Adams County committee approves reimbursing municipalities for settlement discrepancies, authorizes counsel and administrator to set interest between 4.76% and

Adams County supervisors voted to move forward with reimbursing municipalities for interest calculated on February tax-settlement discrepancies and gave corporation counsel and the county administrator authority to determine the final rate—no higher than 12% and no lower than 4.76%—after legal review.

Staff presented an internal audit comparing the treasurer’s originally requested distributions to municipalities with a final audit review. The audit identified two municipalities (Town of Rome and Town of Adams) that had either underpaid or not paid the February settlement. Staff said the county’s initial calculation of interest earned on funds it held was about $1,800 for municipalities that were overpaid in the first review and that statutory interest for unpaid settlements is 12% under Wisconsin law. Staff also presented a market-derived rate of 4.76% (a community bank rate cited by staff) as an alternative basis for calculating interest to be returned to municipalities.

Committee members raised three concerns during debate: whether the county is required under statute to pay 12% to municipalities it delayed in reimbursing; whether charging less than 12% could obligate the county to accept lower interest on money owed by underpaying municipalities; and whether charging a full 12% to towns that underpaid (particularly Town of Rome, which staff estimated owed roughly $29,000 in interest) would place a difficult budget burden on the municipality.

Staff said Town of Rome had not yet provided a check at the time of the meeting and that the county had identified online payments that had been misapplied or not included in the first audit. The treasurer confirmed the county has received similar mail and that some checks were still being processed. Staff reiterated that if a municipality disputes the interest calculation, county counsel will examine Wisconsin statute 74.31 and related law.

Supervisor Preet Guborski (identified in the transcript as making the motion) moved to advance the matter; another supervisor seconded. During discussion, one supervisor moved to amend the motion to allow corporation counsel and the county administrator discretion to set interest rates between 4.76% and 12%; that amendment was seconded, passed on voice vote, and the amended motion passed.

What the committee authorized: county staff were directed to reimburse municipalities per the audit and to work with corporation counsel and the county administrator to set the final interest amounts consistent with Wisconsin law. The committee asked staff to continue communication with Town of Rome and other municipalities while counsel clarifies statutory obligations.

Votes at a glance • Motion to move forward with reimbursing municipalities for interest on settlement discrepancies — moved by Supervisor Preet Guborski; seconded (name not specified in transcript); amended to permit counsel/administrator latitude between 4.76% and 12%; amended motion: approved (voice vote).