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<br />. <br /> <br />M E M 0 RAN DUM <br /> <br />~ March 8, 1985 <br /> <br />From: <br /> <br />City Council <br />~ufene Renewal Agency <br /> <br />~ren G. Wong, Finance Director <br /> <br />To: <br /> <br />Subject: Interest Earnings on Unsegregated Property Taxes <br /> <br />This memo updates the one dated February 4, 1985 on this subject. The County <br />has asked the City to agree to a settlement by March 12th, or it will withdraw <br />its settlement offer of January 29, 1985. That offer provided for payment of <br />interest earnings from May 23, 1984 to January 8, 1985 as a cash settlement, <br />payment of subsequent interest earnings and release of County officials for <br />liability on payment, damages or penalties arising from transacting the <br />settlement of this issue. For the City, the cash settlement is $84,049.75 <br />and for the Renewal Agency, it is $6,424.32. <br /> <br />e <br /> <br />On March 6th, the Board of School District 4-J rejected a similar settlement <br />offer and reaffirmed its earlier compromise offer which, subject to court <br />approval, required the County to pay the entire FY84 and subsequent year's <br />interest earnings over several years. If the County does not accept the <br />Board's offer by April I, the 4-J Board directed its attorney to take the <br />claim to court. We anticipate most of the other school districts will follow <br />suit. <br /> <br />Based on ad~iice from the City Attorney's Office, we recommend Council and <br />the Board authorize the City Manager to send the attached letter to the <br />County advising it that the City and the Renewal Agency neither accepts <br />or rejects the settlement offer of January 29, 1985. It further states that <br />because of the potential risk of personal liability for the public officials <br />involved, any compromise settlement reached must have judicial approval. <br /> <br />When it appears that the City should more actively assert its claim, we will <br />provide Council and Board with an executive session briefing on the issue. <br /> <br />Attached is a copy of County Administrator Johnson's March 5th letter and the <br />offer dated January 29th, my memo of February 4th outlining the issue and a <br />draft letter we propose be sent to the County. <br /> <br />cc: M. Gleason <br />D. Whitlow <br />T. Sercombe <br /> <br />Attachments -- 5 <br /> <br />fnwgw562 <br /> <br />e <br />