Commission questions payout for St. Denis

The Longboat Key Town Commission approved a $268,364.81 severance package for 14-year Town Manager Bruce St. Denis in September that included 12 months’ base salary, deferred compensation, medical-insurance premiums and unused vacation payouts. But that didn’t include a $10,161 401(k) match that St. Denis also received.

The transfer came to light during a Nov. 17 commission regular workshop discussion 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.

Toward the end of the discussion of surpluses and shortfalls, Commissioner Lynn Larson asked about a $10,161 line item explained as “Part of TM Severance not figured into transfer Ordinance.”

“Please tell me that we didn’t pay a 401(k) investment on that payout he received,” Larson said.

“I wish I could,” said Tom Kelley, town finance director. “We didn’t see a way around paying that. It’s in the PRRs (personnel rules and regulations), basically, that if someone puts that in, we have to match that to a certain degree. We didn’t know what he was going to put in.”

Larson said that the commission approved St. Denis’ severance package but didn’t approve the additional $10,161 and asked how the amount could be paid without commission approval. Kelley agreed to research the issue.

Later that afternoon, as the commission came back to the discussion during a special meeting. Kelley told the commission that he had spoken briefly about the issue with town attorney David Persson over the phone that afternoon. He said that further research was needed to determine the timing of when the severance package was approved and when the 401(k) request was made.

Commissioner Phill Younger also questioned the payout.

“Once the severance agreement was signed, then the fund is no longer available,” he said.

Larson suggested a motion to postpone the transfer of $10,161.

“The money’s been paid,” Kelley said. “It’s a matter of moving the money around to cover that expenditure.”

Persson, who was at the meeting but not the workshop held earlier that afternoon, said that he was just learning about the issue and would consult with the town’s labor attorney, H. Reynolds Allen, and Kelley to determine whether the transfer was problematic.

Larson later agreed to withdraw the motion, and the commission approved the amendment to the 2010-11 fiscal year budget.

On Monday, Persson referred questions about the transfer to Interim Town Manager David Bullock, who said he had spoken briefly with Kelley and St. Denis about the issue. He said that he was not personally aware of the timing of St. Denis’ request but planned to report back to the commission on the issue.

According to Lisa Silvertooth, the town’s human resources manager, all non-union, full-time employees are eligible for town-matching contributions after one year. Employees with more than one year and less than five years of service are eligible for a 25% match of contributions of up to 6% of his salary; employees with five years or more of service are eligible for a 50% match up to 6% of salary amount.

Severance package
The Longboat Key Town Commission signed off on the following severance package for longtime Town Manager Bruce St. Denis in September:
• $177,507.20, representing 12 month’s base salary
• $49,702, representing 28% of a year’s base salary, which would be payable directly to the town manager’s 401(k) account
• $16,507.79, for medical insurance premiums
• $24,647.81 for unused vacation pay
Total: $268,364.81