Even if the City dragged it out and put themselves into bankruptcy, they would still be liable if this came to a settlement or verdict. Bankruptcy does not protect them from this.The city was STUPID to settle and could have dragged this out with appeal after appeal if D. Hurd had ruled against them. By dragging this out, we all know the city's credit rating is going to get worse in the future, hence they will be unable to bond, inevitably forcing the city into a predictable bankruptcy.
This deal was organized by the inside power-brokers who saw away to get the money now and get rid of the black cloud at the expense of the tax-payers. Utica had NOTHING to lose by keeping it going! There is little doubt that a protracted trial would have exposed inherent city deficiencies and various levels of incompetence despite the fact you can't stop a would-be killer no matter what protocols are in place.
This is all at the taxpayers expense!!!
The point of the suit wasn't whether they could have stopped a killer, but whether they actually tried, to which, they did not. They failed to act, and for that, they are liable.