More Details Emerge In County Finance Director's Suspension

Tuesday marked the first regular meeting of the Leelanau County Board of Commissioners since Finance Director Cathy Hartesvelt was placed on paid administrative leave, and the suspension hung heavy over the proceedings. County Administrator Jim Dyer, who is Hartesvelt’s manager and made the decision to suspend her, came under fire from multiple members of the public who accused him of destabilizing an already tenuous county department. Commissioners, meanwhile, voiced differing perspectives on how much information about personnel matters should be shared publicly, with one board member fretting that the county could find itself in legal hot water for how Hartesvelt’s suspension has been handled.

Dyer placed Hartesvelt on leave two weeks ago, though he hasn’t publicly disclosed reasons for doing so. Speaking to The Ticker last week, he confirmed that Hartesvelt’s “access to the building and access to computer resources are suspended,” but said he couldn’t “get into the details of why.”

“The finance director is my employee, so it's my decision as to how to resolve it,” Dyer noted. “Obviously I've got my own job to do on a day-to-day basis, but I'm continuing to corroborate facts that have been brought to my attention."

A blog post published last Friday by county commissioner Alan Campbell shed some light about what happened behind the scenes. Campbell runs a blog/newsletter called Leelanau Commissioner Update.

Campbell’s post shared pieces of two public documents that pertain to Hartesvelt’s suspension. The first was “the official notice provided to the finance director” – presumably by Dyer – notifying her that she was being suspended.

“The county has received information indicating that on or about Jan. 6, 2026, you [Hartesvelt] met with the County Treasurer for the purpose of inducing or encouraging opposition to the changes in the county’s Blue Cross Blue Shield health insurance program, including a proposed change in the $20,000 stop/loss attachment point,” the notice reads. “It is further alleged that this activity occurred after direction had been given and a decision made by the County Administrator regarding this matter, and that such action was outside the scope of your assigned authority.”

The mention of the county’s health insurance program refers back to a special meeting held January 9 when commissioners approved a proposal to increase the county’s stop-loss attachment point from $20,000 to $50,000. Leelanau County has a self-funded employee health insurance plan, and pays the majority of employee health claims on its own. The county then purchases what is called stop-loss insurance to protect against the largest claims, with the stop-loss attachment point representing the pre-set dollar amount above which the policy would go into effect.

The notice goes on to outline specific policies Hartesvelt’s conduct – “if substantiated” – will have violated, including “Refusal to obey or willful failure to carry out instructions of supervisory personnel,” “Disrespect or insubordination to a supervisor,” and “Improper use of county position or authority inconsistent with county policy.”

“…Disciplinary action up to termination of employment may be imposed if the county determines such action is warranted,” the notice concluded.

Campbell’s newsletter also shared an email sent to commissioners by Vice Chair Will Bunek.

“I was asked by the finance director to attend a meeting with her, the administrator, and the HR director on Friday afternoon, January 9,” Bunek’s email states. “My understanding of the circumstances that led to this meeting was that the finance director had a conversation with [County Treasurer John Gallagher] concerning health insurance in a hallway. This conversation, according to [Gallagher]…was believed to be an attempt by Ms. Hartesvelt to undermine the administrator’s desires for health insurance. The finance director stated she did talk with the treasurer about her concerns regarding how the insurance premiums would be funded until taxes come in July, and did not in any way try to undermine Mr. Dyer.”

Commissioner Ty Wessell blasted Campbell for sharing these documents publicly.

“In all my years of supervising personnel, during a disciplinary process, I’ve never released the details that I’ve seen released this last two weeks,” Wessell said. “I think they put us at potential legal risk, I think they were inappropriate, and…I think we need some discussion as a board about how we handle information about ongoing potentially legal issues, certainly on personnel issues.”

“I followed a duty I believe we all share: to be as open and frank as allowed with the people of Leelanau County,” Campbell said in defense.

“I was hoping to have a resolution to [Hartesvelt’s suspension] this evening, but…I think there are some continuing discussions that I want to have with her,” Dyer told commissioners. “That’s about the most that I can say at this time, because it involves a personnel matter of confidential matters that could ultimately be harmful for Ms. Hartesvelt if they were discussed.”

Reached Thursday afternoon, Dyer tells The Ticker he still hasn’t made a final decision on Hartesvelt’s future with the county.

Dyer drew significant criticism for Hartesvelt’s suspension during the public comment segment.

“Finance isn’t just another department; it is the backbone of budgeting, forecasting, and financial controls,” said Jim White, chair for the Leelanau County Republican Party. “When you abruptly remove the finance director, you don’t just affect morale, you create audit risk… If this action wasn’t grounded in policy and properly documented, it won’t just raise questions; it could raise formal audit findings.”

“After years of turnover, finance had finally begun to stabilize,” added Peggy Zemanek in another public comment.