The Financial Impact of Firing Palm Bay City Manager Suzanne Sherman
What Residents Should Know About the Costs Involved
Editor's Note: This article has been updated to reflect recent information regarding Suzanne Sherman's severance package. State law limits severance pay to a maximum of 20 weeks, not six months as originally mentioned.
Palm Bay, FL -- The recent decision by the Palm Bay City Council to terminate the employment of City Manager Suzanne Sherman has significant financial implications for the city and its residents. Sherman, who served as City Manager since 2020, held a well-compensated position, and her unexpected removal will lead to substantial costs. This article examines the terms of her employment contract, her salary history, and the financial repercussions of this decision. For readers who may not have read our previous coverage, you can find a detailed summary of the events leading to the termination at Palm Bay City Council Approves Apartment Project Amidst Leadership Shake-Up.
Sherman's Compensation History
Sherman's employment contract, approved at the January 21, 2021, City Council meeting, specified the conditions under which she could be terminated and the compensation she would receive upon termination. According to the terms, Sherman was entitled to severance pay equivalent to 20 weeks of her salary in the event of an involuntary termination without cause, as per state law. Such clauses are common in employment contracts for high-level roles, as they help protect the stability of the position and ensure that leaders can make decisions without fear of sudden job loss. Given her 2023 salary of $251,452, the severance payment alone could cost the city approximately $96,712.
Additionally, the city may need to cover the cost of accrued leave, such as vacation or sick time, which could add further to the financial burden. The specifics of these payouts depend on the city's policies for accumulated benefits, which typically allow for a payout of up to 480 hours of accrued vacation leave and 50% of accrued sick leave. Sherman's contract terms included a severance payment of 20 weeks' salary upon termination without cause, full payout of all accrued vacation time, and 50% payout of accrued sick leave.
Terms of the Employment Contract
The financial implications of terminating Sherman extend beyond her severance package. These include recruitment costs, potential increased salaries for her replacement, and other administrative expenses. The city will need to allocate funds to conduct a search for her replacement, which typically involves hiring external recruiters or consultants. This could lead to additional costs that are passed on to residents through budget reallocations or adjustments in city spending.
Moreover, the city may need to provide incentives to attract a qualified candidate, which could involve a salary package equal to or greater than Sherman's. Given that her salary had steadily increased over the years, the new City Manager's compensation could start at an even higher rate due to factors such as inflation, competition for qualified candidates, and potentially increased responsibilities. This would add further financial pressure on city budgets.
Impact on Future City Budgeting
Residents should also consider how these expenditures might impact future city projects and services. The severance payments, recruitment costs, and potential higher salary for the incoming City Manager may lead to budget cuts in other areas, including infrastructure, community services, or emergency services funding.
Mayor Medina expressed concern at the November 21 council meeting, stating, "We must balance the need for leadership changes with our responsibility to our residents and our budget." The city's ability to fund essential projects, including road repairs and public safety initiatives, could be constrained as a result of the unplanned expense of Sherman's firing.
Conclusion: What Does This Mean for Palm Bay Residents?
The firing of City Manager Suzanne Sherman will undoubtedly have a financial impact on Palm Bay. With her severance package, recruitment costs, and the potential for higher future salaries, the decision carries significant financial weight. It remains crucial for residents to stay informed about how these costs will be managed and how they might affect city services moving forward.
For ongoing updates on this story and other local government news, please visit The Palm Bayer.
Three $50,000 promotions in consecutive years is excessive considering that most people in Palm Bay did not make that much in a year!
This decision should have been made by the previous council. My road is half dirt because she made promises and did not do the right thing by the residents on my street. When they started the road bond in 2020 she should’ve negotiated a complete deal at that time, but not piece by piece. That is why some of the roads in this city were never done! She made way too much money for someone with her capabilities. I don’t care how nice of a person she is we were paying her and her assistant manager and then another manager under her. Her salary wasn’t just $251,000, it was her salary and her other two helpers salary. This city needs to be downsized which will give more money to the budget and the city will run more efficiently. Also performance evaluations for every employee before giving a 5% raise. If every department head has an assistant it’s time to “cut the fat!”