Everett overpaid mayor by $180K due to language tweak in ordinance, watchdog finds

Everett Mayor Carlo DeMaria was erroneously paid an extra $180,000 over several years, according to Massachusetts Inspector General Jeffrey Shapiro, who cited a subtle change in language before an ordinance was approved in 2016.

In a letter to Everett City Council President Stephanie Martins Thursday, Shapiro said his office received a complaint in February of 2022 about $220,000 that DeMaria received in longevity payments between September of 2016 and April of 2021.

An investigation uncovered that the city overpaid DeMaria by $180,000 after he "and his administration misapplied the mayoral longevity ordinance," according to the letter.

The watchdog also found that DeMaria's office concealed the payments from the city council and the public.

DeMario was first elected Everett's mayor in 2007. In 2016, Everett's city council passed an ordinance providing the mayor with a longevity bonus.

According to the inspector general's office, a revision made prior to the ordinance's passing included a key change in its language: Instead of saying the mayor would receive $10,000 "after each completed full term as mayor," it was amended to read "for each completed full term as mayor."

"During the meeting, councilors stated that the ordinance would put the mayor's salary on par with the mayors of other communities," Shapiro wrote in the letter. "Councilors did not discuss or ask questions about how the city would calculate the longevity payment or the frequency of payments. Nor did they discuss the word change from 'after' to 'for.' The council voted 10-1 to enroll the ordinance. The OIG has not been able to determine who changed the wording of the ordinance from 'after' to 'for.'"

Shapiro added that none of the city councilors his office interviewed "were aware of the change in language."

When the ordinance passed, Shapiro said it entitled DeMaria to a retroactive payment of $30,000. He received that amount, minus withholdings, in September of 2016.

"After the council voted to ordain the ordinance, the city issued a $30,000 payment to Mayor DeMaria in January 2017," the letter read. "The city subsequently issued a $40,000 payment in January 2018, payments of $40,000 in January 2019 and January 2020, and payments of $20,000 in January 2021 and April 2021."

Shapiro explained the city council learned of DeMaria's annual $40,000 longevity payments in March of 2022 and lowered the payments to $1,700 a year.

The investigation also revealed that senior members of DeMaria's staff did not report the payments, and instead used the money to pay employees for unused sick and vacation time.

He now wants the city council to recover the money and return it to the city's treasury.

"I am not aware of any elected official in the commonwealth who receives a $40,000 annual bonus," Shapiro said in a statement. "The mayor and members of his administration failed to uphold their fiduciary duties and their obligation to the people of Everett."

DeMaria posted a statement to his Facebook page Thursday saying his administration "strenuously disagrees with the findings and conclusions of the report," and would push back on these "unsupported and flawed conclusion"

"Neither the mayor nor any member of his Administration engaged in concealment. The City Council received information in multiple years concerning the Mayor's longevity payment amounts, which as included in City budgets posted on the City's website. It was not until the most recent mayoral election cycle in 2021 that the amounts were called into question. Any skepticism regarding the Mayor's longevity payment was spurred by this political campaign."

City Council President Martins released the following statement Thursday calling on DeMaria to step down.

"The details of the investigation reflect a clear intent and an organized effort to defraud our residents for personal gain. If the Mayor truly cares about the integrity of this city, he should step down.”

The city council says it will work with the inspector general to implement his recommendations.

Read Shapiro's full letter: