HomeMy WebLinkAbout41. 13-220
APRIL 23, 2013 13-220 RESOLUTION
(CARRIED__7-0__LOST______LAID OVER______WITHDRAWN______)
PURPOSE: DISSOLVE TAX INCREMENTAL DISTRICT #6
INITIATED BY: CITY ADMINISTRATION
WHEREAS, on November 17, 1988, the Common Council for the City of
Oshkosh created Tax Incremental Finance District #6, generally Northwest Industrial
Park; and
WHEREAS, State Statutes require that when a municipality recovers its cost
incurred in a district or because this District was created prior to October 1, 1995, when
27 years has expired, whichever occurs first, the District shall be dissolved; and
WHEREAS, Tax Increment Finance District #6 has reached its 27 year statutory
life.
NOW, THEREFORE BE IT RESOLVED by the Common Council of the City of
Oshkosh that Tax Increment Finance District #6 Northwest Industrial Park is dissolved.
City of Oshkosh
Finance Department
Church Ave., PO Box 1130
Oshkosh, W1 54903-1130
(920) 236 -5050 (920) 80 (920) 236 -5039 FAX
OlHKOIH
ON THE WATER MEMORANDUM
TO: Honorable Mayor and Members of the Common Council
FROM: Peggy Steeno, Finance Director
DATE: April 23, 2013
RE: Dissolve Tax Incremental District #6
BACKGROUND
On November 17, 1988, the Council approved a Tax Increment Financing Project Plan (TIF) for a new
Tax Incremental District (TID) identified as TID #6 Northwest Industrial Park. The purpose for creating
the TID was industrial park development and funds were expended for land acquisition and
infrastructure development activities.
ANALYSIS
TID # 6 has generated enough tax increment balance to pay off all its debt service obligations and must
now be closed. This is approximately two years ahead of its statutory termination deadline of November
17, 2015. The TID is currently valued at approximately $8.7 million, with an $8.3 million value
increment that will be added back to the general property tax roll upon closure.
There are excess funds remaining in the TID, approximately $900,000, which will be distributed back to
the affected taxing entities. After termination, staff will engage Schenck, SC, the City's independent
auditor, to complete the required closeout audit, distribute the remaining funds to all taxing entities, and
notify the Wisconsin Department of Revenue of the termination, as well as forward the final audit of the
district to them.
FISCAL IMPACT
Upon dissolution, the tax increment for this district will be converted to general tax revenue for all
subsequent tax years, and the remaining funds in the account will be divided among all of the taxing
entities according to Wisconsin Department of Revenue regulations.
A recommendation will follow in May of 2013 from staff and the Long Range Finance Committee in
regard to the use of the City's remaining fund distribution.
RECOMMENDATION
Staff recommends adoption of the above noted resolution.
Respectfully Submitted,
P �' g , 1 39 - ye
Peggy Steeno
Finance Director
Approved:
a-- 1
Mark Rohloff
City Manager