Good morning, and welcome to L.A. on the Record — our City Hall newsletter. It’s Rebecca Ellis, with an assist from David Zahniser, Noah Goldberg and Matt Hamilton, giving you the latest on city and county government.

There is no shortage of budget-busting costs facing Los Angeles County, Supervisor Lindsey Horvath recently told guests at this week’s Los Angeles Current Affairs Forum luncheon.

There’s the costly fire recovery effort. And the deep cuts from the federal government. And a continuing homeless crisis.

As Horvath wrapped up her remarks, Emma Schafer , the host of the clubby luncheon, asked about yet another expenditure: What was up with that $2-million settlement to the county’s chief executive officer Fesia Davenport ?

“We were faced with two bad options,” Horvath tol

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