The city of McAlester is waiting to hear a reply regarding a claim against the surety bond posted on behalf of former City Treasurer Carolyn Hearod.

The city has notified CNA Surety Co. that it’s making a claim against Hearod’s bond.

As city treasurer, Hearod had to be bonded to handle city money. She was bonded for $100,000, according to City Manager Susan Monroe. The surety bond had been filed through Western Surety Co., according to city records.

The city is seeking the claim against Hearod’s bond in connection with $800,000 in bond funds which were obligated for economic development, according to city documents.

The bonds were transferred to another city account sometime in October or November in 2004, according to city officials.

Hearod retired from her office last summer after meeting with Monroe. Asked at the time if she had requested Hearod’s retirement, Monroe said she couldn’t comment on that because it involved a personnel matter.

Hearod had worked for the city for 27 years at the time of her retirement.

As a city division head, Hearod had participated in the city’s program to buy back unused leave from city officials.

In a time period from 2001 until 2004, Hearod had sold back 233 days of leave for a total of $53,459.52 according to records at City Hall.

After Hearod left office, Steve Harrison began serving as the acting city treasurer. Harrison had previously served as a member of the city’s Audit and Finance Committee.

Harrison is a retired director of finance who worked in the energy industry.

He volunteered to serve as city treasurer at a salary of $1 per month. He’s already given notice that he would like to leave the post by December or the first of the year, according to Monroe.



Contact James Beaty at jbeaty@mcalesternews.com.

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