This is the only way you can fix government right now. We live in a country where the government is to serve people, but people pay to be served. I hope there are criminal charges, but the incentive needs to be that the city has an interest in its public bodies. Punitive damages is one way to do this.
The point of a settlement is not to reimburse just the value of the utility of the person on society. That is partly due to the fact its hard to calculate, but its also because some people would give up anything to undo some things. I have met many parents that would give up anything to save their child. If you offered a billion dollars, they would not allow you to kill their child.
You seem to have forgotten that the government is the responsibility of its citizens.