City Accepts Deal in Bankruptcy Claim

Officials for the city have agreed to accept $354,300 of $466,069 owed it by the county to settle a portion of its bankruptcy-related claims.

The settlement also requires the county to return the remaining $111,769 from available cash within 20 years or with proceeds from its litigation with Merrill Lynch and KPMG Peat Marwick, whichever is available first.

The remaining $1.53 million of the city’s claims against the county are in dispute and have not been resolved.

At the council meeting Monday, city staff also reported that general fund revenue is up by $47,000 due to improved economic conditions. The city already has allocated the money for insurance and personnel expenses.