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Pontiac council demands written clarity on IRS 1099 matter, presses administration on finance leadership and retiree settlement timeline
Summary
Council adopted resolutions asking the mayor for written clarification about an IRS notice tied to late 1099 filings and pressed for updates on the finance director vacancy and an actuarial study tied to a potential $400 monthly stipend for city retirees; administration said the city does not currently owe the IRS and expects actuarial materials to be ready for council review soon.
Pontiac City Council on Tuesday passed multiple resolutions asking the mayor for written updates on the city’s finance operations, an IRS notice concerning late 1099 submissions and the status of an actuarial study connected to restoring a $400 monthly stipend for eligible retirees.
Pro Tem Carrington moved a resolution requesting clarification from the mayor on whether the city owes any funds to the Internal Revenue Service after the administration acknowledged some 1099 forms were submitted after a January 31 deadline. Council members framed the request in the context of a seven-month vacancy in the city’s finance director role.
Deputy Mayor (identified in the meeting as the administration point person) told council the issue concerns contractor 1099 deadline timing across prior years and that the IRS sent a notice proposing a penalty; the administration said it promptly filed a rebuttal and, as of the meeting, the city does not owe assessed sums. "The IRS sent the city a notification of our late submittals and said there is a proposed penalty and we had the opportunity to refute that penalty, which we are now in the process of doing," the deputy mayor said.
Council members, including Councilman Goodman, pressed for a timeline and for council to receive weekly updates until the matter is resolved. "We need that communication," Goodman said, expressing concern that council had learned details from outside sources rather than from the administration directly.
Separately, the council adopted a resolution requesting a written update on payment to an actuarial firm and the status of a completed actuarial study tied to an amended settlement that could reinstate a $400 monthly stipend for retirees. The mayor said the actuarial firm had been paid and delivered the study the prior week and that city attorneys are reviewing it; he noted a legal requirement that the actuarial study be provided to council seven days before any vote on the settlement.
Speakers from retiree advocacy groups in public comment urged quick resolution and said their representatives had received updated exhibit lists late in the day, which the mayor and administration said they would confirm. The administration told council it has been reconstructing decades of paper records to ensure eligible retirees are not missed and said some additional names were added to exhibit lists during the review process.
