HomeMy WebLinkAbout01-09-84 Personnel & Finance •
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The January 9, 1984 meeting of the Personnel and Finance Committee
was called to order by its Chairman, Councilman Puzzello at 5 :15 p.m. in the
Council Informal Meeting Room.
Persons in attendance included: Councilmen Serge, Puzzello, Crone,
Voorde, Beck, Brayboy, Zakrzewski and Paszek; Joseph Kernan, Richard Hill,
Members of the News Media and Kathleen Cekanski-Farrand.
Councilman Puzzello noted that the purpose of the meeting was to discuss
Bill Nos. 139-83 and 140-83. She then called upon the City Controller to
review the bills.
Mr. Kernan noted that the bills would authorize the issuance and
sale of a bond issue to provide funds for two judgments against the City. .
He noted that last fall the City Council passed .two bills which totaled
$155,000. However, the Local Governmental Tax Control Board recommended to the
State Board of Tax Commissioners not to approve the bond. The City
Administration had urged the Boards not to delay action beyond October 25th.
However, it was not until November 17, 1983 that the State Board of Tax
, Commissioners approved the bond. As a result the amount was inadequate due to
accumulated interest and the marketability of the bond was in question.
The City decided to go through the procedure again with the bond issue
this time -in the- total amount of $170,000. The bonds would be dated March 1,
1984. Thus an additional cost to the City of approximately $15,000. Mr. Kernan
noted that a news release was issued by the City on October 6 ,. 1983 regarding
this delay, and Councilman Puzzello noted that she had a copy of this release
in her office for anyone who wished to see it.
Upon questioning by the Committee Members it was noted that the bonds
would satisfy two judgments which broke down as follows : •
The Wilbur Smith judgment $22,245. 00
Post judgment interest 4,988. 00
F.O.P. judgement 112, 806. 00
Post judgment interest 24,811. 00
The F.O.P. judgment was rendered in June, 1982 and the City filed a Motion to
Correct Errors to delete the $10,000 attorney fee award. Judge Montgomery
agreed with the City on this point and rendered an opinion in December, 1982.
It was further noted that the costs of bond counsel, printing of the bonds,
Speer Financial Services etc would add an additional $6, 000 to the bond. It
was also noted that there was $7,245. 00 of prejudgment interest accrued on the
Wilbur Smith case. Due to the extraordinary circumstance the City Administration
believes that the bond issue is the proper route in order to satisfy these
judgments
Mr. Kernan noted that this would result in approximately 4 cents since
one penny would generate $41,500. Approximately 169 police officers are
affected by the F.O.P. case. .
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Page 2.
Personnel and-Finance Committee
Following discussion and questioning by the Committee, Councilman
Serge made motion seconded by Councilman Beck that Bill Nos. 139-83 and 140-83
go to Council favorably. The Motion passed unanimously,
Councilman Beck then made a motion seconded by Councilman Serge that the
meeting be adjourned. The meeting was adjourned at 5 :40 p.m.
Respectfully submitted,
/A/14 //i
Ann B. Puzzello
Chairman