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Council waives recovery of past employee insurance underpayments totaling $11,422
Summary
After a payroll formula error produced incorrect insurance deductions for 16 employees (individual amounts from $13 to $3,000), the council approved Resolution 20260727002 directing staff not to collect the shortfalls and to absorb $11,422 from the city’s self‑funded account.
City Administrator Deven Markley and Finance Manager Taheton Stephens reported a formula error in the payroll system that left incorrect insurance deductions for 16 employees; individual underpayments ranged from $13 to about $3,000 and the total shortfall is $11,422. Markley said staff corrected the formulas, contacted affected higher‑cost employees and sent notice to staff by email.
Councilmembers asked whether pay stubs were being received and whether the error would affect tax withholdings; Markley said taxes are maintained via separate tables and unique withholdings would need manual entry. Councilwoman Beth Sauter raised concern about residual issues and whether other payroll entries remain incorrect. Councilman Rudy Cataldo moved and Councilwoman Andrya Carter seconded Resolution 20260727002 to direct staff not to recoup the underpayments and to use the self‑funded plan to cover the cost. The motion passed on a roll call vote of 5–0.
