The city of Chattanooga and the Hamilton County Schools have reached a settlement in the lawsuit filed by the school system over the liquor tax.
The settlement is set to be discussed at the County School Board meeting on Thursday.
The county schools claim in the suit that the city was supposed to be passing half of the liquor tax revenue on to the schools.
The school system claims it is owed over $10 million.
The city had been claiming that the county schools should pay stormwater fees.