”We’re disappointed by their decision,” City Administrator Jessica Kinser said.
Hannafan’s compensation was changed from an hourly rate to a contingency contract in July. If the city had won, Hannafan would have received 25 percent of what the city was awarded. While it is unclear if the city will pursue an appeal, Hannafan will receive 30 percent of whatever is won on appeal.
Regardless of the verdict, the city is locked into the settlement, which is paid for with $450,000 out of the debt service levy every October. The city made the fourth of 10 payments this month, with $2.7 million still owed to Schultheis and the U.S. Department of Justice.
If the city had received any money, it would have gone to pay the settlement earlier than stipulated by the agreement.