This past week Councilman Harris issued a resolution that would require the city to pay its debt to to Shelby County Schools of $57.5 million. From the resolution:
NOW, THEREFORE, BE IT RESOLVED the Memphis City Council respectfully requests that the Mayor in his FY2015 budget create a “Schools Litigation Fund” for the purpose of holding, preserving, and setting aside installment payments for the benefit of Shelby County Schools.
Furthermore, be it resolved that the Council respectfully requests that the Mayor budget, allocate, and set aside the first annual installment in the amount of four million, eight hundred thousand dollars ($4,800,000) and place the first installment in the Schools Litigation Fund.
Also, be it resolved that if such a fund is recommended by the Mayor and approved by the Council in the FY2015 budget, any funds deposited in the Schools Litigation Fund shall only be used to make payment to the Shelby County Schools, in the event the City of Memphis is ultimately unable to avoid this outstanding claim through further litigation or in the event that a settlement is reached whereby the City of Memphis agrees to make any payment to Shelby County Schools.
FINALLY, BE IT RESOLVED that if some pending or future litigation relieves the City of Memphis’ of the obligation of paying the outstanding judgment to Shelby County Schools, the Schools Litigation Fund shall be terminated and the balance of such fund, if any, shall be returned to the general fund of the City of Memphis.
The council will be discussing this resolution tomorrow. Here’s hoping we can finally put this mess to rest.
By Jon Alfuth
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Categories: School Finance
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