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Board approves using fund balance to cover large city/Froedtert tax chargeback, with contingency plan
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Summary
Facing a multi‑million‑dollar property‑tax chargeback from a city settlement with Froedtert, the board approved paying the district's share from fund balance and authorized staff to prepare a promissory‑note backup if cash‑flow pressures require it.
The Wauwatosa School District will pay its portion of a multi‑million‑dollar property‑tax chargeback related to a city settlement with Froedtert/Froedtert–Medical College, the board decided Jan. 26. The district's business official explained the Department of Revenue certified the chargeback amount, which is due Feb. 15, and that revenue‑cap relief tied to the settlement will come with next year’s levy cycle.
Because of the timing mismatch, the business official recommended the least‑cost approach: pay the chargeback now from available fund balance and secure an administrative contingency to pursue a promissory‑note arrangement with the city only if cash flow projections later in the year make borrowing necessary. That combined approach (option 3) passed by roll call.
Administration said it would bring formal promissory‑note language to the board in the near term so the district has a backup plan that would be executed only if needed to avoid payroll or other essential disruptions. The board emphasized this was a settlement between the city and Froedtert, not an error or decision by district staff, and said it will continue to coordinate with city officials to minimize future surprises.
What’s next: The district will pay the chargeback by the statutory deadline and then update the board on cash‑flow outlook and any need to activate the promissory‑note contingency.
