, as from time to time amended or renumbered, to wit: “… anything constructed or erected, the use of which requires a more or less permanent location or which is attached to something having a permanent location on or in the ground, a stream bed or lake bed.” Structures shall include, but not be limited to, each City owned, occupied, or controlled building and structure, all other City owned buildings and structures as contemplated by, but not limited to, those enumerated and described in Wis. Stats. Section. 943.13(1m)(c) 4., as from time to time amended or renumbered, that contain a “sign” providing notice of the prohibitions. 9.88.040 Violations – Penalties. A. Any person who violates any of the provisions of this chapter shall forfeit and pay to the city a penalty of not less than Two Hundred Dollars ($200) and not to exceed Ten Thousand Dollars ($10,000) per weapon per incident, together with the costs of prosecution for each offense, and in default of the payment of such forfeiture penalty, the violator shall be subject to the remedies available to a court by law and/or equity for failure to pay imposed forfeitures, including, but not limited to, imprisonment in the Rock County for not more than one hundred eighty (180) days. B. In addition to the penalties set forth in subsection A., the offending firearm(s) and/or weapon(s) shall be seized by the Janesville police and forever forfeited to the State Crime Laboratory.” (adopted 08/2011) ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner Dongarra-Adams Eric J. Levitt, City Manager Liebert McDonald ATTEST: Rashkin Steeber Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: ______________________________ Wald Klimczyk, City Attorney Proposed by: City Manager Prepared by: City Attorney CITY ATTORNEY’S OFFICE MEMORANDUM August 5, 2011 TO: Eric Levitt, City Manager FROM: Tim Wellnitz, Assistant City Attorney SUBJECT: Additional Information Relating to Proposed Ordinance 11-493 Prohibiting the Possession of Firearms or Weapons Inside City Buildings or Structures This proposed ordinance was postponed at the July 25, 2011 City Council meeting until the August 22, 2011 meeting so that additional information could be looked at regarding the proposed ordinance and the potential effects of the new state law that will take effect November 1, 2011. I was asked to provide information relating to potential City liability for prohibiting firearms in City buildings, whether firearms would be prohibited in the Municipal Building because it is within 1000 feet of the Police Department, and whether the City’s insurance carrier, CVMIC, had any recommended language for the proposed ordinance. Potential City Liability for Prohibiting Firearms and Weapons In City Buildings i Wis. Stat. § 175.60 (21)(b) provides immunity to property owners for making the decision to not prohibit the carrying of a concealed weapon on their property. The statute does not provide immunity for property owners that make the decision to prohibit carrying concealed weapons on their property. There is not any case law on whether this creates a duty on the City to make sure that firearms or weapons are not allowed in City buildings where firearms or weapons are prohibited. There is a possibility that there is a duty that could be imposed upon the City. If this were done a Court would probably assign whatever they thought was reasonable care that the City should take based upon the particular case by case circumstances to prevent or avoid harm to others by people who might bring firearms or weapons into the building and harm someone under Wisconsin negligence law. Factors that would likely be considered include the balancing of cost, effort, and risk potential. Prohibition Regarding Weapons In the Police Department ii Wis. Stat. § 175.60(16)(a)(1) prohibits carrying weapons and firearms in any portion of a building that is a police station. Since the Police Department is in a separate building, the entire building encompasses the police station and it would be contrary to state law for someone to carry a weapon or firearm into the Police Department building other than law enforcement officers. There is not a requirement in the statutes that prohibits the carrying of weapons or firearms within a certain distance of the Police Department building. In order to prohibit the carrying of weapons or firearms in the Municipal Building under the proposed iiiiv ordinance and Wis. Stat. § 943.13 (1m) (c)(4) a sign, at least 5 inches by 7 inches, must be posted in a prominent place near all of the entrances so that the individual entering must be reasonably expected to see the sign. Potential Preferred Ordinance Language from CVMIC I contacted the City’s Insurance Claims Representative at Cities & Villages Mutual Insurance Company (CVMIC). CVMIC does not have any proposed or preferred language regarding such local ordinances. cc: Jacob J. Winzenz, Assistant City Manager/Director of Administrative Services Wald Klimczyk, City Attorney i 175.60 License to carry a concealed weapon. IMMUNITY. (21) (b) A person that does not prohibit an individual from carrying a concealed weapon on property that the person owns or occupies is immune from any liability arising from its decision. ii 175.60 License to carry a concealed weapon. PROHIBITED ACTIVITY. (16) (a) Except as provided in par. (b), neither a licensee nor an out-of-state licensee may knowingly carry a concealed weapon, a weapon that is not concealed, or a firearm that is not a weapon in any of the following places: 1. Any portion of a building that is a police station, sheriff's office, state patrol station, or the office of a division of criminal investigation special agent of the department. iii 943.13(1m) Whoever does any of the following is subject to a Class B forfeiture: (c) 4. Enters or remains in any part of a building that is owned, occupied, or controlled by the state or any local governmental unit, excluding any building or portion of a building under s. 175.60 (16) (a), if the state or local governmental unit has notified the actor not to enter or remain in the building while carrying a firearm or with that type of firearm. This subdivision does not apply to a person who leases residential or business premises in the building or, if the firearm is in a vehicle driven or parked in the parking facility, to any part of the building used as a parking facility. iv (2) 943.13 (bm) 1. In this paragraph, "sign" means a sign that states a restriction imposed under subd. 2. that is at least 5 inches by 7 inches. (2) 943.13 2. am. For the purposes of sub. (1m) (c) 2., 4., and 5., an owner or occupant of a part of a nonresidential building, the state or a local governmental unit, or a university or a college has notified an individual not to enter or remain in a part of the building while carrying a firearm or with a particular type of firearm if the owner, occupant, state, local governmental unit, university, or college has posted a sign that is located in a prominent place near all of the entrances to the part of the building to which the restriction applies and any individual entering the building can be reasonably expected to see the sign. CLERK-TREASURER’S OFFICE MEMORANDUM August 15, 2011 TO: City Council FROM: Jean Ann Wulf, City Clerk-Treasurer SUBJECT: Second Reading, Public Hearing and Action on a Proposed Ordinance Deleting and Recreating Electoral Ward Boundaries (Rev. Ord. No. 2011- 497) and a Proposed Resolution Assigning Wards to Polling Places (Res. No 2011-830) Summary On July 11, 2011, the City Council created 25 wards in the City of Janesville. Subsequently, the State brought forward their redistricting plan without using wards as a base component in their assembly and senatorial districts. Therefore, the City is required to change our ward plan by adopting a new ordinance to conform to the State plan. The proposed ordinance modifies the previous ordinance by adding four additional wards and changing the boundaries of wards 11, 19, 22, 23 and 29. Department Recommendation We recommend that the Council adopt Rev. Ordinance No. 2011-497 detailing our ward plan and the associated Resolution No. 2011-830 assigning wards to polling places. City Manager Recommendation The City Manager concurs with the department recommendation. Suggested Motion I move to adopt Rev. Ordinance No. 2011-497 detailing our ward plan and Resolution No. 2011-830 reassigning wards to polling places. Ward Plan Under the proposed Plan, 13 supervisors will represent the City. The City will create 29 wards to accommodate the County Supervisory Districts, Assembly Districts and Senatorial Districts. In the proposed plan, the County extended their Supervisory District boundaries past the City’s corporate limits to allow for our future expansion of the City’s boundaries within a supervisory district. In shared districts, the City represents the majority of population, except for Supervisory District #9. With the State Legislative redistricting plan, we are making minor adjustments to the existing plan adopted July 12, 2011:  Existing Ward 11 will now be split into 2 Wards (Wards 11 and 29) to accommodate Assembly Districts 31 and 44.  Existing Ward 19 will now be split into 2 Wards (Wards 19 and 20) to accommodate Assembly Districts 31 and 44.  Existing Ward 21 (now renamed Ward 22) will contract slightly by losing 17 electors to form Ward 26.  Existing Wards 22 and 23 will now be split into 4 Wards (now renamed Wards 23, 24, 25 and 26) to accommodate Assembly Districts 31 and 44. The following table shows the proposed districts and the population split between City and Township residents. Ward Supervisory Assembly Janesville Township Number District District Residents Residents Population 1 44 2,664 2 18 44 2,695 343 5,702 3 44 2,887 4 25 44 2,790 0 5,677 5 44 2,117 6 26 44 1,844 1,504 5,465 7 44 2,900 8 27 44 2,700 0 5,600 9 44 1,879 10 28 44 1,992 1,822 5,693 11 44 2,917 12 44 2,790 29 29 31 5 0 5,712 13 44 2,864 14 24 44 2,812 0 5,676 15 44 2,597 16 19 44 2,424 572 5,593 17 44 2,721 18 21 44 2,845 0 5,566 19 44 632 20 9 31 796 4101 5,529 21 31 2,066 22 31 2,227 26 20 31 17 1,156 5,466 23 31 1,095 24 44 2,388 25 22 44 2,212 0 5,695 27 44 2,951 28 23 44 2,748 0 5,699 Total 63,575 9,498 73,073 We have included a map of the existing wards adopted July 11, 2011 and the new proposed wards. Polling Place Plan The City is responsible for designating a polling place for each ward. Our objectives in selecting or changing polling places were as follows: selecting polling places that are handicapped accessible, access to a large  meeting room and have adequate parking minimize the distance citizens have to travel to their polling place  create boundaries that follow major geographic features  minimize election costs  The City has 10 polling places and we are proposing to keep the same number of polling places. The original plan called for eliminating Marshall Middle School, Jefferson School and Wilson School. It also added Rotary Gardens, Harmony School and the Municipal Building. We plan on keeping the same polling places but reassigning the wards. The table below lists the proposed changes and the associated reasons. The table also indicates the new polling place location for those voters affected by closings: CURRENT REASONS FOR NEW WARD POLLING PLACES PROPOSED CHANGES ASSIGNMENT Edison Middle School Same 7, 8, 9, 10 First Lutheran Church Same 14, 16, 17, 18 Harrison School Wards Renumbered 27, 28 Hedberg Public Library Same 13, 15 Kennedy School Added Wards and Renumbered 23, 24, 25, 26 Madison School Same 5, 6 Rotary Gardens Added Ward 11, 12, 29 Municipal Building Same 3,4 Washington School Same 1,2 Harmony School Added Wards and Renumbered 19, 20, 21, 22 The above plan has been incorporated into Resolution 2011-830 which is attached. cc: Eric Levitt, City Manager Jay Winzenz, Assistant City Manager and Director of Administrative Services Revised Ordinance No. 2011-497 An ordinance deleting and recreating Electoral Ward Boundaries. THE COMMON COUNCIL OF THE CITY OF JANESVILLE DO ORDAIN AS FOLLOWS: SECTION 1. WARD BOUNDARIES. Janesville General Ordinance No. 2001-175, Ordinance 2011-492 and all prior ordinances defining or redefining ward and supervisory district boundaries of and in the City of Janesville are hereby repealed and recreated as follows: The City of Janesville shall be and hereby is divided into twenty-nine (29) wards. Said ward boundaries are shown on a map which is and shall be on file in the Office of the City Clerk and are described herein as follows: Ward 1 Census Block Numbers: 551050005001000 551050005001029 551050005002013 551050005005001 551050005001001 551050005001030 551050005002014 551050005005002 551050005001002 551050005001031 551050005002015 551050005005003 551050005001003 551050005001032 551050005002016 551050005005004 551050005001005 551050005001033 551050005002017 551050005005005 551050005001006 551050005001034 551050005002018 551050005005006 551050005001007 551050005001035 551050005002019 551050005005008 551050005001008 551050005001036 551050005002020 551050005005009 551050005001009 551050005001037 551050005002021 551050005005011 551050005001010 551050005002000 551050005003000 551050006002004 551050005001013 551050005002001 551050005003001 551050012012000 551050005001014 551050005002002 551050005003002 551050012022025 551050005001015 551050005002003 551050005003003 551050012022026 551050005001018 551050005002004 551050005003004 551050012022028 551050005001019 551050005002005 551050005003005 551050012022030 551050005001020 551050005002006 551050005003006 551050012022031 551050005001022 551050005002007 551050005003007 551050012022033 551050005001023 551050005002008 551050005003008 551050012022073 551050005001024 551050005002009 551050005003009 551050012022074 551050005001025 551050005002010 551050005003010 551050012022075 551050005001026 551050005002011 551050005003011 551050012022080 551050005001027 551050005002012 551050005005000 Ward 2 Census Block Numbers: 551050004003000 551050005004005 551050005004016 551050005005013 551050004003001 551050005004006 551050005004017 551050005005014 551050004003003 551050005004007 551050005004018 551050005005015 551050004003004 551050005004008 551050005004019 551050005005016 551050004003005 551050005004009 551050005004020 551050005005017 551050004003006 551050005004010 551050005004021 551050005005018 551050005004000 551050005004011 551050005004022 551050005005019 551050005004001 551050005004012 551050005004023 551050005005020 551050005004002 551050005004013 551050005005007 551050005005021 551050005004003 551050005004014 551050005005010 551050005005022 551050005004004 551050005004015 551050005005012 551050005005023 Page 1 of 12 551050005005024 551050005005031 551050012012003 551050012012010 551050005005025 551050006002005 551050012012004 551050012012012 551050005005026 551050012011000 551050012012005 551050012012064 551050005005027 551050012011001 551050012012006 551050012012065 551050005005028 551050012011002 551050012012007 551050012012066 551050005005029 551050012011003 551050012012008 551050012012067 551050005005030 551050012012002 551050012012009 551050012012068 Ward 3 Census Block Numbers: 551050001001011 551050004001004 551050004002001 551050004004018 551050001001012 551050004001005 551050004002002 551050004004019 551050001001013 551050004001006 551050004002003 551050004004020 551050001001023 551050004001007 551050004002004 551050004004021 551050001001024 551050004001008 551050004002005 551050004004022 551050001001025 551050004001009 551050004002006 551050004004023 551050001001026 551050004001010 551050004002007 551050004004024 551050001001027 551050004001011 551050004002008 551050004004030 551050001001028 551050004001012 551050004002009 551050004004031 551050001001029 551050004001013 551050004002010 551050004004032 551050001001030 551050004001014 551050004002011 551050004004033 551050001001031 551050004001015 551050004002012 551050004004034 551050001001032 551050004001016 551050004002013 551050004004035 551050001001033 551050004001017 551050004002014 551050004004036 551050001001034 551050004001018 551050004002015 551050004004037 551050001001047 551050004001019 551050004002016 551050004004038 551050001001048 551050004001020 551050004004000 551050004004039 551050001001049 551050004001021 551050004004001 551050004004040 551050001001050 551050004001022 551050004004002 551050004004041 551050001001051 551050004001023 551050004004003 551050004004042 551050001001052 551050004001024 551050004004004 551050004004043 551050001001057 551050004001025 551050004004005 551050004004044 551050004001000 551050004001026 551050004004006 551050004004045 551050004001001 551050004001027 551050004004007 551050004004047 551050004001002 551050004001028 551050004004008 551050004004048 551050004001003 551050004002000 551050004004017 551050004004055 Ward 4 Census Block Numbers: 551050001001035 551050001001055 551050003001008 551050003001018 551050001001036 551050001001056 551050003001009 551050003001019 551050001001041 551050003001000 551050003001010 551050003001020 551050001001042 551050003001001 551050003001011 551050003001021 551050001001043 551050003001002 551050003001012 551050003001022 551050001001044 551050003001003 551050003001013 551050003001023 551050001001045 551050003001004 551050003001014 551050003001024 551050001001046 551050003001005 551050003001015 551050003001025 551050001001053 551050003001006 551050003001016 551050003001026 551050001001054 551050003001007 551050003001017 551050003001027 Page 2 of 12 551050003001028 551050003002007 551050003002025 551050003003013 551050003001029 551050003002008 551050003002026 551050003003014 551050003001030 551050003002009 551050003002027 551050003003015 551050003001031 551050003002010 551050003002028 551050003003016 551050003001032 551050003002011 551050003002029 551050003003017 551050003001033 551050003002012 551050003003000 551050003003018 551050003001034 551050003002013 551050003003001 551050003003019 551050003001035 551050003002014 551050003003002 551050003003020 551050003001036 551050003002015 551050003003003 551050003003021 551050003001037 551050003002016 551050003003004 551050003003022 551050003001038 551050003002017 551050003003005 551050003003023 551050003002000 551050003002018 551050003003006 551050003003024 551050003002001 551050003002019 551050003003007 551050003003025 551050003002002 551050003002020 551050003003008 551050003003026 551050003002003 551050003002021 551050003003009 551050003003027 551050003002004 551050003002022 551050003003010 551050003002005 551050003002023 551050003003011 551050003002006 551050003002024 551050003003012 Ward 5 Census Block Numbers: 551050004003002 551050012011008 551050012012011 551050012012047 551050004003007 551050012011009 551050012012013 551050012012048 551050004003008 551050012011010 551050012012023 551050012012049 551050004003009 551050012011011 551050012012024 551050012012050 551050004003010 551050012011012 551050012012025 551050012012051 551050004003011 551050012011013 551050012012026 551050012012052 551050004003012 551050012011014 551050012012027 551050012012053 551050004003013 551050012011015 551050012012028 551050012012054 551050004003014 551050012011016 551050012012030 551050012012055 551050004003015 551050012011017 551050012012031 551050012012059 551050004003016 551050012011018 551050012012034 551050012012060 551050012011004 551050012011019 551050012012035 551050012012061 551050012011005 551050012011021 551050012012042 551050012012062 551050012011006 551050012011022 551050012012044 551050012012063 551050012011007 551050012011023 551050012012046 Ward 6 Census Block Numbers: 551050004004009 551050004004027 551050012012037 551050012013031 551050004004010 551050004004028 551050012012038 551050012013032 551050004004011 551050004004029 551050012012039 551050012013033 551050004004012 551050004004046 551050012013000 551050012013034 551050004004013 551050004004049 551050012013001 551050012013035 551050004004014 551050004004050 551050012013004 551050012013036 551050004004015 551050004004051 551050012013009 551050012013040 551050004004016 551050004004052 551050012013010 551050012013041 551050004004025 551050004004053 551050012013012 551050012013042 551050004004026 551050004004054 551050012013030 551050012013043 Page 3 of 12 551050012013044 551050012013053 551050012013066 551050012013082 551050012013045 551050012013054 551050012013074 551050012013083 551050012013046 551050012013055 551050012013075 551050012013084 551050012013047 551050012013059 551050012013076 551050012013085 551050012013048 551050012013060 551050012013077 551050012013086 551050012013049 551050012013062 551050012013078 551050012013087 551050012013050 551050012013063 551050012013079 551050012013088 551050012013051 551050012013064 551050012013080 551050012013106 551050012013052 551050012013065 551050012013081 Ward 7 Census Block Numbers: 551050011001000 551050011001018 551050011002009 551050011004004 551050011001001 551050011001019 551050011002010 551050011004005 551050011001002 551050011001024 551050011002011 551050011004006 551050011001003 551050011001025 551050011002012 551050011004007 551050011001004 551050011001026 551050011002013 551050011004008 551050011001005 551050011001027 551050011002014 551050011004009 551050011001006 551050011001028 551050011002015 551050011004010 551050011001007 551050011001029 551050011002016 551050011004011 551050011001008 551050011001030 551050011002017 551050011004012 551050011001009 551050011002000 551050011002018 551050011004013 551050011001010 551050011002001 551050011002019 551050011004014 551050011001011 551050011002002 551050011002020 551050011004015 551050011001012 551050011002003 551050011002021 551050011004016 551050011001013 551050011002004 551050011002022 551050011004017 551050011001014 551050011002005 551050011004000 551050011004018 551050011001015 551050011002006 551050011004001 551050011004020 551050011001016 551050011002007 551050011004002 551050011004021 551050011001017 551050011002008 551050011004003 551050011004022 Ward 8 Census Block Numbers: 551050011001020 551050011003009 551050011003022 551050011005009 551050011001021 551050011003010 551050011003023 551050011005010 551050011001022 551050011003011 551050011003024 551050011005011 551050011001023 551050011003012 551050011004019 551050011005012 551050011003000 551050011003013 551050011005000 551050011005013 551050011003001 551050011003014 551050011005001 551050011005014 551050011003002 551050011003015 551050011005002 551050011005015 551050011003003 551050011003016 551050011005003 551050011005016 551050011003004 551050011003017 551050011005004 551050011005017 551050011003005 551050011003018 551050011005005 551050011005018 551050011003006 551050011003019 551050011005006 551050014004009 551050011003007 551050011003020 551050011005007 551050014004010 551050011003008 551050011003021 551050011005008 551050014004011 Page 4 of 12 Ward 9 Census Block Numbers: 551050014004001 551050014004016 551050014004043 551050014004057 551050014004002 551050014004017 551050014004044 551050014004059 551050014004003 551050014004018 551050014004045 551050014004060 551050014004004 551050014004019 551050014004047 551050014004061 551050014004005 551050014004022 551050014004048 551050014004062 551050014004006 551050014004028 551050014004049 551050014004063 551050014004007 551050014004037 551050014004050 551050014004064 551050014004008 551050014004038 551050014004051 551050014004072 551050014004012 551050014004039 551050014004052 551050014004073 551050014004013 551050014004040 551050014004053 551050014004014 551050014004041 551050014004054 551050014004015 551050014004042 551050014004055 Ward 10 Census Block Numbers: 551050010002019 551050010002046 551050014003007 551050014003028 551050010002021 551050010002047 551050014003008 551050014003029 551050010002022 551050014001022 551050014003009 551050014003030 551050010002023 551050014001025 551050014003012 551050014003031 551050010002024 551050014001026 551050014003013 551050014004000 551050010002025 551050014001030 551050014003015 551050014004034 551050010002026 551050014003000 551050014003017 551050014004046 551050010002027 551050014003001 551050014003021 551050014004065 551050010002028 551050014003002 551050014003023 551050014004066 551050010002029 551050014003003 551050014003024 551050014004067 551050010002043 551050014003004 551050014003025 551050014004068 551050010002044 551050014003005 551050014003026 551050014004069 551050010002045 551050014003006 551050014003027 551050014004070 Ward 11 Census Block Numbers: 551050010001000 551050010001014 551050010001028 551050010001046 551050010001001 551050010001015 551050010001029 551050010002000 551050010001002 551050010001016 551050010001030 551050010002001 551050010001003 551050010001017 551050010001031 551050010002002 551050010001004 551050010001018 551050010001032 551050010002003 551050010001005 551050010001019 551050010001033 551050010002004 551050010001006 551050010001020 551050010001034 551050010002005 551050010001007 551050010001021 551050010001039 551050010002006 551050010001008 551050010001022 551050010001040 551050010002007 551050010001009 551050010001023 551050010001041 551050010002008 551050010001010 551050010001024 551050010001042 551050010002009 551050010001011 551050010001025 551050010001043 551050010002010 551050010001012 551050010001026 551050010001044 551050010002011 551050010001013 551050010001027 551050010001045 551050010002012 Page 5 of 12 551050010002013 551050010002034 551050010002050 551050010002061 551050010002014 551050010002035 551050010002051 551050010002062 551050010002015 551050010002036 551050010002052 551050014001002 551050010002016 551050010002037 551050010002053 551050014001003 551050010002017 551050010002038 551050010002054 551050014001004 551050010002018 551050010002039 551050010002055 551050014001005 551050010002020 551050010002040 551050010002056 551050014001006 551050010002030 551050010002041 551050010002057 551050014001011 551050010002031 551050010002042 551050010002058 551050014001013 551050010002032 551050010002048 551050010002059 551050014001014 551050010002033 551050010002049 551050010002060 551050014001046 Ward 12 Census Block Numbers: 551050009001000 551050009001018 551050009002017 551050009002035 551050009001001 551050009002000 551050009002018 551050009002036 551050009001002 551050009002001 551050009002019 551050009002037 551050009001003 551050009002002 551050009002020 551050009002038 551050009001004 551050009002003 551050009002021 551050009002039 551050009001005 551050009002004 551050009002022 551050009002040 551050009001006 551050009002005 551050009002023 551050009002041 551050009001007 551050009002006 551050009002024 551050010001035 551050009001008 551050009002007 551050009002025 551050010001036 551050009001009 551050009002008 551050009002026 551050010001047 551050009001010 551050009002009 551050009002027 551050013022010 551050009001011 551050009002010 551050009002028 551050013023006 551050009001012 551050009002011 551050009002029 551050013023007 551050009001013 551050009002012 551050009002030 551050013023008 551050009001014 551050009002013 551050009002031 551050013023022 551050009001015 551050009002014 551050009002032 551050013023023 551050009001016 551050009002015 551050009002033 551050013024022 551050009001017 551050009002016 551050009002034 Ward 13 Census Block Numbers: 551050001001000 551050001001017 551050002001011 551050002002011 551050001001001 551050001001018 551050002001012 551050002002012 551050001001002 551050001001019 551050002001013 551050002003000 551050001001003 551050001001020 551050002001014 551050002003001 551050001001004 551050001001021 551050002001015 551050002003002 551050001001005 551050001001022 551050002001016 551050002003003 551050001001006 551050001001037 551050002001017 551050002003004 551050001001007 551050001001038 551050002001018 551050002003005 551050001001008 551050001001039 551050002002004 551050002003006 551050001001009 551050001001040 551050002002005 551050002003007 551050001001010 551050002001007 551050002002007 551050002003008 551050001001014 551050002001008 551050002002008 551050002003009 551050001001015 551050002001009 551050002002009 551050002003010 551050001001016 551050002001010 551050002002010 551050002003011 Page 6 of 12 551050002003012 551050002003020 551050002003028 551050002003036 551050002003013 551050002003021 551050002003029 551050002003037 551050002003014 551050002003022 551050002003030 551050002003038 551050002003015 551050002003023 551050002003031 551050002003039 551050002003016 551050002003024 551050002003032 551050002003040 551050002003017 551050002003025 551050002003033 551050008004018 551050002003018 551050002003026 551050002003034 551050002003019 551050002003027 551050002003035 Ward 14 Census Block Numbers: 551050002001000 551050007003022 551050008003013 551050008004002 551050002001001 551050007003023 551050008003014 551050008004003 551050002001002 551050007003026 551050008003015 551050008004004 551050002001003 551050007003027 551050008003016 551050008004005 551050002001004 551050008003000 551050008003017 551050008004006 551050002001005 551050008003001 551050008003018 551050008004007 551050002001006 551050008003002 551050008003019 551050008004008 551050002001019 551050008003003 551050008003020 551050008004009 551050002001020 551050008003004 551050008003021 551050008004010 551050002001021 551050008003005 551050008003022 551050008004011 551050002002000 551050008003006 551050008003023 551050008004012 551050002002001 551050008003007 551050008003024 551050008004013 551050002002002 551050008003008 551050008003025 551050008004014 551050002002003 551050008003009 551050008003026 551050008004015 551050002002006 551050008003010 551050008003027 551050008004016 551050007003011 551050008003011 551050008004000 551050008004017 551050007003012 551050008003012 551050008004001 551050008004019 Ward 15 Census Block Numbers: 551050006001012 551050006001028 551050006002010 551050006002023 551050006001013 551050006001031 551050006002011 551050006002024 551050006001014 551050006001032 551050006002012 551050006002025 551050006001015 551050006001033 551050006002013 551050006002026 551050006001016 551050006001034 551050006002014 551050006002027 551050006001017 551050006002000 551050006002015 551050006002028 551050006001018 551050006002001 551050006002016 551050006002029 551050006001019 551050006002002 551050006002017 551050006002030 551050006001020 551050006002003 551050006002018 551050006002031 551050006001024 551050006002006 551050006002019 551050006002032 551050006001025 551050006002007 551050006002020 551050006002033 551050006001026 551050006002008 551050006002021 551050006002034 551050006001027 551050006002009 551050006002022 551050006002035 Page 7 of 12 551050006002036 551050006002042 551050006002048 551050012022052 551050006002037 551050006002043 551050006002049 551050012022053 551050006002038 551050006002044 551050006002050 551050012022054 551050006002039 551050006002045 551050006002051 551050006002040 551050006002046 551050006002052 551050006002041 551050006002047 551050012022047 Ward 16 Census Block Numbers: 551050006001000 551050006001029 551050012021015 551050012022006 551050006001001 551050006001030 551050012021016 551050012022007 551050006001002 551050006001035 551050012021017 551050012022039 551050006001003 551050006001036 551050012021018 551050012022042 551050006001004 551050012021003 551050012021019 551050012022045 551050006001005 551050012021005 551050012021020 551050012022055 551050006001006 551050012021006 551050012021021 551050012022056 551050006001007 551050012021007 551050012021022 551050012022057 551050006001008 551050012021008 551050012021023 551050012022058 551050006001009 551050012021009 551050012021024 551050012022064 551050006001010 551050012021010 551050012021025 551050012022065 551050006001011 551050012021011 551050012021026 551050012022066 551050006001021 551050012021012 551050012021027 551050012022067 551050006001022 551050012021013 551050012021028 551050012022068 551050006001023 551050012021014 551050012022003 551050012022069 Ward 17 Census Block Numbers: 551050007002000 551050007003019 551050008001014 551050008002016 551050007002002 551050007003020 551050008001015 551050008002017 551050007002003 551050007003024 551050008002000 551050008002018 551050007002004 551050007003025 551050008002001 551050008002019 551050007002014 551050008001000 551050008002002 551050008002020 551050007002015 551050008001001 551050008002003 551050008002021 551050007002016 551050008001002 551050008002004 551050008002022 551050007002017 551050008001003 551050008002005 551050008002023 551050007002018 551050008001004 551050008002006 551050008002024 551050007002019 551050008001005 551050008002007 551050008002025 551050007002020 551050008001006 551050008002008 551050008002026 551050007002021 551050008001007 551050008002009 551050008002027 551050007002022 551050008001008 551050008002010 551050008002028 551050007002026 551050008001009 551050008002011 551050008002029 551050007003013 551050008001010 551050008002012 551050008002030 551050007003014 551050008001011 551050008002013 551050008002031 551050007003015 551050008001012 551050008002014 551050007003018 551050008001013 551050008002015 Page 8 of 12 Ward 18 Census Block Numbers: 551050007001006 551050007001023 551050007001039 551050007003002 551050007001007 551050007001024 551050007002001 551050007003003 551050007001008 551050007001025 551050007002005 551050007003004 551050007001009 551050007001026 551050007002006 551050007003005 551050007001010 551050007001027 551050007002007 551050007003006 551050007001011 551050007001028 551050007002008 551050007003007 551050007001012 551050007001029 551050007002009 551050007003008 551050007001013 551050007001030 551050007002010 551050007003009 551050007001015 551050007001031 551050007002011 551050007003010 551050007001016 551050007001032 551050007002012 551050007003016 551050007001017 551050007001033 551050007002013 551050007003017 551050007001018 551050007001034 551050007002023 551050007003021 551050007001019 551050007001035 551050007002024 551050013041127 551050007001020 551050007001036 551050007002025 551050007001021 551050007001037 551050007003000 551050007001022 551050007001038 551050007003001 Ward 19 Census Block Numbers: 551050012021000 551050012022079 551050012023062 551050012023080 551050012021004 551050012023001 551050012023063 551050012023081 551050012022004 551050012023002 551050012023064 551050012023083 551050012022005 551050012023058 551050012023065 551050012023084 551050012022076 551050012023059 551050012023066 551050012022077 551050012023060 551050012023078 551050012022078 551050012023061 551050012023079 Ward 20 Census Block Numbers: 551050013031011 551050013031055 551050013031067 551050013031086 551050013031015 551050013031056 551050013031070 551050013031087 551050013031019 551050013031057 551050013031071 551050013031088 551050013031028 551050013031058 551050013031072 551050013031089 551050013031046 551050013031059 551050013031074 551050013031090 551050013031047 551050013031060 551050013031078 551050013031091 551050013031048 551050013031061 551050013031079 551050013032032 551050013031050 551050013031062 551050013031080 551050013032041 551050013031051 551050013031063 551050013031081 551050013032042 551050013031052 551050013031064 551050013031082 551050013032043 551050013031054 551050013031066 551050013031083 Ward 21 Census Block Numbers: 551050013032002 551050013032007 551050013032021 551050013032024 551050013032005 551050013032009 551050013032023 551050013032025 Page 9 of 12 551050013032026 551050013032052 551050013041013 551050013041031 551050013032027 551050013032053 551050013041014 551050013041032 551050013032028 551050013032054 551050013041015 551050013041033 551050013032029 551050013032066 551050013041016 551050013041034 551050013032030 551050013032068 551050013041017 551050013041035 551050013032031 551050013032069 551050013041018 551050013041069 551050013032033 551050013041010 551050013041028 551050013041120 551050013032034 551050013041011 551050013041029 551050013032035 551050013041012 551050013041030 Ward 22 Census Block Numbers: 551050013032010 551050013041006 551050013041026 551050013041073 551050013032014 551050013041007 551050013041027 551050013041074 551050013032015 551050013041008 551050013041060 551050013041076 551050013032016 551050013041009 551050013041061 551050013041104 551050013032017 551050013041019 551050013041062 551050013041105 551050013032018 551050013041020 551050013041066 551050013041106 551050013032019 551050013041021 551050013041067 551050013041121 551050013032055 551050013041022 551050013041068 551050013041122 551050013041001 551050013041023 551050013041070 551050013041123 551050013041002 551050013041024 551050013041071 551050013041124 551050013041003 551050013041025 551050013041072 Ward 23 Census Block Numbers: 551050007001000 551050013032046 551050013041043 551050013041080 551050007001001 551050013032047 551050013041044 551050013041081 551050007001002 551050013032048 551050013041045 551050013041082 551050007001003 551050013032049 551050013041048 551050013041085 551050007001004 551050013032050 551050013041049 551050013041086 551050007001005 551050013032051 551050013041050 551050013041087 551050007001014 551050013032064 551050013041051 551050013041088 551050012021001 551050013032065 551050013041052 551050013041089 551050012021002 551050013032067 551050013041053 551050013041090 551050013032036 551050013041036 551050013041054 551050013041091 551050013032037 551050013041037 551050013041057 551050013041095 551050013032038 551050013041038 551050013041058 551050013041096 551050013032039 551050013041039 551050013041059 551050013041097 551050013032040 551050013041040 551050013041063 551050013043000 551050013032044 551050013041041 551050013041064 551050013043006 551050013032045 551050013041042 551050013041065 Ward 24 Census Block Numbers: 551050013041046 551050013041055 551050013041083 551050013041126 551050013041047 551050013041056 551050013041084 551050013042000 Page 10 of 12 551050013042001 551050013042008 551050013043002 551050013043010 551050013042002 551050013042009 551050013043003 551050013043011 551050013042003 551050013042010 551050013043004 551050013042007 551050013043001 551050013043005 Ward 25 Census Block Numbers: 551050013021005 551050013041099 551050013041112 551050013042005 551050013022000 551050013041100 551050013041113 551050013042006 551050013025000 551050013041101 551050013041114 551050013043007 551050013025002 551050013041102 551050013041115 551050013043008 551050013025004 551050013041103 551050013041116 551050013043009 551050013025005 551050013041107 551050013041117 551050013043012 551050013041092 551050013041108 551050013041118 551050013043013 551050013041093 551050013041109 551050013041119 551050013043014 551050013041094 551050013041110 551050013041125 551050013043015 551050013041098 551050013041111 551050013042004 Ward 26 Census Block Numbers: 551050013024004 551050013024077 551050013024079 551050013032059 551050013024005 551050013024078 551050013032058 Ward 27 Census Block Numbers: 551050013021000 551050013021012 551050013021023 551050013022009 551050013021001 551050013021013 551050013021024 551050013022011 551050013021002 551050013021014 551050013021025 551050013022012 551050013021003 551050013021015 551050013022001 551050013022013 551050013021004 551050013021016 551050013022002 551050013022014 551050013021006 551050013021017 551050013022003 551050013022015 551050013021007 551050013021018 551050013022004 551050013022016 551050013021008 551050013021019 551050013022005 551050013022017 551050013021009 551050013021020 551050013022006 551050013025032 551050013021010 551050013021021 551050013022007 551050013021011 551050013021022 551050013022008 Ward 28 Census Block Numbers: 551050013021026 551050013023009 551050013023018 551050013025006 551050013021027 551050013023010 551050013023019 551050013025008 551050013021028 551050013023011 551050013023020 551050013025009 551050013023000 551050013023012 551050013023021 551050013025010 551050013023001 551050013023013 551050013024019 551050013025011 551050013023002 551050013023014 551050013024020 551050013025012 551050013023003 551050013023015 551050013024021 551050013025013 551050013023004 551050013023016 551050013025001 551050013025014 551050013023005 551050013023017 551050013025003 551050013025015 Page 11 of 12 551050013025016 551050013025021 551050013025027 551050013025033 551050013025017 551050013025022 551050013025028 551050013025034 551050013025018 551050013025024 551050013025029 551050013025035 551050013025019 551050013025025 551050013025030 551050013025036 551050013025020 551050013025026 551050013025031 551050013025038 Ward 29 Census Block Number: 551050014001045 ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner Eric J. Levitt, City Manager Dongarra-Adams ATTEST: Liebert McDonald Jean Ann Wulf, City Clerk-Treasurer Rashkin APPROVED AS TO FORM: Steeber Voskuil Wald Klimczyk, City Attorney Proposed by: City Clerk-Treasurer Prepared by: City Clerk-Treasurer Page 12 of 12 RESOLUTION NO. 2011-830 A RESOLUTION REASSIGNING WARDS TO POLLING PLACES WHEREAS, the Rock County Board created 29 new supervisory districts based on the 2010 Census; and WHEREAS, the City of Janesville created wards within each Supervisory District; and WHEREAS, the City of Janesville established ward boundaries and designated polling places; and WHEREAS, the Wisconsin State Legislature drew its political boundaries before the local Municipalities and Counties finalized their ward boundaries; WHEREAS, the law requires ward boundaries to conform with the State political boundaries boundaries; and WHEREAS, the City has redrawn its ward boundaries to conform with the State political boundaries and is required to assign wards to polling places; NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Janesville that it hereby assigns the City wards to the following polling places. Ward Numbers Polling Place Assignment Wards 1 and 2 Washington School Wards 3 and 4 Municipal Building Wards 5 and 6 Madison School Wards 7, 8, 9 and 10 Edison Middle School Wards 11, 12 and 29 Rotary Gardens Wards 13 and 15 Hedberg Public Library Wards 14, 16, 17 and 18 First Lutheran Church Wards 19, 20, 21 and 22 Harmony Elementary School Wards 23, 24, 25 and 26 Kennedy School Wards 27 and 28 Harrison School ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner Dongarra-Adams Eric J. Levitt, City Manager Liebert McDonald ATTEST: Rashkin Steeber Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: Wald Klimczyk, City Attorney Proposed by: City Clerk-Treasurer Prepared by: City Clerk-Treasurer Economic Development Department Memorandum August 22, 2011 TO: Janesville City Council FROM: Vic Grassman, Economic Development Director DATE: August 10, 2011 SUBJECT: Action on a proposed resolution approving the Project Plan for and establishing the boundaries of Tax Increment Finance District No. 35, land located at the southwest corner of STH11 and Beloit Avenue (File Resolution No. 2011-816). ____________________________________________________________________________ SUMMARY The City Administration is proposing to create TIF No. 35 which includes a 226-acre parcel of land acquired by the City located at the southwest corner of STH 11 and Beloit Avenue. The proposed district is being created to attract potential industrial developments. The parcel is a certified industrial site which provides potential developers a site that is “shovel ready”. It is expected that the possibility of TIF incentives will attract new industrial developments within this TIF district. The Plan Commission held a public hearing on the Project Plan for TIF No. 35 at their August 1, 2011 meeting and recommended its adoption. The Administration recommends that the Council adopt Resolution 2011–816 approving the creation of and setting the boundaries for TIF No. 35. If the Resolution is approved, TIF No. 35 will go to a Joint Review Board for review and approval. DEPARTMENT RECOMMENDATION The Administration recommends that the Council adopt Resolution No. 2011–816 approving the Project Plan for and establishing the boundaries for Tax Increment Finance District No. 35. CITY MANAGER RECOMMENDATION The City Manager concurs with the recommendation proposing adoption of the Project Plan. ANALYSIS Function of TIF Districts A. : Both the State and City have adopted laws and policies to encourage industrial development and retention. TIF is one tool used to stimulate industrial development through financial incentives. TIF allows cities to recapture the up-front costs of public improvements (i.e. land acquisition, transportation and utility improvements) from all property taxes created by new development in a TIF district occurring as a result of the improvements. Once all public improvements have been repaid by the “tax increment” from the new development, the TIF district is dissolved and all taxing jurisdictions can collect taxes levied on the new property value created. The TIF District must be dissolved no later than 20 years after being created. Location of TIF 35 B. : The Administration proposes the creation of TIF No. 35 located at the southwest corner of STH 11 and Beloit Avenue as shown on Map 1. The site is 226-acres in size and is located within City limits. The parcel is zoned M1, Light Industrial District and is adjacent to property north and west also zoned M1 located within City limits. Purpose of TIF 35 C. : The attached Project Plan describes proposed TIF expenditures and development. TIF No. 35 would facilitate future industrial expansion within the City. Since this is a certified industrial site, potential developers have the ability to expedite their projects since the site is “shovel ready”. In addition, TIF No. 35 has the following objectives: 1. Promote industry retention, expansion, and attraction through the development of a new fully improved certified industrial park, thereby creating new jobs and increased tax base. 2. Provide appropriate financial incentives to encourage industrial expansion. 3. Reduce the financial risk to the taxpayer by timing the implementation of the Project Plan with the creation of additional property value through industry expansions. 4. Generate sufficient new property tax increments within eight (8) to ten (10) years from each specific development project within the TIF District to fully repay the City's TIF project expenditures associated with the development project. Appropriateness of the Project Plan D. : The Project Plan is economically feasible and serves as an appropriate guide for development in the area. The Plan projects that TIF 35's up-front public improvement costs will be paid with “tax increments” created from new development within the project period. These projections are based on conservative assumptions and policies. The City will not proceed with any public improvements until the developer or business commits to construct a new building with a value sufficient to generate property tax increments needed to cover the improvement costs. Appropriateness of Proposed Boundaries E. : District boundaries are appropriately drawn to meet industrial development objectives and to assure that TIF 35 can be dissolved within the 20-year period. The area has been identified as a primary area for future industrial growth. Consistency with City Plans F. : The proposed TIF District is consistent with City plans and policies, including the City’s Zoning Ordinance, the Growth Concept Plan, Comprehensive Plan, Industrial Development Plan, and the City Council’s Industrial Development Policy. Industrial development activities are guided and implemented most directly by the Industrial Development Plan and Industrial Development Policy. TIF 35 is consistent with the following general objectives and policies of these industrial development documents because it:  Targets public investments for industrial development toward the southeast side of the City as the City’s planned large scale industrial district.  Concentrates on retaining existing industrial firms by providing a range of incentives to stimulate its expansion.  Encourages the continuation of sequential industrial development within the urban service limits.  Clusters industrial sites to create industrial neighborhoods which reduce land use conflicts and minimize development costs.  Provides for City purchase of land to create additional industrial development sites and allows for the subsequent conveyance of those sites to prospective firms, consistent with adopted City plans. Suitability of Land Area for Industrial Development G. : The 226-acre site was previously annexed into the City and zoned to M1, Light Industrial District upon annexation. The M1 zoning is consistent with the City’s Comprehensive Plan future land use designation of Light Industrial. The entire area is within the City’s urban service limits. Municipal sewer and water utilities are available to the district through extensions of existing facilities within the area. PLAN COMMISSION ACTION – 1 AUGUST 2011 Brad Schmidt, Associate Planner, presented the written staff report. Cherek explained the Plan Commission’s role in reviewing the creation of the TIF. Commissioner Siker asked what the reaction was from the two single-family homeowners in the boundary. Grassman indicated that one home is currently vacant however both are located in the Town. The properties wouldn’t be affected but the if the need arose in the future, the City could potentially offer to buy these homes. Cherek stated the land area proposed for TIF 35 encompasses land that is currently included in TIF 22. TIF 22 was amended in 2004 to include this property, and at this time, a new TIF District (TIF 35) is being created to overlap that portion of TIF 22. Commissioner Madere asked who prepared the revenue expenditure chart. Hulick indicated that he prepared the form. The public hearing was opened and closed without any speakers. There was a motion by Commissioner Consigny with a second by Commissioner Siker to approve Resolution No. 2011-01 adopting the project plan for TIF 35 and designating the district boundaries and to then forward a positive recommendation to the City Council to create TIF District No. 35. The motion carried on a 6-0-0 vote. cc: Eric Levitt Jay Winzenz Resolution No. 2011 – 816 RESOLUTION APPROVING THE PROJECT PLAN AND CREATING TAX INCREMENT FINANCE DISTRICT No. 35 WITHIN THE CITY OF JANESVILLE ROCK COUNTY, WISCONSIN WHEREAS, the City of Janesville has prepared a Project Plan and proposed a boundary for the creation of City of Janesville Tax Increment Finance District No. 35 in accordance with the provisions of Wisconsin Statues ss 66.46, a copy of said Project Plan and proposed TIF No. 35 boundary are attached and herein incorporated to this Resolution; and WHEREAS, the Plan Commission has held a public hearing on the proposed creation of Tax Increment District No. 35 and the proposed boundaries thereof, and recommended the approval of the Project Plan for Tax Increment District No. 35 and the creation of the new TIF district; and WHEREAS, the Chief Executive Officer of the local school district, Rock County Board, Blackhawk Technical College, and the other entities having the power to levy taxes on the property located within the proposed Tax Increment District No. 35 have been notified pursuant to Section 66.46 (4) (a) and (e), Wisconsin State Statutes; and WHEREAS, all of the land within the proposed TIF District No. 35 is currently zoned M-1 Industrial and has been found suitable for industrial development within the meaning of Section 66.52, Wisconsin State Statutes and will remain zoned for industrial purposes for the 20 year life of the TIF District; and WHEREAS, the project costs directly serve to promote industrial development, consistent with the purpose for which the TIF District is created, and the improvement of such areas for industrial projects will significantly enhance the value of all property within the TIF District; and WHEREAS, the aggregate equalized value of taxable property within all of Janesville's TIF Districts does not exceed twelve percent (12%) of the total equalized value of property within the City of Janesville; and WHEREAS, the Project Plan for Tax Increment District No. 35 is economically feasible and has been found to be in accordance with the City's General Development Plans, Zoning Ordinance, and other relevant policies and that this project is in the best interest of the City of Janesville and for the benefit of its residents. Resolution 2011-816 Page 2 NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Janesville that it hereby approves the Project Plan for City of Janesville Tax Increment Finance District No. 35 and creates Tax Increment District No. 35 in the City of Janesville as described on the attached map and Project Plan for TIF District No. 35. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner Dongarra-Adams Eric J. Levitt, City Manager Liebert McDonald ATTEST: Rashkin Steeber Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: City Attorney Proposed by: Economic Development Division Prepared by: City Manager’s Office TAX INCREMENT FINANCE DISTRICT No. 35 PROJECT PLAN Adopted August 22, 2011 Prepared By: Economic Development Agency Accounting Division City Manager’s Office City of Janesville, Wisconsin 18 N. Jackson St. Janesville, WI 53545 CITY OF JANESVILLE TAX INCREMENT FINANCE DISTRICT No. 35 TABLE OF CONTENTS I. WISCONSIN TAX INCREMENT LAW AND PROCESS ........................ 1 II. TIF No. 35 PLAN OBJECTIVES ......................................................... 2 III. BOUNDARIES OF TIF No. 35 ......................................................... 3 IV. EXISTING ZONING AND PROPOSED LAND USES ............................. 5 V. PROPOSED TIF PUBLIC WORKS PROJECTS AND .............................. 8 IMPROVEMENTS VI. DETAILED LIST OF ESTIMATED PROJECT COSTS............................ 10 VII. ECONOMIC FEASIBILITY AND METHODS OF FINANCING ............. 14 VIII. PROPOSED CHANGES IN ORDINANCES, CODES, & PLANS ............ 18 IX. LIST OF ESTIMATED NON-PROJECT COSTS ...................................... 19 X. METHODS FOR RELOCATION OF DISPLACED PERSONS ................ 19 XI. PROMOTION OF THE ORDERLY DEVELOPMENT ........................... 19 MAPS 1. Map 1 TIF No. 35 Boundary Map ……………. ........................................ 4 2. Map 2 TIF No. 35 Zoning ......................................................... 6 3. Map 3 TIF No. 35 Existing Conditions and Land Use ............................... 7 4. Map 4 TIF No. 35 Proposed Improvements ................................................ 10 5. Map 5 TIF No. 35 Property Within ½ Mile of Boundary ........................... 13 LEGAL AND PROCEDURAL 1. Legal Opinion From City Attorney on Project Plan…………………………20 2. TIF No. 35 Plan Adoption and Creation Resolutions………………………..22 3. Joint Review Board Resolution ……………………………………………..25 City of Janesville Tax Increment Finance District No. 35 Project Plan WISCONSIN TAX INCREMENT LAW AND PROCESS I. Under Wisconsin Statutes Section 66.1101 (1), the State declared that the policy of the State is "to encourage and promote the development of industry to provide greater employment opportunities and to broaden the State's tax base to reduce the tax burden of residents and homeowners." Locally, the City of Janesville has adopted an Economic Development Policy designed to "diversify the economic base of the City through the retention and expansion of existing businesses ...” In addition, the City seeks to attract new industries through the creation of fully improved industrial parks. One tool designed to help stimulate new development is "Tax Increment Financing (TIF)". When the State Legislature enacted the Tax Increment Law (ss 66.1105) in 1975, they found, "that the accomplishment of the vital and beneficial purposes of the Promotion of Industry Statute (ss 66.1101) is being frustrated by the lack of incentives and financial resources." One stated purpose of the Tax Increment Law, "is to create a viable procedure by which a city or village, through its own initiative and efforts, may finance projects which will tend to accomplish," the promotion of industry. The Tax Increment Law allows a community to recapture the costs of public expenditures made to stimulate new development, from the property taxes generated by the new development. Fundamental to the TIF law is the concept that new development will benefit an area broader than the municipality in which the development occurs. However, an inequity occurs because the community is left to finance the entire cost of public expenditures needed to facilitate the development. The TIF law recognizes that without the TIF expenditures, the development could not have occurred. Thus, the TIF law provides that all property taxes levied on increased property value 1 within a TIF district are retained by the community to finance the public expenditures made within the TIF district. The base value (the value that existed at the time the TIF district is created), however, continues to provide same level of revenues to other taxing jurisdictions. Once all of the public expenditures have been repaid, all taxing jurisdictions can collect taxes levied on the new property value. State statutes are very specific as to how a TIF district is created. First, a TIF project plan is developed and presented to the Plan Commission for a formal public hearing. The Commission makes a recommendation on the TIF project plan to the City Council. The Council then must pass a resolution adopting the TIF project plan and establishing the TIF boundaries. Finally, a Joint Review Board is created with members from the City, school district, county, vo-tech district, and one member at large. The Joint Review Board reviews the TIF plan and public hearing comments and approves the creation of the TIF district. Amendments to a TIF Project Plan may be made by following the same procedures. TIF project plan amendments may be necessary to revise projected budgets and/or to amend the boundaries of the original TIF district. This document will meet the statutory requirements for a Project Plan for Tax Increment Finance District No. 35. TIF No. 35 PLAN OBJECTIVES II. Industrial development activities in the City of Janesville are guided by the City's Economic Development Strategy and implemented in accordance with an Economic Development Policy. The overall goal for the City's industrial development effort is to diversify the City's economic base through the retention and expansion of existing businesses, and through the attraction of growing industrial and large regional service sector employers that will create new employment opportunities and expand the local property tax base. TIF No. 35 will advance the City of Janesville's industrial development objectives and specifically will: A. Promote industry retention, expansion, and attraction through the development of a new fully improved certified industrial park, thereby 2 creating new jobs and increased tax base. B. Provide appropriate financial incentives to encourage industrial expansion. C. Reduce the financial risk to the taxpayer by timing the implementation of the Project Plan with the creation of additional property value through industry expansions. D. Generate sufficient new property tax increments within eight (8) to ten (10) years from each specific development project within the TIF District to fully repay the City's TIF project expenditures associated with the development project. BOUNDARIES OF TIF No. 35 III. Described as follows: Pt SE. ¼ and Pt SW. ¼ Sec 13-2-12 and also Pt NE. ¼ and NW. ¼ Sec 24-2-12, 4TH PM, City of Janesville, Rock Co, WI DAF: Com NE cor sd Sec 24; th S0°18'59"E alg E L NE ¼ sd Sec 24, 400.21'; th N88°27'04"W 33.02' to W L CTH G and POB; th N88°27'04"W 3826.97' m/l; th N0°02'51"W 1704.64' to N L SE ¼ SW ¼ sd Sec 13; th S89°02'36"E alg sd N L 1291.03' to NE cor sd SE ¼ SW ¼ sd Sec 13; th N0°00'24"E alg N-S CL sd Sec 13, 1283.03' to S L STH 11; th S88°41'40"E alg sd S L 1757.16' to W L Lot 1 CSM rec in Vol 8 Pgs 114-115; th S1°18'01"W alg sd W L 217.05' to SW cor sd CSM; th S88°42'05"E alg S L sd CSM 110.0' to SE cor sd CSM; th N1°18'01"E alg E L sd CSM 200.0'; th S88°41'40"E 70.0' to NW cor Lot 1 CSM rec in Vol 9 Pgs 132-133; th S1°18'01"W alg W L sd Lot 200.0' to SW cor sd Lot; th S88°42'05"E alg S L sd Lot 115.05' to SE cor sd Lot; th N1°18'01"E alg E L sd Lot 200.0' to S L STH 11; th S.88°41'40"E 163.80' alg sd S L STH 11; th S71°01'05"E alg sd SL 293.11' to W L CTH G; th S05°31'29"E 429.43' alg sd W L; th cont S alg sd W L 187.2' m/l to pt on N L CSM rec in Vol 15 Pgs 135-136; th N88°34'17"W 7.0' m/l to NE cor Lot 1 sd CSM; th S alg E L sd Lot 1 570.00' to SE cor sd Lot; th S88°34'17"E 7.0' m/l to W L sd CTH G; th S alg sd W L 1722.62' m/l to POB. 6-17-126, 6-17-126.4, 6-17-126.6,pt 6-17-125, pt 6-17-212, & pt 6-17-214 3 MAP 1 4 EXISTING ZONING AND PROPOSED LAND USES IV. The City of Janesville is proposing to create TIF No. 35 to expand an existing industrial park on the City’s south side. TIF District No. 35 currently contains one, 226 acre parcel of vacant land in an industrially zoned area on the City's south east side. The parcel is unimproved and has been used for agricultural crop production for decades. In 2004, the City negotiated to purchase an additional 226 acres of land located south of STH 11 and west of County Trunk Highway G. Upon annexation, this land was zoned M-1 Light Industrial. Since that time, the City went through a lengthy site certification process in 2010 to have the 226 acre site deemed as a “shovel ready” certified industrial site. TIF No. 22 has seen tremendous expansion and growth, and is set to be retired within the next 3-5 years. Therefore, the creation of TIF No. 35 would allow the 226 acre certified site to continue to be marketed and incentivized with tax increment financing to make the site more appealing for industrial development and expansion. The City’s long term growth plans in this part of the city called for continued expansion of industrial development along CTH G and State Trunk Highway 11. Therefore, TIF No. 35 could be amended to include additional industrial development sites as they become available and are annexed into the City of Janesville State law requires that not less than 50% of the land within a TIF district be “suitable for ‘industrial sites’ within the meaning of (Wisconsin Statutes) s. 66.1101 and zoned for industrial use”. Within TIF No. 35 70% of the land is proposed for industrial uses and 30% is proposed for green space and storm water uses, thus meeting the required standard. All lands within TIF No. 35 zoned for industrial uses will remain zoned for industrial uses for the life of the TIF district. In addition, the Wisconsin TIF Law prohibits “newly platted residential areas” from being considered as TIF project costs. No residential development is planned for TIF No. 35. The TIF District Project Plan proposes to improve these properties with streets and utilities to create additional industrial sites. The timing of the street and utility improvements will be phased to meet the needs of specific development projects thereby minimizing the risk of incurring development costs in advance of tax-producing development projects. 5 MAP 2 6 MAP 3 7 PROPOSED TIF PROJECTS AND IMPROVEMENTS V. The public expenditures proposed in TIF No. 35 will be linked to the expansion of the industry within the district. The expansion of the industry will increase property values and will generate new tax increments that will allow the City to recover its TIF costs. To allow this expansion to occur, the City will need to extend utilities to the property and construct an extension of Progress Drive. As the demand for industrial sites increases, the City will construct new streets and utilities to those sites as necessary to facilitate development and expansion. Finally, the Project Plan provides funds for marketing the new industrial sites and for providing incentive financing to companies locating new facilities within the TIF district. The kind, number, and location of all proposed improvements proposed for TIF No. 35 are shown on Map 4 - Improvement Plan. A. Transportation Improvements Transportation improvements may include the construction of the southerly extension of Progress Drive South of State Trunk Highway 11 and easterly extensions of a street network from the newly extended portion of Progress Drive to County Trunk Highway G. County Trunk Highway G may be widened to a 4-lane cross section as the traffic to TIF No. 35 increases with development. In addition, the TIF Project Plan allows for the construction of approximately 10,500 feet of new streets to serve the new industrial sites. Map No. 4 shows the planned location of these road improvements, however, the actual location of the roads may change depending on the needs of specific development projects. Wherever new street construction occurs, sidewalks or recreational trails, street trees, and landscaping may be installed along the new frontage road. B.Utility Costs As new streets are constructed to provide access to industrial sites, sewer, water, gas and electric utilities will be installed within the rights-of-way. In addition, a storm sewer collection system including underground piping, surface detention ponds and safety fencing may be installed. These utility improvements will be phased along with the street construction to meet the needs of specific development projects. The utility costs will be included as TIF expenditures. 8 C. Street Lighting and Landscaping As new streets are developed within TIF No. 35, street lights and street trees may be installed. In addition, a landscaping buffer between the industrial uses and the open space/residential uses to the west is planned as a TIF cost. D. Marketing and Incentive Financing In order to attract new development to the TIF No. 35 industrial park, it may be necessary to implement a marketing program. Marketing activities may include the development of brochures, photographs, topography and maps for use with industry prospects. Once the marketing materials are available, a direct mail program may be implemented to attract new development. Marketing activities may also include the payment of real estate commissions where a private “buyer’s broker” facilitates the sale of a new development site in TIF No. 35. Where a specific industry has been identified, incentive financing may be necessary to ‘close the deal’. Incentive financing may include below interest loans, funding for relocation, worker training, and unique start-up costs, and/or similar financing programs. Financing may go directly to a development project or to capitalize a revolving loan fund to provide financing assistance for industrial expansion projects throughout the TIF District. Additionally, changes to State Law also allow the expenditure of TIF funds within ½ mile of an existing TIF boundary. While much of the land within ½ mile of TIF No. 35 is currently located outside the City of Janesville corporate limits, the City does have a boundary agreement with the Town of Rock, and land surrounding the airport will be annexed to the City of Janesville as development occurs. Where industrial development projects occur on land annexed to the City within this ½ mile boundary, funding from TIF No. 35 may be used to support the development project. If the development project is contiguous to TIF No. 35, the City may propose a boundary amendment to the TIF No. 35 Project Plan. The development projects located within ½ mile of proposed TIF No. 35 may need project financing and/or development incentives to maintain employment levels or to undertake future expansion projects. E. Administrative Costs The TIF No. 35 project plan includes the cost incurred for administrative, professional, organizational, and legal services related to the creation and administration of the TIF district. Direct engineering costs shall be charged to the specific construction projects within the TIF District. Direct legal and planning costs will be charged as administrative costs. 9 The cost of the three TIF audits required under Wisconsin Statutes ss 66.1105 will be included as TIF project costs. In addition, administrative costs will include any TIF Plan review fees charged by the Department of Revenue. F. Land Acquisition In order to create a new industrial park, the City has acquired a 226 acre parcel on the west side of County Trunk Highway G and south of State Trunk Highway 11. This Project Plan does not provide for any future land acquisitions. However, in the event of future land acquisitions, payments to neighboring townships to compensate them for lost tax revenues where TIF districts include newly annexed property will also be considered a TIF land acquisition expense. Land acquisition, surveying, soil testing, environmental engineering, and title policy expenses may be considered TIF project costs. Additionally, any relocation expenses incurred by future land acquisitions including crop damages would be considered a TIF land acquisition expense. Payment of any land conversion penalty under the provisions of Wisconsin Statutes section 74.485 would also be considered a land acquisition cost. DETAILED LIST OF ESTIMATED PROJECT COSTS VI. In order to determine the economic feasibility of the proposed TIF District No. 35, total project costs must be estimated and compared to the projected tax increments that will be generated by the new development in the TIF district. Based on 2011 construction costs, TIF No. 35 improvement costs are estimated as follows: A. Transportation Improvements $4,155,500 B. Water and Sanitary Sewer Costs $2,823,200 B. Stormwater Improvements $2,011,300 C. Project Incentive Financing $4,950,000 D/E. Marketing & Administration $61,500 Total Cost of Improvements $14,001,500 The estimated cost of TIF expenditures is $14,001,500. Under the revised TIF law, project costs may be incurred over the first fifteen (15) years of the TIF district, while TIF revenues will be collected over a maximum of twenty (20) years. The City will have to finance 10 any negative TIF fund balance through interfund borrowing. Based on conservative projections, including the debt service and interfund borrowing costs of $5,445,818, the total estimated TIF . No. 35 project costs to $19,447,318 All project costs and interfund borrowing estimates are based on the most current cost data available in July, 2011 and may be adjusted within the total amount shown without modification or amendment of this TIF No. 35 Project Plan. Under the changes to the TIF law enacted in 2004, all of the TIF No. 35 project costs except debt service and interfund borrowing will be incurred during the first fifteen (15) years of the TIF District. Table No. 1 shows the schedule and timing of the proposed expenditures. The actual timing of expenditures will be contingent on the commitments from industries locating facilities and guaranteeing a minimum property value that will generate sufficient tax increments over the life of the TIF district to cover the TIF project costs. This Project Plan includes funds to market the vacant industrial land within the TIF District for industrial and development. Table No. 1 Tax Increment District No. 35 Summary of TIF Costs By Year Year Type of Cost Cost 2011 Marketing and Administration, Engineering Services $362,500 2012 Streets, Utilities, Incentives, and Administration $6,533,250 2013 Incentives, Streets, Utilities, Marketing $5,328,750 2014 Incentives, Marketing and Administration $508,750 2015 Incentives, Marketing and Administration $507,250 2016 Incentives, Marketing and Administration $503,750 2017 Incentives, Marketing and Administration $251,875 2018 Administration $5,375 Total Cost of Improvements $14,001,500 Debt Service and Interfund Borrowing $5,445,818 Total Estimated TIF No. 35 Costs $19,447,318 -------------------------------------------------------------------------------------------------------- Prepared By: Economic Development and Accounting 11 MAP 4 12 MAP 5 13 ECONOMIC FEASIBILITY AND METHODS OF FINANCING VII. A. Economic Feasibility Analysis Under Wisconsin's Tax Increment District Law (ss. 66.1105), 100% of the property taxes levied against new property value created within a TIF district is retained by the City to pay for improvement costs that were incurred to attract the new development. Implicit in the law is the concept that without the improvements, the attraction of new development, the creation of new jobs, and the expansion of the tax base would not occur. The Wisconsin TIF law as revised by the Legislature, allows the City fifteen (15) years in which to make the improvements needed to stimulate and support development. The property tax increments generated by the new development are retained by the City until all TIF costs are paid. In no case shall the TIF district have a life longer than twenty (20) years. The City of Janesville's Tax Increment District No. 35 will be created by Council action in July, 2011. Therefore, all TIF project improvements must be completed by September, 2026. The taxes on any increased property value in the district between 2013 and 2031 will be retained by the City to repay the TIF project costs. TIF No. 35 will be dissolved when all TIF project costs are repaid, or in July 2031, whichever comes first. In order to determine the economic feasibility of the proposed TIF district, estimated TIF costs must be compared to projected TIF property tax increments. Where tax increments exceed TIF costs over the twenty (20) year life of the TIF district, the TIF district is considered economically feasible. The City of Janesville has made conservative assumptions about the future to determine the economic feasibility of TIF No. 35. All TIF costs related to industrial expansion projects are incurred according to the schedule shown in Table No. 1. TIF property value increases for are shown for the installation of streets and utilities, as well as potential new land acquisitions for future industrial projects to be developed. Where possible, the construction of new streets and utilities will be phased and linked to known development projects. The City will enter into binding contracts with the industries locating within TIF No. 35 that will guarantee the minimum amount of investment needed to fully amortize all TIF costs associated with each project within 8 to 10 years. The 14 overall TIF District should be able to recover all costs by the year 2030. The equalized value property tax mill rate levy is projected to increase 0% per year. This assumption is also conservative. In recent years, the equalized value property tax mill rate in Janesville increased slightly. Based on these assumptions, the $51,500,000 in new property value generated between 2013 and 2019, will create sufficient new property tax increments to repay all planned TIF project costs. The City will limit the implementation of all TIF expenditures until the actual levels of new property value are known. TIF project costs of $14,001,500 plus financing costs of $5,445,818 equate to a total TIF Cost investment of $19,447,318. These monies will only be expended if the property value of the industrial construction is adequate to ensure a sufficient tax increment to recover the cost within the life of the TIF district. If a total of $51,500,000 of new property value is created as projected, the TIF district will generate a total of $30,423,005 in property tax increments over the 23 year life of the district. Since property tax increments are projected to exceed TIF costs including debt service by $390,294 in 2030 TIF No. 35 is found to be economically feasible. Projected TIF revenues will cover TIF costs within 19 years and the City projects that TIF No. 35 will be dissolved by 2031. Since there is no guarantee that new development projects will be found to construct new property value within TIF No. 35, the City will only implement additional street and utility construction project when they are needed to prepare new industrial sites for specific projects. The TIF plan includes $4,155,500 in transportation improvements including improvements to CTH G and HWY 51 as well as street extensions through the industrial site. Additional, the Project Plan includes $2,823,200 in utility improvements including extensions of water mains and sanitary sewer to serve the site, as well as $2,011,300 in stormwater improvements. The Project Plan also includes $1,680,000 for potential future land acquisitions. 15 City of Janesville Tax Increment vs. TIF Cost Comparison 19-Aug-11 Equalized Long Admin. Const.TotalValueTaxTermDebt & OtherInterfundTIF YearValueTID ValueMill RateIncrementDebtServiceCapital DirectInterestBalanceTIF Increment ProceedsCostsExpend.CostsCosts Year 2011000.02458620350,0000350,00012,500$0($12,500) 2012000.024586206,520,00049,0006,520,00013,250$375($75,125)1 201312,000,00012,000,0000.024586205,320,000960,4005,320,0008,750$2,254($1,046,529)2 20145,000,00017,425,0000.0245862295,034500,0001,677,720500,0008,750$31,396($2,469,361)3 20155,000,00022,985,6250.0245862428,415500,0001,698,960500,0007,250$74,081($3,821,237)4 201620,000,00044,060,2660.0245862565,129500,0001,718,200500,0003,750$114,637($5,092,695)5 20177,500,00052,849,2720.02458621,083,275250,0001,735,440250,0001,875$152,781($5,899,516)6 20181,000,00055,195,5040.02458621,299,36301,715,68005,375$176,985($6,498,194)7 20191,000,00057,600,3920.02458621,357,04801,659,92000$194,946($6,996,012)8 2020059,040,4010.02458621,416,17501,604,16000$209,880($7,393,877)9 2021060,516,4120.02458621,451,57901,548,40000$221,816($7,712,514)10 2022062,029,3220.02458621,487,8691,457,6400 $231,375($7,913,660)11 2023063,580,0550.02458621,525,065751,2800 $237,410($7,377,285)12 2024065,169,5560.02458621,563,192191,0000 $221,319($6,226,412)13 2025066,798,7950.02458621,602,272134,0000 $186,792($4,944,932)14 2026068,468,7650.02458621,642,32979,0000 $148,348($3,529,952)15 2027070,180,4840.02458621,683,38726,0000 $105,899($1,978,464)16 2028071,934,9960.02458621,725,47100 $59,354($312,347)17 2029073,733,3710.02458621,768,60800 $9,370$1,446,89118 2030075,576,7050.02458621,812,82300 $0$3,259,71519 2031077,466,1230.02458621,858,14400 $0$5,117,85920 $51,500,000Totals:$24,565,177$13,940,000$17,006,800$13,940,000$61,500$2,379,018 Assumptions:Expenditures:AmountYear 1. Eq. Value Growth1.025Direct Cost12,5002011 2. Mill Rate Growth :1.000Debt350,0002011 3. Interfund Cost :3.0%Direct Cost13,2502012 4. G.O. Bond Rate :4.00%Debt6,520,0002012 Direct Cost8,7502013 5. TIF CostsDebt5,320,0002013 Direct Cost8,7502014 Debt500,0002014 New Construction Direct Cost7,2502015 2012 - Debt500,0002015 2013 12,000,000Direct Cost3,7502016 2014 5,000,000Debt500,0002016 2015 5,000,000Direct Cost1,8752017 2016 20,000,000Debt250,0002017 2017 7,500,000Direct Cost5,3752018 2018 - Project Costs14,001,500 Interest Costs5,445,818 Total TIF Costs$19,447,318 Prepared By: City Manager's Office B. Methods of Financing Wisconsin Statutes provide several methods of financing the cost of improve- ments in tax increment districts. For smaller amounts, financing through the general fund may be feasible. Transfers can be made from the municipal general fund account into the TIF expenditure account to cover the cost of TIF improvements. This method of financing avoids the interest cost associated with municipal borrowing. However, since the General Fund balance is reduced, the General Fund loses interest income, so an interfund borrowing cost is charged to the TIF account. 16 State law also provides for municipal borrowing. Community borrowing is divided into two forms -- that subject to a statutory limitation and borrowing not subject to limitation. Possible funding sources include: 1. General Obligation Borrowing - Is sometimes referred to as a local promissory note from a bank, State Trust Fund, or other lending institution. This form of borrowing requires little effort or legal costs and works well for smaller sums. This sort of borrowing is included in the municipal borrowing limitation. 2. General Obligation Bonding – Is an irrepealable property tax obligation of the community. General obligation bonds can often be sold at lower interest rates than other forms of borrowing. However, there are additional regulations and requirements that make G.O. Bonds suitable for larger projects. G.O. Bonds are included in the municipal borrowing limitation. 3. Mortgage Revenue Bonds - Are repaid through the revenue generated by a public utility like a water or sewer utility. Revenue bonds also have regulatory and legal requirements that make them suitable for larger project costs. Since revenue bonds do not pledge the community's taxing capacity, they are not subject to a municipal borrowing limitation. 4. Federal and State Grant or Loan Programs - Like Community Development Block Grants or State Transportation aids are sometimes available to supplement local funding sources. However, the amount of grant dollars available is limited and state and federal funding is uncertain given the need to balance budgets. The actual method of financing specific TIF projects will be determined by the City based on the current fiscal condition of the City, anticipated non-TIF capital needs, municipal borrowing rates and terms, and the amount of financing needed. Where general obligation borrowing is used, TIF financing costs have been calculated assuming financing over ten (10) years, with equal principal payments. The City will not proceed with any phase of the planned public improvements until a developer or business is committed to construct a new building or renovate an existing building with a value sufficient to generate the property tax increments needed to cover the cost of the improvements. Therefore, the actual City expenditures in TIF No. 35 may be substantially different that those shown in the project plan. 17 C. Additional Economic Benefits The economic feasibility analysis has shown that the property tax increments will be sufficient to cover all TIF project costs over the twenty (20) year life of the TIF district. The development of TIF No. 35 will facilitate an industrial expansion, increase property values, and create new jobs in the City of Janesville. These jobs will help diversify the local economy and the increased manufacturing and warehousing/distribution payrolls will have a positive multiplier effect in the trade and service sectors. PROPOSED CHANGES IN ORDINANCES, CODES, & PLANS VIII. The proposed TIF No. 35 project plan is in conformance with the City of Janesville's present zoning ordinance, with the City's Industrial Development Plan and the General Development Plan. All of the properties within TIF No. 35 have been found to be suitable for industrial development in accordance with Wisconsin's Promotion of Industry Statute ss 66.1101, and will remained zoned for industrial purposes for the life of the TIF district. All development in TIF No. 35 will have to conform with the State Building Codes and will be subject to the City's permitting and inspection procedures. The TIF No. 35 project plan conforms with all relevant State and local ordinances, plans, and codes, thus, no changes to the existing regulations are proposed or needed. The City has requested that the Wisconsin Department of Commerce amend the Janesville Community Development Zone boundary to include the land within TIF No. 35. This allows companies that locate within the amended TIF No. 35 boundary to apply for State of Wisconsin income tax credits under the Development Zone Program. 18 LIST OF ESTIMATED NON-PROJECT COSTS IX. All of the public improvements and other project costs included in this project plan are TIF eligible costs as defined in Wisconsin Statutes ss. 66.1105, the Tax Increment District Law. Where an improvement can serve an area larger than the TIF district, the cost of the improvement will be prorated so that only the proportion of the costs to serve TIF No. 35 will be included as a project cost. That portion of the total costs which serves areas outside the TIF district will be considered 'non-project' costs and charged to funding sources other than TIF No. 35. METHODS FOR RELOCATION OF DISPLACED PERSONS X. The TIF No. 35 Project Plan does plan land acquisition, thus, there may be displacement of persons or business needing relocation assistance. For any reason, should relocation be necessitated by the City's involvement in the implementation of this Project Plan, it will be undertaken pursuant to Wisconsin Statutes Section 32.19 and 33.195, and according to a Relocation Plan, as approved by the Wisconsin Department of Commerce. PROMOTION OF THE ORDERLY DEVELOPMENT OF THE CITY XI. The creation of TIF No. 35 and the implementation of the projects in the TIF Project Plan will promote the orderly development of the City of Janesville by encouraging that new industrial development occurs in areas of the City planned for industrial growth. By creating well designed and strategically located industrial parks, land use conflicts and infrastructure deficiencies can be avoided. By providing financial incentives to stimulate private development projects, the City is able to ensure that economic growth continues to occur, thus offsetting the inevitable loss of jobs and incomes when economic conditions force the closure of other employers in the community. By utilizing the provisions of the Tax Increment Finance Law, the City can increase property values through development projects that result in increased tax base. TIF No. 35 continues the industrial development on the City’s southeast side that began with the creation of TIF No. 5 in 1988 and TIF No. 16 in 1996 and TIF No. 22 in 1999. TIF No. 35 will add to the tax and employment base of the community, and will generate positive secondary impacts in the 19 community through increased local disposable incomes. 20 CITY ATTORNEY’S OFFICE MEMORANDUM August 8, 2011 MEMORANDUM TO: Vic Grassman, Economic Development Director FROM: Wald Klimczyk, City Attorney RE: Legal Opinion -- T.I.F. No. 35 Project Plan Sec. 66.1105(4)(f), Wis. Stats., of the Tax Increment Financing Law mandates that the project plan for a proposed tax increment financing district "include an opinion of the city attorney or an attorney retained by the city advising whether the plan is complete and complies with this section.” You have asked me to review a certain proposed “Tax Incremental Finance District No. 35 Project Plan” dated August 8, 2011, for Tax Increment Finance (T.I.F.) District Number 35 and determine if, in my opinion, it is complete and complies with the requirements of Wisconsin's T.I.F. Law. This memorandum constitutes my legal opinion. Sec. 66.1105(4)(f), Wis. Stats., sets forth those components of a T.I.F. project plan which are required by state law. They are as follows: 1. A statement listing the kind, number, and location of all proposed public works or improvements within the district or, to the extent provided in Section 66.1105(2)(f) 1. k., Wis. Stats., outside the district; 2. An economic feasibility study; 3. A detailed list of estimated project costs; 4. A description of the methods of financing all of the estimated projected costs; 5. The time when the costs or monetary obligations related thereto are to be incurred; 21 Vic Grassman August 8, 2008 Page 2 6. A map showing the existing uses and conditions of the real property in the district; 7. A map showing the proposed improvements and uses in the district; 8. Proposed changes of: a. Zoning ordinances. b. The master plan, if any. c. The master map, if any. d. Building codes. e. City ordinances. 9. A list of estimated non-project costs; 10. A statement of proposed methods for the relocation of any person(s) to be displaced; and 11. How the Tax Increment Financing District promotes the orderly development of the City. I have reviewed proposed “Tax Incremental Finance District No. 35 Project Plan” dated August 8, 2011, for Tax Increment Finance (T.I.F.) District Number 35, prepared by the City of Janesville Economic Development Agency, Finance Division, and City Manager’s Office. It is my legal opinion that said project plan as prepared by the Economic Development Agency is complete and does comply with Section 66.1105(4) (f), Wis. Stats. According to the terms of the above cited statute, this legal opinion should now become the final component of that project plan amendment. Wald Klimczyk City Attorney wk cc: Jean Ann Wulf, City Clerk-Treasurer J:\Attorney\Word\Shared\TIF 26 Legal Opinion.doc 22 Resolution No. 2011 – 816 RESOLUTION APPROVING THE PROJECT PLAN AND CREATING TAX INCREMENT FINANCE DISTRICT No. 35 WITHIN THE CITY OF JANESVILLE ROCK COUNTY, WISCONSIN WHEREAS, the City of Janesville has prepared a Project Plan and proposed a boundary for the creation of City of Janesville Tax Increment Finance District No. 35 in accordance with the provisions of Wisconsin Statues ss 66.46, a copy of said Project Plan and proposed TIF No. 35 boundary are attached and herein incorporated to this Resolution; and WHEREAS, the Plan Commission has held a public hearing on the proposed creation of Tax Increment District No. 35 and the proposed boundaries thereof, and recommended the approval of the Project Plan for Tax Increment District No. 35 and the creation of the new TIF district; and WHEREAS, the Chief Executive Officer of the local school district, Rock County Board, Blackhawk Technical College, and the other entities having the power to levy taxes on the property located within the proposed Tax Increment District No. 35 have been notified pursuant to Section 66.46 (4) (a) and (e), Wisconsin State Statutes; and WHEREAS, all of the land within the proposed TIF District No. 35 is currently zoned M-1 Industrial and has been found suitable for industrial development within the meaning of Section 66.52, Wisconsin State Statutes and will remain zoned for industrial purposes for the 20 year life of the TIF District; and WHEREAS, the project costs directly serve to promote industrial development, consistent with the purpose for which the TIF District is created, and the improvement of such areas for industrial projects will significantly enhance the value of all property within the TIF District; and WHEREAS, the aggregate equalized value of taxable property within all of Janesville's TIF Districts does not exceed twelve percent (12%) of the total equalized value of property within the City of Janesville; and WHEREAS, the Project Plan for Tax Increment District No. 35 is economically feasible and has been found to be in accordance with the City's General Development Plans, Zoning Ordinance, and other relevant policies and that this project is in the best interest of the City of Janesville and for the benefit of its residents. 24 Resolution 2011-816 Page 2 NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Janesville that it hereby approves the Project Plan for City of Janesville Tax Increment Finance District No. 35 and creates Tax Increment District No. 35 in the City of Janesville as described on the attached map and Project Plan for TIF District No. 35. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner Dongarra-Adams Eric J. Levitt, City Manager Liebert McDonald ATTEST: Rashkin Steeber Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: City Attorney Proposed by: Economic Development Division Prepared by: City Manager’s Office 25 26 CITY MANAGER’S OFFICE MEMORANDUM August 12, 2011 TO: City Council FROM: Tom Presny, Parks Director Rebecca Smith, Management Assistant SUBJECT: Action on a proposed resolution approving the acquisition of 1116 Hamilton Avenue (Resolution 2011-829) Request Staff requests the Council support the purchase of the vacant property at 1116 Hamilton Avenue. Staff Recommendation Staff recommends the City Council support the purchase of 1116 Hamilton Avenue by approving Resolution 2011-829. City Manager Recommendation The City Manager concurs with the Parks Division recommendation. Proposed Motion Text I move to approve Resolution 2011-829 to acquire 1116 Hamilton Avenue. Proposed Property for Acquisition This property is located at 1116 Hamilton Avenue, within the Mole-Sadler subdivision. This property is 66’ x 132’ or 8,712 square feet in size. This property is vacant (no buildings present) and future development or buildings are not allowed as it is located within the flood plain. This property is surrounded by vacant parcels previously acquired by the City and cleared of structures though FEMA flood grants. These adjacent properties are seeded with prairie grass and if 1116 Hamilton is purchased by the City we would also plant this property with prairie grass for consistency and flood-resistance. Having the 1116 Hamilton property under City control would be beneficial to the Wastewater Utility as a wastewater sewer lift station exists at the southwest corner of this property, which could be more safely accessed from the vacant lot rather than from the roadway. Staff proposes to offer $2,000 for the property and the property owner is agreeable to this price. The owner purchased the property for $4,900 in 2004 before the flood plain issues were known; currently, the property is assessed at $1,600. This property is not eligible for any of the state or federal property acquisition programs we have used previously when acquiring properties in the flood plain because the property was vacant when the flood of 2008 occurred and therefore is not subject to future property loss. 1 Funding for Acquisition Funding for the acquisition of the property will be provided through two sources. First, the Parkland Acquisition Fund will be used for $1,000. The remaining $1,000 will be provided by the Wastewater Utility. Conclusion Taking into consideration the property’s location adjacent to other city-owned property, its low purchase cost, its minimal future maintenance as a prairie and its strategic location for the Wastewater Utility staff feels this is an appropriate property to purchase. Staff brought this proposal before the Plan Commission on August 15 and they found the purchase of this property consistent with established city plans and further recommended the Council proceed with acquisition. The Council should be advised that the Plan Commission did not review the financial aspects of this transaction. Based on this favorable recommendation, staff recommends the purchase of this property. cc: Eric Levitt, City Manager Jay Winzenz, Assistant City Manager/Director of Administrative Services Attachments: Resolution 2011-829 Map of proposed acquisition 2 RESOLUTION NO. 2011-829 A Resolution approving the acquisition of vacant property at 1116 Hamilton Avenue WHEREAS , Wis. Stats. §§ 62.22 (1), 62.23 (17) (a), 62.23 (17) (b), 66.0101, 62.11(5) and Chapter 32 and other pertinent Wisconsin Statutes permit the City’s acquisition, development, ownership, protection, and conservation of parkland, open space, riverfront properties, and development properties; and WHEREAS , this property is surrounded by vacant parcels previously acquired by the City and cleared of structures; and WHEREAS , the Common Council hereby find that such uses and acquisition constitute public purpose(s) that benefit the community and promote recreation, health, welfare, safety and best interests of the City, its residents, businesses and visitors; and WHEREAS , the City of Janesville negotiated with the owner to purchase this property in the amount of two thousand dollars ($2,000); and WHEREAS , the funding for this acquisition will be provided by the Parkland Acquisition Fund ($1,000) and the Wastewater Utility ($1,000); and WHEREAS , the Janesville Plan Commission has reviewed this proposed acquisition on August 15, 2011 and forwarded a positive recommendation to acquire this property, but not commenting upon the financial aspects of the transaction. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Janesville that they hereby approve and authorize the City Manager and/or his designee(s) to acquire and close upon the City’s purchase of the Property from the owners on behalf of the City; and BE IT FURTHER RESOLVED , that the City Manager and/or his designee(s) on behalf of the City of Janesville is/are hereby authorized and empowered to negotiate, draft, modify, review, execute, and enter into additional agreements, record, file and/or make minor modifications and/or amendments to any and all documents, papers, forms, and agreements, and to take whatever other actions as the City Manager may determine, from time to time and at any time, necessary and/or desirable to effectuate the intent of this resolution and/or the public good. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner Dongarra-Adams Eric J. Levitt, City Manager Liebert McDonald ATTEST: Rashkin Steeber Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: Wald Klimczyk, City Attorney Proposed by: Parks Director, Management Assistant Prepared by: Management Assistant ïïïê Ø¿³·´¬±² ߪ»²«» ïèðç ïèðç ïèðí ïèðí ïèðì ïéîé ïéîé ïéîî ïéïë ïéïë ïéïï ïéðèïéðç ïïïð ïïïê ïéðð ïïîëïïîïïïðé ïïïë ïíðð ïêðê ïëîê ïëîð ïíðë ïëïî o Ý·¬§ ±º Ö¿²»­ª·´´» Ñ©²»®­¸·° É·­½±²­·²ù­ п®µ д¿½» Ý·¬§ ±º Ö¿²»­ª·´´» Ý·¬§ ±º Ö¿²»­ª·´´» Ú«¬«®» Ê»¸·½´» Ë­» λ­¬®·½¬·±² ÓßÐ ï Í»»¼»¼ ©·¬¸ ´¿©² ¹®¿­­ ¿²¼ ³±©»¼ Ü¿¬»æ èóïðóïï ÞòÞòô д¿²²·²¹ Í»®ª·½»­ ðîðìðêðèð ï þ ã ïðé ù ÍæÄЮ±¶»½¬­ÄÔ»·­«®»Í»®ª·½»­ÄïïïêØ¿³·´¬±²îò³¨¼ Ú»»¬ DIVISION OF PUBLIC WORKS MEMORANDUM August 12, 2011 TO: City Council FROM: Daniel L. Lynch, Utility Director SUBJECT: Authorization for the City Manager to Issue a Change Order in the amount of $750,000 to the Wastewater Treatment Plant Construction Contract in Order to Proceed with Energy Enhancing Modifications to Produce Additional Electricity and Fuel for Municipal Vehicles. Summary The City’s Wastewater Treatment Plant (WWTP) has used methane gas (biogas) to produce electricity since wastewater treatment in the City started in the 1930’s. As part of the ongoing WWTP construction project the electrical generating equipment at the plant was upgraded. Currently the Utility produces approximately $180,000 of electricity per year which is sold to Alliant Energy. The proposed energy enhancements in this project will approximately double the amount of electricity produced at the treatment plant generating new revenue for the City in the amount of $146,000 for treatment of high strength waste and it will potentially save $60,000 over the next ten years in gasoline and diesel fuel purchases. This project will have a positive effect by generating approximately $3.5 million in fuel savings and new revenues over the next ten years. Department Recommendation The Utility Director and Wastewater Treatment Plant Superintendent recommend that the City Manager be authorized to issue a change order to the treatment plant contract to include these energy upgrades which will take advantage of lower cost and experienced onsite contractors. Manager’s Recommendation The City Manager recommends approval of the change order. I believe that by moving forward with this alternative energy source we will be contributing environmentally as well as providing potential cost saving to the City long-term. Suggest Motion Move to authorize the City Manager to issue a change order in the amount of $750,000 with the intent that the necessary equipment for this project is installed and operational by the end of 2011; and express the intent of the City Council to borrow funds at a future date to finance these improvements. Analysis In 2008, the City of Janesville embarked upon a major upgrade and expansion of its wastewater treatment plant, which is currently nearing completion. An essential element of the project, which emphasized several energy-efficient improvements, was the enhanced use of biogas resources made available by the treatment process. These enhancements included: digester upgrades; a biogas storage and gas conditioning system; and microturbine generators with heat recovery. These enhancements have greatly increased the plant’s electricity production and greatly reduced the use of the plant’s natural gas boilers for heating the digesters. The proposed project will build on the success of these initial enhancements. The plant will begin accepting high-strength waste from out-of-town generators to maximize the volume of biogas (methane) production. Some of this additional biogas will be further conditioned into BioCNG and used to fuel vehicles that the Utility will begin purchasing later this year, offsetting annual petroleum purchases. Gas not used for vehicle fuel will be used to generate additional electricity. The cost of this project is mostly to acquire the necessary equipment and can be broken out as follows:  Gas Conditioning Equipment $100,000  CNG Vehicle Fueling station $200,000  A 200 KW Microturbine $300,000  CNG Modifications to 5 Vehicles $40,000  High Strength Waste Receiving Station $20,000  Various Contractor Costs $40,000  Contingencies & Misc. $50,000 Total Project Cost $750,000 This project will generate significant new revenue for the City, and will also reduce the City’s dependence on traditional vehicle fuels such as gasoline and diesel. The vehicle fuel savings of this project will begin at about $8,000 per year, but increase annually to about $60,000 per year over the next ten years as vehicles are routinely replaced. The increase in revenue from this project will come from two sources. First, the Utility will begin accepting some types of very high strength waste water which is a by-product of certain industrial processes (i.e. the manufacture of ethanol). This waste will not harm the treatment plant operations as it will be fed directly into the anaerobic digesters. This waste will stimulate the methane forming bacteria in the digesters greatly increasing the amount of biogas produced. Acceptance of this waste will generate an additional $146,000/year in revenue. The second revenue source from this project comes from the increase in electricity that will be produced from the additional biogas. This additional electricity will be sold directly to Alliant Energy and is expected to create about $150,000 per year in new revenue for the City. The Utility has been in discussions with the Wisconsin Department of Energy independence which has expressed interest in this project and has visited the Treatment plant to see our current operations. They support our initiatives, but have not offered any grants at this point. Even without any state or federal grants, an investment in this project of $750,000 is estimated to return over four million dollars in the next ten years. Proceeding with this project at this time is recommended for several reasons: The current interest rate environment is favorable. The same contractors will be used to build these facilities as built our current facilities. Alliant Energy has indicated that they presently have capacity in their bio-fuel rate tariff to accommodate our increase in electrical production capacity, which may not be available in a few months. (This tariff allows Alliant Energy to pay the City $0.12/KWH instead of something below $0.085/KWH.) cc: Eric Levitt, City Manager Jay Winzenz, Director of Administrative Services Wald Klimczyk, City Attorney CITY MANAGER’S OFFICE MEMORANDUM August 15, 2011 TO: City Council FROM: Jacob J Winzenz, Director of Admin. Services/Assistant City Manager Patty Lynch, Comptroller SUBJECT: Adoption of Financial Policies on Debt Management and Fund Balance and Resolution 2011-828 to Approve Commitment of Fund Balances Summary The City of Janesville’s financial policies set forth the basic framework for the fiscal management of the city. Operating concurrently with the changing circumstance and conditions, these policies assist the decision-making process of the City Council. These policies provide guidelines for evaluating both current activities and future programs. The Governmental Accounting Standard Board (GASB) issues standards in governmental accounting and financial reporting that are intended to result in useful information to the users of financial reports. This year the City is implementing GASB Statement No. 54 Fund Balance Reporting and Governmental Fund Type Definitions. Implementation of this standard impacts the fund balance policy and is incorporated in the fund policy and analysis. Recommendation The Administrative Services Department recommends City Council adopt Council Policy Statement No. 75 Debt Management which sets the debt limit at 2.5% of the assessed equalized value and further limits the General Fund debt to 15% of the General Fund operating budget. We further recommend adoption of Council Policy No. 88 Fund Balance which recommends the unrestricted General Fund balance be maintained between 16.7% and 25% of the budgeted General Fund operating expenditures. Finally we recommend the City Council adopt resolution No. 2011-828 which approves the commitment of Fund balances in special revenue funds in compliance with governmental accounting standards. Suggested Motions Move to adopt Council Policy Statement No. 75 Debt Management and Council Policy 88 Fund Balance. Move to adopt Resolution No. 2011-828 to approve the commitment of fund balances. City Manager Recommendation The City Manager concurs with the Administrative Services Department recommendation. 1 Debt Management Debt issuance is a vital local government financial tool to raise the money necessary to implement major capital improvements projects. Although vital to local government finance, debt should be issued prudently to maintain the long-term financial well being of the government and the community. Sound debt management practices demonstrate to credit reporting agencies the credit worthiness (credit rating) of the City of Janesville for borrowing monies at favorable interest rates. Council Policy Statement No. 75 (Debt Management) - approved on May 13, 1997 - sets the City’s parameters for debt issuance and management. It is best to periodically review these policies to make sure they reflect the priorities of the current City Council and community, as well as best practices of the Government Officers Finance Association (GFOA). The Government Officers Finance Association (GFOA) recommends that a debt management policy address five (5) issues: 1. Debt Limits 2. Use of Derivatives 3. Debt Structuring Practices 4. Debt Issuance Practices 5. Debt Management Practices Debt Limits - The current debt management policy does not establish limits on the amount of total General Obligation (GO) debt, other than the legal debt limit, or any financing limits based upon the ability of the community to pay. Section 67.03(1) of the Wisconsin Statutes provides that the amount of indebtedness of a municipality shall not exceed five (5) percent of the equalized assessed valuation of the taxable property in the municipality. This is referred to as the “Legal Debt Limit”. The following table summarizes total debt subject to the legal limit over the last five (5) years: 5-Year Debt History 20062007200820092010 Equalized Assessed Value$ 3,927,834,200$ 4,160,780,300 $ 4,370,063,000$ 4,251,636,500$ 3,991,153,400 Legal Debt Limit (5%) 196,391,710 208,039,015 218,503,150 212,581,825 199,577,670 City General Obligation Debt 78,630,253 80,214,198 82,529,034 87,480,869 76,914,462 Legal Debt Margin$ 117,761,457$ 127,824,817$ 135,974,116$ 125,100,956 $ 122,663,208 40.04%38.56%37.77%41.15%38.54% GO Debt as a % of debt limit GO Debt / Equalized Value2.00%1.93%1.89%2.06%1.93% Over the last five (5) years, debt in Janesville as a percentage of the legal limit has been fairly stable fluctuating between 38% and 41%. There does not appear to be a trend of increasing debt as a percentage of the legal limit, and in fact the current percentage is lower than in 2006. The following tables compare Janesville to our peer cities: 2 GO Debt as a Pecent of Legal Limit and GO Debt per Capita - 12/31/2009 EqualizedLegalActual% of%GO Debt/ ValueDebt LimitGO DebtLimitEqual ValCapita Oshkosh$ 3,801,817,900$ 190,090,895$ 143,157,24975%3.77%$ 2,166 Manitowoc 2,057,147,400 102,857,370 76,641,84075%3.73% 2,272 La Crosse 3,162,233,300 158,111,665 103,925,000 66%3.29% 2,025 Beloit 1,744,186,100 87,209,305 53,788,77962%3.08% 1,456 Racine 4,133,491,100 206,674,555 104,930,000 51%2.54% 1,331 Fond du Lac 2,736,857,700 136,842,885 67,802,47750%2.48% 1,576 Green Bay 6,234,597,300 311,729,865 144,083,225 46%2.31% 1,385 Kenosha 6,799,688,900 339,984,445 152,367,692 45%2.24% 1,536 Eau Claire 4,315,946,500 215,797,325 88,094,68841%2.04% 1,337 Sheboygan 2,865,434,000 143,271,700 56,376,12639%1.97% 1,144 Wausau 2,726,775,100 136,338,755 52,334,07538%1.92% 1,338 Waukesha 5,904,933,100 295,246,655 100,739,201 34%1.71% 1,425 Appleton 4,789,062,900 239,453,145 47,460,34420%0.99% 654 Brookfield 6,566,898,300 328,344,915 52,399,32716%0.80% 1,382 Average$ 4,131,362,114$ 206,568,106$ 88,864,287 43%2.35%$ 1,502 Janesville 4,251,636,500 212,581,825 87,480,86941%2.06% 1,376 Janesville (2010) 3,991,153,400 199,557,670 76,914,46239%1.93% 1,210 The amount of debt subject to the legal debt limit actually issued by each peer community is contained in the “Actual GO Debt” column. The range of debt as a percentage of the legal debt limit in our peer communities ranges from 16% to 75%. As of December 31, 2009, Janesville was tied for the sixth lowest amount of GO debt as a percentage of the legal debt limit among our peer communities. Additional statistics show that the 2010 debt burden per capita at $1,210 and 1.93% of equalized value are low to moderate and compare favorably with our peer cities. Standard and Poor’s indicates that a GO debt as a percentage of equalized assessed value below 3% indicates low fiscal stress. Standard and Poor’s benchmark equates to 60% of the legal debt limit for Wisconsin municipalities. The legal debt limit is only one measure and does not really consider the ability of a community to make the annual debt service payments. Two measures of this are debt service as a percentage of General Fund expenditures and debt service per capita. The following table compares Janesville against our peer communities on these measures: 3 General Fund Debt Service vs. Expenditures - 2010 General FundGeneral FundDebt as % ofDebt Service/ Debt ServiceExpendituresExpendituresCapita Oshkosh17,083,23941,711,00041%259 Green Bay19,451,36078,462,07025%187 Waukesha9,731,81657,542,22017%138 Manitowoc4,974,89229,535,67717%147 Brookfield5,200,00036,383,75314%137 La Crosse9,719,00072,447,55513%189 Beloit4,298,47733,833,72013%116 Sheboygan4,227,01135,096,94112%86 Racine8,755,75981,993,75011%111 Kenosha7,499,56770,987,33311%76 Wausau 4,156,86638,121,67211%106 Fond du Lac3,308,10529,120,39311%77 Eau Claire4,971,60054,340,4009%75 Appleton$3,852,111$66,048,8266%$53 Average$7,659,272$51,830,37915%126 Janesville$5,368,643$41,467,99913%$84 Janesville - 20114,997,52141,583,74412%79 Janesville compares favorably to our peer communities when looking at debt service as a percentage of General Fund budget expenditures at 12 percent. This is below the average for our peer communities and tied for the sixth lowest. Standard and Poor’s indicates that 10 to 15 percent represents a moderate level of spending flexibility. Furthermore, Janesville’s tax-supported debt service per capita is $79 and the fifth lowest of our peer communities. Based upon our debt history and a comparison to our peer communities, our debt management policy has been revised to establish maximum debt at 2.5 percent of the equalized assessed value and General Fund debt service at 15 percent of General Fund expenditure budget. Staff believes these limits will allow flexibility in the management of our debt and keep debt service affordable for the community. These limits may be exceeded by a super-majority vote of the City Council. Use of Derivatives – We have not used nor do we intend to use derivatives as a financing mechanism. Debt Structuring Practices – In general, our debt is structured with a 10-year period of amortization. However, we match the amortization term with the expected life of the asset. In addition, in the past special assessment debt has been structured with a 6 4 year amortization period because the source used to repay this debt has been developers and residents using the five (5) year payment plan. Debt repayment has historically been structured with equal principal payments with declining interest payments. However, staff would like the flexibility to structure debt based upon the ability of the community to pay and the goals of the City Council. Therefore, at times it may be appropriate to consider other repayment terms. Debt Issuance Practices – Janesville has historically worked with a financial advisor and used competitive sales. All bids are reviewed and approved by the City Council. In consultation with our financial consultant we may also recommend refunding of prior issues to either reduce interest costs or restructure the debt. Such refunding also must be approved by the City Council. Debt Management Practices – Due to both the City Council request to review the City’s Debt Management Practices and the new Governmental Finance Officers Association (GFOA) best practices regarding debt issuance and management, this is an appropriate time for the City Council to review and update the current policy to match current practices. Street Maintenance (Resurfacing/Reconstruction) Borrowing Beginning in 2007, the City began funding street resurfacing/reconstruction through note issues. The table below breaks down a 5-year funding history for street resurfacing and reconstruction: Street Resurfacing/Reconstruction Funding Breakdown - 2006-2011 200620072008200920102011 General Fund $ 1,289,000$ 1,548,000$ 1,556,099$ 1,109,573$ 829,654 $ 362,200 Street Note Issue - 500,000 500,000 650,000 520,000 975,000 LRIP/ARRA Funding - - 150,000 1,439,300 842,000 152,323 Total Funding$ 1,289,000$ 2,048,000$ 2,206,099$ 3,198,873$ 2,191,654$ 1,489,523 Miles of Streets 10.611.612.711.88.05.2 % Reconstruction7.7%7.1%3.7%6.9%9.4%20.8% % Note Issue Funded0%24%23%20%24%65% Since 2006, the percent of street resurfacing/reconstruction funded by the General Fund has decreased and the burden of costs has shifted to street note issues. From 2007 to 2010, note issue funding accounted for approximately 23% of the total funding for street resurfacing/reconstruction. In 2011, note issue funding increased to 65% percent of the total costs. A survey of Janesville’s peer cities indicates that 11 of 13 communities borrow to fund street resurfacing/reconstruction. Additionally, the average amount borrowed for street resurfacing/reconstruction is approximately $2.1 million. 5 2010 Borrowing for Street Maint. Appleton$ - Beloit 306,500 Eau Claire 6,405,000 Fond du Lac 2,355,500 Green Bay N/A Kenosha - La Crosse 1,162,330 Manitowac 4,636,465 Oshkosh 1,293,300 Racine 3,772,250 Sheboygan 1,201,700 Waukesha 1,829,000 Wausau 2,428,250 Average 2,115,858 Janesville (2011) 975,000 In summary, borrowing for street resurfacing/ reconstruction began in 2007 as a way to manage levy limits and keep the operating tax levy at a minimal increase for city residents. Street resurfacing has a life of 15 years, so it meets our definition of a capital outlay. If the City Council determines that it wants to move street resurfacing and reconstruction projects back to being funded by the general fund operating budget, the funding will come from other general fund programs due to the constraints on the City’s revenues. Fund Balance Policy The level of fund balance is intended to serve as a measure of the financial resources available to mitigate risk. It is prudent to maintain unrestricted General Fund balance for several reasons, including:  To quickly respond to unexpected situations requiring significant financial resources; such as natural disasters and unanticipated service cost level increases resulting from inclement winter weather  To respond to financial emergencies, such as revenue shortfalls and cyclical downturns  To avoid large variations in taxes and fees or variations in the type and quality of municipal services provided due to financial emergencies  Avoid the need for short-term borrowing to cover delays in revenue receipt  Preserve the credit worthiness (credit rating) of the City of Janesville for borrowing monies at favorable interest rates The following table summarizes the general fund balances over the last five (5) years: 6 General Fund 5-Year Fund Balance History 20062007200820092010 Revenue$ 37,586,029$ 39,296,706$ 39,922,962$ 40,642,421$ 41,172,344 Expenditures 37,208,723 39,473,648 40,963,454 41,186,393 40,906,075 Net change in fund balance 377,306 (176,942) (1,040,492) (543,972) 266,269 Fund balance - beg of year 8,614,371 8,991,677 8,814,735 7,774,243 7,230,271 Fund balance - end of year$ 8,991,677$ 8,814,735$ 7,774,243$ 7,230,271$ 7,496,540 The proposed Fund Balance policy adopts the new financial statement reporting requirements issued by the Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. This statement changes the terminology used for fund balance reporting. It is intended to clearly defined categories to make the nature and extent of the constraints placed on a government’s fund balance more transparent. This Statement is effective with the December 31, 2011 financial statement. With GASB Statement No.54, the fund balance will be reported in five new categories: nonspendable, restricted, committed, assigned, or unassigned.  Nonspendable fund balance - Amounts cannot be spent because they are not in spendable form such as inventories and prepaid items and long-term inter-fund advances (TIF cash deficits).  Restricted fund balance - Include those resources that are externally restricted by creditors, grantors, and contributors.  Committed fund balance - Amounts limited by self-imposed formal action (ordinance or resolution) on how funds will be spent.  Assigned fund balance - Reflects a government’s intended use or earmarking of resources (formerly the designated fund balance).  Unassigned fund balance - Net resources that have not been restricted, committed, or assigned to specific purposes within the City’s general fund and is available to be used for any purpose. Unrestricted fund balance includes committed, assigned and unassigned fund balances. The unrestricted fund balances are the amounts that the City can control internally. The following table summarizes the General Fund balance restated with the new fund balance terminology for the past five years and shows some ratios commonly used to measure fund balance: 7 General Fund 5-Year Fund Balance Analysis 20062007200820092010 Nonspendable Fund Balance$996,342$952,401$906,483$690,567$513,769 Assigned Fund Balance$2,529,837$2,578,820$1,231,000$850,000$890,000 Unassigned Fund Balance 5,465,498 5,283,514 5,678,760 5,689,704 6,092,771 Unrestricted Fund Balance$7,995,335$7,862,334$6,909,760$6,539,704$6,982,771 Total General Fund Balance$8,991,677$8,814,735$7,816,243$7,230,271$7,496,540 Two Months Operating Expenditures$5,468,890$5,816,910$6,040,185$5,982,254$5,923,605 Unrestricted Fund Bal/ Operating Exp.24.4%22.5%19.1%18.2%19.6% Unassigned Fund Bal/ Total Exp.14.7%13.4%13.9%13.7%14.7% Unrestricted fund balance is the remaining current assets the City of Janesville has available to run day to day operations, or has in case of an emergency revenue shortfall or program expense overrun. The appropriate fund balance level is dependent upon a variety of factors including potential fluctuations in revenue sources, anticipated levels of services, trends in debt service, and the comfort level of management and the City Council. A key factor to consider in the development of a fund balance policy is the diversification and stability of revenue sources. The following table summarizes the General Fund revenue sources for the past five years: 8 General Fund Revenue Sources 5-Year Summary ActualActualActualActualBudget 20072008200920102011 State Shared Revenues $5,327,617$5,328,355$5,340,661$5,020,877$5,016,320 Expenditure Restraint 821,496 844,382 806,939 733,720 746,680 Shared Revenue Total 6,149,11316% 6,172,73715% 6,147,60015% 5,754,59714% 5,763,00014% Other State Aid 2,669,3337% 2,718,2857% 2,988,2317% 2,992,2597% 2,990,0007% Property Taxes22,461,407 56%23,597,800 59%24,438,013 60%24,841,061 60%25,437,644 62% Other taxes 1,592,5614% 1,682,3754% 1,620,2914% 1,763,7074% 1,757,5004% Interest Income 1,466,5474% 978,4392% 617,5682% 374,6121% 425,0001% Fines, Rents, Sale of Prop. 645,2472% 607,9802% 554,6061% 559,1082% 648,0002% Licenses & Permits 1,514,0444% 1,087,4223% 1,085,0923% 1,260,4903% 1,032,0003% Dept Charges & Other 2,227,4126% 2,606,9567% 2,484,1636% 2,438,0906% 2,295,1006% Transfers 571,0421% 470,9681% 706,8572% 1,188,4203% 350,0001% 39,296,706 100%39,922,962 100%40,642,421 100%41,172,344 100%40,698,244 100% This table shows that property taxes are the City’s largest revenue. The second largest revenue source is the state shared revenue and other state aids received from the State of Wisconsin. This percentage had dropped slightly from 2007, but was still at 21% of the General Fund revenue in 2011. Property taxes typically provide a stable source of revenue and are not as subject to volatile swings during poor economic times as other sources of revenue, such as sales tax. Although with the current State budget, there is limited ability to grow revenues in the future coming from the property tax levy. State Aids are anticipated to decrease by approximately $1 million in 2012 with the proposed state budget. Since property taxes and state aid combined amount to 84% of the 2011 budget, the levy limits and proposed state aid reduction will significantly restrict the City’s ability to finance the services the City provides. These revenue constraints reaffirm the need for a fund balance policy so the City can maintain its strong financial reserves. A sufficient level of fund balance is necessary to preserve the long-term stability of the City. It will enable the City to respond to unexpected situations requiring significant financial resources, such as natural disasters, and allow enough operating cash during the year to pay for operational costs without reliance on short-term borrowing. Currently, as stated in the annual budget document, the City of Janesville fund balance policy is to maintain an undesignated (unassigned) balance of 10% of the adopted General Fund expenditure budget. The Government Finance Officers Association (GFOA) recommends that the City establish a formal policy on the level of unrestricted fund balance that should be maintained in the General Fund. GFOA recommends, at a minimum, that the General Fund unrestricted fund balance be no less than two months of General Fund operating expenditures (16.7%). As shown in the fund balance analysis table above, Janesville 9 has meet that criteria for all years listed. The current ratio of 19.6% was considered very strong as stated in Standard and Poor’s October 2010 rating summary. The recommendation for the appropriate fund balance level is included in the proposed City Council Policy Statement - Policy No.88 on Fund Balance. The unrestricted General Fund balance should be between 16.7 and 25 percent of the budgeted general fund operating expenditures for the subsequent year. Flow of funds assumption Some projects are funded by a variety of resources including both restricted and unrestricted funds. GASB Statement No.54 requires that Council set a spending prioritization policy. The fund balance policy recommends that we spend the most restricted funds first. Determination of funds reporting status GASB Statement No.54 has also provides new definitions for governmental fund types. The governmental fund types and their definitions are listed below:  General Fund - to account for all financial resources not accounted for in another fund.  Special Revenue Fund – to account for specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects.  Debt Service Fund – to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest.  Capital Projects Fund - to account for financial resources are restricted, committed, or assigned to expenditures for capital outlays. For the most part, the GASB definitions just provided clarification to the current definition; however the special revenue funds types require additional review. Our auditors, Baker Tilly Virchow Krause, LLC have requested that we review all funds to make certain of the fund type determination under the new GASB standard. To meet the definition of a special revenue fund must have a specific revenue source and expenditures must be for a specific project. To be in compliance with GASB Statement No.54 requirements, at year-end 2010 the uncompleted projects fund and several activities in the “special accounts” fund were closed. Funds in the amount of $290,454 from these accounts were recorded as revenue (Transfer In) in the general fund. These transfers were a major contributor to the fund balance increase reported in 2010. Another part of this review requires that each special revenue fund have its resources restricted by external grants, state statues, or committed by enabling legislation of the City Council (via resolution or ordinance). There has been a review of the City of Janesville’s 28 special revenue funds and 34 activities within the Special Accounts fund to make certain the accounts meet the new special revenue definitions. Since many of 10 these special revenue funds/activities were set-up years ago, evidence of enabling legislation is not readily available. To satisfy the requirements of GASB Statement No. 54, a City Council resolution needs to be adopted to formally commit the following special revenue funds for specific purposes. Resolution 2011-828 commits the special revenue items as listed below:  20% of the Cable TV franchise fees shall be committed for the cost related to operation of JATV-12  Resources of the Golf Courses Special Revenue Fund shall be committed for the costs associated with the Golf Courses  37.5% of the Room Tax collected shall be committed for the support of the Janesville Visitor and Convention Bureau  Resources collected in the Parkland Acquisition Special Account fund shall be committed to the cost associated with acquiring and improving parkland  Resources collected in the Crime Prevention Special Account Fund shall be committed to the for cost associated with crime prevention activities  Resources collected in the Federal Forfeiture Sharing Special Account Fund shall be committed to the cost associated with for drug enforcement activities and / or police equipment  Resources collected for Police Department Drug Unit shall be committed to the cost associated with for drug enforcement activities  Resources collected from the Janesville School District for Police Liaison Service in the Special Account Fund shall be committed to the costs associated with school resource officers  Resources collected from the Townships surrounding Janesville in the Rural Fire Protection Special Account Fund shall be committed to the costs associated with Fire Protection Services  Resources collected in the Landfill Long-term Care of Site 3023 Special Account shall be committed to the cost associated with long-term care of landfill site 3023 cc: Eric Levitt, City Manager 11 CITY OF JANESVILLE Policy No. 75 Page 1 of 4 CITY COUNCIL POLICY STATEMENT Date Issued General Subject: Administration Effective Date 5/13/97 Special Subject: Debt Management Cancellation Date DRAFT Supersedes #75 of 5-13- 97 PURPOSE To record and clarify the City Council's policy regarding the management and issuance of debt. STATEMENT OF POLICY In accordance with State Statutes, Chapter 67, the City is granted the authority to issue debt. The following practices and procedures shall be followed by the City: 1. Conditions for Debt Issuance The City shall limit the issuance of debt to capital outlays (and costs associated with the capital outlay), including the acquisition or construction of capital facilities, infrastructure, and other capital assets. 2. Capital Improvement Program The Administration prepares an updated Capital Improvement Program on a bi-annual basis. The Capital Improvement Program will indicate the source of funding for all proposed capital projects and/or assets. The first year of the Capital Improvement Program will be included in the Annual City Budget. Those projects and/or assets which require financing through the issuance of debt will be reconsidered when the City Council undertakes the Debt Issuance process. 3. General Obligation Debt The City will issue General Obligation Debt for those capital improvement projects benefiting the City as a whole. Such debt would be secured by the full faith, credit, and taxing powers of the City. Every capital improvement project proposed for financing through general obligation debt should be accompanied by a full analysis of the future operating and maintenance costs associated with the project, including the impact of the CITY OF JANESVILLE Policy No. 75 Page 2 of 4 CITY COUNCIL POLICY STATEMENT Date Issued General Subject: Administration Effective Date 5/13/97 Special Subject: Debt Management Cancellation Date DRAFT Supersedes #75 of 5-13- 97 proposed project on the annual operating budget. Whenever possible, the City will finance capital improvement projects by using self-supporting Revenue or Special Assessment Bonds. Such Bonds assure the greatest degree of equity because those who benefit from a project closely match those who pay for a project. 3.1 Debt Limit Section 67.03(1) of the Wisconsin Statutes provides that the amount of indebtedness of a municipality shall not exceed five (5) percent of the equalized assessed valuation of the taxable property in the municipality. The City shall limit outstanding General Obligation Debt to less than 2.5% percent of the equalized assessed value. The City Council, by super majority vote, may increase the stated debt limit. The City recognizes the importance of issuing debt prudently and should first determine its long-term financial capability to repay. 4. Revenue Debt To promote taxpayer equity, the City will consider the issuance of Revenue Debt for capital improvement projects providing benefits to specific users. Such debt would be secured by revenues of the financed project. However, if the projected revenues will not be sufficient to meet the corresponding annual debt service payments or the credit rating of the proposed Revenue Debt instrument would result in an adverse interest rate, the City would consider issuing General Obligation Debt for such projects. 5. Debt Service Limitations Annual General Fund Debt Service payments for General CITY OF JANESVILLE Policy No. 75 Page 3 of 4 CITY COUNCIL POLICY STATEMENT Date Issued General Subject: Administration Effective Date 5/13/97 Special Subject: Debt Management Cancellation Date DRAFT Supersedes #75 of 5-13- 97 Obligation Debt, exclusive of that funded by enterprise operations or debt approved exceeding the debt limit described above, shall not exceed 15 percent of annual General Fund expenditures. 6. Review of Financing Alternatives The City will seek all possible Federal and State reimbursements for mandated projects and/or programs. The City will encourage pay-as-you-go financing of capital improvement projects where feasible. However, it will strive to maintain a balanced relationship between issuing debt and pay-as-you-go financing to ensure property tax stabilization. The City will seek to maintain a sufficient General Fund cash balance in order to prevent the need for external cash flow borrowing. 7. Timing of Debt Issuance Debt should be issued when projects are or will be for bid or construction start within 6 months. Projects funded with borrowed funds should be completed within 24 months from of the issuance of debt. If funds are not expended within 18 months, consideration should be given to reprogramming the funds for another approved project.not 8. Characteristics of Debt Issuance The issuance of debt for funding annual general operating expenditures will be prohibited. The average maturities of long-term obligations shall notonly exceed 10 years if the expected useful life of the capital project or asset financed justifies it. The scheduled maturities of long-term obligations should not exceed the expected useful life of the capital project or asset(s) financed. CITY OF JANESVILLE Policy No. 75 Page 4 of 4 CITY COUNCIL POLICY STATEMENT Date Issued General Subject: Administration Effective Date 5/13/97 Special Subject: Debt Management Cancellation Date DRAFT Supersedes #75 of 5-13- 97 9. Debt Issuance Process The City will use competitive sales as the primary means of selling long-term bonds and notes. Negotiated sales will be permitted only if there is evidence of volatile market conditions, complex security features, or other unique factors. Bonds - The issuance of bonds requires the City Council to follow various procedures identified in State Statutes 67.05. These include separate Council actions to authorize and establish the bond details and are comprised of, but not limited to, setting the final amount of bonds to be issued. Promissory Notes - Although State Statutes 67.12 permits the City Council to combine the authorization and details of a note issue into one Council action, the Council will adopt the aforementioned issuance procedure required for bonds. 10. Professional Services The City shall retain an independent financial advisor for debt structuring, the rating review process, marketing debt issuances, sale and post-sale services, and to assist in issuing the City's official statement. The City shall retain bond counsel for legal and procedural advice on all debt issuances, which include determining the legal authority to issue the proposed debt and that it qualifies for tax exempt status. 11. Rating Agency Relations The City will maintain effective communications with financial and debt rating agencies concerning the City's financial condition. The City's Comprehensive Annual Financial Report shall be distributed to the rating CITY OF JANESVILLE Policy No. 75 Page 5 of 4 CITY COUNCIL POLICY STATEMENT Date Issued General Subject: Administration Effective Date 5/13/97 Special Subject: Debt Management Cancellation Date DRAFT Supersedes #75 of 5-13- 97 agencies. Additionally, the City recognizes there are several key debt ratios used by investors and financial rating analysts when reviewing the City's credit worthiness. Therefore, the City will address the following ratios:  Debt Per Capita.  Debt as a Percentage of Equalized Property Value.  Annual Debt Service as a percentage of annual General Fund operating expenditure appropriations. The City will comply with the Security and Exchange Commission’s reporting requirements concerning "Continuing Disclosure Undertakings". 12. Bond Rating Goals The City will seek to maintain and improve its bond rating to minimize borrowing costs and to ensure access to credit markets. CITY OF JANESVILLE Policy No. 88_ Page 1 of 4 CITY COUNCIL POLICY STATEMENT Date Issued General Subject: Administration Effective Date ______ Special Subject: Fund Balance Cancellation Date DRAFT Supersedes No. PURPOSE The objectives of this fund balance policy are as follows:  Preserve the credit worthiness (credit rating) of the City for borrowing monies at favorable interest rates.  Provide working capital for the City to meet cash flow needs during the year.  Provide a comfortable margin of safety to address unanticipated expenditures / emergencies and unexpected declines in revenue due to economic downturns, natural disasters, etc.  Provide a resource to stabilize fluctuations from year to year in the property taxes paid by the City taxpayers. STATEMENT OF POLICY This statement identifies the amount the City of Janesville will strive to maintain in its unrestricted General Fund balance, how the fund balance will be funded, and the conditions under which fund balance may be spent. 1. Fund Balance Reporting Categories This policy follows the Fund Balance reporting categories stated in Government Accounting Standards Board (GASB) Fund Balance Reporting and Governmental Statement No. 54, Fund Type Definitions . This statement impacts governmental fund types. The fund balance will be reported in these five categories: Nonspendable Fund Balance, Restricted Fund Balance, Committed Fund Balance, Assigned Fund Balance and Unassigned Fund Balance. 2. Flow of Funds It is the policy of the City of Janesville that in cases where multiple types of funds are available to pay for expenditures in the various funds, restricted resources will be used first, followed by committed, assigned, and finally unassigned. Unrestricted fund balance includes committed, assigned and unassigned fund balances. CITY OF JANESVILLE Policy No. 88_ Page 2 of 4 CITY COUNCIL POLICY STATEMENT Date Issued General Subject: Administration Effective Date ______ Special Subject: Fund Balance Cancellation Date DRAFT Supersedes No. 3. Procedures In order to achieve the objectives of this policy, the following guidelines shall be adhered to by the Common Council: 3.1 The unrestricted General Fund balance should be between 15 and 25 percent of the budgeted general fund operating expenditures for the subsequent year. The target goal is that the unrestricted fund balance be two months of the general fund operating expenditures. 3.2 The City will maintain appropriate commitments or assignments of General Fund, special revenue funds, debt service funds and capital projects funds for specified purposes, including but not limited to contingencies, compensated absences or similar items. Commitments and/or assignments of fund balance shall be made pursuant to appropriate legislation adopted by the City Council. 3.3 As part of the annual budget process, the Comptroller will estimate the surplus or deficit for the current year and prepare a projection of the year-end unrestricted General Fund balance. Such projection will include an analysis of trends in fund balance levels on an historical and future projection basis. Any anticipated balance in excess of the minimum unrestricted General Fund balance may be assigned to other purposes, or budgeted to reduce the ensuing year’s property tax levy. 3.4 Funds in excess of the targeted unrestrictedtargeted unrestricted General Fund balance may be considered to supplement “pay as you go” capital outlay expenditures (including reduction of anticipated debt issues). Unrestricted fund balance above the targeted unrestricted General Fund balance may be used to support recurring operating expenditures in times of CITY OF JANESVILLE Policy No. 88_ Page 3 of 4 CITY COUNCIL POLICY STATEMENT Date Issued General Subject: Administration Effective Date ______ Special Subject: Fund Balance Cancellation Date DRAFT Supersedes No. fiscal stress, but this practice is discouraged. 3.5 Withdrawal of any amount of unrestricted General Fund balance in excess of the targeted minimum of the amount budgeted under (3.1) above, for the sole purpose of reducing the ensuing year’s property tax levy, may be made only upon a supermajority vote of the City Council. 3.6 The Common Council, by vote, can declare a fiscal emergency and withdraw any amount of General Fund balance for purposes of addressing the fiscal emergency. Any such action must also provide for necessary appropriations to restore the unrestricted General Fund balance to the minimum balance within a three-year period. 3.7 This policy will be reviewed by the City Manager’s Office every three years following adoption or sooner at the direction of the Common Council. 3.8 It is the policy of this government that assignments of fund balances and resources within a fund may be determined by the Comptroller. RESOLUTION NO. 2011-828 A Resolution to Approve Commitment of Fund Balances. WHEREAS, the Governmental Accounting Standards Board (GASB) has issued Statement No. 54, which changes the terminology used for fund balance reporting on balance sheets of Governmental Funds; and WHEREAS, to meet the new GASB Statement No. 54 definition of a special revenue fund, the specific revenue source must be committed to expenditures for specified purposes; and WHEREAS, Administrative Services has reviewed the new terminology; and WHEREAS, 20% of the Cable TV franchise fees shall be committed for the cost related to operation of JATV-12; and WHEREAS, resources of the Golf Courses Special Revenue Fund shall be committed for the costs associated with the Golf Courses; and WHEREAS, 37.5% of the Room Tax collected shall be committed for the support of the Janesville Visitor and Convention Bureau; and WHEREAS, resources collected in the Parkland Acquisition Special Account fund shall be committed to the cost associated with acquiring and improving parkland; and WHEREAS, resources collected in the Crime Prevention Special Account Fund shall be committed to the for cost associated with crime prevention activities; and WHEREAS, resources collected in the Federal Forfeiture Sharing Special Account Fund shall be committed to the cost associated with for drug enforcement activities and/or police equipment; and WHEREAS, resources collected for Police Department Drug Unit shall be committed to the costs associated with for drug enforcement activities; and WHEREAS, resources collected from the Janesville School District for Police Liaison Service in the Special Account Fund shall be committed to the costs associated with school resource officers; and WHEREAS, resources collected from the Townships surrounding Janesville in the Rural Fire Protection Special Account Fund shall be committed to the costs associated with Fire Protection Services; and WHEREAS, resources collected in the Landfill Long-term Care of Site 3023 Special Account shall be committed to the costs associated with the long-term care of landfill site 3023. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Janesville that the above enumerated commitments of the special revenue funds for specific purposes are hereby approved and adopted. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner Dongarra-Adams Eric J. Levitt, City Manager Liebert McDonald ATTEST: Rashkin Steeber Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: Wald Klimczyk, City Attorney Proposed by: Administrative Services Prepared by: Administrative Services