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JOLIET
CITY MANAGER COLLECTS NEARLY $100K IN SEVERANCE PAY AFTER LESS THAN A
YEAR ON THE JOB
Illinois Policy Institute/
Vincent Caruso
Joliet City Council members awarded their
outgoing city manager a generous severance package after less than a
year on the job. The ex-official will also be allowed to seek
unemployment, even though some council members said he wanted to leave.
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 Joliet’s outgoing city manager will take home nearly $100,000
in severance pay following a City Council meeting on Oct. 16, despite serving in
that role for less than a year.
Council members voted 6-2 to approve City Manager David Hales’ separation
agreement, which over five months will include $89,584 in compensation and
$5,375 in unused vacation time, as well as continued health care coverage
through January. All told, Hales’ severance package will cost taxpayers $95,000,
according to the Herald-News. Hales began working for the city in November.
Large severance pay is hardly uncommon for public officials in Illinois and
recently spurred a new state law. What’s unusual about Hales’ separation
agreement is a provision guaranteeing the city “will not protest an unemployment
benefits” claim made by Hales, leaving room for other potential payments.
Hales’ severance payout is also unique for the circumstances under which he
vacated his position. Statements from council members indicated Hales left the
city on his own volition, according to the Herald-News. That raises the question
as to why the former city manager received a severance package at all – let
alone access to unemployment benefits.
Council members Terry Morris and Michael Turk both suggested Hales exited the
position voluntarily, although reasons for his departure were unclear.
The council members also noted the poor timing of Hales’ departure. The city
recently began working on a budget for the coming fiscal year, according to the
Herald-News. The process typically demands critical involvement from the city
manager.
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Hales’ separation agreement comes just ahead of a
new state law set to take effect Jan. 1 that limits the dollar
amount and attaches conditions to severance packages for public
officials.
In August, Gov. Bruce Rauner signed into law the Government
Severance Pay Act, barring government employers from issuing
extravagant severance payouts, also known as “golden parachutes.”
The act introduced by state Sen. Tom Cullerton, D-Villa Park, caps
severance payouts at the equivalent of 20 weeks of employee
compensation and revokes severance packages altogether for employees
terminated due to misconduct.
Hales’ severance package appears to have been influenced by the new
law, with the payout roughly limited to the new law’s 20-week
maximum. Had Hales been terminated by the city, the contract called
for six months of severance pay, meaning the negotiated agreement
only saved the city about a month of pay.
That an outgoing city worker can collect such an extravagant
severance package despite serving such a brief tenure – and possibly
quitting voluntarily – indicates inadequate oversight of public
funds. With the Government Severance Pay Act on the horizon, local
leaders would be well advised to begin adjusting municipal financial
practices to the benefit of taxpayers – rather than rewarding each
other at taxpayers’ expense.
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