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Bozeman to consider severance agreement for city manager Mihelich

Posted at 2:09 PM, Feb 29, 2024
and last updated 2024-02-29 22:58:25-05

The City of Bozeman announced on Thursday that the Bozeman City Commission will consider a severance agreement for City Manager Jeff Mihelich, currently on paid leave after a leaked video call showed him disparaging Mayor Terry Cunningham and other city commissioners.

A City of Bozeman media release says the agreement includes eight months of salary and eight months of retirement calculated at 18% of the monthly salary. Commissioners will consider approval of the agreement at the next City Commission meeting on Tuesday, March 5, 2024.

“The cost associated with any severance has been a major factor in the commission’s consideration of this topic. We are weighing the severance terms against the costs, the burden on city staff, and the overall distraction associated with what likely would have been a protracted, contentious and resource-consuming process,” Mayor Terry Cunningham stated in the release. “This incident has hurt our community, and this may be an opportunity for the City and our community to move on and focus on other important work.”

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According to the release, the City Manager's employee contract states that termination "results in a payout of twelve months of salary plus twelve months of retirement calculated at 18% of the monthly salary." If the City Commission approves the reduced severance agreement of eight months' salary and retirement, Mihelich's last day will be March 5 and commissioners will not file an ethics complaint.

Bozeman residents can attend the March 5 City Commission meeting in person at City Hall (121 N. Rouse Ave.), or attend virtually. The meeting starts at 6 p.m.

The release said the City Commission will continue to consider public comment received via email at