§ 206. Judgments against the city. The amount of any judgment
recovered against the city and payable by it, remaining unpaid, with the
interest due thereon, in case the time to appeal therefrom has expired
and no appeal has been taken, or a certificate of no appeal therefrom
has been given by the corporation counsel, or in case such judgment is
finally affirmed, or an appeal taken and the execution thereon shall not
be stayed, shall be reported to the common council immediately after the
same shall have become payable, as aforesaid; and the amount thereof
shall be included in the next city tax budget. Such judgments shall be
paid in the order of their recovery out of the moneys first paid into
the city treasury on account of the annual taxes or, prior thereto, out
of the proceeds of tax anticipation notes issued in anticipation of the
collection of such taxes or out of the proceeds of budget notes. If,
however, there be any moneys in the treasury to the credit of any fund
derived from city revenues, other than taxation, in excess of the
estimated revenues from such source, and not otherwise appropriated,
sufficient to satisfy judgments against the city, the comptroller shall
issue warrants for the payment of such judgments out of said funds in
the order of their recovery. Until the moneys applicable to the payment
of a judgment have been raised and paid into the city treasury and
payment of the judgment has been refused, no execution shall issue
against the city unless the amount of such judgment shall not have been
included in the tax budget.