EASTON, Pa. -

An old lawsuit involving one of the saddest moments in the Easton Police Department surfaced Wednesday night.

City Council agreed to refinance some $3 million of a $5 million payment it agreed to pay the widow of a police officer, who was accidentally shot and killed in 2005, by a fellow officer at police headquarters.

Under the terms of the deal, the city expects to save about $165,000, principally through a lower 2.2 percent interest rate than the current 3.8 percent, said City Administrator Glenn Steckman.

The yearly payments are about $570,000 a year.

The agreement involves the sale and leaseback of the city’s Public Works Complex to the Easton Municipal Authority.

The money will be used to pay off the old note the city used to settle the case involving the fatal shooting.

The $5 million payment settled the lawsuit brought by John P. Karoly Jr., who sued the city for $20 million after Matthew Renninger, a former police officer, shot and killed Jesse Sollman inside the police station on March 25, 2005.

The financial transactions of the Sollman settlement were similar to the terms the city used to settle another high-profile case for $2.5 million involving a police brutality lawsuit brought by former wrestling star Jack Cuvo.