City Recorder Sick Leave Pay Comes Under Question
(published 12/15/2007)

Mayor Nolan Barham violated a city ordinance if, as it appears, he paid outgoing City Recorder Michelle Bennett for unused sick leave when she left her city job.

Bennett submitted a letter to the city announcing her resignation on Oct. 23 and noted her resignation would be effective Nov. 6. She had 3 ½ days of vacation left, which she took in November, which made her last full day of work on Oct. 31.

She also noted in her resignation letter that she had 126 hours of sick leave accrued, which it appears the city paid.

A city ordinance says, however, that "upon termination or resignation, any unused sick leave shall not be cashed in for compensation."

Four payments were made to Bennett in October with the two Oct. 31 checks being the ones possibly related to her separation pay.

Councilman Greg Buchanan began questioning the payments to Bennett at the Nov. 15 council meeting and did not get a full answer about them until Thursday.

"I’ve asked for the last two council meetings, and I just received an email from the attorney," Buchanan said.

Barham, who handles the personnel matters for the city, told Buchanan at the Nov. 15 council meeting that he did not want to cite what the checks were for from memory and would get back with him on the matter.

Buchanan had not received an answer on the payment by the time of the Dec. 6 council meeting so requested the mayor put an item about the Oct. 31 checks on the agenda unless Barham had an answer on Bennett’s pay.

Barham said City Attorney Travis Lampley was checking with Don Darden, a consultant with the Municipal Technical Advisory Service (MTAS), "on the payout because it is sick leave."

"It was for sick leave accumulation, and I don’t know if that included the health savings plan," Barham added.

Lampley said that Bennett told him the first payment in October of about $97 was for either pay from the fire department or mileage reimbursement. The second check, which was for $1,233, was her regular first half of the month salary.

Of the two Oct. 31 checks, a $1,405 payment was for her regular end of the month salary plus the accrued vacation days. Lampley said that Bennett stated the fourth check, which was for $1,945, was for accrued sick leave.

Lampley said in the email that if Bennett was paid for unused sick leave, "this would have been in error." The city ordinance does allow employees to receive pay for any unused accumulated vacation.

Don Darden of MTAS also told Lampley that it was up to the city policy as to whether an employee is to be paid for any unused sick leave at separation.

In answer to a question on Friday about how the city will correct the payment to Bennett if it is indeed a wrongful payment, Barham now says:

"There is very little money involved if there is sick pay. Most of that is the health savings plan which is her money that is strictly her money when she leaves."

However, none of the city’s financial statements indicate that the city owed Bennett any additional payments for a health savings plan at her departure. The mayor characterized the health savings plan at budget time as the city would put in $100 a month toward a health savings account and Bennett would put in $100 and "then she could take that with her" if she left the city.

The city’s financial statements reflect that the city has paid Bennett $100 a month toward a health savings account since the current fiscal year began on July 1. But the financial statements do not show that the city had any account set up that documented any $100 a month match from Bennett.

The Eagleville Times requested information on Dec. 7 about how the October checks to Bennett were calculated but as of Monday had not received the information.

Barham said in a phone call Friday that he did not receive the request until Tuesday, Dec. 11, and the five days started when he received it. He also sent a letter to Eagleville Times reporter Glenda Dyer saying that he would be out of town the rest of the week and would provide the information no later than the following Tuesday (Dec. 18), which is a day after the newspaper’s deadline.

It is unclear to date who signed the $1,945 check to Bennett that appears to have been for accrued sick leave. Three people, Bennett, Barham and Vice Mayor Ronnie Hill, were authorized to sign checks for the city.

Hill said Monday that he signs very few checks and does not think he signed the $1,945 one. If he did not sign it, the check, which requires two signatures, had to have been signed by Barham and Bennett.

Buchanan said that whoever signed Bennett’s separation pay check should have "known better" or should have involved a third party.

"I think this was a very big mess up," he said. "It is another example of improper stewardship of the city’s money."

Hill said Bennett needs to reimburse the city if indeed she was paid in error.

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