CLINTON -- City Manager Dennis Cluff will keep his job, but will be docked three days' pay.
The city council decided on the penalty following a public meeting Tuesday night to discuss the city's potential loss of $83,000 in the failure of Centennial Bank.
The city had more than $330,000 in a certificate of deposit at the bank when regulators closed it in March. The Federal Deposit Insurance Corporation insures deposits up to $250,000.
In addition, the council decided to give Cluff, Mayor Mitch Adams and themselves a written reprimand.
The meeting drew a standing-room-only crowd of residents to express their concerns, with both supporters and critics of Cluff speaking. According to Adams, during previous meetings, numerous residents had called for Cluff to be fired for allowing the city's deposit to exceed the insurance limit.
Clinton resident Becky Vervloet said the closing of Centennial Bank was not a big shock, with the failing economy and other recent bank closures.
"How can anyone be surprised by a bank failure?" asked Vervloet, "I believe there has been gross fiduciary irresponsibility."
Cluff, whose annual salary is $115,000, said the timing of the bank's closure caught him off guard. Cluff was in the process of bringing the council an ordinance to transfer a portion of the funds to another financial institution when the bank was closed.
City Treasurer Carla Parsons told audience members that Cluff had met with different banks to try to get the best interest rate.
Cluff stated he had negotiated with Centennial Bank a penalty on only the portion of the funds to be withdrawn, instead of the entire amount. Centennial Bank failed before any of that could happen.
"I am extremely sorry that I didn't play closer attention to this account," said Cluff. "Since the closing of the bank, there has not been a moment that I have not berated myself because of the account.
"This has probably been the worst oversight in my life. Personally, I have suffered tremendously with personal anguish and regret."
Deborah Barlow said she attended a Jan. 24 council meeting in which the audit findings were reported. In the meeting, she said, Cluff was directed to transfer the funds in five weeks.
She pointed out there were two council meetings during that time in which an ordinance could have been passed.
Carol Child said everyone makes mistakes.
"I feel like Dennis Cluff had no criminal intent. I think he made a mistake. I think if you look at his record, he's got an outstanding record. Who of us out there hasn't made a mistake on our jobs?" said Child.
Former city council member Dale King said he appreciated the forum for residents to provide feedback to the council.
"I think it's important for citizens to hold their elected officials to the fire," said King, who believes Cluff has already suffered enough.
"I think there has been a self-inflicted punishment," said King, adding he never saw Cluff as anything but a competent city manager.
"If you're going to judge a man, judge him on his record."
Adams said he felt the lesson had been learned and no action should be taken against Cluff.
"I will look every single one of you in the eye and say he's done more good than bad," said Adams.
Adams said if residents felt action needed to be taken, then that is what would happen.
"If it's a pound of flesh that's required to say I've done good today, then so be it," said Adams.
Updated 10:25 p.m.
Clinton reprimands Cluff, docks his pay
CLINTON — Dennis Cluff will keep his job as city manager, but will be docked three days pay.
The city council decided on the penalty following a public meeting over the city’s potential loss of $83,000 in the failure of Centennial Bank.
The city had $330,000 in a certificate of deposit at the bank when it was closed by regulators. The Federal Deposit Insurance Corporation only insures up to $250,000.
In addition to the three days pay, the council decided to issue Cluff a written reprimand and also to reprimand the mayor and the council over the loss.
Cluff’s annual salary is $115,000.
The meeting drew a standing-room-only crowd of residents to express their concerns, with both supporters and critics of Cluff speaking.
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