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City requests $40,000 to cover administrative-leave pay disallowed by HUD for lead grant work
Summary
Community Development Director Matt Sullivan said HUD determined administrative leave taken by two employees could not be billed to the lead/CDBG grant, leaving the city to appropriate $40,000 to cover those payroll costs.
Matt Sullivan, community development director, told aldermen the city is requesting $40,000 to cover paid administrative leave for two employees whose leave time HUD determined could not be reimbursed through the lead grant or CDBG drawdowns. "While individuals are out on administrative leave and not doing direct program work, the city cannot actually be reimbursed for their time," Sullivan said, explaining the city will not draw down federal funds for those specific hours and must appropriate local funds to cover them.
Aldermen asked whether the leave was disciplinary and whether documentation was available; Sullivan said the leave was paid administrative leave and not disciplinary and that both employees have since returned to work. He offered to provide additional paperwork and time breakdowns to the board. CFO and other staff said the expenses were not anticipated in the FY26 budget because the administrative leave was not foreseen.
