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HomeMy WebLinkAbout10.01.2025 Agenda Packet Finance Department City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5005 http://www.oshkoshwi.gov LONG RANGE FINANCE COMMITTEE AGENDA October 1, 2025 5:00 PM To Whom It May Concern: PLEASE NOTE the City of Oshkosh Long Range Finance Committee will meet on Wednesday, October 1st , at 5:00 p.m., in Room 404 at the Oshkosh City Hall, 215 Church Avenue. ROLL CALL I. Citizen Input - (Up to the first 15 minutes of meeting – can be regarding any City Finance topic) II. Approval of August 6, 2025 minutes III. Introduction of new committee member Ryan Lindley IV. Update: Deferred Payment Agreement Policy was approved by Council on Sept 9, 2025 Resolution 25-467 V. Review potential deferral options for utility connections and payment of special assessments VI. Next meeting date and agenda items – December 3, 2025 VII. Adjournment If you have any questions, please call the Finance Office at (920) 236-5005 between 8:00 am – 4:30 pm Monday – Friday. Finance Department City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5005 http://www.oshkoshwi.gov LONG RANGE FINANCE COMMITTEE MINUTES August 6, 2025 5:00 PM To Whom It May Concern: PLEASE NOTE the City of Oshkosh Long Range Finance Committee will meet on Wednesday, August 6th , at 5:00 p.m., in Room 404 at the Oshkosh City Hall, 215 Church Avenue. The meeting was called to order by Adam BellCorelli-Chair at 5:00pm. Members Present: Adam BellCorelli, DJ Nichols, Todd Hutchison, Dr. Timothy Bergan Members Absent: Koby Schellenger Staff Present: Julie Calmes – Director of Finance Denise Edwards – Finance Management Analyst Betsie Anderson – Utility Accounting Manager ROLL CALL I. Citizen Input:  None II. Approval of June 4, 2025 Minutes:  MOTION TO APPROVE: DJ Nichols; 2nd Todd Hutchison  CARRIED: Approved unanimously, no added comments. III. Introduction of new committee member Dr. Timothy Bergan IV. Update: Revaluation Policy was approved by Council on June 10, 2025 Resolution 25- 303 V. Payment Arrangment Policy:  The committee’s recommendation is to make the necessary language changes to be more absolute and clear and proceed to take this policy to Council for approval. Finance Department City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5005 http://www.oshkoshwi.gov VI. Defining the Scope and Responsibilities of the Long Range Finance Committee:  There was discussion on possible expansion of the committees goals and priorities. Council Member Nichols wanted to talk with the Mayor and possibly bring this idea to Council for consideration. VII. Next Meeting Date & Agenda Items – October 1, 2025 VIII. Adjournment:  MOTION TO ADJOURN: Adam BellCorelli; 2nd DJ Nichols  CARRIED: Approved unanimously  Meeting adjourned at 5:49 p.m. If you have any questions, please call the Finance Office at (920) 236-5005 between 8:00 am – 4:30 pm Monday – Friday. Finance Department City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5005 http://www.oshkoshwi.gov TO: Members of the Long Range Finance Committee FROM: Julie M. Calmes, Director of Finance DATE: October 1, 2025 RE: Review Potential Deferral Options for Utility Connections and Payment of Special Assessments BACKGROUND The City Council directed Public Works, Finance, and the City Attorney’s office to review the special assessment ordinance and bring forth recommended changes to allow for deferred special assessments. City staff brought a draft proposal to Council at the July 8, 2025 Council meeting. During Council discussion at that meeting, it was recommended that staff make additional revisions and then bring the revised policy language to Long Range Finance Committee to review. If anyone would like to hear that discussion it starts at the one hour and 44 minute mark for the July 8th Council meeting. ANALYSIS As part of this process, Chapter 20 Plumbing has some proposed updates to not require immediate connection once city services are installed during public construction projects. Private Onsite Wastewater Treatment System (POWTS) and private wells would not need to be abandoned until the systems no longer function or provide safe drinking water. Some of the proposed changes to Chapter 21 Special Assessments/Connections Charges include: - Single family residential properties, that is the owner’s primary residence, would have the option to defer the special assessment/connection charges interest free for a maximum of ten (10) years. o There was Council discussion if this should be available for more than just owner occupied properties or not? o Property owners can make voluntary payments upon the amount due at any time. Finance Department City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5005 http://www.oshkoshwi.gov o Upon connection to the utilities, or at the end of the ten year deferral, property owners would then be notified to select a payment option (in full, in full on next property tax bill, or chose one of the various payment plan options). o Deferred assessments/connection charges will become due and payable in full upon any of the following:  Sale of the property.  Transfer of title to the property by estate, gift or any other means to anyone other than the spouse of the property owner who elected deferment.  The property owner who elected deferment ceases to use the property as their primary residence.  The property is subdivided and any portion of the property is sold or transferred, including without limitation, by CSM or Plat, or by development as a condominium. - A twenty (20) year payment plan option was added. FISCAL IMPACT The City incurs debt to fund these projects, and partially relies on special assessment payments for debt service. The potential lack of payments due to deferrals adds an estimation challenge, as payment behaviors vary—some assessments are paid immediately, others on a plan, and now some could be deferred. This variability complicates the City's ability to accurately forecast what this policy revision would impact the City’s budget. City of Oshkosh Municipal Codes Revised CHAPTER 20 PLUMBING SECTION 20-8 PLUMBING PERMITS, PLAN EXAMINATIONS AND APPROVAL (C) Mandatory Connection Required All existing, new and annexed buildings located within the City of Oshkosh shall comply with this code section. 1. All buildings provided with a sanitary drain and vent system shall be connected to the public sanitary sewer system in compliance with this chapter. During public construction projects, every building shall have a public service lateral terminating at the property line installed. Buildings with a sanitary drain and vent system that discharge to an existing Private Onsite Wastewater Treatment System (POWTS) shall abandon such system and connect to the public sanitary sewer system at such time as the system no longer functions. No new POWTS may be constructed when public sewer is available. 2. All buildings provided with a potable water distribution system shall be provided with an approved supply of potable water. Private wells properly permitted and metered may serve as an approved supply for the distribution system. During public construction projects, every building shall have a public service lateral terminating at a curb stop installed. The installation of a private side service lateral from the public service lateral to the inside of the building may be deferred until such time as a private well onsite no longer provides safe drinking water. 1. All buildings provided with a sanitary drain and vent system shall be connected to the public sanitary sewer system in compliance with this chapter. Buildings with a sanitary drain and vent system that discharge to a Private Onsite Wastewater Treatment System (POWTS) shall abandon such system and connect to the public sanitary sewer system when a public sanitary sewer main is determined to be available to the property. Notice to abandon any such Private Onsite Wastewater Treatment Systems shall not extend the time for compliance beyond one year after the date sewer is made available to the property. 2. All buildings provided with a potable water distribution system shall be provided with an approved supply of potable water. Private wells properly permitted and metered may serve as an approved supply for the distribution system. Every building with a potable water distribution system shall have a private water service lateral from the public potable water system to the inside of the building's occupied space, terminating with a building control valve. 3. (a) All buildings regulated by the City's Subdivision Ordinance shall be provided with a foundation drain tile sump pump system that connects to the public storm sewer system or discharges to other acceptable points as required by the City's Subdivision Ordinance, Section 30-445(C)(5). City of Oshkosh Municipal Codes Revised (b) All new buildings with a storm drain foundation system shall be connected to the public storm sewer system in compliance with all applicable chapters or discharge to other acceptable points as required by the City's Subdivision Ordinance, Section 30-445(C)(5). If the public storm drainage system is not available to the property at the time of construction then the property owner will be required to apply for the installation of and connect to the public storm drainage system within 12 months after installation of the public storm drainage system. (c) All existing buildings with a foundation drain system in operation on April 1, 2017 shall be permitted to stay in operation as long as it does not create a nuisance to the public and are not connected to the sanitary sewer system. If a building in existence on April 1, 2017 does not have a foundation drain system and a foundation drain system is installed on the property, the system may be connected, but shall not be required to connect, to the public storm drainage system. The foundation drain system shall be installed in compliance with all applicable codes so as to not create a nuisance to the public. SECTION 20-12.2 PRIVATE WELLS (A) Filling and Sealing Required. All private wells located on any premises, which is served by the public water system of the City shall be properly filled by July 1, 1993 or at the time of connection to the City's water supply system, whichever occurs later. Only those wells for which a well operation permit has been granted by the City Plumbing Inspector may be exempted from this requirement. The City Plumbing Inspector shall order filled any well in this City which tests unsafe for use, which is not in current use, or which is non-complying with Chapter NR 812, Wisconsin Administrative Code. The owner or occupant must demonstrate compliance with NR 812 through a signed statement from a State certified well driller or pump installer. The owner or occupant of the property upon which such well is located shall fill such well in accordance with Section NR 811.17 or Section 812.26, Wisconsin Administrative Code, within thirty (30) days after receipt of notice from the City Plumbing Inspector. (B) Well Operation Permit. A permit may be granted to a well owner to operate a well for a period not to exceed three (3) years if the following requirements are met. Application shall be upon forms provided by the City Plumbing Inspector. This permit may be renewed at its expiration for additional periods, each additional period not to exceed three (3) years, if all the following requirements continue to be met: (1) The well and pump installation meet or are upgraded to meet the requirements of NR 812, Wisconsin Administrative Code, and certification of the acceptability of the well has been granted by a state certified well driller or pump installer and a copy of this certification accompanies the application for issuing or reissuing of a permit. (2) The well has a history of producing safe water and presently produces bacteriologically and City of Oshkosh Municipal Codes Revised chemically safe water as evidenced from laboratory tests by a laboratory certified by the Wisconsin Department of Health and Social Services or the Wisconsin State Laboratory of Hygiene. Such evidence shall include bacteriological sampling, consisting of obtaining a minimum of 2 consecutive safe samples taken a minimum of 2 weeks apart prior to issuing or reissuing the permit and shall accompany the application. T(3) The proposed use of the well can be justified as being necessary in addition to water provided by the public water system at the time of issuance or reissuance of the permit. Reserved. (4) No physical connection shall exist between the piping of the public water system and the private well, which fact shall be certified by the City of Oshkosh plumbing inspector and shall accompany the application for issuance or reissuance of a permit. (5) The well and pump installation is in present use. (6) A well permit application fee shall be paid at the time of application for the issuance or reissuance of the permit. Fees shall be determined according to the inspection fee schedule and will be established by resolution. (C) Report and Inspections. An abandonment report form, supplied by the Department of Natural Resources shall be submitted by the well owner to the City Plumbing Inspector, and the Department of Natural Resources within ten (10) days of the completion of the well abandonment. (D) State Department of Natural Resources Regulations Adopted. The rules and regulations pertaining to private wells as promulgated by the Wisconsin Department of Natural Resources, specifically Chapters NR 811 and NR 812, Wisconsin Administrative Code, together with any future renumberings, additions, deletions or supplements thereto, are herewith incorporated as part of this Chapter and shall be enforced with the same force and effect as though set forth in full herein. Providing, however, that where such rules and regulations are less stringent than other provisions found in this Code, the provisions of this Code shall apply. City of Oshkosh Municipal Code Revisions thru City of Oshkosh Chapter 21 – Page 1 Municipal Code CHAPTER 21 PUBLIC CONSTRUCTION AND SERVICES / METHODS OF PAYMENT / SPECIAL CHARGES / SPECIAL ASSESSMENTS / CONNECTION CHARGES ARTICLE I. SPECIAL CHARGES 21-1 Special Charges ARTICLE II. SPECIAL ASSESSMENTS 21-2 Special Assessments Policy 21-3 Special Assessments Authorized 21-4 Certification of Final Assessments / Notice of Election of Installment Payments 21-4.2 Payment of Connection Charges 21-5 Payment in Full; Payment in Full with Property Tax bill; Deferment of Special Assessments and Connection Charges (For Water and Sewer Utilities only) or Election of Installment Plan 21-6 Five-Year Installment Plan 21-7 Ten-Year Installment Plan 21-8 Fifteen-Year Installment Plan 21-8.2 Twenty-Year Installment Plan 21-9 Prorated Interest 21-11 Special Assessments – Deferred Payment 21-12 Severability PUBLIC CONSTRUCTION AND SERVICES / METHODS OF PAYMENT / SPECIAL CHARGES / SPECIAL ASSESSMENTS The City of Oshkosh finds that it is necessary to protect the health, safety, welfare and property of its residents and business owners through the installation, construction, reconstruction and maintenance of public works and facilities including but not limited to water mains, services, and appurtenances; sanitary sewer mains, services and appurtenances; storm sewers mains, services and appurtenances; public streets and sidewalk; bike and pedestrian ways; landscaping; street lighting and associated amenities. The City of Oshkosh also finds that it is necessary to provide reasonable, equitable and sustainable funding sources for these purposes which may include public financing through bonding or other means as provided within this Chapter including special assessments, special charges, financing through utilities and payment of connection charges by properties that abut public improvements which have not previously paid toward those improvements when those properties annex/attach to the City. The City has created and maintains separate utilities for water (Chapter 28 of this Municipal Code), wastewater (Chapter 24 of this Municipal Code), and storm water (Chapter 14 of this Municipal Code) and hereby authorizes the use of special charges, special assessments and connection charges for costs City of Oshkosh Municipal Code Revisions thru City of Oshkosh Chapter 21 – Page 2 Municipal Code associated with those utilities. ARTICLE I. SPECIAL CHARGES SECTION 21-1 SPECIAL CHARGES Special Charges may be imposed against real property for current services rendered by allocating all or part of the cost of the service, together with an administrative fee as may be adopted by Resolution of the Council, to the property benefited as provided in Sec. 66.0627 of the Wisconsin Statutes. Where such charge is specifically authorized by a specific provision within this Municipal Code, such provision shall constitute notice of the special charge, except as additional notice may be required by statute or ordinance. ARTICLE II. SPECIAL ASSESSMENTS SECTION 21-2 SPECIAL ASSESSMENTS POLICY The City of Oshkosh “Policy for Special Assessments” as adopted by the Common Council shall be kept on file in the Office of the City Clerk, the Finance Departmentpublished on the city’s website and available through in the Office of the City Engineer within the Department of Public Works. for the City of Oshkosh. Copies of the Policy shall be available for public inspection during usual business hours. SECTION 21-3 SPECIAL ASSESSMENTS AUTHORIZED (A) In addition to any other methods provided by law, the cost of installing, constructing or maintaining any public improvement or providing any current service may be charged in whole or in part to properties benefitting from the installation, construction or maintenance of the public improvements or current service and special assessments may be levied against the properties benefited in accordance with Subchapter VII of Chapter 66 of the Wisconsin Statutes and the City’s Special Assessment Policy. Any assessments not provided for within the policy or deviations from the provisions of the Special Assessment Policy shall be specifically approved by the Common Council. Upon certification, property owners may pay the assessment in accordance with the following sections. (B) Any special assessment levied under this ordinance shall be a lien against the property assessed from the date of the final resolution determining the amount of the levy. (C) Any person against whose property a special assessment is levied may appeal therefrom in the manner prescribed by Section 66.0703 of the Wisconsin Statutes within ninety (90) days of the date of the final resolution. City of Oshkosh Municipal Code Revisions thru City of Oshkosh Chapter 21 – Page 3 Municipal Code SECTION 21-4 CERTIFICATION OF FINAL ASSESSMENTS / NOTICE OF ELECTION OF INSTALLMENT PAYMENTS (A) Upon acceptance of the particular public improvement involved, the Board of Public Works shall issue a Certification of Final Levy of Special Assessments similar to the Certificate specified in Section 66.0713 of the Wisconsin Statutes. (B) Upon certification of the project by the Board of Public Works: (1) The City Clerk shall publish as a Class 1 Notice, an Installment Assessment Notice similar to the notice specified in Section 66.0715(3)(e) of the Wisconsin Statutes stating that the City has determined to permit collection of the same in annual installments as specified in this Article and the initial and final resolutions of Council. (2) The Finance Director shall notify all property owners who are eligible to make an election for payment under the provisions of this Article that they shall have thirty (30) days from the date of the notification to select a payment option. (C) The election to utilize an installment plan as provided in Sections 21-6 through 21-8 below shall be made in writing by the property owner on forms supplied by the Finance Department. (D) Property owners may be provided the option to defer payment of special assessment charges or the payment of connection charges, as defined in section 21-4.2 below, for a period not to exceed ten (10) years as provided within this Chapter. At the time of actual connection or the expiration of the deferral period, the property owner shall be required to pay special assessments/connection charges whether or not actually connected to the public system. SECTION 21-4.2 PAYMENT OF CONNECTION CHARGES Except as may otherwise be prohibited by Wisconsin Statutes or Rules of the Public Service Commission, property annexing or attaching to the City which have not previously been assessed or otherwise paid for a public benefit that abuts the property shall be invoiced and pay a connection charge, which is calculated at rates equal to the special assessments previously levied against benefiting properties located within the City limits for public storm sewer, public sanitary sewer main and/or public water main, at such time as the annexation procedure is officially completed. At the time an annexation petition or request for attachment is filed or at a date no later than 3 months prior to the date established by an applicable boundary agreement for area attachments, the Department of Community Development shall provide the property owner(s) an estimate of any anticipated connection charges and information pertaining to options for payment and shall notify the Department of Public Works and Finance Director of the pending annexation or attachment. After final council action on the annexation/attachment, the Finance Director shall notify all property owners of the actual amount of the connection charge(s) and if property owners are eligible to make an election for deferment of the charges or payment under the provisions of this Article, that the property City of Oshkosh Municipal Code Revisions thru City of Oshkosh Chapter 21 – Page 4 Municipal Code owner shall have thirty (30) days from the date of the notification to select a deferment or payment option. The election to defer the collection of the assessment or to utilize an installment plan as provided in Sections 21-6 5 through 21-8 below shall be made in writing by the property owner on forms supplied by the Finance Department. A property owner selecting a deferment plan who within the deferment period connects to public sanitary sewer and/or public water must either pay the connection charge/special assessment at the time of connection or select a payment option at the time of connection. The payment plan shall not extend beyond thirty years from the original certification date of the special assessments and the Finance Director is hereby authorized to adjust the apportionment of principal and interest in installments as may be necessary under the options defined below as may be necessary to ensure payment in full within this period. SECTION 21-5 PAYMENT IN FULL; PAYMENT IN FULL WITH PROPERTY TAX BILL; DEFERMENT OF SPECIAL ASSESSMENTS AND CONNECTION CHARGES (FOR WATER AND SEWER UTILITIES ONLY); OR ELECTION OF INSTALLMENT PLAN Upon notification by the Finance Director pursuant to Section 21-4 or 21-4.2 above or connection to the public system, an owner may select from the following options for payment of the Special Assessment or Connection Charges: 1) The owner may pay the special assessment/connection charge in full prior to November 1st; 2) the owner may elect to pay the entire assessment/connection charge on that year’s property tax bill; 3) the owner of a single-family residential property, that is the owner’s primary residence and which is not connected to the water and/or sewer utility mains, may elect to defer payment of new utility special assessment charges or connection charges for a period not to exceed ten (10) years. Deferment shall be without interest during the initial ten (10) year period. During the deferment period the owner may choose to make voluntary payments upon the amount due at any time. Any special assessment or connection charge that has been deferred under this paragraph shall be due and payable in full upon any of the following: a. sale of the property. b. Transfer of title to the property by estate, gift or any other means to anyone other than the spouse of the property owner who elected deferment. c. The property owner who elected deferment ceases to use the property as their primary residence. d. The property is subdivided and any portion of the property is sold or transferred, including, without limitation, by CSM or Plat, or by development as a condominium. 1)4) Or the owner may select one of the installment plans provided below. SECTION 21-6 FIVE-YEAR INSTALLMENT PLAN The first installment shall include a one-fifth (1/5) portion of the principal of the assessment/connection City of Oshkosh Municipal Code Revisions thru City of Oshkosh Chapter 21 – Page 5 Municipal Code charge. Each subsequent installment shall include a like portion of the principal and one (1) year's interest at the rate of six (6) percent per year upon the unpaid portion of such assessment/connection charge. SECTION 21-7 TEN-YEAR INSTALLMENT PLAN (A) The property owner shall be deemed to accept this plan unless the property owner pays the amounts due by November 1st in accordance with section 21-5 or files with the Finance Director an election to pay the special assessment/connection charge in accordance with sections 21-6 or section 21-8 or 21-8.2. (B) The first installment shall include a one-tenth (1/10) portion of the principal of the assessment/connection charge. Each subsequent installment shall include a like portion of the principal and one (1) year's interest at the rate of six (6) percent per year upon the unpaid portion of such assessment/connection charge. SECTION 21-8 FIFTEEN-YEAR INSTALLMENT PLAN The first installment shall include a one-fifteenth (1/15) portion of the principal of the assessment. Each subsequent installment shall include a like portion of the principal and one (1) year’s interest at the rate of six (6) percent per year upon the unpaid portion of such assessment. SECTION 21-8.2 TWENTY-YEAR INSTALLMENT PLAN The first installment shall include a one-twentieth (1/20) portion of the principal of the assessment. Each subsequent installment shall include a like portion of the principal and one (1) year’s interest at the rate of six (6) percent per year upon the unpaid portion of such assessment. SECTION 21-9 PRORATED INTEREST Any property owner on an installment basis may pay all remaining installments, or any part thereof, together with interest at the rate of six (6) percent per year through the day of receipt of payment, provided, however, that between November 1 and December 31 of each year, the one (1) installment with interest which is placed on the current tax roll must be paid as shown on the tax roll. SECTION 21-12 SEVERABILITY In the event any section, subsection, clause, phrase or portion of this ordinance is for any reason held illegal, invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remainder of this ordinance. It is the legislative intent of the Common Council that this ordinance would have been adopted if such illegal provision had not been included or any illegal application had not been made.