Council members pressed the administration on June 16 after the Ortiz settlement (item 12) and a related transfer of funds for a legal settlement payment (item 70) drew attention to how the city identifies and uses contingency savings.
Council member White said she was troubled that settlement dollars repeatedly appear to be found within departmental lines, asking why the council was not informed earlier: “It just seems as though, every time there's some type of need for a settlement... we find the money somewhere.”
The majority leader responded that in caucus the administration had explained the resources for this settlement were drawn from pension savings and vacancies, and that officials said they had known by January about additional resources. The discussion included requests that future budget materials identify such contingencies earlier so council members can communicate with constituents and avoid the appearance of hidden funds.
Item 70, a transfer of funds for a legal settlement payment, was moved and seconded during the meeting; council approved the transfer while members asked for clearer budget detail and earlier disclosure of known savings.