Officials Clarify Error In Town Manager Contract

ORLEANS – An error in the new contract recently approved for Town Manager Kim Newman has stirred questions about her compensation.

At its June 4 meeting, the select board unanimously approved a new contract for Newman that runs from fiscal 2027 through 2031. That includes a provision awarding her $4,000 a month as an automobile allowance “in lieu of the normal reimbursement the town allows for the use of a personal automobile for town business, including mileage and tolls,” according to language in the contract.

The Chronicle received questions from members of the public about the monthly allowance in recent weeks. Newman last week said that the amount specified in the contract was incorrect, and that she will instead receive $400 a month as an automobile allowance.

Newman said the error stemmed from language that was pulled from a draft of her first contract from 2023. 

“We have been operating for the past two years without issue at $400 a month, and both parties are in agreement that it’s $400,” she said. “I think it’s a scrivener’s error.”

In a phone call last week, Michael Herman of the select board further defended the allowance.

“Remember, she’s on 24 hours a day,” he said, adding that the figure is competitive with what other towns offer their managers.

Select Board Chair Kevin Galligan said while the board and Newman agree on the $400 monthly figure, it remains to be seen what action, if any, will be taken to correct the contract. He said last week that the board could act on an amended contract, but as long as the allowance is correct in the term sheet that Newman and the board agreed to, there may not be a need to.

“There’s no fancy footwork here,” he said. “This is all above board. Whatever [the town’s legal counsel] advises us to do procedurally, we’ll do it.”

The select board last month also approved new contracts for Fire Chief Geof Deering and Police Chief Scott MacDonald. The three contracts were settled as part of negotiations with the town’s labor unions that cover all town employees.

Newman’s contract also includes a $15,000 annual housing allowance. She said the allowance comes in lieu of market rate salary adjustments that the chiefs were awarded as part of their new contracts.