The Sherwood City Council Monday voted 8-0 to approve a $175,000 settlement with the Central Arkansas Risk Management Association for cleanup work associated with cleanup and recovery efforts from a tornado which struck the city in the spring of 2008.

"Central Arkansas Risk Management Association has filed an action in Pulaski County Circuit Court against the City of Sherwood claiming an outstanding indebtedness, and the city has timely responded denying the claim," reads the approved ordinance.

The ordinance calls the settlement a compromise and "settlement of claim preferable to the needless expense of protracted litigation."

In its lawsuit against Sherwood, CARMA had sought repayment of $200,000 with expenses associated with tornado cleanup.

"The city attorney is directed to deliver said sums to counsel for CARMA to execute all necessary pleadings to dismiss, with prejudice," reads the ordinance.