The settlement reached last year between Louisville Metro Government and firefighters will cost the city an additional $7.2 million.
The initial $45 million settlement will repay legal fees and years of miscalculated overtime while the additional millions will go toward pension and tax payments.
The first of three payments toward the settlement was made last year. The Metro Council’s Budget Committee will soon begin figuring out how to make the remaining two payments.
The mayor’s administration favors issuing bonds to pay the firefighters, though the bonds would have to be paid back with interest. Some council members would rather tap the city’s rainy day fund, but that could hurt the city’s credit rating.
The committee plans to look at the drawbacks and benefits of both options. The next payment is due at the end of March. It’s not yet clear when the additional 7.2 million dollars will be paid.