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Gary council authorizes up to $13 million in bonds to pay judgments, approves bonding terms
Summary
Council approved an ordinance authorizing issuance of up to $13,000,000 in judgment bonds to settle litigation and judgments, permitting maturities up to 15 years and interest not to exceed 6% semiannually; vote was unanimous (8–0).
The Gary Common Council voted 8–0 on Feb. 3 to authorize the issuance of judgment bonds of up to $13,000,000 to fund certain judgments and settlements against the city.
City finance staff said the bonds would be used to address two large pieces of litigation, including a federal wrongful-imprisonment case, and described potential terms: maturities up to 15 years and interest rates not to exceed 6% payable semiannually. Staff said the bonds will be structured to minimize immediate budget impacts and that bond counsel will be engaged to determine payment schedules. Controller Salida Green said the administration will negotiate first-payment timing and consider internal savings to reduce reliance on wagering or other subsidy transfers to the general fund.
Why it matters: Approving the bond authorization allows the city to settle litigation without a single-year cash outlay that could destabilize municipal operations. Council members asked questions about long-term budget impacts and oversight; staff said they will provide debt schedules and periodic reporting to the council.
Vote: CPO 2026-06 passed unanimously by roll-call vote of 8–0. Staff will work with bond counsel and return with specific terms for council review as the sale is negotiated.
