NUMB:
971612
VERS:
SUBSTITUTE 1
REF:
XXBY:
TITL:
Substitute resolution appropriating up to $2,180,000 from the 1997 Common Council Contingent Fund for the purpose of satisfying a partial judgment against the city involving the funding of duty disability retirement benefits.
ANLS:
This resolution would appropriate up to $2,180,000 from the 1997 Common Council Contingent Fund to prepay all or part of Short Term Promissory Notes, Series E7, issued for the purpose of satisfying a partial judgment against the city. This judgment is part of a court case between the Milwaukee Police Association (MPA), the Milwaukee Police Supervisors' Organization (MPSO), and the City of Milwaukee over duty disability pension contributions.
BODY:
Whereas, Common Council File 950929, adopted November 10, 1995, merged the normal retirement fund with the special duty disability retirement fund; and
Whereas, Subsequent to adoption of the 1996 budget, the MPA and MPSO sued to undo the merger; and
Whereas, The Circuit Court entered summary judgment on January 29, 1997, holding that the merger violates the rights of Employes' Retirement System members; and
Whereas, As part of the judgment, it was ruled that the merger of the funds is not effective until the contribution that would have been payable from the 1997 budget; and
Whereas, The City Attorney recommended that the payment of the 1996 contribution not be appealed; and
Whereas, Common Council File 961694 authorized the issuance of short term promissory notes for up to $2,225,000 for the purpose of making the 1996 contribution and retaining flexibility in the Contingent Fund; and
Whereas, Sufficient funds remain in the 1997 Contingent Fund to prepay the notes; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee that the City Comptroller is hereby authorized and directed to appropriate up to the sum of $2,180,000 from the 1997 Common Council Contingent Fund (Account Number 09-910-8000) to a special account (09-910-84xx) within the Contingent Fund for the purpose stated above; and, be it
Further Resolved, that the Comptroller is hereby authorized and directed to transfer the sum of $2,165,138 plus 4.1% interest from December 30, 1997, through date of note payment up to an amount not exceeding $2,180,000 from the Common Council Contingent Fund (09-910-84xx) to the Public Debt Amortization Fund for the purpose stated above.
DFTR:
Budget and Management Division
Ref:97009(20), GCJ:nme
Date: January 28, 1998
FINANCE:971612r.doc