Rockford to borrow $13.7M from bond sale to pay off 2 wrongful conviction settlements

By Kevin Haas
Rock River Current
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ROCKFORD — The city plans to borrow $13.7 million to pay off two wrongful conviction lawsuits filed by men who each spent more than two decades in prison before being exonerated of the crimes.

The city plans to issue bonds to be repaid over 20 years. The bond sale doesn’t require voter approval because it doesn’t increase property taxes. Instead, the debt is paid from general sales tax revenue.

“We’re doing what we believe is in the best interest of the city and the taxpayers in the long run to pay these obligations without immediately impacting services today while being financially conservative considering today’s economic climate,” said Carrie Hagerty, the city’s finance director.

The pair of federal lawsuits come from Patrick Pursley and John Horton, who were each arrested and convicted of separate fatal shootings in 1993 before being declared innocent years later. Both men spent 23 years in prison.

It’s a difficult time for the city to enter the bond market because of recent financial volatility. The annual payment will depend on the final interest rate after the bond sale this summer. It’s estimated to be less than $1 million per year.

The city was self-insured for any liability, including legal claims like these, until 2012 when it acquired its general liability insurance, Hagerty said. However, because the actions stemming from the lawsuit predate that, insurance didn’t cover these claims, she said.

The City Council’s Finance and Personnel Committee gave initial approval to the bond sale on Monday. It goes for a City Council vote next week.

The bond sale comes after both settlements were previously approved by City Council in the past four months.

In December, the city agreed to pay $5 million to settle a wrongful conviction lawsuit with Pursley. About a month later, City Council agreed to a $9.5 million settlement with John Horton.

Pursley spent 23 years in prison for the 1993 murder of Andrew Ascher on Silent Road in Rockford before being exonerated in a new trial  2019.

He had petitioned from prison for years before a 2007 change in Illinois law allowed defendants to seek a comparison of ballistics with digital images contained in a national database. His was the first case in the country to allow post-conviction ballistic testing, and those tests led to his exoneration, according to the National Registry of Exonerations.

Related: Town of Normal approved $5.4M settlement with Rockford man Alan Beaman

Horton had been convicted of the 1993 murder of Arthur Castaneda at a McDonald’s in Rockford. His cousin, Clifton “Buddy” English, had repeatedly confessed to the crime and provided details not released publicly. Horton’s ex-girlfriend also later recanted statements used in his initial trial. She later admitted she falsely claimed during the trial that he had bragged about committing the crime, according to the National Registry of Exonerations.

Horton’s conviction was overturned in 2016 and a new trial was granted before a special prosecutor dismissed the charges about a year later. He was granted a certificate of innocence in December 2018.

This article is by Kevin Haas. Email him at khaas@rockrivercurrent.com or follow him on X at @KevinMHaas or Instagram @thekevinhaas and Threads @thekevinhaas