While the city today sets $46.7 million in reserve for certain claims and judgments, like slip and fall cases, it is far less than what is actually spent. During the budget hearings this week, the city admitted it paid over $100 million in settlements thus far this year and another $150 million in settlements last year. The multi-year $588 million  property tax increase we are enduring is almost equal to the amount of judgments we have had to pay for police violence. 

Moreover, the city has historically borrowed money to pay for judgments, which dramatically increases the cost of these settlements.  Just recently, the city obtained authorization to use $225 million of its January 2017 General Obligation Bonds to use for judgments, but according to the Chief Financial Officer, Carole Brown, it has not been drawn as of yet. CFO Brown admitted that to stabilize our city's finances, "we should start reserving for settlements and judgments."'

One of the best ways to reduce judgments is to have a well-trained police force. The amounts we are spending this year to achieve better training and enacting reforms in the CPD are sound investments in our city's future.

But city employees need to partner with us to control employee expenses going forward. This begins with the collective bargaining agreements that are now being negotiated. 

I will keep you updated on the information that emerges during the on-going budget hearings.