Here’s why lawsuits and claims are costing Bellingham more than expected this year
Lawsuits against the city over the past two years have forced Bellingham to tap a reserve fund for claims and litigation, officials said.
Bellingham City Council members voted unanimously to move $750,000 into the 2019-2020 Claims and Litigation Fund from that fund’s reserves.
“Over the past 18 months, the Claims and Litigation Fund has faced higher than anticipated expenses in claims and damages, outside legal services and insurance premiums. The budget requires additional appropriations to ensure the city’s ability to respond to litigation and claims and pay the annual cost of excess liability insurance,” according to a summary from Forrest Longman, deputy finance director.
City Attorney Peter Ruffato said during a council committee meeting Monday, Aug. 24, that extra money was needed to pay for legal action against the police and fire departments and for damage caused by city water main breaks.
“It boils down to a handful of claims,” Ruffato said.
He didn’t elaborate, but there were major water line breaks in 2018 and 2019, according to Bellingham Herald reporting and the city of Bellingham website.
And lawsuits against the police and fire departments totaling at least $500,000 were settled in 2019 and 2020, according to Herald reporting and announcement at the City Council meeting Monday night.
Those claims were for an officer’s use of excessive force and for several firefighters’ roles in practicing a medical procedure on a corpse, according to Herald reporting.
Bellingham’s Claims and Litigation Fund had a $5.2 million reserve balance at the start of the 2019-2020 budget cycle, according to the city’s budget document.
Fund revenues of $2.1 million were budgeted, with spending of $2.7 million and a plan to tap the reserve for the remainder.
“The fund has nearly expended its entire two-year appropriation and requires additional appropriations,” Longman said in a memo to the council.
▪ A total of $600,000 was earmarked for judgments and damages that have cost $740,000 so far in 2019-2020, with additional settlements expected in the coming months, the memo said.
▪ An additional $150,000 was needed for legal services and an October insurance renewal that will cost more than what was budgeted.
