City gave new manager big low-interest home loan

Maricopa City Council has approved up to a $650,000 home loan to new City Manager Ben Bitter as part of his employment agreement. 

The city agreed to a loan with a fixed annual interest rate of 0.5% over the city’s 2.88% current investment rate. 

Interest rates today on a 30-year fixed loan with good credit and 20% down are 7.94%, according to the Consumer Financial Protection Bureau. 

City staff recommended approving the item at an April 2 City Council meeting. 

The council’s action authorized Mayor Nancy Smith to execute the final loan document and deed of trust as approved by the City Attorney’s Office. 

As part of Bitter’s December 2023 employment agreement, the city and Bitter, then a Queen Creek resident, agreed that once he found a home in Maricopa, they would negotiate an agreement to assist employee with recovering the difference between his current mortgage rate and the current market mortgage rate. The assistance could include city financing a loan, buying down the interest rate or other mutually agreeable options. 

Bitter’s city agreement also provides for term life insurance of $25,000. 

Bitter also receives a monthly stipend of $400 to use his personal vehicle for city business. The city also pays $100 a month business use for Bitter’s cell phone.