135.02 CLAIMS FUND.

   (a)   Establishment; Designation. The Finance Director is authorized to establish a fund out of which claims against the City may be paid. The claims fund shall be designated by a name suitable to and provided by the Director of Finance, carried, as such, in his financial account of the City. Until the fund is provided, payment of claims may be made from any appropriate fund available.

   (b)   Appropriation by Council. The money provided for the claims fund designated in subsection (a) hereof shall be appropriated by Council as a part of the City budget at such time and in such amount as Council deems wise and proper. However, Council shall make supplemental appropriations therefor at any time it deems the same to be necessary for fund protection and the City.

   (c)   Payment Generally. The Finance Director is authorized and directed to pay money out of the claims fund for payment, settlement, compromise or arbitration of claims whether such claims are liquidated or unliquidated. Any claim so settled, compromised or adjusted shall be settled and paid out of the fund as provided for herein.

   (d)   Settlement Authorization; Claims Of and Against City. No claim against the City shall be paid unless it is evidenced, by voucher, by the Board of Control, or a majority thereof. The Board of Control, or a majority thereof, is hereby authorized to settle, compromise or adjust any claims of and against the City, either liquidated or unliquidated, either before suit is brought thereon, while suit is pending or at any other time. The Board of Control is authorized to settle, adjust or compromise any and all claims in favor of the City and against the City after the same has been reduced to judgment where adjustment, compromise or settlement is advisable, expedient or proper. However, in no case shall any claim of the City or against the City, either liquidated or unliquidated, be settled, adjusted or compromised where the amount of settlement, adjustment or compromise of such claim or the payment of money required therefor, by the City, exceeds the sum of the settlement, adjustment or compromise requiring an expenditure of money in excess of one thousand dollars ($1,000). Whenever the sum of such settlement, adjustment or compromise requires an expenditure of money in excess of one thousand dollars ($1,000), the settlement, adjustment or compromise shall not be legal until first authorized by Council.

   (e)   Payment in Installments or Otherwise. In compromise, adjustment or settlement of any and all claims provided for herein, the Board of Control is authorized to provide for payment thereof either at one time and in one sum of money or in installments at different times as shall seem expedient and proper under the circumstances. (1967 Code §§38.05-38.09)