A report from Cincinnati's Internal Audit Manager released to city council finds no issues with a pay raise given to former city manager Milton Dohoney, Jr. two weeks after he started working for the city in 2006.
On June 26, 2006, city council approved an ordinance hiring Dohoney as city manager effective August 13, 2006, with a base salary of about $185,000. His salary was entered into the city's human resources system the day after he started at that rate. But two weeks later it was increased in the system by about $20,000.
The report said the HR department made the adjustment in the system at the direction of the Finance Department. It said the correction in pay was to account for "deferred compensation" to the ICMA-RC (International City/County Management Association-Retirement Corporation), which was agreed to in the original hiring ordinance in June 2006. The ICMA-RC was created by the association in 1972 as a way to create a portable retirement plan available to city, town and county managers.
"Internal Audit concluded that the $20,000 adjustment made on 8/28/2006 was to include the agreed upon ICMA deferred compensation," the internal audit report said. "Internal audit did not find any discrepancies of concern in the review process."
City Council passed a motion last month asking for an investigation into the 2006 pay raise since it was given to Dohoney without a city council ordinance to authorize it. The issue was discovered as council was researching Dohoney's pay increases as it was discussing a pay hike for current city manager Harry Black.
Dohoney left Cincinnati government in 2013 when Mayor John Cranley was elected mayor, and Dohoney and Cranley reached a separation agreement. His ending salary was $255,000.
