Amid claims of 'playing politics,' Auburn council amends city manager's contract

AUBURN — The City Council on Thursday approved an amendment to City Manager Jenny Haines' contract, but not without a sometimes tense debate and accusations levied by one councilor against his colleagues.

The Auburn City Council amended Haines' contract to align with the senior management personnel policy, which was also adopted at the meeting. Haines, who became city manager in 2025, is paid $150,000 a year and will receive annual 2% raises, though she declined her pay hike this year due to the city's challenging budget situation.

Other changes, according to Auburn Mayor Jimmy Giannettino, include removing the PPO health insurance incentive, which was $1,000 a year, and allowing more health insurance plans to be offered to Haines and other senior management members.

Haines will also pay more of her health insurance premiums, increasing from 20% to 21.7% this year, from 21.7% to 23.4% next year and 23.4% to 25% in 2028. The city is aiming to move all employees to 25% premium contributions, according to Giannettino.

The amended contract also adds language if Haines decides to retire before or at the end of her contract. It would allow her to apply unused sick leave toward future health insurance premiums, which Giannettino noted is consistent with the senior management personnel policy.

But Auburn City Councilor Craig Diego raised a different issue. He questioned the inclusion of language, which was in Haines' original contract and remains there in the amended one, that would allow her to receive one year's salary and health insurance for six months if she is fired by the city.

Diego believes, in Haines' case, it is unnecessary because she has worked for the city for more than 30 years and would receive a pension. But he also doesn't think that employees should be rewarded if they are fired by the city.

"I don't think you should pay somebody a year's salary for not doing what they were supposed to do to the point that we had to terminate them," Diego said.

Auburn City Councilor Terry Cuddy disagreed, calling the provision "a standard for any executive in an organization."

"The contract is there to protect both the city and the executive," Cuddy said. "Our city manager serves us very well. Regardless of whether she is going to retire or if there is indeed some instance where there's termination, I think it's fine the way it is."

Cuddy added that the language would shield Haines from politics if there is a power shift on the City Council. Diego responded to that later by accusing Cuddy of playing politics.

"This has nothing to do with City Manager Haines," Diego insisted. "This is speaking if somebody else was in this position. She's getting paid regardless. Where are you protecting the city if you're going to pay somebody an extra $160,000 that's going to get a full pension anyways?"

Cuddy answered that the city can be sued for wrongful termination and reiterated the language is standard for executives. Auburn City Councilor Dr. Rhoda Overstreet-Wilson agreed, saying she has seen similar language in other contracts. Those contracts, she continued, have served organizations, including cities, well.

Giannettino explained why the language has been included in Haines' contract and others, namely the two contracts for former Auburn City Manager Jeff Dygert. Past city councils played politics by seeking to remove employees, he said.

"That's what we're trying to protect," Giannettino added. "The council could change. There's going to be an election next year and Ms. Haines' contract carries over."

Diego interrupted, "It's almost like you're ramming it down our throat in case the majority changes next year." Giannettino responded, "I'm not ramming anything down anybody's throat, Councilor Diego."

Giannettino asked Diego if he would like to make a motion. Diego proposed removing the termination payout language from Haines' contract, but it failed because another councilor did not second the motion.

The City Council voted 4 to 1 to amend Haines' contract. Diego was the lone no vote. The council also adopted the senior management personnel policy. Diego also voted against that resolution.

Haines was named the city manager-in-waiting in 2024. She succeeded Dygert in May 2025. Her contract runs through June 2028.

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