Trends in public funding will be discussed including an update on available public grant and loan programs, including new programs and opportunities. Discussion will also focus on what communities should do to enhance their chance to obtain funding. Examples of projects will be reviewed to illustrate how municipalities are using public programs to fund projects.

1. League of Wisconsin Municipalities
f
vision to reality
2018 Annual Conference
“G t 101 P bli F di“Grants 101: Public Funding
Basics, Trends &
Successful Strategies”
K t R M hKurt R. Muchow
Community Development Consultant

2. Session Agendag
• Municipal Budget Cycle vs. Public FundingMunicipal Budget Cycle vs. Public Funding
• Capital Improvements Planning• Capital Improvements Planning
• Public Funding Opportunities• Public Funding Opportunities
• Trends in Public Funding• Trends in Public Funding
E l P j t• Example Projects

3. • Planning & Civil Engineering Firm
• Office Locations:
- Reedsburg
- Madison
- Milwaukee Metro
- Prairie du Chien
• Vierbicher Website
www vierbicher comwww.vierbicher.com

4. Typical Municipal Budget/Project Cycleyp p g j y
2018 2019
J J A S O N D J F M A M J J A S O N D
BudgetBudget
Planning
Budget Review
& Adoption Project Implementation
Fi i• Financing
• Design / Bidding
P j t I l t tiProject Implementation
• Construction

5. Municipal Project Cycle vs. Public Fundingp j y g
2018 2019 2020
M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D
C
C
C
C
C
C
W
W
W
W
W
W
W
W
W
W
W
W
W
W
W
W
W
W
W
W
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CDBGPFAwar
CDBGPFAppli
CDBGPFAppli
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WDNRSteward
WDNRSteward
WDNRSteward
WDNRSteward
WDNRSteward
WDOTTAPApp
WDOTTAPAwa
WDNRCWF&S
WDNRCWF&S
WDNRCWF&S
WDNRCWF&S
WDNRCWF&S
WDNRCWF&S
WDNRCWF&S
WDNRCWF&S
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6. Capital Improvements Planningg
“Capital Improvements Planning Greatly
E h C iti Abilit tEnhances a Communities Ability to
Consistently Access Public Funding
P ”Programs”

7. Capital Improvements Planningg
What is a
Capital Expenditure?
“Capital items should
have a useful life of at
l t 3 dleast 3 years and a
cost of $5,000 or
more ”more.

8. Capital Improvements Planningg
Advantages of a CIP:
• Identify Goals & Policies
• Identify Needs & Financial Capability
• Build Consensus & Improves Awareness
• Enhances Coordination & Cooperation
• Improves use of Available Resources
• Ensures Financial Stability
• Greatly Enhances the Ability to Access
Public Funding Programs

9. Capital Improvements Planningg
General Suggestions:
• Include all DepartmentsInclude all Departments
(Public works, water, wastewater, police, fire, parks, library, etc.)
• Create a CIP Committee
(Dept. heads, Clerk, Treasurer, Board/Council members)
• Consistent with Community Plans
(Comprehensive Plan, Economic Development Plan, etc.)
• Understand Outside Influences
(State or Regional Projects New Regulations Private Development Etc )(State or Regional Projects, New Regulations, Private Development, Etc.)
• Include Your Professional Advisors
(Financial advisor, engineer, planner, etc.)( , g , p , )
• Update the CIP Annually

10. Capital Improvements Planningg
Components of a CIP:
“It’s more than a list”It s more than a list
• Estimate Financial Capacity
Administrati e & Polic G idelines• Administrative & Policy Guidelines
• Identify Projects & Equipment
D t i J tifi ti & P i it• Determine Justification & Priority
• Estimate Costs
• Prepare Implementation Schedule
• Identify Sources of Project Funding

11. Public Funding Opportunitiesub c u d g Oppo u es
&
Funding TrendsFunding Trends

12. Public Funding Opportunitiesg
• What is Public Purpose?
– Economic Development
– Health & Safety
– Blight Elimination & Urban Renewal
– Low-Income & Poverty
– Affordable Housing
– Environmental Protection
– Park & Recreation
Golden Rule!Golden Rule!

13. Public Funding Opportunitiesg
Municipal Infrastructure
• WDNR Safe Drinking Water
• WDNR Clean Water FundWDNR Clean Water Fund
• Rural Dev. Rural Utilities
• Rural Dev Comm FacRural Dev. Comm. Fac.
• WDOT Local Programs
• CDBG PF & PF ED• CDBG PF & PF-ED
• WDOT Tran. Econ Assist.
• Tax Incremental Financing• Tax Incremental Financing

14. Public Funding Opportunitiesg
Parks, Trails & Water Recreation
• WDNR Stewardship
• WDNR Rec. BoatingWDNR Rec. Boating
• Federal Rec. Trails
• County Park GrantsCounty Park Grants
• DOT Alternatives
(MAP21)(MAP21)
• Tax Incremental
Financingg

15. Public Funding Opportunitiesg
Water Resources & Flood Mitigation
• WDNR Urban Non-Point
• WDNR Lake Plng & Protectiong
• WDNR River Plng & Protection
• WDNR Municipal Flood Controlp C
• FEMA Hazard Mitigation
• CDBG PF, PF-ED & EAPCDBG PF, PF ED & EAP
• WDOT Trans Econ Assist.
• Tax Incremental Financing• Tax Incremental Financing

16. Public Funding Opportunities
Economic Development
• Tax Incremental Financing
CDBG Planning• CDBG Planning
• CDBG ED & PF-ED
WDOT T E A i t• WDOT Tran. Econ Assist.
• WEDC Programs
• Brownfield Programs
• Econ. Dev. Admin
• Rural Development

17. Trends in Public Funding
Community Development Block Grant (CDBG)

18. CDBG Public Facilities
• Annual Application Deadline: May 24, 2019
• Grant Awards: Last Week in July• Grant Awards: Last Week in July
• Maximum Grant: $500,000, or 50% of Eligible
• National Objectives• National Objectives
- Low-to-Moderate Income (Over 51%)
- Blight Elimination
- Local Urgent Need
• Eligible Projects:
- Infrastructure Reconstruction
- Community Centers, Senior Centers,
Fire Stations LibrariesFire Stations, Libraries
- Downtown Redevelopment

19. CDBG Public Facilities for Econ. Dev.
• Application Deadline: Continuous
• Maximum Grant: $500,000, or 50% of Eligible
• Eligible Projects:g j
- Infrastructure Improvements to Serve Econ. Dev.
- Redevelopment: Acquisition, Demolition, Remediation
• National Objectives
- Low-to-Moderate Income Job CreationLow to Moderate Income Job Creation
- Over 51% of Jobs
Must be Filled by LMI Persons

20. CBDG CLOSE Programg
• CDBG ED Local Revolving Loan Funds
• Over $100 Million Across State
• +/- 60% is Cash in Banks/ 60% is Cash in Banks
• HUD Requiring Funds be Recycled
• Communities Must Repay Funds to DOA• Communities Must Repay Funds to DOA
• Communities Apply to Get Funds Back
C b d f Eli ibl CDBG P j t• Can be used for Eligible CDBG Projects
• CDBG CLOSE Funds may be Defederalized

21. Trends in Public Fundingg
U.S.D.A. Rural Development

22. USDA Rural Development
• Water & Waste Disposal Program
- Eligible Communities:g b e Co u es:
*Less Than 10,000 population
- Eligible Projects:Eligible Projects:
* Drinking Water Systems
* Wastewater Systemsy
* Storm Sewer Systems
* Solid Waste Systems
- Funding:
* Loans: 40 Year Term; Interest Rate = 2.25%
* Grants: 0% to 45% Based on MHI & Rates
: Normal Grant = 15% to 30%

23. USDA Rural Development
• Community Facilities
- Eligible Communities: Less Than 20 000 PopulationEligible Communities: Less Than 20,000 Population
- Eligible Projects:
* Municipal Buildings
* Fire Stations
* Police Stations
* Health Care FacilitiesHealth Care Facilities
• Fundingg
- Loans: 40 Year Term; Interest rate = 2.25%
- Grants: Limited Allocation
- Loan Guarantees

24. Trends in Public Fundingg
WDNR Clean Water Fund & Safe Drinking Water

25. WDNR Clean Water Fund
• Application Cycle
ITA & PERF Deadline: October 31st- ITA & PERF Deadline: October 31st
- Hardship Applications Deadline: June 30th
- Principal Forgiveness Application Deadline: September 30th
• Eligible Projects
- Municipal Wastewater Infrastructure
- Stormwater Quality Projects
• Loan Terms
- 20 Years Amortization
- Interest Rate: 2.38% to 3.4%
H d hi & P i i l F i• Hardship & Principal Forgiveness

26. WDNR Safe Drinking Water Loang
• Application Cycle
- ITA & PERF Deadline: October 31st
- Principal Forgiveness Application Deadline: June 30th
• Eligible Projects
- Municipal Drinking Water Infrastructurep g
• Loan Terms
20 Years Amortization- 20 Years Amortization
- Interest Rate: 1.122% to 1.87%
• Principal ForgivenessPrincipal Forgiveness

27. Trends in Public Fundingg
Park & Recreation Programs

28. Park & Recreation Grant Programsg
• Funding Programs
- WDNR Knowles-Nelson Stewardship (Max. = $250,000)p ( $ )
- WDNR Recreational Boating Facilities (Max. = $500,000)
- Federal Land & Water Conservation Fund (Max. = $250,000)
Recreational Trails (Max = $45 000)- Recreational Trails (Max. = $45,000)
• Local Match = 50%
• Application DeadlinesApplication Deadlines
- Annual Deadline on May 1st
- Continuous for Recreational Boating

29. Trends in Public Fundingg
Local Transportation Programs

30. Local Transportation Funding
• DOT STP Urban & Rural
- Application Deadline: July 10, 2017 (Odd Years)
Eligible Projects: Local Roads Classified as Collector or Above- Eligible Projects: Local Roads Classified as Collector or Above
- Funding: 80% Grant, 20% Local
• DOT Alternatives
- Application Deadline: Jan. 29, 2018 (Even years)
- Eligible Projects:
* Transportation Enhancementp
* Recreational Trails
* Safe-Routes to Schools
- Funding: 80% Grant, 20% Localg ,
• DOT Trans. Econ. Assistance
- Application Deadline: Continuous
- Eligible Projects: Roads & Rail For Econ. Dev.
- Funding: 50% Grant, 50% Local

31. Tax Incremental Financing

32. History of Tax Incremental Financingg
• TIF = Tax Increment Financing• TIF = Tax Increment Financing
• TID = Tax Increment District• TID = Tax Increment District
• First Authorized in1975 Wis 66 1105• First Authorized in1975, Wis. 66.1105
TIF L h b d d ti• TIF Law has been amended many times
over the years

33. What is TIF?
A municipal financing tool to accomplish
specific community development objectives:
t i d t i l d l t• promote industrial development
• promote mixed-use development
• eliminate blighted areas
• rehabilitate deteriorating areas

34. Why TIF Was Created
• Federal funding decreased for
community development programs
All iti & ill t k ith i t• Allows cities & villages to work with private
sector to stimulate economic growth
• Eliminated inequitable situation that
discouraged developmentg p
* Cities & villages bore the cost of development,
but all taxing entities shared the benefit.

35. Summary of TIF Districts in Wisconsin
• Currently 1,238 active TIDs in Wisconsin in
y
425 communities (June 1, 2017)
• 2,052 TIDs created since 1976
• 822 TIDs terminated since 1976
• Average life of TIDs = 16.3 years

36. TIF Basics
Important TIF Definitions
• Base Value: The equalized value of real and
personal property in a TID when created.
• Increment Value: The difference between the
base value and the current valuebase value and the current value.
• Tax Increment: Taxes levied by the overlying• Tax Increment: Taxes levied by the overlying
taxing jurisdictions on the value between the base
value and the current value in the TID.

37. Tax Incremental Financing - Basicsg

38. Tax Incremental Financing - Basicsg

39. Tax Incremental Financing - Basicsg

40. Types of TIDs
• Industrial Developmentp
• Mixed-Use
• Blight Elimination• Blight Elimination
• Rehabilitation / Conservation
• Environmental Remediation
• Town TIDs

41. Type of Tax Increment Districts
Industrial Development TID
50% f d t b it bl f d• 50% of area needs to be suitable for and
zoned for industrial development
Expenditure Period 15 Years• Expenditure Period = 15 Years
• Maximum Life = 20 years
M i Lif With E t i 23• Maximum Life With Extension = 23 years

42. Type of Tax Increment Districts
Mixed-Use TID
•Must have at least two land useMust have at least two land use
(Commercial/Residential/Industrial)
•No more than 35% can be newly platted residential
•TID expenditures may be made for residential if
one of the following applies:
 Density at least 3 units per acreDensity at least 3 units per acre
 Conservation subdivision
 Traditional neighborhood development
•Expenditure period = 15 Years•Expenditure period = 15 Years
•Maximum life = 20 years
•Max. life with ext. = 23 yearsMax. life with ext. 23 years

43. Type of Tax Increment Districts
Blight Elimination TID
• T picall Older Neighborhoods• Typically Older Neighborhoods
• 50% of Area Must be Declared Blighted
• Requires Formal Designation of BlightRequires Formal Designation of Blight
• Letter’s Must be sent to Landowners
• Expenditure Period = 22 Yearsp
• Maximum Life = 27 Years
•Maximum Life With
Extension = 30 years

44. Type of Tax Increment Districts
Rehabilitation/Conservation TID
C l R f d t R it li ti TID• Commonly Referred to as Revitalization TID
• At least 50% of the property must be suitable
for rehabilitation or conservationfor rehabilitation or conservation
• Letter’s Must be sent to Landowners
E dit P i d 22 Y• Expenditure Period = 22 Years
• Maximum Life = 27 Years
• Maximum Life With Extension
= 30 years

45. Type of Tax Increment Districts
Environmental Remediation
• Eligible Costs: Remediation, property acquisition,
demolition, asbestos removal, underground tank
removal and financingremoval and financing.
• Expenditure Period = 15 years
• Maximum Life = 23 years ( t i ll d)• Maximum Life = 23 years (no extensions allowed)

46. Eligible TIF Projectsg j
• Eligible TIF projects can be located within the
TID, or within one-half mile radius.
• Eligible projects must benefit TID
• Eligible projects include:g p j
- Infrastructure
- Land acquisition / demolition
- Environmental clean-up
- Site development
l t i ti- Development incentives
- Marketing & promotion
Organization & administration- Organization & administration
• Extension for Affordable Housing

47. E l P j tExample Projects

48. PDCH Street & Utility Reconstructiony
– 10,000 LF of Street & Utility Reconstruction
Downtown Enhancement– Downtown Enhancement
– Total Project Cost = $4.3 Million
• $1 5 M WDNR CWF Loan• $1.5 M WDNR CWF Loan
• $1.7 M WDNR SDWL Loan
• $660,000 WDOT Enhancement Grant$660,000 O a ce e G a
• $300,000 CDBG Grant
• $105,000 Tax Incremental Financing
• $50,000 Fundraiser
• $0 General Fund

49. Viroqua Street & Utility Reconstruction
14 Cit Bl k f St t Utilit R t ti- 14 City Blocks of Street & Utility Reconstruction
- Total Project Cost = $3,225,000Total Project Cost $3,225,000
- Project Funding
$1 153 978 R l D W t L• $1,153,978 Rural Dev. Water Loan
• $384,659 Rural Dev. Water Grant
• $1,140,723 Rural Dev. Sewer Loan
$326 200 TIF• $326,200 TIF
• $221,000 DOT LRIP Grant
• $0 General Fund
- All Loans Paid by TIF and
Sewer & Water UtilitiesSewer & Water Utilities.

50. E i ti TID
City of Prairie du Chien
2014 2015 TIF Projects Existing TIDs
with Eligible
Projects
2014-2015 TIF Projects
Project Cost
Railroad
CrossingDowntown
R it li ti
• Lessard St. Extension = $ 578,000
• 22nd St. Extension = $1,615,000
• Woodridge Acres = $1,050,000
• Prairie Mason Redev = $ 450 000 Safety
Improvements
Blackhawk Ave.
Revitalization• Prairie Mason Redev. = $ 450,000
• Godden Pit SW Basin = $ 395,000
• Northgate Business Park =$ 1,132,000
• Marq. Road S & W =$ 1,300,000
USH 18 Bypass
Blackhawk Ave.
Enhancements
Marquette Road
Reconstruction
Total = $6,600,000
Funding Source
• $502,000 DNR SDWL USH 18 Bypass$502,000 DNR SDWL
• $265,000 Sewer Bond
• $5,833,000 Surplus TIF Funds

51. Linden Water System
• Project Summary
– New Well
– Water Main Replacement
• Total Project Cost = $1,166,000
• Funding Summary
$– $500,000 CDBG-PF Grant
– $666,000 Revenue Bond

52. Edgar Business Parkg
•Project Summary
E i f E i ti B i– Expansion of Existing Business
– Village Infrastructure Extension
– New tax base = $2,297,000New tax base $2,297,000
– Creation of 11 jobs
•Total Village Cost = $668 841•Total Village Cost = $668,841
•Funding Summary
– $240 565 CDBG-PFED Grant– $240,565 CDBG-PFED Grant
– $428,276 TIF

53. Richland Center
Westside Drive Reconstruction
St t tilit t ti• Street & Utility Reconstruction
• 3,600 Lineal Feet
T t l P j t C t $1 860 000• Total Project Cost = $1,860,000
• Project Funding
$509 000 Rural Dev Sewer Loan– $509,000 Rural Dev. Sewer Loan
– $259,000 Rural Dev. Sewer Grant
– $500,000 CDBG Grant
– $592,000 City Loan
– 41% Grant, 59% Loan

54. Marathon “City Center” Project
• Downtown Redevelopment
• New Grocery Storey
• New Public Parking Lot
• Downtown Enhancements
• Total Cost $6.1M
– $340,000 CDBG-PFED Grant
– $250,000 WEDC-CDI Grant
– $935,000 TIF
– $4 575 000 Private Investment$4,575,000 Private Investment

55. DeForest 2016 North Business Park
P j t S• Project Summary
– Business Park Expansion
– APC – 171,000 sf BuildingAPC 171,000 sf Building
– PLC – 133,000 sf Building
– Creation of 189 jobs
• Project Scope
– Streets & Utilities
– Storm Water ManagementStorm Water Management
– Site Development
– Pedestrian / Bicycle Trail
• Infra. Cost = $3,650,000
• Funding Summary
$– WDOT-TEA Grant = $945,000
– TIF = $2,705,000

56. Village of Oregon
O t B d St t T ilOregon to Badger State Trail
• Project Summary
• 1.8 Mile Trail
• Funding Sources
• 2011 Dane County PARC Grant = $250,000
• Total Project Cost = $842,000 • 2014 Dane County PARC Grant = $150,000
• DNR Recreation Trail Grant = $ 45,000
• Town of Oregon & Contributions = $ 35,000
Vill TIF $120 000• Village TIF = $120,000
• Village Funds = $242,000

57. Questions?
K t R M hKurt R. Muchow
kmuc@vierbicher.com
608/768-4817