#3 Authorize payment of special assessment receivables for Hickory Ridge subdivision lots (File Res #2011-832)
CLERK-TREASURER’S OFFICE MEMORANDUM
August 30, 2011
TO: City Council
FROM: Jean Ann Wulf, City Clerk-Treasurer
SUBJECT: Action on a proposed resolution authorizing the City Manager to
use the Property Acquisition Account to pay the special
assessment receivables that were held by the County and City for
the Hickory Ridge Subdivision Lots (Resolution No. 2011-832)
Staff Recommendation
Staff recommends that the City Council support a motion to authorize the City
Manager to use the Property Acquisition Account to pay the special assessments
that were held by the County and City for the Hickory Ridge Subdivision Lots.
City Manager Recommendation
This proposed methodology would allow the City Council to determine through
the budgeting process now and in the future whether you desire to use the
revenues of these sales to assist with further property purchases, operational
costs or other capital needs.
Suggested Motion
I move to adopt Resolution No. 2011-832 which authorizes the City Manager to
use the Property Acquisition Account to pay the special assessments that were
held by the County and City for the Hickory Ridge Subdivision Lots.
Analysis
The City of Janesville has an investment of $155,500 in the Hickory Ridge
Subdivision. The investment is made up of improvement costs and the cost to
purchase the lots at the Rock County tax lien sale. Currently, we are accounting
for Hickory Ridge Subdivision transactions in four funds: Capital Projects-
Property Acquisition Account, Special Assessment Fund, Water Utility and
Wastewater Utility.
Staff would prefer to consolidate the accounting of the Hickory Ridge Subdivision
by having the Property Acquisition Account pay all outstanding assessments on
these lots so that they are free of any encumbrances and liabilities. All proceeds
from lot sales would then be allocated to the General Fund-Sale of City Property
Account. We believe this change would provide more flexibility to the General
Fund as we navigate through our Special Assessment delinquency issues. The
General Fund is ultimately responsible for the Special Assessment Fund’s debt
service payments.
RESOLUTION NO. 2011–832
A resolution authorizing the City Manager to use the Property Acquisition Account to pay the
special assessments that were held by the County and City for the Hickory Ridge Subdivision Lots
WHEREAS, the City of Janesville has an investment in the amount of $155,500 in the Hickory Ridge
Subdivision; and
WHEREAS, the City of Janesville has been accounting for lot sales by distributing the proceeds from
Rock County and individual lot sales to the Special Assessment Fund, Water Utility, Wastewater Utility
and Property Acquisition Fund, and
WHEREAS, the City of Janesville would prefer Property Acquisition Account pay all Special Assessment
Receivables to the Special Assessment Fund, Water Utility and Wastewater Utility so that the lots are free
of any encumbrances and liabilities; and
WHEREAS, all past proceeds ($66,751) and future proceeds from the sale of these lots would be
deposited into the General Fund-Sale of City Property Account, and
WHEREAS, the City of Janesville would have more flexibility by changing the allocation of proceeds and
expenses for these lots; and
WHEREAS, the Common Council find that this Resolution are in the best interests of the City and its
taxpayers.
NOW THEREFORE BE IT RESOLVED BY THE COMMON COUNCIL of the City of Janesville that the
City Manager and others on his behalf are authorized to pay off the outstanding Special Assessments on
these lots using the Property Acquisition Fund and that all lot proceeds will be given to the General Fund
Sale of Public Property Account.
BE IT FURTHER RESOLVED that the City Manager and his designee(s) are hereby authorized to take
whatever other actions and to make whatever other changes that may find necessary and/or desirable to
effectuate this transaction.
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: Clerk-Treasurer’s Office