City of Madison - File #: 28109

• File #: 28109
• Version: 1
• Name: 2012 Resolution-to Pay Judgment
• Type: Resolution
• Status: Passed
• File created: 10/23/2012
• In control: BOARD OF ESTIMATES (ended 4/2017)
• On agenda: 11/27/2012
• Final action: 11/27/2012
• Enactment date: 11/28/2012
• Enactment #: RES-12-00879
• Title: Approving the payment of judgment in Attic Angel Prairie Point, Inc. V. City of Madison, in Dane County Circuit Court case 11CV2746 for property tax year 2010, approving payment of $256,831.40, the City’s share, by amending the 2012 operating budget to reduce estimated General Fund Revenue and to appropriate $128,570.84 from the Contingent Reserve to fund the related interest and costs.
• Sponsors: Paul R. Soglin

Date	Ver.	Action By	Action	Result
11/27/2012	1	COMMON COUNCIL	Adopt - 15 Votes Required	Pass
11/19/2012	1	BOARD OF ESTIMATES (ended 4/2017)	RECOMMEND TO COUNCIL TO ADOPT (15 VOTES REQUIRED) - REPORT OF OFFICER	Pass
10/30/2012	1	COMMON COUNCIL	Referred	Pass
10/23/2012	1	Attorney's Office	Referred for Introduction

Fiscal Note
This resolution will reduce city general fund revenues by $256,831.40 in 2012 and appropriate $128,570.84 from the Contingent Reserve to pay costs and interest associated with on-going legal proceedings regarding payment of property taxes.

The City of Madison has been in legal proceedings with Attic Angels Prairie Point (AAPP) regarding property tax status. The Dane County Circuit Court recently ruled against the city and for AAPP to make the properties tax-exempt. The city plans to appeal that ruling. However, under state law, unpaid judgments accrue interest costs at 0.8% per month (approximately $5,451 per month). In order to avoid these interest costs, this resolution would allow the city to pay the judgment without prejudice while the case continues.

Property tax refunds affect all taxing jurisidictions where the property is located. As such, the Madison Metropolitan School District (MMSD), Madison College, Dane County, and the State of Wisconsin (Forestry tax) may also be affected. At the earliest, the refunded property taxes would be certified to the state in October 2013 and have to be paid by the taxing jurisdictions in February 2014. In the interim, the city will pay the judgment and show the payments from the other affected taxing jurisdictions as a receivable.

Based on the $681,427.02 of real property taxes paid by AAPP in 2010, the impact by jurisdiction is listed below:

MMSD $293,149.67
Madison College 46,356.51
Dane County 79,755.98
City of Madison 256,831.40
State of Wisconsin 5,333.46
$681,427.02

Costs of $2,407.14 and interest accrued of $126,163.70 through an estimated December 31, 2012, payment date will be paid by the City of Madison, as required under state law. The total fi...