BINGHAMTON, N.Y. -- An employment agreement between the City of Corning and firefighters union regarding the fire lieutenant accused of selling heroin.

Thomas Margeson was suspended from the Corning Fire Department on September 18, and will no longer be employed there as of January 31.

This comes after the 43-year-old was arrested for allegedly selling heroin in his hometown of Horseheads.

He was charged with criminal sale of a controlled substance.

After 19 years of service with the city, Margeson is eligible for retirement. However, he will be demoted and put on paid leave until January 31, receiving nearly $25,000 less than what he would have.

The city manager says by reaching this agreement, the fire department can focus on the work ahead.

"These are unfortunate circumstances. However, I have a fiduciary responsibility to the city and we feel that settling this disciplinary matter which will lead to his retirement is in the city's best interest to move forward," said Corning City Manager Mark Ryckman.

The city is working to fill the lieutenant position by February.