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HomeMy WebLinkAbout04. 19-552 OCTOBER 22, 2019 19-552 RESOLUTION (CARRIED 7-0 LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE AMENDMENTS TO 2019 OPERATING BUDGET TO ADJUST BUDGET TO ACTUAL PAYMENTS DUE: A) TID 24 OSHKOSH CORPORATION E-COAT PLANT$30,000 B) TID 28 BEACH BUILDING REDEVELOPMENT $36,000 C) TID 30 WASHINGTON BUILDING REDEVELOPMENT$10,000 D) TID 32 GRANARY REDEVELOPMENT $5000 INITIATED BY: FINANCE DEPARTMENT WHEREAS, the Common Council has adopted the 2019 Operating Budget, which is on file in the Office of the City Clerk and available for public inspection; and WHEREAS,various TID accounts require adjustment as shown on the attachment to this Resolution to reflect the actual payments due under the respective TID Development Agreements; and WHEREAS, an amendment to the 2019 Operating Budget is necessary for this purpose. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the 2019 Operating Budget, on file in the City Clerk's Office, is hereby amended with adjustments as listed in attached Amendment #12. 2019 Operations Budget Amendment # 12 Agenda Date: 10-22-2019 Account Description: TID 24 Account#: 0520-1040-6448-00000 Explanation: went up in value approx$1.4 million Dollar Amount: $30,000 Account Description: TID 28 Account#: 0510-1040-6448-00000 Explanation: ended up being paid in 2019 for their 2018 pay-go payment so 2019 will show 2 pay-go payments Dollar Amount: $36,000 Account Description: TID 30 Account#: 0514-1040-6448-00000 Explanation: more costs were spent on environmental than expected Dollar Amount: $ 10,000 Account Description: TID 32 Account#: 0518-1040-6448-00000 Explanation: this is the first pay-go for TID 32 and the value was under estimated Dollar Amount: $5,000 All TIF's will have sufficient funds and will be paid from the increment. Oshkosh TO: Honorable Mayor and Members of the Common Council FROM: Allen Davis, Community Development Director DATE: October 16, 2019 RE: Approve Amendments to 2019 Operating Budget to adjust budgets actually due: A. TID 24 Oshkosh Corporation E-Coat Plant$30,000 B. TID 28 Beach Building Redevelopment$36,000 C. TID 30 Washington Building Redevelopment$10,000 D. TID 32 Granary Redevelopment$5,000 BACKGROUND A budget amendment is necessary to make pay-go payments per the development agreements for TID 24 Oshkosh Corporation E-Coat Facility, TID 28 Beach Building Redevelopment, TID 30 Washington Building Redevelopment and TID 32 Granary Redevelopment. The payments have been authorized by Council through approval of the respective TIF development agreements. ANALYSIS The amount of pay-go payments estimated in the 2019 Budget need to be updated based on new information. TID 24 should be increased $30,000 as the assessed value increased approximately$1.4 million from the prior year which yielded a higher pay-go payment for 2019. TID 28 should be increased $36,000 since the 2018 pay-go payment was paid out in January, 2019's TID operating budget. TID 30 should be increased by $10,000 due to higher than estimated environmental remediation costs. These additional environmental costs were reimbursed to the City by the developer in 2019. Lastly, TID 32 needs to be increased $5,000 since the assessed value came in higher than originally estimated. FISCAL IMPACT The proposed budget amendment authorizes the use of funds in the respective TIFs to execute the terms of the development agreements. All the TID accounts have the necessary funds to make the pay-go payment. City Hall,215 Church Avenue P.O.Box 1 130 Oshkosh,WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us RECOMMENDATION Council approves a Budget Amendment to TID 24 in the amount of $30,000, TID 28 in the amount of$36,000, TID 30 in the amount of$10,000 and TID 32 in the amount of$5,000 Submitted, Approved: A, Gwiic/i4- cJ Allen Davis John Fitzpatric Community Development Director Assistant City Manager City Hall,215 Church Avenue P.O.Box 1130 Oshkosh,WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us