Former East Ridge City Manager William Whitson threatened to sue the city’s councilmen unless they gave him a $62,500 severance package.
According to an e-mail Whitson sent to Mike Steele, the former city manager said he “dropped the ball” on Aug. 3, the day he first spoke about a $657,000 budget deficit that later turned out to be $701,308. He resigned on Aug. 9.
“Even though I believe East Ridge is not being fair to fully honor my contract, I will in an effort to resolve the matter peaceably agree to lesser compensation as outlined in this letter,” Whitson wrote on Aug. 9. “Please know as we discussed that should the ($62,700) severance package not be paid as agreed I will be forced to seek other legal means to ensure payment.”
He originally pushed for about $83,000 – a full six months salary with family health insurance, remaining vacation pay, and a periodic city vehicle allowance – but settled for $62,500 including insurance, documents show.
The tone of the e-mail differs from his public resignation letter, in which Whitson “respectfully requests” the severance package, wishes East Ridge “all the best” and promises to “pray that God’s wisdom and peace be with you all.”
Whitson never returned several messages left Friday on his voice mail, asking for comment.
On Aug. 3, Whitson said he knew about a possible shortfall three months before two councilmen learned about it from a legal notice in the Chattanooga Times Free Press.
A week later, he said he would resign if councilmen honored the severance deal he struck with them.
Steele and Councilman Brent Lambert confirmed that the severance package became the “path of least resistance” in Whitson’s resignation. Both men said they worried about possible legal defenses that Whitson could have used against the city.
According to Whitson’s contract, the council could fire him “for cause” without providing financial compensation.
“The city charter says William is supposed to keep the council fully informed of finances,” Lambert said. “But what constitutes not keeping us informed? How can we prove he knew we were so far in the hole?”
Lambert speculated that Whitson’s lawyers might have asked why councilmen failed to monitor monthly financial statements.
Steele said Whitson often took weeks to deliver those documents.
But the council made the right decision, the mayor said. Facing Whitson in court would have meant “negative publicity, possibly huge money damages and attorney expenses,” he said.
“If this thing dragged in court for 18 months, we’d be getting the same phone calls wondering why we didn’t settle,” Steele said.