Settlement payments have always come from the General Fund. The city self-insures by requiring departments pay into a shared liability fund. Payments into the fund are based on each dept's liability in the prior fiscal year. The $14m in a single FY dwarfs prior totals, though.
https://twitter.com/JackCraver/status/1556764847001542661
The complicating factors are a) $14 million in one year is way more than the city has ever paid in a single year (2011-2019 was $8m) and b) state law prohibits the city from reducing the police budget, unless the Gov. gives them permission.
I'm not totally sure how the accounting will work here. Presumably APD's Liability Reserve Fund premium transfers would have been much higher in FY22 (the year following the 8th Street protests), but perhaps not enough to cover the full $14m. I've asked for the numbers.
Either way, this would be a pretty good topic for a Council Member to ask staff about at the public budget work session happening right now! #atxcouncil
For context on how badly $14 million in police violence settlements hampers the city budget, see the table below. If the city didn't have to pay these survivors, city employees could have their base pay boosted to $20/hour. 
to preempt any bad faith readings of this tweet — I'm not saying the settlement payments are unjustified. They are. It's the budgetary decisions, policies, and training that form the foundation of policing that need scrutiny, not the recompense paid to victims of police violence.
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