Milwaukee County approves settlement with Zilly Hospitality Group over catering disputes

During a recent hybrid meeting of the Milwaukee County Committee on Finance, significant discussions centered around the county's pension obligations and a proposed settlement with a local catering company, Zilly Hospitality Group.

One of the key topics was the allocation of a 0.4% tax, which is primarily designated for pension obligation bonds and the unfunded liabilities of the Employee Retirement System (ERS). Officials discussed the benefits of maintaining this tax, emphasizing that it allows the county to manage its pension costs without diverting funds from other essential services. The committee noted that as the county's workforce stabilizes, the normal costs associated with the ERS are expected to decrease, potentially allowing for quicker payments towards the unfunded liabilities.

In another significant discussion, the committee reviewed a resolution to settle disputes with Zilly Hospitality Group, which operates catering services at the Borner Botanical Gardens. The settlement would involve a one-time payment of $82,000 to the county and an extension of Zilly's contract by three years. This agreement aims to resolve issues stemming from the COVID-19 pandemic, during which the facility was closed, impacting Zilly's operations.

However, the proposal faced scrutiny from several committee members. Concerns were raised about the fairness of extending the contract without a competitive bidding process, especially given that Zilly's parent company had received substantial federal assistance during the pandemic. Some supervisors expressed hesitation about setting a precedent that could encourage other vendors to seek similar concessions.

The committee ultimately decided to gather more information regarding Zilly's financial situation and the implications of the proposed settlement before moving forward. The discussions highlighted the ongoing challenges Milwaukee County faces in balancing fiscal responsibility with the need to support local businesses and maintain essential services for residents.

As the committee prepares for its next meeting, the outcomes of these discussions will play a crucial role in shaping the county's financial strategies and community partnerships moving forward.