Cary town manager resigns, new interim sworn in amid financial issues

CARY, N.C. (WTVD) -- After questions about spending, Cary Town Manager Sean Stegall resigned on Saturday. It came after public records, including those obtained by the ABC11 I-Team, revealed what Mayor Harold Weinbrecht called "over-the-top spending," "a lack of transparency," and "an unhealthy work environment."

At an emergency town meeting on Monday, deputy town manager Russ Overton was sworn in as interim town manager as the fallout over Stegall, the longtime town manager, ended with his resignation. Stegall, who had been placed on administrative leave, agreed to a severance package just shy of $195,000, or six months of his salary.

Among the financial issues was more than $37,000 to cover tuition for a master's program for Councilmember Lori Bush after Stegall suggested the program; Bush said that she later paid back after the controversy came to light.

Reports uncovered by I-Team also showed a nearly $2,500 hotel bill for an AI conference in Boston. At another conference in Texas, Stegall opted out of a hotel where other town leaders were staying and chose a more expensive one instead.

The documents also revealed an even more expensive revelation: The town spent more than $1 million to purchase two adjacent properties on Kildaire Farm Road near Cary Elementary School.

In an email obtained by the I-Team, the assistant town manager told Bush that the land would be "not good for housing due to floodplain," and advised against the land purchase.

But months later, the town bought it anyway.

The previous owner of the property told the I-Team that the only town contacts that they had spoken to about the deal were Stegall and Bush.

Wake County property records show the purchase was made in two parts, but the combined price of the land was more than $1 million.

Weinbrecht told the I-team that the total exceeded Stegall's discretionary spending limit, which was set at $1 million.

The mayor said the investigation did not uncover anything illegal. Stegall has not responded to multiple requests for comment.

Weinbrecht now says that the spending limit was too high to begin with, showing just how much power Stegall had, and he wants to see that changed in the future.

"In my opinion, that definitely needs to change, absolutely," Weinbrecht said.

The Town also said it is bringing in a law firm to look into Stegall's activities as town manager. Stegall was hired in 2016 and served for nine years in the position. The mayor said the law firm's investigation could take a while.

Bush has also not responded to ABC11's requests for comment.

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Overton had served as deputy town manager before the appointment, one of several roles he played in Cary through the years.

"Appointing a long-tenured internal leader provides continuity of operations and stability for our organization, our staff, and our community during this period of transition," said Weinbrecht. "On behalf of Cary Town Council, we appreciate Russ stepping in and sharing his deep institutional knowledge and clear understanding of operations during these unprecedented moments in Cary's evolution."

A native of Ahoskie, in eastern North Carolina, the 51-year-old Overton joined the Town of Cary as an engineer in 1998. He was promoted to deputy town manager and chief operating officer in 2017. He is a graduate of North Carolina State University, where he received a bachelor's degree in civil engineering.