Commission approves city manager contract amendments and obligates ARPA funds, seeks more oversight on rebuild costs

The commission approved a second amendment to the city manager’s employment agreement that, among other changes discussed, extends the contract term through December 2027 and sets parameters for retirement and other housekeeping items. Commissioners discussed performance evaluations, holiday/overtime language and car allowance; some members asked that a current evaluation and additional financial review be completed before any salary changes are finalized.

Commissioners also unanimously approved a resolution obligating American Rescue Plan Act funds to retire debt related to the 17th Street Ditch project and other priorities; staff said paying the note early would save approximately $1,003,000 in interest over the life of the note and yield about $250,000 in annual stormwater benefit next year. The Financial Review/Audit Committee was extended and restructured, with the city manager and finance director designated as nonvoting advisory members and five appointed voting members to improve independent oversight.

Separately, commissioners approved a midyear budget amendment adding approximately $1,186,000 in carryover and other project funding for FY24/25, and directed staff to provide more detailed financial information on the city‑hall rebuild and related change orders for commissioner review.

Multiple commissioners asked for further financial transparency: one commissioner urged the Financial Review Board to revisit the city rebuild estimates, noting an earlier projection of $5.2 million that staff now estimate at $18 million; another asked that a performance evaluation be completed before considering contract compensation changes.