County manager fired by commissioners

Washington County Commissioners have fired County Manager Renee Gray just as Washington County was tackling its latest financial crisis, an issue some say Gray worked hard to solve.

No formal reason was given for Gray's July 2 termination, according to County Commissioner Courtney Hammond, who was the lone dissent in the 2‑1 vote to remove her. Commission Chairman David Burns and Commissioner Billy Howard voted in favor of Gray's firing.

Even now, Hammond says he's unclear why the other two commissioners voted to end Gray's employment. Her termination will make county work going forward more difficult, he says, especially as it embarks on putting together the 2027 budget.

"It's going to be very difficult. My issue is that I don't think there is currently anybody who is working in our county who is qualified to do what Renee has been doing," he says. "This is just going to create a big stumbling block."

Gray's termination comes as the county seemed to be emerging from its latest financial difficulties -- created when the county commission signed onto a tax-anticipation note (TAN) for 2026 with Machias Savings Bank that was for up to $7 million, in two installments. However, the county's bond counsel, Berstein Shur, approved only just over $4 million to be borrowed, based on a cash-flow analysis. That wasn't enough to run county services until monies from municipalities became available in September, which is estimated to be somewhere around $7 million in total. That potential shortfall came upon the heels of the 2025 financial crisis in which county funds were mismanaged, resulting in a $7 million shortfall that was remedied through the prepayment of county taxes by the municipalities in the county.

To correct the most recent problem, a new bond counsel was hired, and the terms of the 2026 TAN were altered to reflect the additional needed amount from the TAN. In the interim, however, Gray was asked by a commissioner to put together a list of possible cuts, including staff cuts, that could occur if the additional TAN funds didn't come through.

"I think she created that plan and they [Burns and Howard] didn't like it, and they didn't like the fact it became very public," Hammond says. "That's what caused a lot of heartburn for some folks."

Throughout the two years of financial crisis, Gray seemed to be working effectively to find a solution, says the former chair of the county commission, Chris Gardner. "People are quite upset about what's taken place. There seem to be a lot of questions around her dismissal. Having been the chairman of the board when we hired Renee as county manager, I have always known her to be a great employee, a hard worker and a very honest person. I look forward to hearing what happened just like everyone else."

Although the precise reason for Gray's firing may be unclear, the termination came after Burns called a special commission meeting on July 2 to deal with what was termed a "personnel issue." The 9 a.m. meeting was attended by Gray, Burns, Hammond and Howard as well as Calais-based attorney Dennis Mahar, who is not the county's attorney of record.

Shortly after it began, the commissioners went into an executive session -- meaning their comments during that portion of the meeting would be private. Gray was excluded from the meeting then brought in near the end. At the conclusion of the executive meeting, the commission emerged and voted 2‑1 to terminate Gray but gave no reason for her firing.

"I was shocked," Gray says. "I absolutely had no idea, and they never gave any cause." She will continue to work in her job until July 22, a period of time stipulated in her contract.

She wasn't the only one surprised by the sudden termination. Hammond, who voted against Gray's termination and refused to sign her termination letter, says he "had no information prior to the meeting" on what personnel issue had been alluded to in the meeting notice and was shocked when Gray was excluded from the executive session, meetings in which she usually participates as county manager.

He says he was doubly surprised to see Mahar, who currently is running to be the Washington County probate judge, present in the meeting, instead of the county attorney of many years. Hammond says the long‑term county attorney, John Hamer from the firm Rudman Winchell, originally created Gray's contract and it would have made sense to have him present. "For some reason the chairman had decided he didn't want to deal with our regular county attorney. It's a little odd."

Hammond says he also was given the impression during the executive session that Burns and Howard had already spoken about Gray's termination. If so, that would violate state law that forbids elected officials from talking about municipal matters privately to one another if there are enough members to form a quorum. Because the board is a three-member body, two members form a quorum for the county commissioners. All discussions, except in executive session, must be held in a public meeting.

"I don't know for sure that the two of them had colluded, but it appeared that way," Hammond says, "especially because Commissioner Burns had already spoken with the attorney and had him there at the meeting."

Because of his questions about the handling of Gray's termination, Hammond refused to sign her letter of termination. "I question its legality," he says. "This has to be done legally."

Both Burns and Howard were contacted for their responses. Howard said he couldn't speak on the termination while Burns didn't return two phone calls asking for comment. Burns did send an email early Monday morning, July 6, to county staff to direct people who call in with questions regarding the termination to Mahar.

Mahar's office was also contacted, but he didn't return a request for comment.

As no cause was given following the executive meeting for Gray's dismissal, it's unclear what transpired to convince Burns and Howard to support her termination. Gray says a verbal altercation had occurred on May 29 in county offices between herself and Burns in which the commission chairman threatened to fire her. Hammond admits that there's been a long‑standing "personality conflict" present.

Meanwhile Gray says she's seeking legal counsel to fight her termination. "I have immense support. I have been serving in the public trust my entire career. and I don't take that lightly. I am a team player, I don't need credit ever, as long as the good of the county is the ultimate goal. A lot of people know me," she says.

Gray had been hired by Washington County in 2023 on an initial salary of $81,800. Prior to that she had served as an emergency medical technician in Washington County for many years until she was hired as a municipal counter clerk in Lubec in 2007. She was promoted in 2017 to town administrator. She has also actively participated in organizations such as the Maine Association of County Managers, Administrators and Clerks and as a member of the Sunrise County Economic Council.

Hammond says he's worried her dismissal may even create additional financial woes for the county. If Gray chooses to file a lawsuit it could expose the county to "some significant liability," he says.

"I'm trying to do what's best for the county," he says. "If it's possible to avoid this, avoid litigation, and avoid a financial impact for the county. My concern is for the county."