September 29, 2025

“1. C0292-25 Resolution/s/ Councilor Stephanie Martins That the forensic auditor from MDD present the current findings of the audit in compliance with the Office of The Inspector General's recommendations Attorney Christopher Petrini provided an overview of the events since the Inspector General's report 7 months ago that found overpayments to the mayor totaling $180,000 and other improprieties. He outlined the 7 recommendations from the IG report and steps the council has taken to address each one, including appropriating funds for an audit, demanding repayment from the mayor, providing information to the State Ethics Commission, eliminating longevity payments to elected officials, requiring ethics training, strengthening financial controls, and separating the CFO and auditor positions. Kevin Flaherty from MDD Forensic Accountants then presented the findings of their independent audit. Key findings included: - Total non-salary payments to the mayor from 2016-2024 of $260,964 - Inconsistencies in how longevity payments were recorded in the payroll vs accounting systems - Two $20,000 manual longevity checks issued outside the normal payroll system in 2020 and 2021 - A $31,664 "supplemental earnings" payment in 2023 said to be for prior unpaid cost of living adjustments - The mayor's credit card charges totaled $25,000 in 2023, substantially higher than prior years Mr, Flaherty provided the city's explanations for the highlighted transactions. Councilors asked various questions about the findings and expressed concerns about lack of controls, concealment of payments, and improper transactions. Attorney Petrini advised that options for the council are limited since the mayor sued the IG and rejected council requests for funding to intervene in that suit or take separate legal action. The IG's findings are still under review by the State Ethics Commission and possibly other agencies. Councilors made statements condemning the improper payments, lack of transparency, and broken controls. They requested the administration provide explanations for various questions raised by the audit. Motions were made and passed to refer the audit results to various oversight agencies, request a supplemental appropriation to allow the council to intervene in the mayor's lawsuit against the IG, and request funding for an internal controls audit. A motion was also made to request the city stop using its credit cards. MOTION: Refer MOVER: Peter Pietrantonio SECONDER: Holly Garcia RESULT: Passed [0 TO 0] AYES: NAYS: AWAY:.” (Motion: Peter Pietrantonio, second: Holly Garcia)

Read it in the official minutes, page 2 (PDF)

“Meeting adjourned at 8:00 PM MOTION: Adjourn MOVER: Stephanie Smith SECONDER: Katy Rogers RESULT: Passed [0 TO 0] AYES: NAYS: AWAY:.” (Motion: Stephanie Smith, second: Katy Rogers)

Read it in the official minutes, page 2 (PDF)