Bozeman City Commission Considers Severance Agreement for City Manager

Friday Mar. 1st, 2024

BOZEMAN — On Tuesday, March 5, Bozeman City Commission will be provided an opportunity to approve a severance agreement with City Manager Jeff Mihelich. The severance agreement up for consideration includes eight months of salary and eight months of retirement calculated at 18% of the monthly salary.

“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 explained. “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.”

As part of the City Manager’s employment contract, termination results in a payout of twelve months of salary plus twelve months of retirement calculated at 18% of the monthly salary. The proposed settlement agreement reduces the severance to eight months. If the Commission proceeds with the severance agreement, Mihelich’s last day will be March 5, the reduced severance will be paid, and the Commission will not file an ethics complaint.


Residents can attend the Commission meeting where this topic will be discussed in person at 6 p.m. at City Hall (121 N Rouse Ave) or virtually at https://www.bozeman.net/departments/city-commission/meeting-videos.

The Commission continues to review and consider public comment from those who want to voice their thoughts on this issue. To submit a public comment, email agenda@bozeman.net.