Section 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.