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File #: 14591    Version: 1 Name: Walgreen Settlement Resolution, years 2003 and 2004
Type: Resolution Status: Passed
File created: 4/29/2009 In control: BOARD OF ESTIMATES (ended 4/2017)
On agenda: 5/19/2009 Final action: 5/19/2009
Enactment date: 5/21/2009 Enactment #: RES-09-00480
Title: Authorizing payment of the judgment entered on April 13, 2009 by the court in Walgreen Company v. City of Madison, Case No. 2004 CV 1564 relating to refund of real property taxes for tax years 2003 and 2004 which provides for the refund of taxes and interest in the amount of $247,790.55 from City resources and amending the 2009 operating budget to reduce estimated General Fund revenues by $59,595.02 to recognize the City's share of the tax refund and to appropriate $76,592.43 from Contingent Reserve to fund related interest costs.
Sponsors: David J. Cieslewicz
Fiscal Note
This resolution authorizes the City, pursuant to the recent judgment in Walgreen Company v. City of Madison, to make a payment of $247,790.55 to Walgreen as full refund of tax overpayments originally made to all taxing jurisdictions for two Walgreen properties for tax years 2003 and 2004. Of that amount, $171,198.12 represents the tax overpayment as determined by the court, and $76,592.43 represents related interest charges. The City's share of the tax overpayments, estimated to be $59,595.02, will result in reduced 2009 General Fund revenues. The remaining $111,603.10 of tax overpayments will be recognized as a receivable from the other taxing jurisdictions and is expected to be repaid to the City during 2010, in accordance with Wisconsin Department of Revenue procedures governing such property tax adjustments. By state statute, all of the interest associated with such property tax adjustments is the responsibility of the municipality which assesses the property. Therefore, the full $76,592.43 of interest expense associated with this tax adjustment must be paid by the City, resulting in increased General Fund expenses.

Sufficient funds are available in the General Fund Balance to cover the City's $59,595.02 portion of the returned taxes, and sufficient funds are available in Contingent Reserve to pay the $76,592.43 of interest expense. This resolution amends the 2009 Operating Budget by the sum of these two amounts, or $136,187.45. Neither the reduction of budgeted General Fund Revenues or the appropriation from Contingent Reserve impacts the City's eligibility under the state Expenditure Restraint Program.

The result of this adverse judgment was related to two Walgreen stores for tax years 2003 and 2004 and will likely impact the settlement of other outstanding tax overpayment claims for the same stores in tax years 2005 - 2008 as well as future assessment methods applied to other Walgreen stores and other similar properties.

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