Grants 101 Public Funding Basics, Trends & Successful Strategies 10 26-2018

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 CDBGPFGran CDBGPFAwar CDBGPFAppli CDBGPFAppli CDBGPFGran CDBGPFAppli WDNRSteward WDNRSteward WDNRSteward WDNRSteward WDNRSteward WDNRSteward WDOTTAPApp WDOTTAPAwa WDNRCWF&S WDNRCWF&S WDNRCWF&S WDNRCWF&S WDNRCWF&S WDNRCWF&S WDNRCWF&S WDNRCWF&S WDNRCWF&S WDOTSTPApp WDOTSTPAwa WDOTSTPApp tAward(Con rd(Constructio cation cation tAward(Con cation dshipApplicat dshipAward(C dshipApplicat dshipAward(C dshipApplicat dshipAward(C plication(Bi-A ard(Construc SDWLAward( SDWL(ITA&P SDWLITA&PE SDWLFinalAp SDWLAward( SDWLITA&PE SDWLFinalAp SDWLFinalAp SDWLAward( plication(Bi-An ard(Construct plication(Bi-An nstruction2020 on2021) nstruction2019 tionDeadline Construction2 tionDeadline Construction2 tionDeadline Construction2 nnual) tion2022-2023 (Construction ERF) ERF pplication (Construction ERF pplication pplication (Construction nnual) tion2021-2023 nnual) 0) 9) 2020) 2021) 2019) 3) 2021) 2020) 2019) 3)

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

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