MARGATE – There’s no doubt that over the last 22 years, Chief Financial Officer Lisa McLaughlin has made a positive impression on taxpayers. As CFO, she has overseen 22 perfect audits of the city’s financial books and made a lot of friends in the community.
At the Nov. 6 Board of Commissioners meeting, they packed the meeting room, and some stepped up to the microphone to offer words of support for her and direct criticisms toward two of the sitting commissioners. McLaughlin has also garnered ample support on Facebook posts about the issue.
Current City Administrator Pat Moran has threatened to file a Complaint for Removal with the NJ Department of Community Affairs, alleging McLaughlin failed to perform her duties, was insubordinate, misused public property, and violated city rules and regulations regarding the unauthorized use of municipal computers. In a Tort Claim notice, Moran notified the city that he plans to pursue damages totaling $500,000. The complaint has yet to be filed.
Moran explained that the tort claim notice is a “precursor” to filing a lawsuit.
“We don’t have any current employee lawsuits,” Moran said.
McLaughlin is being represented by attorney David Castellani of Northfield, who alleges there is a conspiracy to oust McLaughlin.
Due to potential litigation, Mayor Michael Collins and Commissioner Cathy Horn have remained silent in discussions about Moran’s efforts to remove McLaughlin from the job she has performed for the last 22 years.
At one point, former Mayor Vaughan Reale sparred with Collins over the board’s commitment to “move forward” with filing the complaint following an executive session at a special Board of Commissioners meeting held Oct. 9.
Collins said there was no vote taken by the board on filing the complaint, but in wrapping up the discussion held behind closed doors, Solicitor John Scott Abbott reported that the commissioners agreed to move forward with it.
“Unless there is some resolution, the complaint will be filed,” Abbott said.
Reale questioned why the board hired Moran, if they knew he was involved in two other hostile workplace lawsuits in other towns where he worked, and why Commissioner Maury Blumberg was not notified in advance that charges were being brought against an employee that he supervises as part of his duties as commissioner of Revenue and Finance.
“Who vetted the new BA, did they know the new BA was involved in two other hostile work environments?” Reale asked. “Why was the business administrator allowed to hire a private investigator…without Commissioner Blumberg’s knowledge” Hopefully, you’ll do the right thing and end this.”
Moran said Reale is misinformed about issues involving previous lawsuits he was involved in, which were settled based on expediency and without finding fault.
“With regard to both cases, there are circumstances you are not aware of,” Moran told Reale. “There are facts that don’t come out with settlements.”
He said hiring an investigator to investigate McLaughlin was recommended by the solicitor and within the confines of his job as administrator.
“I checked to make sure that I was allowed to do what I was allowed to do ahead of time,” Moran said.
Reale said all three times Moran has been employed as administrator, he has been involved in hostile workplace lawsuits.
“You’re three for three, that’s a problem and you’re doing it against a 22-year veteran employee with a stellar reputation,” Reale said.
“My job is to look into things when people bring them to me and find the truth. I’ve done that here, and that’s that,” Moran said.
Resident Alison Land said the charges against McLaughlin are “a travesty of justice” and “an embarrassment to the city.”
“There is a personal grudge going on here on the part of Mr. Moran and those who are supporting him,” she said. “It’s unclear why the commissioners would take the word of 11-month employee who has a history of causing problems wherever he goes, over that of a 22-year CFO with an exemplary record.”
She said the board should reconsider keeping Moran on staff.
Resident Dennis Gorniowski reiterated his support for McLaughlin saying that she provided him with explanations whenever he had questions about the city’s finances and that she should be at the table giving monthly financial reports instead of sitting in the audience listening to the proceedings.
McLaughlin is currently on medical leave due to the stress of the situation.
Another resident who maintains a presence at commission meetings, Kathy Heitzman, said she is “stunned” by the lack of transparency on the issue and other problems, such as the ongoing complaints about noise coming from Sunrise Tequila Bar, which was rebuilt with a second-floor outdoor café. The site has become a gathering place for young revelers during the summer months and is still emanating noise in the off season, she said.
“It feels like you’re not listening to us,” she said. “You were elected by us to support us and represent us and I don’t feel like that’s happening.”
In a somewhat related matter, the board revised an ordinance that was up for second reading dealing with the addition of two new salaried positions, including a comptroller designated to act on financial matters in the absence of the chief financial officer.
According to Moran, the NJ Civil Service Commission and Department of Community Affairs recommended the city create the comptroller position and the ordinance set a salary range of between $75,000 and $92,000.
“I don’t believe we ever had that title in our ordinance so we cannot adopt this ordinance,” Blumberg said.
Blumberg noted that the city was being premature in approving the salary line item for a position that does not yet exist.
“I don’t think that will fly, in that we never gave the public the opportunity to know we were doing this tonight,” Blumberg said. “I don’t think there’s any rush to add this title…It’s incorrectly on there.”
According to City Clerk Johanna Casey, the ordinance creating the position and salary of assistant municipal clerk was amended after it was introduced to include the comptroller position and salary, which labor attorney William Blaney said is a “substantive” change.
After some discussion, Collins agreed to strike two sections of the salary ordinance referring to the position and salary of comptroller.
Although the position does not exist, employee David Elliot is currently serving the role of comptroller.
The board voted unanimously to approve Ordinance 19-2025 creating the position of assistant municipal clerk with a salary range of $65,000 to $85,000. No one has been appointed to the position.
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