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Pontiac council approves expanded Raymond Group finance contract after amendments capping monthly spend
Summary
After prolonged debate and multiple amendments, the council approved an expanded engagement with the Raymond Group to provide interim finance director services and oversee day-to-day finance operations; council added monthly reporting and a $100,000 per-month cap on expenditures as oversight safeguards.
The Pontiac City Council on Jan. 21 approved a contract with the Raymond Group to expand the firm's role from accounting support to acting as interim finance director and supervising the city's finance department. The vote followed extended debate over scope, cost and oversight; council adopted several in-meeting amendments adding an explicit contract execution authorization, a monthly expenditure cap and a requirement for monthly written reporting to council.
Scope of work: Under the approved engagement Raymond will assume finance-director duties: directing and overseeing deputy finance personnel and finance staff, preparing and amending budgets, coordinating annual financial statements and the single audit, communicating with stakeholders (state, federal and local), financial forecasting, and evaluating internal controls. The engagement also includes hands-on accounting tasks such as accounts payable/receivable, general-ledger work, bank reconciliations and grant accounting. Treasury, income tax administration, purchasing, HR and IT functions were listed as out-of-scope unless separately negotiated.
Costs and term: Council approved a term starting Feb. 1, 2025 through Dec. 31, 2026 with automatic one-year renewals and base monthly fees that the administration said reflect two options (a higher short-term monthly rate vs. a lower monthly rate for a longer commitment). During deliberations council added an explicit cap on expenditures to $100,000 per month and required monthly written reporting to the full council of the contract expenditures. The contract also contains a negotiated early-termination fee structure (the city may terminate under certain conditions, with a stated fee if terminated without cause) and a renegotiation clause if the city hires a full-time finance director.
Council concerns and safeguards: Members pressed Raymond and administration staff on who would supervise the firm locally (the deputy mayor was designated as the mayor's designee), how on-site coverage would work and how the contract would adapt if the city hires an in-house finance director. The firm said it expects substantial on-site presence to manage operations and highlighted that hourly out-of-scope work would be used only when necessary; council members inserted the monthly cap and required reporting to ensure a taxpayer safeguard.
Ending: The amended contract passed by council. Members said they will expect prompt monthly expense reporting, and council and administration reiterated their commitment to hire a permanent in-house finance director while using the contract as an interim solution to stabilize ongoing accounting and reporting functions.
