Naperville considering higher limit for settling claims

Naperville City Manager Doug Krieger is asking for the ability to settle more expensive legal claims without city council approval, but the council seems unlikely to grant that authority.

Two on the council said they don't support allowing the city manager to settle claims of up to $50,000 without council approval. Increasing the threshold to $50,000 from the existing $25,000 would not help the city keep spending in check, council members Robert Fieseler and Doug Krause said.

Fieseler said he would prefer the council review proposed spending on litigation claims, settlements and workers' compensation before each claim is paid rather than after.

"This, I think, is an instance where it's better to ask permission than beg for forgiveness," Fieseler said. "I do think that element of control that got us successfully through the economic downturn does apply to this situation as well, which is why I think we should maintain the spending authority where it is."

City Attorney Jill Wilger said the city manager is seeking authority to settle more expensive claims because the cost of claims - especially those relating to medical expenses - has risen since 1999, which was the last time the council reviewed the settlement limit.

"Medical costs are often a significant component of these claims and are particularly significant in determining the value of personal injury and workers' compensation," Wilger said in the memo.

Since 2003, the city manager has had the ability to enter into contracts up to $100,000 without first getting council approval. Krause, who is running for mayor, said he voted against that increase and he plans do to so again for the proposed increase in settlement payments. The matter is scheduled for a vote during the council's next meeting Feb. 3.

Dick Furstenau, a former city council member who is running for the council again in April, said raising the amount the city manager can pay without going to Naperville's elected leaders would decrease transparency. He said $50,000 is too much taxpayer money for a city employee to spend "without any council input at all."

"Anytime you spend money, the people should be able to know what it's for," Furstenau said.

If the authority is increased, the city manager's office would provide a quarterly report on all settlements paid between the old limit of $25,000 and the new $50,000 amount. All settlement agreements also are available to the public through a Freedom of Information Act request, Wilger said.