01-09-84 Personnel & Finance - Laserfiche WebLink

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• ;QImiimtiirr itrpnr2 - „ p /- - --49� p • •en At Mammon Qiounril of tip mnng of bouts lima: Personnel and Finance Committee 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. . •••i ►.... .0 IY•t1.H,M• CO.