Dallas taxpayers are left holding the bag for City Manager T.C. Broadnax’s severance pay — more than $423,000 — when he leaves office in less than four months.
That’s because the employment agreement he signed in December 2016 stipulates that he is “entitled to receive a lump sum payment equal to (12) months of his then-current base salary” because of “involuntary separation,” the criteria of which includes “the City Manager’s resignation following a suggestion, whether formal or informal, by a majority of the City Council that he resign.”
Currently, Broadnax makes approximately $423,000, more than the president of the U.S. However, Dallas City Council Liaison Penny Anderly told WFAA that the city manager’s severance pay has not yet been negotiated.
In a letter to Mayor Eric Johnson and city council members on Wednesday, Broadnax resigned effective June 3, as reported by The Dallas Express. He has been Dallas’ CEO since February 2017, when his salary was set at $375,000. A year later, he received a $20,000 increase thanks to a clause in his contract.
Broadnax has since received several subsequent raises as part of annual performance evaluations — including one in 2022 that came despite the council considering disciplining or firing him just two months before over his execution of the job duties. This was not the only time that Dallas residents and leaders expressed dissatisfaction with the direction the city had taken under Broadnax.
“T.C. Broadnax has resigned … at the suggestion of the majority of the Dallas City Council,” according to a joint statement from council members Jaynie Schultz, Adam Bazaldua, Gay Donnell Willis, Omar Narvaez, Zarin Gracey, and Jaime Resendez.
“This resignation is a necessary step towards fostering an environment conducive to maximizing the potential of our beloved city. The dynamic between these key citywide figures has unfortunately hindered the realization of our city’s full potential, and it is imperative that we address this issue head-on in order to move forward.”
Taxpayers are also on the hook for “reimbursement of up to (12) months of the costs of continued health benefits for him and his dependents through COBRA or other such City insurance continuation program in which the City Manager and/or his dependents are enrolled.”
By the time Broadnax completes his final day in office, he will have worked just over eight months of fiscal year 2024. Severance pay is just one benefit commonly negotiated between prospective city managers and the city councils hiring them, along with vacation time and sick leave, car allowance, membership dues, and deferred compensation, the latter of which Broadnax received in his employment agreement for $18,000.
A special city council meeting is scheduled for Tuesday at 1 p.m. Deputy City Manager Kimberly Bizor Tolbert is expected to be named interim city manager while officials conduct a national search for Broadnax’s successor.