The Metro Council gave final approval to the loan Thursday night. It will be combined with $4 million from the city’s rainy day fund and distributed to a group of retired firefighters who sued the city after being underpaid for overtime.
The city owns the Water Company and regularly receives dividends from the company’s profits. The loan will collect 2% interest, and the Water Company will retain a portion of the dividend for the next eight years as repayment.
The money will be used to pay a $14 million settlement with a group of underpaid firefighters.
Last year, the council issued $35 million in bonds to finance a similar settlement. Since the firefighters were underpaid by the old city before merger, many suburban residents didn’t think their tax dollars should go to the settlement. But the city owns the Water Company, and Metro Councilman Kevin Kramer the new settlement will not likely be very controversial.
The Louisville firefighters union and the local Fraternal Order of Police have endorsed opposing candidates in the Louisville mayor’s race.
The firefighters are supporting Democrat Greg Fischer. The police, however, favor Republican Hal Heiner.
The committee spent weeks debating how to make about $35 million in payments in a settlement with the firefighters over miscalculated overtime. The body was split between issuing bonds to finance the payments and tapping the city’s rainy day fund. Tapping the fund could hurt the city’s credit rating, while bonds accrue interest.
The Louisville Metro Council’s Budget Committee this evening is debating how to finance some 30 million dollars of a settlement with firefighters over underpaid overtime.
The Budget Committee of the Louisville Metro Council continued its discussion of how to finance the final $30 million in a settlement with underpaid firefighters. The committee Tuesday tabled an ordinance that would have issued bonds to make the payments.
The Louisville Metro Council’s Budget Committee learned the ramifications of tapping the city’s rainy day fund at Tuesday’s meeting. The council is considering using the fund to finance payments to firefighters in a settlement over miscalculated overtime.
The second payment in a roughly 45 million dollar settlement between Metro Government and Louisville firefighters over miscalculated overtime is due at the end of this month. Tuesday, the Metro Council’s Budget Committee will review the options for making the payments.
Daylight Saving Time begins this weekend, and Louisville firefighters say that means it’s time to change smoke detector batteries.