PETERSBURG — Township Committee agreed to a settlement with former tax collector and personnel officer Rhonda Sharp on Sept. 21.
Mayor Curtis Corson said the township agreed to authorize signing the agreement, pending approval by Sharp.
As of the morning of Sept. 28, the matter was yet to be finalized, according to Township Clerk Joanne Herron.
The suit was filed Nov. 11, 2025 by attorney Louis Barbone, and claims the Beesleys Point resident was retaliated against for speaking out in support of former township administrator Gary DeMarzo when Township Committee was working to remove him from the position.
On March 10, 2025, Sharp spoke during the public comment portion of a meeting, stating that Township Committee was making a mistake because DeMarzo was effective and successful in serving the township, the suit states.
According to the suit, Sharp has been the township tax collector for 24 years, as well as personnel officer for the past 12 years.
The suit claims the defendant, Township Committee, cut her job responsibilities and pay by $20,000 per year and is attempting to force her to return that amount paid to her for the past 12 years, a total of $240,000, claiming it was an “illegal stipend.”
However, according to the suit, the extra duties and compensation was approved annually as part of the township salary ordinance, dating back to when she was appointed as tax collector in 2009.
DeMarzo, who was eventually removed from his position, was appointed as temporary administrator in April 2022, then reappointed as township administrator in 2023, 2024 and 2025.
The suit alleges that during the 2024 municipal election cycle, disputes arose and DeMarzo filed a complaint Dec. 30, 2024, in Superior Court alleging that Zack Palombo and Sam Palombo, who were candidates for Township Committee at the time, made false and defamatory statements against him during the campaign.
“As a result of the politics in play, the defendant Township Committee turned against DeMarzo and on Jan. 27, 2025, that committee voted to remove DeMarzo from his position as township administrator,” the suit states.
Despite the township paying Sharp for the position, DeMarzo also was the personnel officer, a civil service position, and could not be immediately removed.
“As such, while DeMarzo has been politically neutralized in his position as administrator, the defendant committee had no basis to terminate his position as personnel officer,” according to the suit.
Township Committee then submitted a layoff plan to the Civil Service Commission “for purposes of economy and efficiency,” finally removing DeMarzo from that position in March 2025.
At the time, the resolution eliminating the position stated “there no longer exists a need for the continued existence of a separate position of personnel officer … as the job duties of said position will be assumed by other employees and/or contracted agents in the municipality,” according to the suit.
The resolution continued with “the position of employment titled ‘personnel officer’ shall be eliminated and the duties of that position of employment shall be transferred to the township administrator.”
The suit states that while DeMarzo had been appointed as personnel officer, Sharp had been performing most of the duties and had since 2013 accumulated an extra $15,000 per year plus $5,000 for attending all Township Committee meetings for a total compensation of $115,200.
“Township Committee retaliated against the plaintiff by not only removing her position but then by declaring that the salary she received over the past 12 years … was an ‘illegal stipend,’” the suit states.
In addition, Township Committee removed Sharp’s position and pay as personnel officer by resolution on April 28, 2025, but then appointed Loren Ready as an assistant personnel officer, increasing her salary by $15,000, despite giving the duties to the administrator.
Sharp filed an employee complaint on May 5, 2025, which was investigated by labor counsel and rejected.
Township Committee then “decided that the salary plaintiff received over the last 12 years for performing the job functions of personnel officer and public meeting attendee will all be clawed back and removed from the plaintiff’s pensionable salary and then has directed the CFO to so advise pensions in order to reduce the yearly salary of the plaintiff over the past 12 years so that plaintiff’s salary for pension purposes is recalculated to her detriment,” according to the suit.
On Sept. 28, Township Committee appointed Donna Heiler as tax collector and Ready as claims coordinator, indicating Sharp no longer holds those positions.
– By CRAIG D. SCHENCK/Sentinel staff