St. Denis returns 401(k) contribution

Former Town Manager Bruce St. Denis has returned a $10,365.79 town match toward his 401(k) account after Longboat Key town commissioners questioned the payment.

St. Denis wrote in a Nov. 22 email to current Town Manager David Bullock that he began diverting his remaining compensation to various categories of deferred compensation after he knew he would be leaving the town.

According to the email, St. Denis didn’t see his payout for unused vacation as part of his severance package.

“The town had no discretion in its payment and it was due prior to the separation discussions,” St. Denis wrote. “Nevertheless, it was included in the final calculations when they were initially requested by town counsel and they stayed in the agreement through the process. That was my mistake.”

St. Denis wrote that because vacation payment is typically part of the last paycheck, he intended to “allocate the entire amount to the 401(k) as, at least until the agreement, I was eligible, and this was common practice for individuals separating from the town for any reason.”

St. Denis wrote that he doesn’t believe that the town had the discretion to limit the use of funds that were due outside of the agreement but wrote that he should have ensured that the funds were treated separately.

“Although I have a case to be made, I am realistic enough to know that it would be an ugly experience for everyone involved,” he wrote. “Beyond that I do not want to be the cause for staff to go through another ‘Who shot John?’ investigation.”

The issue came up at a Nov. 17 commission regular workshop, after Commissioner Lynn Larson asked about a line item explained as “Part of TM Severance not figured into transfer Ordinance.” The discussion was of a resolution to amend the 2010-11 fiscal-year budget by transferring a total of $349,276 in available unencumbered funds in various general fund line item accounts to general-fund line item accounts where expenditures exceeded the adopted budget. Larson protested the payment because it was not part of the $268,364.81 severance package approved by the commission in September. The agreement included $177,507.20, representing 12 months’ base salary; $49,702, representing 28% of a year’s base salary which would be payable directly to the town manager’s 401(a) account; $16,507.79, for medical insurance premiums; and $24,647.81 for unused vacation pay.

In a Dec. 1 email, Commissioner Phill Younger praised town staff for their resolution of the matter, along with St. Denis “for his willingness to work with the town and amicably resolve the issue and to Commissioner Larson for bringing it to our attention.”