Committee refers proposed Wilbur settlement borrowing to council; budget office outlines $9M total debt cost over 10 years

The Finance & Personnel Committee on May 7 referred to the Common Council, without recommendation, a request to authorize roughly $6.96 million in 2025 contingent borrowing to fund settlement of litigation brought by Danny Wilbur against the City of Milwaukee and named officers.

City Attorney Evan Goike briefed the committee on the background: Wilbur was convicted in 2005; a federal judge granted a new trial after finding Wilbur had been visibly shackled during closing arguments, and the Seventh Circuit affirmed that ruling. The Milwaukee County district attorney declined to retry the case; Wilbur's lawyers subsequently filed suit in federal court against the city and named officers. "These cases where individuals spent many years in prison are very difficult," Goike said. The parties mediated in February and March, and the settlement reflected in the borrowing request was reached during that mediation.

Budget director Nick Kovac told the committee the borrowing would be levy-supported general-obligation borrowing and would be added to the city's 2025 borrowing plan. Using the assumptions provided to the committee, the budget office estimated average annual debt service of about $905,000 and total interest of about $2.1 million over a 10-year term — figures that bring the total estimated cost of the borrowing to just over $9 million. Kovac said the city had a $5 million contingent fund that could be used for some liabilities, but the scale of this settlement meant additional borrowing would likely be necessary.

The committee debated procedure and timing: some members, including Alderman Scott Speicher, recommended referring the measure without recommendation so Judiciary and Legislation could handle policy questions at its May 13 meeting while the finance committee preserved the ability to discuss financial implications. City Clerk Jim Lazarski explained that the settlement authority file typically goes to Judiciary while the two financing files (contingent borrowing and contingent fund appropriations) are handled by Finance. After discussion, the committee voted to refer the borrowing authorization to the full council without recommendation so Judiciary could act first on the settlement authority.

Related appropriations: the committee took a separate but related vote on a substitute resolution (file on May 7) to reserve and appropriate $1.5 million from the 2025 Common Council contingent fund to the damages and claims special purpose account and $200,000 from the contingent fund to the outside counsel/expert witness special purpose account. Budget staff explained the $200,000 is needed to pay outside counsel invoices that already exceeded the office's outside-counsel budget because of litigation such as the Wilbur matter; the $1.5 million covers an array of claim payments and is intended to keep the special purpose account funded. Alderman Sharlene Moore moved adoption of that appropriation package; the committee approved it.

Committee members asked whether settlement payments could be structured as installments to reduce borrowing costs; Goike said that possibility existed but he would need to confirm whether mediation terms included installment language. Several committee members stressed the need to minimize taxpayer impact and asked for further detail on any option to reduce interest costs.

Speakers in the discussion included City Attorney Evan Goike, Budget Director Nick Kovac, City Clerk Jim Lazarski and committee members including Alderwoman Marina Dimitrijevich (chair), Aldermen Peter Bergellis, Scott Speicher and Sharlene Moore.