Petaluma finance director out at City Hall

The administrator who oversees Petaluma's struggling finances has agreed to step down, effective immediately, officials said Friday.

Steve Carmichael, director of administrative services, left his position Thursday, City Councilman Mike Harris said.

He was hired in 2005 after serving in a similar capacity in the Contra Costa County town of Oakley.

Harris said he learned of Carmichael's departure in an e-mail from City Manager John Brown.

"The tone was they mutually agreed he would retire," Harris said. "He is no longer with the city."

Details about his severence were not immediately available. He would be replaced on an interim baisis by Gene Beatty, a former Petaluma police lieutenant who has served in a number of fill-in roles for the city, including acting city manager.

The change comes as Petaluma grapples with a number of financial uncertainties, including a water and sewer rate rollback initiative on the November ballot that city officials said could bring them near bankruptcy.

Also, the city has postponed passage of a general fund budget to await the most current tax revenue figures. Officials were contemplating a shortfall in the fiscal 2008-09 spending plan of nearly $5 million.