Fiscal Note
Adoption and subsequent State approval of this cooperative plan would establish the framework for the delivery of City services to newly annexed properties within the Town of Burke as well as future revenue sharing payments from the City to the Town, including those services and revenue sharing payments related to lands annexed during 2006. The plan also establishes the terms and costs associated with the City's acquisition of the existing Burke Utility District #1.
For properties already annexed during 2006, service delivery responsibility has already shifted from the Town to the City, and the City would be required to make annual revenue sharing payments to the town of $50,000 per year for a five year period from 2008 through 2012. Burke would retain 2006 property taxes collected during 2007, and the City would first collect 2007 taxes due in 2008. Based on current property values, the $50,000 annual payment would far exceed the taxes collected during the initial years of the agreement prior to development. However, it is expected that future development within this area will substantially offset the revenue sharing payment in subsequent years.
Under the terms of the cooperative plan, additional annexations that occur during the 30 year protected period would be accompanied by a 5 year revenue sharing payment to the Town equal to the last year's taxes collected by the Town, consistent with current statutory requirements that apply to all attachments and annexations. The amount of any such payments will only be known when any future annexations occur and will be subject to Common Council approval at that time.
The cooperative plan also provides that the City will make a lump sum payment of $423,400 to the Town of Burke to acquire the assets and operation of the Burke Utility District #1, an existing water and sewer utility district. While it is anticipated that the utility ownership transfer would occur during 2007, there is no provision for this payment contained in the adopted 2007 budget, and separate budget authorization would be required.
Utility rates charged to current customers will be insufficient to recover the cost of this initial payment. However, the City has separately negotiated an annexation agreement with Cherokee Park, Inc. which would require new residential developments on Cherokee Park properties to pay a fee designed to allow the City to recover this utility infrastructure investment as development occurs. That separate agreement with Cherokee Park, Inc. is now pending Common Council approval.
Title
SUBSTITUTE - Adopting the final version of the Town of Burke, Village of DeForest, City of Sun Prairie and City of Madison Cooperative Plan, under Section 66.0307, Wisconsin Statutes, authorizing the Mayor and City Clerk to execute the Plan and directing the City Attorney and Planning Unit Staff to submit the Plan to the State of Wisconsin Department of Administration for approval.
Body
WHEREAS, Sec. 66.0307, Wis. Stats., authorizes municipalities to determine the boundary lines between themselves upon approval of a cooperative boundary plan by the State Department of Administration; and
WHEREAS, on February 6 and 7, 2006, the Town of Burke, Village of DeForest, City of Sun Prairie and City of Madison adopted resolutions authorizing participation in the preparation of a cooperative plan pursuant to said statute; and
WHEREAS, the four municipalities have subsequently drafted the proposed Town of Burke, Village of DeForest, City of Sun Prairie and City of Madison Cooperative Plan, dated July 25, 2006; have held a joint public hearing thereon on August 10, 2006, to solicit input on the proposed Plan, in accordance with Sec. 66.0307(4)(b), Wis. Stats.; and considerable public hearing testimony and written comments concerning the Plan were received. (See separate Public Comment Report of City Attorney.)
NOW, THEREFORE, BE IT RESOLVED that the Common Council of the City of Madison does hereby adopt the final version of the Town of Burke, Village of DeForest, City of Sun Prairie and City of Madison Cooperative Plan, dated December 26, 2006 January 5, 2007; and the Mayor and City Clerk are hereby authorized to execute the Plan in a form approved by the City Attorney.
BE IT FURTHER RESOLVED that the Mayor and City Clerk are hereby authorized to execute any related documents in a form approved by the City Attorney; that the City Attorney is hereby directed to submit the said Cooperative Plan, together with all written comments and other supporting documents, to the State of Wisconsin Department of Administration for approval in accordance with Sec. 66.0307, Wis. Stats; and the City Attorney and other necessary City staff shall cooperate with the participating municipalities and the Department and shall participate in all Department proceedings regarding the said Cooperative Plan.