CITY OF HUDSON, WISCONSIN
Alderperson Alms introduced the following resolution and moved it's adoption:
RESOLUTION OF THE CITY OF HUDSON, WISCONSIN AUTHORIZING AN INTERFUND LOAN IN CONNECTION WITH TAX INCREMENTAL DISTRICT NO. 6 AND THE ST. CROIX STREET SEWER EXTENSION PROJECT
RESOLUTION NO. 02-20
Section 1. Background.
1.01 Pursuant to authority granted in Wisconsin Statutes, Section 66.1105, the City created Tax incremental District No. 6 (the "TID No. 6") and has adopted a Tax Increment Project Plan for TID No. 6 (the "Project Plan") to finance certain costs and grants to induce development within TID No. 6; and
1.02 The City has approved the St. Croix Street Extension Project (the "Project") which is locate within TID No. 6; and
1.03 The Common Council has determined to provide financing for the Project through tax increment revenues from TID No. 6, which costs need to be financed on a temporary basis from other City funds available for such purposes; and
1.04 The City administration proposes that funds to pay the costs of the project be obtained through an interfund loan from the Sewer Utility Fund to the TID No. 6 Fund in the proposed amount of $100,774 plus interest at the rate of 2.5% per annum payable over two years; and
1.05 At the December 10, 2019 Public Utilities Commission Meeting, the proposed interfund loan, as described in Section 1.04 above, was reviewed, and the Commission approved such use of the Sewer Utility funds on condition of repayment, on the terms described, from tax increment of TID No. 6; and
1.06 The Common Council intends to reimburse the costs of the Project in the amount of $100,774, plus interest thereon at the rate of 2.5% from tax increment derived from TID No. 6 in accordance with the terms set out in Section 2 (which terms are referred collectively as the "Interfund Loan").
Section 2. Terms of Interfund Loan.
2.01 The Common Council authorizes the advances of $100,774 from the Sewer Utility Fund to the TID No. 6 Fund for payment of the Project costs. The City shall reimburse the Sewer Utility Fund for such advance, together with interest at the rate of 2.5% per annum from tax increment in TID No. 6 Fund.
2.02 Each of the principal and interest payments, due on December 1, 2020 and on December 1, 2021, shall be the amount of $52,284 from available tax increment of TID No. 6.
2.03 The Interfund Loan is evidence of an internal borrowing by the City.
Adopted: January 20, 2020
/s/ Rich O'Conner
/s/ Becky Eggen
The motion for the adoption of the foregoing resolution was duly seconded by Alderperson Alms and, upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same: None
and the following were absent: None
wherupon, the resolution was declared duly passed and adopted and was approved and signed by the Mayor, whose signature was attested by the City Clerk.
________________________________________ (Pub. 02/13/20) WNAXLP