NUMB:
980382
VERS:
Substitute 1
REF:
XXBY:
THE CHAIR
TITL:
Substitute resolution authorizing contingent borrowing for payment of judgment in performance fee case.
ANLS:
Analysis
On April 29, 1998 the Circuit Court for Milwaukee County entered a judgment against the city in the case of Milwaukee Employes' Retirement System and Annuity and Pension Board v. City of Milwaukee, Case No. 97-CV-000685, for performance fees in the amount of $2,572,329.10, with statutory interest at the rate of 5% from November 12, 1997 to January 12, 1998 and at the rate of 12% from January 13, 1998 to the date of payment by the City of Milwaukee. On May 21, 1998, the judgment was amended to include costs in the amount of $337, with total judgment entered in the amount of $2,572,666.10. Since the order for judgment, the Employes' Retirement System has paid additional performance fees incurred in 1997 in the amount of $429,872. The order for judgment requires the payment by the city of such additional fees. The city has appealed to the Court of Appeals. This substitute resolution authorizes the issuance of general obligation short-term promissory notes to make payment on the judgment in accordance with an intergovernmental agreement between the City and the Employes' Retirement System. The purpose of the agreement is to stop interest on the judgment from running against the City at the rate of 12% pending the appeal.
BODY:
Whereas, The 1998 budget of the City of Milwaukee authorizes contingent borrowing in the form of general obligation bonds or notes for any public purpose not contemplated at the time the budget was adopted, in the sum of Twenty-Eight Million, Six Hundred Thousand Dollars ($28,600,000); and
Whereas, The Common Council is desirous of issuing and selling promissory notes for a public purpose, to-wit: to pay the amount due and owing on the judgment in accordance with an intergovernmental agreement between the city and the Milwaukee Employes' R...
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