Council Authorizes Sale of Up to $13.75 Million in G.O. Bonds to Cover Litigation Settlements
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Summary
The council authorized an ordinance to issue not‑to‑exceed $13.75 million in general obligation bonds to pay amounts due related to litigation settlements; the bond ordinance passed in Finance & Personnel committee and will proceed to council action per the normal ordinance schedule.
Alderman Frost: The Finance & Personnel Committee recommended authorization to issue general obligation bonds not to exceed $13,750,000 to pay amounts due related to litigation settlements and to provide for the imposition of taxes and use of sales tax receipts as necessary to repay the bonds.
Why it matters: Authorizing the sale of G.O. bonds for litigation settlements commits the city to a borrowing plan and repayment structure that may affect future budgets and tax receipts.
Committee action and vote: The committee recommended the ordinance authorizing the issuance of the bonds; the committee report recorded a favorable recommendation and council later recorded a vote of 10 ayes and 2 noes on the item in Finance & Personnel business.
Implementation notes: The ordinance specifies procedures for sale and tax measures to pay the bonds; staff will prepare final ordinance language and proceed with sale pursuant to state law and city procedures.
Next steps: Legal and finance staff will finalize bond documents, the sale to a purchaser will be authorized per the ordinance, and the city will report bond issuance and use of proceeds in financial statements.