Council approved budget transfer to cover $1.5 million settlement; residents seek case details and legal fees

The council considered a budget transfer to pay for a recently settled civil‑rights lawsuit that staff described as the "Benny matter," with a payout totaling $1.5 million and most of the cost expected to be covered by the city's insurance carrier.

Corporation counsel Gregory Kalnitsky told the council the settlement was approved previously and the current item moves money to cover the payment beyond what had been budgeted for judgments and claims. When asked, counsel and staff said the insurance carrier would pay the bulk and the city would cover a portion. A resident asked for a public list of pending cases; counsel said the office has internal records and that members of the public may use court websites or submit Freedom of Information Law (FOIL) requests for documents; another resident pressed whether the city would voluntarily publish an internal litigation list.

A public commenter asked about outside counsel costs over the life of the litigation; counsel said outside legal fees over several years were in the "realm of $270,000." Multiple residents connected the settlement to concerns about policing and accountability; one urged additional training and disciplinary follow‑through where wrongdoing occurred. Staff said the budget transfer should cover the settlement for the remainder of the fiscal year and that the city routinely makes transfers to manage judgment and claim line items.

Council did not engage in extended debate before moving the transfer; public commenters used the opportunity to press for more transparency on litigation and outside counsel billing.