A multimillion-dollar federal court verdict threatens to deplete the city of Fresno's self-funded insurance pool at the worst possible time -- just as city revenues are evaporating faster than City Hall can cut costs.
City officials now must find $3 million to replenish their insurance reserves just as they hunt for more than $7 million in other cuts to close a persistent and growing budget gap. . . .
"This is a serious and heavy blow to the budget," Fresno City Council President Larry Westerlund said. "We need to take all the steps that we can to see that it never happens again."
The November federal court decision -- a nearly $2.5 million gender-discrimination award, with attorney's fees still to be decided -- came in a lawsuit filed by Michelle Maher, who was forced out of the Fresno Fire Department's training academy in 2005. . . . .
Rudd hopes the verdict will be reduced or overturned on appeal. The city has asked U.S. District Judge Oliver W. Wanger for a new trial. A hearing is scheduled for Monday.