Kyllo tried to take her resignation back. The council handed her letter to the boss she was leaving.
Finance Director Whitney Kyllo resigned on June 10, 2025, then asked to withdraw it. The council accepted the resignation and sent her withdrawal to the administrator and the personnel committee "if needed." Three weeks later a public works director who resigned by email got a resolution keeping him.
Kenyon has not had a finance director since July 17, 2025. The seat has been filled since then by a retired clerk, the deputy clerk, the administrator, and then by Abdo, an accounting firm in Mankato. How the seat emptied is in the minutes of one meeting, June 10, 2025, and it took two motions.
Two motions, one night
All five members were present. Under new business, Mayor Don Kirchmann "stated that Finance Director Whitney Kyllo submitted a resignation letter effective July 17, 2025." City Attorney Scott Riggs "stated that Minnesota law says once the resignation is submitted, it is effective." Kim Helgeson moved and Mary Bailey seconded to accept the resignation. Then a second motion, by Lee Sjolander and Kirchmann, "to acknowledge the rescinded letter from Whitney Kyllo and take it under advisement for discussion by the City Administrator and the personnel committee if needed." It carried 5-0-0.
Motion by Sjolander seconded by Kirchmann to acknowledge the rescinded letter from Whitney Kyllo and take it under advisement for discussion by the City Administrator and the personnel committee if needed.Minutes of June 10, 2025, in the July 8, 2025 packet.
The personnel committee in 2025 was Kirchmann, Helgeson and Scott Lehner, the city administrator. So the finance director's request to stay was referred, for discussion if anyone thought it necessary, to the man she reported to and the two council members who evaluate him. No later minutes record that discussion. She left on the date in her first letter.
Under Minnesota law, once it's submitted, it's effective.City Attorney Scott Riggs, June 10, 2025, recording at 2:12:34 (auto-captions), source
What she had done that spring
The same evening, before the resignation came up, Kyllo presented Administrative Policy 38, a debt management policy, because "the city does not have a Debt Management policy" and George Eilertson of Northland Securities had recommended adopting one before the bond rating for the 2025 street project. The council adopted it 5-0. On July 16 the city's bonds sold with an A+ rating. In April she had told the council that claims from the Internal Revenue Service and the Minnesota Department of Revenue for the third quarter of 2023 were legitimate and would have to be paid with penalties. In January she had testified for the merger of the city's and the utility's checking accounts, a change the auditors had recommended for years, and had confirmed in open session a disputed fact about who held the key to the utility's files. Six months into the new administration she was carrying two payrolls, two bank reconciliations and two sets of signers, and she had said so on the record.
It says, as of this morning, 6/9/2025, I'm rescinding my resignation if you'll still keep me.Scott Lehner, describing the finance director's email, June 10, 2025, recording at 2:19:18 (auto-captions), source
The other resignation
At the end of the same meeting, under general comments, Lehner "stated that he just received an email from Public Works Director Wayne Ehrich stating he was resigning effective in 30 days." Riggs "added that now that this has been communicated, it is effective." Sjolander said he was sorry to hear it and that "Wayne has been a great employee here." Twenty days later, on June 30, the council held a closed session under Minnesota Statute 13D.05 to evaluate Ehrich, reconvened in open session, and announced that "the decision was to continue employment." On July 8 it adopted Resolution 2025-21, "Approve Rescinding of Resignation," on the consent agenda. The resolution recites "the unique requirements for and of the Public Works Director position" and "the difficulty in replacing" him.
Two department heads resigned within hours of each other. One was asked to stay by resolution, with findings about how hard he would be to replace. The other's request to stay was noted and handed to the personnel committee. The record does not say why the two were treated differently, and it does not say why either resigned. What it shows is what followed. On July 8 Lehner reported that Sue Dodds, who had retired in 2021 after 26 years as finance clerk, was helping part time, and that Abdo was doing payroll "until a finance director is hired." On August 12 he recommended postponing that hire. In September 2026 the city was still comparing the firm to a person, and the person's price had risen.
Before and after
- Apr. 8, 2025Finance Director Whitney Kyllo tells the council IRS and state revenue claims from 2023 are legitimate and must be paid with penalties.
- June 9, 2025Kyllo emails that she is rescinding her resignation, by the administrator's account at the meeting the next night.
- June 10, 2025The council accepts her resignation effective July 17 and refers the rescission to the administrator and the personnel committee.
- June 10, 2025At the end of the same meeting the administrator reports Wayne Ehrich's emailed 30-day resignation.
- June 30, 2025Closed evaluation of Ehrich; the announced decision is to continue his employment.
- July 8, 2025Resolution 2025-21 rescinds Ehrich's resignation; payroll goes to Abdo "until a finance director is hired."
- July 17, 2025Kyllo's last day. The city has not had a finance director since.
What the statute says
A public body may close a meeting to evaluate the performance of an individual who is subject to its authority. The public body shall identify the individual to be evaluated prior to closing a meeting. At its next open meeting, the public body shall summarize its conclusions regarding the evaluation.
This is the provision the council used on June 30, 2025 to evaluate the public works director in closed session and then announce that he would stay.
People in this story
- Whitney KylloFinance director until July 17, 2025
- Scott LehnerCity administrator, on the payroll since December 14, 2024
- Scott RiggsCity attorney, Kennedy & Graven
- Wayne EhrichPublic works director, resignation rescinded July 8, 2025
- Don KirchmannMayor, personnel committee member
- Kim HelgesonCouncil member, personnel committee member
Sources
- Minutes of June 10, 2025, "Finance Director Resignation" and "Council and Staff General Comments," in the July 8, 2025 packet; meeting page; recording.
- Administrative Policy 38, Debt Management, same minutes, July 8 packet.
- Special closed and open meeting, June 30, 2025, summary of conclusions on Wayne Ehrich.
- Resolution 2025-21 and the July 8, 2025 consent agenda, meeting page; Abdo payroll contract in the August 12 packet minutes.
- 2025 personnel committee membership, January 14, 2025 packet, appointments.
- Kenyon Leader, "Kenyon approves new contract with Abdo," August 2025, on Sue Dodds returning from retirement.
More from the record
Month four, first purchase of note: $2,500 of spray foam so no one can hear the administrator's office.
Payroll goes to a vendor and the administrator gets a raise, backdated, on the same consent agenda.
Lehner evicted the taco truck for "perception." The owners found out from the newspaper.
All 27, in order · The open letter · Every packet and recording