Section 205. Compromise of claims

The corporation counsel shall, whenever
  he considers that the interests of the city will be  subserved  thereby,
  enter into an agreement in writing, subject to the approval of the board
  of  estimate  and  apportionment,  to  compromise  and  settle any claim
  against the city, which agreement shall constitute  a  valid  obligation
  against the city; and the amount therein provided to be paid shall, with
  interest  thereon from its date, be included in the next city tax budget
  and be collected and paid the same in all respects as a judgment against
  the city. If, however, before the adoption of the city tax budget  there
  shall  be  received by the city treasurer from any source any moneys not
  otherwise appropriated, the amount in the agreement provided to be  paid
  out of such moneys so received, so far as they will satisfy the same.