ROGERS -- Jerry Hudlow was reinstated Thursday as city treasurer as ordered by a federal judge.
"I'm just back," Hudlow said when asked how he felt. His new office is in the City Hall Annex, across Chestnut Street from City Hall.
At A Glance
Treasurer Duties
The duties of the Rogers treasurer include:
• Act to promote, secure and preserve the financial and property interests of the city.
• Examine the books to ensure they are kept in the proper form.
• See that officers receiving money in the name of the city pay the money into the city treasury.
• See that receipts are deposited and disbursements made in accordance with the law.
• Prescribe the form of accounts and reports to be rendered to him, the mayor or the city council.
• Deposit all money as soon as practical, report the default of any officers and take immediate legal action for recovery of the amount of default.
• Disburse money.
• Publish the financial statement of the city.
• Serve as the treasurer of the board of trustees of the policemen’ pension and relief fund and as ex officio treasurer of the board of trustees of the firemen’s relief and pension fund.
• Serve on the municipal depository board and the employee health benefit trust.
• Purchase investments and sell investments on behalf of the city.
Source: Staff Report
City employees wouldn't talk about Hudlow's return Thursday. Mayor Greg Hines said he had no comment.
Hines fired Hudlow in May 2012. Hudlow sued the city for wrongful termination, and U.S. District Judge Jimm Hendren ruled in Hudlow's favor. The jury awarded Hudlow $303,000 in damages and $80,000 in attorney's fees. Hendren ordered the city to reinstate Hudlow as treasurer.
During the trial, Hudlow testified he didn't trust Hines, and Hines said he didn't trust Hudlow. City employees and City Council members said they didn't trust Hudlow and he was difficult to work with.
Hudlow has been Lowell's finance director about a year. He hadn't resigned or offered his resignation as of Thursday, said Eldon Long, Lowell mayor.
"Jerry has asked for, and I have granted, a leave of absence without pay until the end of the month," Long said.
"It puts the city in a bit of lurch until we know whether Jerry is going to return to Lowell or stay in Rogers, but it's not anything we can't work out," Long said.
Long said he's researching certified public accountants in the area who could handle some of the city's financial business until the end of the month.
"My major concern is efficiency, keeping the city finances correctly until we know what the next step will be," Long added.
Lowell's City Council meets at 6:30 p.m. Tuesday. One of the agenda items is an announcement from Long updating the council on the finance director situation.
Meanwhile, Rogers officials confirmed Thursday the city is facing an IRS audit of the 2012 books. The audit is scheduled for June 9, said Casey Wilhelm, finance director. Wilhelm, who has been with the city since January 2013, will continue in the finance director position.
"There were some errors in the 2012 books the auditor wants to review. I don't know exactly what the auditor is most interested in, although she has asked that we make available 1099 forms and other payroll-related forms," Wilhelm said.
Hudlow was the finance director and treasurer for the first four months of 2012.
A 1099 form is used for contractors and other self-employed people who perform a task for the city but aren't city employees. The form also is completed when the city pays a property owner for land needed for public use.
Also on Thursday, City Attorney Ben Lipscomb took responsibility for advice he gave Hines, which he said led to Hudlow's dismissal and the subsequent lawsuit.
"It was my fault. The buck stops with me. I researched city ordinances and state law and felt the law was on the city's side, but the judge didn't agree and his is the opinion that counts," Lipscomb said.
"As the city attorney, part of my job is to advise the mayor and City Council on legal matters. Hines wouldn't have fired Hudlow without me advising him it was legal. I'm the one that cost the city the money we paid in the lawsuit," Lipscomb said.
NW News on 05/16/2014