CENTERVILLE -- The city council is amending its budget by more than $48,000 to cover a settlement agreement regarding retirement for a justice court judge.
The council approved a settlement agreement during its recent regularly scheduled meeting.
The document, approved by Justice Court Judge David Miller and Utah Retirement Systems, deals with retirement coverage for the judge.
Though the exact amount of the settlement is contained in a confidential document, the budget will require amending by more than $48,000.
Assistant City Manager Blaine Lutz said Utah Retirement Systems determined that justice court judges were eligible for retirement since 1995.
"We did not necessarily agree," he said. "We were arguing that we should have been notified earlier."
There is a three- to six-year statute of limitations, Lutz explained, and Utah Retirement Systems audited Centerville in 2005. At that time, he said, the city did not consider Miller eligible for retirement, and the state didn't say he was, either.
"There are a lot of cities with justice courts in the same boat," Lutz said.
"However, as a financial decision, we had the option of reaching a settlement agreement with Judge Miller. Our other option would have been a long appeal process or perhaps a legislative change.
"Both could have been costly, and we didn't know what the outcome would be."
Centerville will now contribute to Miller's retirement account. The agreement is effective for prior service years as well.
Lutz could not discuss specific terms of the agreement, but it will require amending the city budget to cover the costs.
The council approved the agreement during its summary action calendar, which lists general items for approval.
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