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A Document you need to read then ask where did the money go? Did it do Racine and good?
This will be talked about at tonight’s COW meeting 2/13/14
RACINE AREA INTERGOVERNMENTAL
REVENUE SHARING AGREEMENT
The area-wide Sewer Service Agreement was signed on April 25, 2002 by the City of Racine, the Racine Wastewater Commission, the Town of Mt. Pleasant and its Utility District, the Town of Caledonia and its Utility Districts and was later signed by the Village of Sturtevant and the North Park Sanitary District. Other communities are also expected to sign during the first 120 days after April 25, 2002, which is the “Effective Date” of the Agreement. Revenue sharing payments required by the Agreement are based on a model developed by the City’s consultant, Ruekert-Mielke, Inc. Payments are based on factors including the municipal budget, population and equalized property values. Payments are calculated based on information from the prior calendar year, with notification of the amounts by July 1 of each year. Payments are due by March 1 of the following year. The Wastewater Commission is required to bill the parties for such payments by January 15 of the year payment is to be made. The Wastewater Commission will distribute revenue sharing payments to Net Recipient Parties within 15 days of payment by all contributing Parties, except if there is a late payment, proceeds will be distributed based on the amounts received. For each area participating, there will be 30 payment years beginning in 2002 with payments due March 15, 2003. New areas entering the agreement will have 30 years of revenue sharing payments to make beginning at the time the area enters the agreement.
The agreement requires the City to use these revenues for capital improvement projects and thereby be able to increase its equalized value. Such projects are envisioned to include infrastructure improvements as well as redevelopment projects. Additionally, the Agreement requires certain expenditures to be made for designated projects and a designated area. The City is required to spend not less than $6,000,000, 2001 net present value at 5% annually, of the total revenue sharing payments from Mt.. Pleasant in the area designated in Exhibit I of the Agreement (see attached) within 10 years after signing the Agreement. Such expenditures must include the Oakes Road extension, which is to be improved during the same year that Mt. Pleasant participates in reconstruction of Chicory Road, which is a project that the City is pursuing. Additionally, the City must spend its pro-rata share of upgrading and improving Three Mile Road at the border of Caledonia and Racine, contingent on Caledonia expending funds for its share of the Three Mile Road project.
In addition to revenue sharing payments received from the outlying communities, the City will receive transfers of assets from the Wastewater Utility, subject to the Utility retaining an amount of funds that is reasonable and prudent in light of the needs and circumstances of the Utility. The transfers will include reimbursement for equity contributions made by the City to the Utility or the Wastewater Commission after the effective date of the Agreement, plus interest; the amount of $660,000 per year to reimburse the City for assets originally transferred to the Utility, with a total transfer of $6,690,407, of which $3,300,000 was paid through the end of 2001; payment for Racine County’s funding shortfall for library services, beginning with a 2002 payment of $467,527; a payment for zoo funding in the amount of $285,000 in 2002 with a 3% increase per year through 2007 and the amount fixed for future years, and a payment for Wustum Museum services in the amount of $115,000 for 2002 with a 3% increase per year through 2007 and payments fixed in that amount thereafter. These items total $1,527,527 for transfers in 2002. It is anticipated that sufficient reserve funds exist in the Wastewater Utility accounts to support these payments for at least 20 years. The agreement also anticipates that Racine County will increase its funding for library services and the amount funded by the Utility reserve funds would vary based on the County’s participation in payment for library services. The items in this paragraph are not subject to expenditure limitation for capital projects. It is anticipated that these funds will be used for offsetting current expense in each year’s City budget.
-Dan Wright, City Attorney