Louisville’s Mayor proposes method to pay settlement to firefighters

November 3, 9:41 AMLouisville City Hall ExaminerThomas McAdam

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  (Photo:  Louisville Division of Fire)

Louisville Metro Mayor Jerry Abramson has proposed a plan that would use a combination of cash and borrowing to pay the $45 million firefighter settlement for overtime pay. In an ordinance submitted to the Metro Council Monday, the mayor proposes making the first of three payments — due Dec. 1 — using $15.8 million in cash. That figure includes $14.3 million directly to firefighters and $1.5 million for plaintiffs’ attorney fees.

The cash payment will come from a reserve account established earlier for this potential liability. The other two payments — $14.3 million on March 31, 2010 and $14.9 million on July 15, 2010 — would be covered by the city selling bonds.

“This plan ensures the firefighters receive the money due them while also ensuring it’s done in a fiscally responsible way for the taxpayers,” Abramson said.

The payment of the settlement concludes more than nine years of legal wrangling over how Metro government calculates overtime payment to firefighters. The firefighters had filed two lawsuits over the issue, involving more than 800 current and former Louisville firefighters.

The Metro Council must approve the plan before the payments are made.

Jane Driskell, director of the city’s Office of Management and Budget, said a separate ordinance for the bonding will be introduced in the near future.

Watch the video: FOX-41 reports

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