Fiscal Note
Under the terms of this proposed settlement, the City will be required to make a payment of $2,775,000 to American Family within 30 days of approval of the settlement, covering the full amount of tax overpayments to all taxing jurisdictions for 2002, 2003 and 2004. The City's share of this settlement, estimated to be $933,000, will result in reduced 2005 General Fund revenues. The remaining $1,842,000 will be recognized as a receivable from the other taxing jurisdictions and will be repaid to the City during 2006, in accordance with Wisconsin Department of Revenue procedures governing such property tax adjustments.
Sufficient funds are available in the City's General Fund Balance to finance this transaction and there is no impact on the City's limit imposed under the state's Expenditure Restraint Program.
The American Family properties involved in this settlement were assessed at $151,500,000 as of January 1, 2004. The agreement reduces that assessment to $99,000,000 as of January 1, 2005. Based on the most recent (2004) City mill rate, this adjustment will result in reduced future City property tax revenues of roughly $400,000 per year from American Family.
Title
Approving a settlement of property tax litigation with American Family, authorizing the Mayor and City Clerk to sign settlement documents authorizing a payment of $2,775,000 from City resources to effectuate the approved settlement, and amending the 2005 Operating Budget to reduce estimated General Fund revenues by $933,000 to recognize the City's share of settlement costs.
Body
BACKGROUND
The City of Madison and American Family Mutual Insurance Company have been litigating the property tax assessments for the American Family headquarters. At issue in the multiple lawsuits that American Family has filed are the tax assessments for 2002, 2003, and 2004. In addition, American Family recently challenged its 2005 property tax assessment, and that chal...
Click here for full text