Adam Hill, a former police officer, told the council he and others discovered that pension contributions were reported as taxable rather than pre-tax in some years and said corrected W-2s were issued. He said he proposed a settlement approach calculated from adjusted gross income and told the council he hoped the city would "do the right thing" for current and former employees.
Council members and the city attorney cautioned that the issue involves multiple contracts, payroll vendors and potential insurance and litigation questions. The attorney explained that state law limits municipal indemnification and that detailed legal discussions were not appropriate in open session. Council and administration said they have engaged a CPA firm, alerted insurers, and placed the matter on notice; several members proposed moving to executive session to discuss proposed or pending litigation and next steps. Commenters asked for regular updates to affected employees; councilors agreed to provide better communication where legally permitted.
No settlement or formal liability finding occurred during the meeting; staff said the independent accounting review remains in progress and that additional legal consultations would follow. Several residents urged filing with or notification to state auditors if systemic controls failed.