Public Funding Current Trends & Successful Strategies

Wisconsin Rural Water AssociationWisconsin Rural Water Association

“Public Funding Public Funding Current Trends &

S ccessf l Strategies”Successful Strategies”

K t R M hKurt R. MuchowCommunity Development Consultant

Session Agendag

• Trends in Public FundingTrends in Public Funding

• Municipal Budget Cycle vs Public Funding• Municipal Budget Cycle vs. Public Funding

• Capital Improvements Planning• Capital Improvements Planning

• Public Funding Opportunities• Public Funding Opportunities

E l P j t• Example Projects

• Planning & Engineering Firm

• 40th Anniversary

• New Milwaukee Metro Office

• New Vierbicher Websitewww.vierbicher.com

Trends in Public FundinggCommunity Development Block Grant (CDBG)

Legend2014 CDBG PF = $14,170,212 (37)( )2014 CDBG PLNG = $9,000 (1)2014 CDBG ED = $02014 CDBG PFED = $02015 CDBG PF = $13 999 759 (33)2015 CDBG PF = $13,999,759 (33)2015 CDBG PLNG = $120,000 (5)2014 CDBG ED = $02014 CDBG PFED = $477,500 (1)

Funding Trends• 2016 CDBG PF = $5,000,000 to

$8 000 000$8,000,000• 2016 CDBG PLNG = $835,000• 2016 CDBG READI = $7,000,000• 2016 CDBG PFED = $6,000,000

2016 CDBG ED $8 000 000• 2016 CDBG ED = $8,000,000

Trends in Public FundinggPark & Recreation Programs

Legend2014 DNR Stewardship = $8,180,845(46)2014 Fed. Land & Water Cons = $1,841,840(5)2014 Federal Rec. Trail = $2,623,219(73)2014 Recreational Boating =2,233,227(36)2015 DNR Stewarship = $6,742,026(39)2015 Fed. Land & Water Cons. = $685,269(31)$ ( )2015 Federal Rec. Trail = $403,920 (15)2015 Recreational Boating = $2,583,145 (41)

Funding TrendsFunding Trends•Stable

Trends in Public FundinggU.S.D.A. Rural Development

Legend2014 Comm. Fac Loans = $41,600,000(3)2014 Comm. Fac. Grants = $795,095(15)2014 Sewer & Water Loans = $22,915,630(10)2014 Sewer & Water Grants = $8,749,470(18)2015 Comm. Fac. Loans = $42,631,900(7)2015 Comm. Fac. Grants = $308,000(13)$ , ( )2015 Sewer & Water Loans = $25,435,000(18)2015 Sewer & Water Grants = $9,244,000(27)

Funding TrendsFunding Trends• Loan Funds Increasing• Grant Funds Stable

Trends in Public FundinggLocal Transportation Programs

Legend2014 DOT Bicycle-Ped = $4,633,000(37)2014 DOT TAP = $13,333,514(27)$ , , ( )2014 DOT TEA = $3,907,565(7)2015 DOT STP Urban = $8,144,194(8)2015 DOT STP Rural = $36,789,636(35)2015 DOT TEA = $1 938 500(5)2015 DOT TEA $1,938,500(5)

Funding Trends• Stable

Trends in Public FundinggWDNR Clean Water Fund & Safe Drinking Water

Legend2014 SDWL Prin. Forgiveness =$4,355,900(14)2014 CWF Prin Forgiveness =$2,550,202(6)2015 SDWL Prin Forgiveness =$4,627,500(12)2015 CWF Prin Forgiveness =$4,094,032(11)

Funding Trends•Loan Funds Increasing•Principal Forgiveness Stable to Increasing

Trends in Public FundinggWisconsin Economic Development Corp.

Legend2014 WEDC CDI = $3,582,810(14)2014 WEDC ISR = $5,118,000(6)2014 WEDC ISR $5,118,000(6)2015 WEDC CD1 = $4,194,130(12)2015 WEDC ISR = $3,417,250(4)

Funding TrendsFunding Trends• 2016 WEDC CDI – Stable • 2016 WEDC ISR – Stable

Typical Municipal Budget/Project Cycleyp p g j y

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J J A S O N D J F M A M J J A S O N D

Budget Budget Planning

Budget Review & Adoption Project Implementation

Fi i• Financing• Design / Bidding

P j t I l t tiProject Implementation• Construction

Municipal Project Cycle vs. Public Fundingp j y g

2016 2017 2018

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Municipal Capital Improvements Planning

• Goal“P id iti“Provide communitieswith information on thecapital improvementscapital improvementsneeded during theupcoming planningp g p gperiod (typically 5 years)and the proposedmethod of financingthese expenditures.”


• Definition: C it l I tCapital Improvements

“Capital items should“Capital items shouldhave a useful life of atleast 3 years and a costleast 3 years and a costof $5,000 or more.”


• Components: – Administrative & Policy Guidelines– Financial AnalysisFinancial Analysis– List of Needed Projects & Priority– Estimated Costs– Timetable for Implementationp– Sources of Project Funding


• General Suggestions- Include all Departments

(Public works, water, wastewater, police, fire, parks, etc)

Create a CIP Committee- Create a CIP Committee(Dept. heads, Clerk, Treasurer, Board/Council members)

- Understand Outside Influences* WDOT Six Year Plan

* New Regulations (WDNR, EPA, etc.)* Private Development

- Include Your Professional Advisors(Financial advisor, engineer, planner, etc.)

U d t th CIP A ll- Update the CIP Annually

City of Viroqua Police, Fire, Public Works and Parks & Recreation Departments

Five Year Capital Improvement Project List

Project Description 2015 2016 2017 2018 2019 Total Future Project Description 2015 2016 2017 2018 2019 Total Future Projects

A. Police Department 1. Squad Cars 2. Radio System Subtotal Police B. Fire Department 1. SCBA Equip.

$65,000 $0 $65,000

$0

$32,500 $30,000 $62,500

$0

$32,500 $0 $32,500

$0

$65,000 $0 $65,000

$200,000

$32,500 $0 $32,500

$0

$227,500 $30,000 $257,500

$200,000

$0 $0 $0

$0 1. SCBA Equip.

2. Storage Building 3. Building Addition Subtotal Fire C. Public Works 1. Tractor & Brush Hog 2. Pickup Truck 3. Dump Truck

$0 $0

$0 $0

$91,000 $0 $0

$0 $0

$0 $0

$0 $25,000 $0

$0 $0

$0 $0

$0 $0 $160,000

$200,000 $0

$0 $200,000

$0 $0 $0

$0 $0

$0 $0

$0 $0 $0

$200,000 $0

$0 $200,000

$91,000 $25,000 $160,000

$0 $100,000 $125,000 $225,000

$0 $0 $0 p

Subtotal Pub. Works D. Parks & Recreation 1. Seal Coating Trails 2. Park Bowl Bleachers 3. Tractor W/ Mower 4. ¾ Ton Plow Truck 5. Playground Equip.

$91,000

$7,500 $0 $0

$0 $0

$25,000

$7,500 $100,000 $0 $0 $0

$160,000

$0 $0 $0 $0 $0

$0

$0 $0 $35,000 $0 $0

$30

$0 $0 $0 $25,000 $200,000

$276,000

$15,000 $100,000 $35,000 $25,000 $200,000

$0

$0 $0 $0 $0 $0

6. Baseball Lights 7. Swimming Pool Subtotal Park & Rec E. Equip Reserve Fund

$0 $0 $7,500

$10,000

$0 $0 $107,500

$10,000

$0 $0 $0

$10,000

$0 $0 $35,000

$10,000

$0 $0 $225,000

$10,000

$0 0 $375,000

$50,000

$100,000 $2,600,000 $2,700,000

Total Project Costs $163,500 $195,000 $192,500 $300,000 $257,500 $1,108,500 $2,925,000

F di S Funding Sources 1. General Funds 2. Gen. Reserve Funds 3. G.O. Bonds/Notes 4. Water Utility Funds 5. Water Ulility Loan 6. Sewer Utility Funds 7. Sewer Utility Loan 8 Grants

$72,500 $0 $91,000 $0 $0 $0 $0 $0

$70,000 $0 $75,000 $0 $0 $0 $0 $0

$32,500 $0 $160,000 $0 $0 $0 $0 $0

$65,000 $0 $102,000 $0 $0 $0 $0 $100 000

$32,500 $0 $125,000 $0 $0 $0 $0 $0

$272,500 $0 $553,000 $0 $0 $0 $0 $100 000 8. Grants

9. Other Contributions 10. Tax Increment Fin.

$0 $0 $0 $0

$0 $50,000 $0 $0

$0 $0 $0 $0

$100,000 $33,000 $0 $0

$0 $100,000 $0 $0

$100,000 $183,000 $0 $0

Total Funding $163,500 $195,000 $192,500 $300,000 $257,500 $1,108,500

Equipment Reserve Fund Balance $10,000 $20,000 $30,000 $40,000 $50,000 $50,000

Note: The City should consult with their financial advisor (Ehlers & Associates) regarding financing future capital projects.

City of Viroqua Infrastructure Projects

Five Year Capital Improvement Project List Project Description 2015 2016 2017 2018 2019 Total Future

Projects A. Street Seal Coating B. Rock Avenue - North

$84,000

$84,000

$84,000

$84,000

$84,000

$420,000

B. Rock Avenue North

1. Water System 2. San. Sewer System 3. Storm Sewer Subtotal Rock Ave. C. Northeast Avenue 1. Water System 2. San. Sewer System 3. Storm Sewer Subtotal NE Ave.

$970,707 $891,028 $134,116 $1,995,851

$0 $0 $0 $0

$0 $0 $0 $0

$576,931 $470,695 $192,084 $1,230,709

$0 $0 $0 $0

$0 $0 $0 $0

$0 $0 $0 $0

$0 $0 $0 $0

$0 $0 $0 $0

$0 $0 $0 $0

$970,707 $891,028 $134,116 $1,995,851

$576,931 $470,695 $192,084 $1,230,709

D. Abandon Oak St. Well E. Jefferson Street F. North 14 Lift Station G. Wastewater Treatment H. Center Street

$

$0

$0

$0

$0

$

$100,000

$0

$580,0000

$3,000,000

$

$0

$0

$0

$0

$

$0

$225,000 $0

$0

$

$0

$0 $0

$0

$

$100,000

$225,000 $580,000

$3,000,000

1. Water System 2. San. Sewer System 3. Storm Sewer Subtotal Center Street I. Rock Avenue – South 1. Water System 2. San. Sewer System 3. Storm Sewer Subtotal Center Street

$0 $0 $0 $0

$0 $0 $0

$0

$0 $0 $0 $0

$0 $0 $0 $0

$0 $0 $0 $0

$0 $0 $0 $0

$0 $0 $0

$0

$0 $0 $0 $0

$685,850 $606,810 $120,055 $1,412,715

$173,745 $352,000 $180,055 $705,800

$685,850 $606,810 $120,055 $1,412,715

$173,745 $352,000 $180,055 $705,800

J. Washington Street 1. Water System 2. San. Sewer System 3. Storm & Lighting Subtotal Wash. Street K. J Street Lift Station

$0 $0 $0 $0

$0

$0 $0 $0 $0

$0

$0 $0 $0 $0

$0

$0 $0 $0 $0

$0

$0 $0 $0 $0

$348,700

$0 $0 $0 $0

$348,700

$105,900 $1,250,055

$729,955 $2,580,010

Total Project Costs $2,079,851 $4,994,709 $84,000 $309,000 $2,551,215 $10,018,775 $2,580,010

Funding Sources 1. General Funds 2. Gen. Reserve Funds 3. G.O. Bonds/Notes 4. Water Utility Reserve 5. Water Ulility Loan 6. Sewer Utility Reserve 7 Sewer Utility Loan

$0 $0 $84,000 $0 $728,030 $0 $891,028

$0 $0 $84,000 $0 $525,948 $804,000 $2,025,695

$0 $0 $84,000 $0 $0 $0 $0

$0 $0 $84,000 $0 $0 $0 $0

$0 $0 $286,705 $0 $0 $0 $1,307,510

$0 $0 $522,705 $0 $1,253,978 $804,000 $4,224,233 7. Sewer Utility Loan

8. Grants (RD / CWF / SDWL) 9. Grants (LRIP/CDBG) 9. Tax Increment Fin.

$891,028 $242,677 $0 $134,116*

$2,025,695 $641,982 $721,000 $192,084

$0 $0 $0 $0

$0 $0 $0 $225,000

$1,307,510 $0 $500,000 $457,000

$4,224,233 $884,659 $1,221,000 $1,008,200*

Total Funding $2,079,851 $4,994,709 $84,000 $309,000 $2,551,215 $10,018,775

*Note: Revenue from TID No. 2 & No. 3 will be used to pay debt service on the Rural Development sewer loan in an amount that is equivalent to a 4118,800 TIF loan. Note: The City should consult with their financial advisor (Ehlers & Associates) regarding financing for future capital projects

Public Funding Opportunitiesg

• What is Public Purpose?– Economic Development– Health & Safety– Blight Elimination & Urban Renewal– Low-Income & Poverty– Affordable Housing– Environmental Protection– Recreation & “The Pursuit of Happiness”

Golden Rule!Golden Rule!

Public Funding OpportunitiesgParks, Trails & Water Recreation

• WDNR Stewardship• WDNR Rec. BoatingWDNR Rec. Boating• Federal Rec. Trails• County Park GrantsCounty Park Grants• DOT Alternatives

(MAP21)(MAP21)• Tax Incremental

Financingg

Public Funding OpportunitiesgWater Resources & Flood Mitigation

• WDNR Urban Non-Point• WDNR Lake Plng & Protectiong• WDNR River Plng & Protection• WDNR Municipal Flood Controlp C• FEMA Hazard Mitigation• CDBG PF & PF-EDCDBG PF & PF ED• WDOT Trans Econ Assist.• Tax Incremental Financing• Tax Incremental Financing

Public Funding OpportunitiesgMunicipal Infrastructure

• WDNR Safe Drinking Water• WDNR Clean Water FundWDNR Clean Water Fund• Rural Dev. Rural Utilities• Rural Dev Comm FacRural Dev. Comm. Fac.• WDOT Local Programs• CDBG PF & PF ED• CDBG PF & PF-ED• WDOT Tran. Econ Assist.• Tax Incremental Financing• Tax Incremental Financing

Public Funding Opportunities

Economic Development

• Tax Incremental FinancingCDBG Planning• CDBG Planning

• CDBG PF & PF-EDWDOT T E A i t• WDOT Tran. Econ Assist.

• WEDC Programs• Brownfield Programs• Econ. Dev. Admin• Rural Development

Tax Incremental Financing - Basicsg

• TIF = Tax Increment FinancingTIF Tax Increment Financing• TID = Tax Increment District

Fi t A th i d i 1975 Wi 66 1105• First Authorized in1975, Wis. 66.1105• Currently over 1000 active TIDs in

Wisconsin in over 400 communities


TIF is a tool available to communities TIF is a tool available to communities that assists in promoting the orderly growth and development of the growth and development of the community. TIF is used as a means to:• promote industrial development• promote industrial development• promote mixed-use development• eliminate blighted areas• rehabilitate deteriorating areasg




Eligible TIF Projectsg j• Eligible TIF projects can be located within

the TID or within one half mile radiusthe TID, or within one-half mile radius.• Eligible projects must benefit TID

Eli ibl j t i l d• Eligible projects include:- Infrastructure

L d i iti / d liti- Land acquisition / demolition- Environmental Clean-up- Site development- Site development- Development Incentives- Marketing & promotiong p- Administration

Type of Tax Increment Districts

• Industrial Development TIDIndustrial Development TID- 50% of area needs to be suitable for and

zoned for industrial developmentzoned for industrial development- Maximum Life = 20 years

Expenditure Period = 15 Years - Expenditure Period = 15 Years


• Blight Elimination TIDBlight Elimination TID- Typically Older Neighborhoods

50% f A M t b D l d Bli ht d- 50% of Area Must be Declared Blighted- Requires Formal Designation of Blight

’ b d- Letter’s Must be sent to Landowners- Maximum 27 year = 27 Years - Expenditure Period = 22 Years

Type of Tax Increment Districts• Rehabilitation/Conservation TID

C l R f d t R it li ti TID- Commonly Referred to as Revitalization TID- At least 50% of the property must be suitable for rehabilitation or conser ationfor rehabilitation or conservation- No more than 25% can be vacant property

L tt ’ M t b t t L d- Letter’s Must be sent to Landowners- Maximum 27 year = 27 Years - Expenditure Period = 22 Years


• Mixed-Use TIDMixed Use TID- Must Have at Least Two Land Uses(C i l/R id ti l/I d t i l)(Commercial/Residential/Industrial)

- No More Than 35% can be Residentiali if 20 - Maximum Life = 20 years

- Expenditure Period = 15 Years

PDCH Street & Utility ReconstructionPDCH Street & Utility Reconstruction

• City Infrastructure Reconstruction– 10,000 LF of Street & Utility Reconstruction– Downtown Enhancement– Total Project Cost = $4.3 Million

• $1.5 M WDNR CWF Loan• $1.7 M WDNR SDWL Loan• $660,000 WDOT Enhancement Grant

$300 000 CDBG G t• $300,000 CDBG Grant• $105,000 Tax Incremental Financing• $50 000 Fundraiser$50,000 Fundraiser• $0 General Fund

Viroqua Street & Utility Reconstruction• 14 City Blocks of Street & Utility

Reconstruction• Majority Located In Downtown• Total Project Cost = $3,225,000• Project Funding

• $1,153,978 Rural Development W t LWater Loan

• $384,659 Rural Development Water Grant

• $1 140 723 Rural Development • $1,140,723 Rural Development Sewer Loan

• $326,200 TIF• $221 000 DOT LRIP Grant$221,000 DOT LRIP Grant

• All Loans Paid by TIF and Sewer & Water Utilities. $0 General Fund.

E i ti TID City of Prairie du Chien2014 2015 TIF Projects Existing TIDs

with Eligible Projects

2014-2015 TIF ProjectsProject Cost

L d St E t i $578 000

Railroad Crossing Downtown

R it li ti

• Lessard St. Extension = $578,000• 22nd St. Extension = $1,615,000• Woodridge Acres = $1,050,000• Prairie Mason Redevelopment = $450,000• Godden Pit = $395,000

Safety Improvements

Blackhawk Ave.

Revitalization$

• Northgate Business Park = $1,132,000• Marq. Road Sewer & Water = $1,300,000

Total = $6,600,000

Funding Source

USH 18 Bypass

Blackhawk Ave. Enhancements

Marquette Road Reconstruction

Funding Source• $502,000 DNR SDWL• $265,000 Sewer Bond• $5,833,000 Surplus TIF Funds

USH 18 Bypass

Lyndon Station Water System

• Project Summaryj– New Water Tower– Water Distribution System Improvements

W ll R h b & E G t– Well Rehab & Emergency Generator

• Total Project Cost = $1,820,000– $600,000 CDBG-PF Grant– $1.22M WDNR SDWL Loan

Marathon City Business Park

• Project Summaryj– 80-acre Business Park– Creation of $12.0M new tax base

C ti f 175 j b– Creation of 175 jobs

• Total Project Cost = $3.5M– $250,000 CDBG-PFED Grant– $530,000 DOT-TEA Grants (2)– $2 720 000 TIF– $2,720,000 TIF

Park Place Apartments, Reedsburgg

• Project Summary48 it S i – 48-unit Senior Housing Apts.

– Downtown Redevelopment

– Blight Elimination

• Total Cost = $6.0M– $640,000 CDBG-EAP

$300 000 TIF– $300,000 TIF– WHEDA Section 42

Tax Credits

Gays Mills Community Commerce Center• Project Summary

- Village Hallg- Library- Community Center

C it Kit h- Community Kitchen- Owned by RDA- Leased to VillageLeased to Village

• Total Cost = $2.4 M- $1,333,955 CDBG EAP- $603,811 EDA Grant- $457,000 Rural Dev. Loan

( d)(Lease Revenue Bond)

DeForest Business ParkP j t S• Project Summary– 115-acre Business Park– Creation of $63.8M new tax baseCreation of $63.8M new tax base– Creation of over 300 jobs

• Project Scope– Streets & Utilities– Storm Water management– Rail SpursRail Spurs

• Funding– RDA-Lease Revenue Bonds– $798,000 CDBG-PFED Grants (2)– $300,000 WDOT-TEA Grants (2)

$174 000 WDNR Non Point Source Grant– $174,000 WDNR Non-Point Source Grant– Tax Incremental Financing

Village of OregonO t B d St t T ilOregon to Badger State Trail• Project Summary• 1.8 Mile Trail

• Funding Sources• 2011 Dane County PARC Grant = $250,000

• Total Project Cost = $842,000 • 2014 Dane County PARC Grant = $150,000• DNR Recreation Trail Grant = $ 45,000• Town of Oregon & Contributions = $ 35,000

Vill TIF $120 000• Village TIF = $120,000• Village Funds = $242,000

DeForest-Upper Yahara River TrailDescription Phase 2 Phase 3Total Trail Length 1,750 lf 7,500 lf• Boardwalk 1,300 lf 1,700 lf

P d T il 450 lf 5 800 lf• Paved Trail 450 lf 5,800 lfProject Cost $850,932 $680,000Source of Funds• WDNR Stewardship $243,997 $180,000• WDNR Urban Rivers $ 0 $245 000• WDNR Urban Rivers $ 0 $245,000• Dane County PARC $225,000 $150,000• Federal Rec. Trail $ 45,000 $ 45,000• Madison Community Foundation $ 0 $ 50,000• Village Funds $336 935 $ 0• Village Funds $336,935 $ 0

Monona-Lottes Park• Project Scope

• Parking Lot• Boat Ramp• Piers• Navigational Dredging• Restroom & Fish Cleaning

• Total Project Cost• $1 6 Million• $1.6 Million

• Funding• Dane County PARC Grant = $150 000• Dane County PARC Grant = $150,000• WDNR Rec. Boating Grant = $500,000• Developer Park Fees = $150,000• City TIF = $700 000• City TIF = $700,000• City General Fund = $100,000

Questions?Questions?

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Public Funding Current Trends & Successful Strategies