CAPE MAY – The city is hoping to resolve the remaining issues surrounding a series of bonus checks issued to seven city employees in 2020 and then rescinded by a new city administration in 2021.

The bonus checks were issued by then-City Manager Jerry Inderwies Jr. using funds from the Affordable Housing Trust Fund. The new administration that took office in January 2021 declared that the checks were inappropriate and that the money from the trust fund was tapped without council approval. The city sought the return of the funds.

Seven checks were issued totaling approximately $100,000. One was repaid immediately. Of the six other individuals who got checks, four have paid the funds back or made arrangements to do so. One employee is still in negotiations with the city about the funds.

The sixth recipient, Daniel Shustack, is the current deputy chief financial officer of Middle Township. Shustack has resisted returning the funds and filed litigation against the city; the litigation was not successful.

For a special closed session of the city council on Tuesday, Dec. 5, the agenda listed the Shustack matter as a topic of discussion. While no details of that closed session were available, Mayor Zack Mullock said that the city’s goal is to resolve the issue in this year.

With the end of the year approaching, the city is pushing to have a resolution on the matter on the agenda for the next regular council meeting, Tuesday, Dec. 19.

Contact the author, Vince Conti, at vconti@cmcherald.com.