Insistent Alexander Council Member saves City $4,903.96

After a three-month review of Alexander's payments to elected officials, City Attorney Chris Madison has determined the City only owes Council Member Angela Griffin $100; which is much less than the original request submitted at the April council meeting. If not for the insistence of Council Member Juanita Wilson wanting to see proof of the underpayments, the City would have over-paid $4,903.96 to the mayor and two council members.

According to the resolution to amend the 2024 budget, proposed at the April meeting, Mayor Crystal Herrmann was paid $37,456.04 in 2023 instead of $42,160.00; a difference of $4,703.96. Council members Tony Staton, Angela Griffin and Gina Thomas-Littlejohn are listed as being paid $1,100.00 in 2023 instead of the annual $1,200.00; a difference of $100.00.

Office Manager Jennifer Hill explained at the April council meeting, "I would just say that I got this (dollar amounts) off the W-2s, so these were the W-2s that everybody got this year and everybody got last year that went through your bank."

"Well, still we need to take a look till next month and from your bank to prove," Wilson said. "We need proof, in writing."

At the April meeting Wilson made the motion to table the resolution until the council can see bank statements from 2023 showing there is a 12th deposit missing. The motion passed five to three with Angela Griffin and Gina Thomas-Littlejohn voting "No" and the absence of Tony Staton counting as a "No" vote.

At the May 20 council meeting it was decided a disinterested third-party needed to review financial documents to determine where Alexander stands as far as payments to the mayor and council members. Madison was "directed" by council members to review financial documents and report on his findings at the June 17 council meeting. At the June meeting Madison asked for another month to complete the audit of payments.

At both the June and July meetings Madison noted that payments to council members are inconsistent as far as when the payments are made and when they are receive by council members. According to Madison payments for December generally are received by council members in early January, while the January payment arrives at the end of the month. In 2024 Griffin was the only council member who did not receive the December, 2023 payment in January, 2024.

The proposed resolution to amend the 2024 budget states, "Council member Griffin was underpaid for services provided during Fiscal 2023, that other Council members were paid an additional payment in January of 2024, and that it is just and necessary that Council Member Griffin be compensated an additional $100 with the next Council member pay cycle to remedy the error."

The resolution also explains the missing payments to Mayor Crystal Herrmann. It turns out the Mayor was paid in full in 2023 and all this angst was caused by a misreading of the W-2.

"[T]he underpayment to the Office of Mayor was based upon review of the W-2 issued to the Mayor which showed a total payment of $37,456.04 when the salary for the Office of Mayor is $42,160, thus creating the apparent deficiency," the resolution states. "[W]hen reviewing only the W-2 issued to Mayor Herrmann for 2023 the salary wages and benefits for total compensation does not account for pre-tax deductions which are taken from the top line salary amount."

As it turns out, however, Mayor Herrmann is owed $810. The mayor's position is paid $1,620 for a two-week pay period. Because the fiscal year follows the calendar year the last week of December, 2022 was the first half of a pay period that ended the first week of 2023.

According to the resolution, "[T]he January 13, 2023 payroll, began its workweek on December 25, 2022 and ended on January 7, 2023, thus splitting the pay period between the end of December and the beginning of January, which also split the Fiscal years between 2022 and 2023."

For whatever reason Mitchell was paid for the first week of 2023 instead of Herrmann.

"[P]ayroll records show that on January 13, 2023, Mayor Herrmann was issued $810 for the first pay period of January 2023," the resolution states. "[P]ayroll records showed that on January 13, 2023, the former Mayor (Paul) Mitchell was issued $810 during January 2023."

Madison told council members the financial inconsistencies were detected during the 2023 legislative audit. In an E-mail sent by Stephanie Simmowy, Staff Auditor for Arkansas Legislative Audit; it is recommended the city council approve a resolution amending the 2024 budget to pay Mayor Herrmann the $810. The plan is to pay Herrmann after Mitchell returns the over-payment to the city.

Council members to be paid the first half of the month

In order to solve the issue of when council members receive their monthly $100 payments, a resolution was approved at the July 15 council meeting which designates elected officials who are paid once a month, "[S]hall be paid the monthly salary due for that month on the first payday of the City of Alexander for which full-time employees of the City of Alexander receive their pay in that month."

Next Meeting

The next meeting of the Alexander City Council is Monday August 19, at 6:00 pm in the courtroom of the Alexander Municipal Complex (City Hall). Meetings are open to the public.