Numbers are witnesses with memories
North Carolina’s state auditor has released a report scrutinizing Charlotte’s $305,000 settlement with CMPD Chief Johnny Jennings, a deal the City Council approved in closed session this spring amid concerns about potential litigation tied to text messages Jennings received from a former council member. The agreement, finalized on May 8, 2025, bundled severance, bonuses, extra vacation pay, and legal fees. Yet the city did not place the terms into its public minutes or unseal the April 28 and May 5 closed-session records, leaving the arrangement largely hidden until the auditor’s inquiry forced details into view.
The State’s auditor says Charlotte should enter the $305,000 settlement with CMPD Chief Johnny Jennings into public minutes and explain why most of the payout ran through the General Fund instead of Risk Management, according to a Rapid Response report released Friday.
Quick Facts
- Total: $305,000
- Funds used: $280,000 General Fund; $25,000 Risk Management Fund
- Key items: $175,000 severance (due Jan. 2026), $45,699 retention, $14,017 retro pay, $45,284 vacation value, $25,000 legal fees
- Auditor’s asks: put the settlement amount in the minutes; consider Risk Management for similar costs
- City’s stance: agreement is confidential personnel information; policy review within six months
How the deal was structured
The agreement combined compensation-like items with settlement-like costs. The package includes: $175,000 in severance set for January 2026, a $45,699 retention bonus, $14,017 in retroactive pay, $45,284 in vacation value, and $25,000 in legal fees. Of that total, $280,000 was charged to the General Fund, while $25,000 in legal costs hit the Risk Management Fund.
The city told auditors the General Fund charges were standard compensation items covered through operational savings in FY2025, with the severance planned for FY2026. The auditor questioned the fund choice in principle, noting Risk Management exists to handle unexpected liabilities.
Why the settlement happened
The auditor states it appears Council settled with Jennings to avoid litigation linked to text messages he received from a former City Council member. Council discussed the matter in closed sessions between April 28 and May 5. The city did not place the terms in public minutes when the agreement was finalized, and as of publication, the April 28 and May 5 closed-session minutes remained sealed.
Timeline
- Apr 28–May 5: Council closed sessions on the matter
- May 8: Agreement executed
- May 20: Auditor inquiry goes to the City
- Sept 12: Report released
What the report says
“It may have been appropriate for the City to charge all of the settlement costs to the Risk Management Fund, rather than to the General Fund.”
The auditor made no legal findings but recommended faster disclosure and a funding policy that clusters settlement costs in one place. The report also noted that over four months after the agreement, the City had still not entered the settlement into minutes or unsealed the April 28 and May 5 records.
What the city says
“The City interpreted this settlement agreement as personnel information and therefore the agreement and related records remain confidential pursuant to N.C.G.S. §160A-168.”
City officials pledged three steps:
- Policy review: revisit legal authorities and revise internal practice if needed within six months
- Closed-session reviews: continue quarterly checks to unseal minutes when appropriate
- Fund analysis: study which settlement costs should be charged to the Risk Management Fund versus the General Fund
Sidebar: General vs. Risk Fund — what it means
- If it’s risk, book it to Risk. That is why the fund exists.
- If it’s pay, book it to General. That is what operating dollars are for.
- Settlements are clearer in one place. Clustering improves public tracking.
- Precedent matters. Today’s classification shapes tomorrow’s policy.
What to watch next
- Minutes entry: Does Council add the settlement amount to public minutes before the next regular meeting?
- Policy memo: Does the City publish a funding policy for employee settlements within six months of the report date?
- Quarterly review: Do the April 28 and May 5 closed-session minutes get unsealed in the next quarterly release?
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About the Author
Jack Beckett is the senior writer for The Charlotte Mercury. He drinks coffee like it is a municipal utility, no surcharge, and files when the pot is down to the crust. Find more reporting at The Charlotte Mercury, browse the latest News, and follow the money and the meetings in Politics. Our 2025 election hub, Poll Dance 2025, tracks candidates, cash, and claims with fewer sequins than the title suggests: Poll Dance 2025. You can always message us on X, or Twitter, or as we call it Twix, at @queencityexp.
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This article, “Charlotte auditor seeks disclosure on $305,000 CMPD settlement and fund choice,” by Jack Beckett is licensed under CC BY-ND 4.0.
“Charlotte auditor seeks disclosure on $305,000 CMPD settlement and fund choice”
by Jack Beckett, The Charlotte Mercury (CC BY-ND 4.0)