WATER FUND GETTING DRAINED - $2 MILLION GONE

Freedom of Information Act Request

General Ledger- Sauk Village

SAUK VILLAGE |  The controversy goes on with Mayor David Hanks and the village trustees aligned with him as they continue to authorize use of money from the water fund to plug up an unbalanced budget.                                                                                              

Trustees Derrick Burgess, Cecial Tates and Kelvin Jones voted not to approve the budget which Burgess called “irresponsible and unbalanced” at the time.  All evidence seems to indicate that Burgess was in fact correct, the budget clearly was not balanced.  The remaining trustees who routinely support the Hanks voted to approve the budget following the mayor’s tie-breaking vote in May, 2016.

According to a recent Freedom of Information Act request it was revealed that nearly $2 million dollars has been deducted from the water fund.

When Hanks took over as Mayor the Village did not owe anything to the water fund according to a FOIA request from August, 2016. From July, 2016 until the end of December, Mayor Hanks and the trustees he controls have increased the amount they have taken from the water fund from $1.3 million to $1,853,358.76. 

Water fund monies are supposed to be used for water related issues including replacing aging and leaking water mains, broken fire hydrants, etc.  In July, 1985 the late Village Clerk Nancy L. McConathy filed suit against the Village of Sauk Village for improper use funds.  The of law suit was settled following her death in 1986.  As part of the settlement the Village agreed to not use water funds for making payroll of non-water related personnel. The village had previously assigned a title to an employee so that employee could be paid from the water fund.

Mayor Hanks ordered Director of Finance Mohan Rao to not attend Village meetings following the indictment of Hanks’s Village Treasurer James Griegel.  Residents have routinely complained about the lack of transparency at Village Hall including Tuesday night when Judy Cast reiterated “there is no transparency”.  Hanks has also forbid Director of Public Works Kevin Weller from attending village meetings along with Community Development Director Sherry Jasinski.

Residents of Sauk Village voted to change to Lake Michigan Water rather than well water in March, 2012.  To date there have been no new pipes installed to reduce the water loss in the Village.  Water rates have more than doubled or 114% increase from $3.50 to $7.50 per 1000 gallons of water.  An incremental increase occurred which went from $3.50 to $5.50 per 1000 gallons to “break even” and then an additional $2.00 increase was to cover the “debt service” for the permanent air strippers.   The State of Illinois has “forgiven” most” of the debt, however, water rates remain at the same level.

The higher water rates would have allowed the Village to amass a $2 million dollar surplus in the water fund in just over a couple years, however, there is no surplus as it was eaten up by mismanagement of the Village’s finances.  The Village Administration has no plan on repaying the water fund for the so-called loan.

It is not legal for a Village to “borrow” money from the water fund to pay for General Fund services without paying it back (and with no intent to pay it back) within the same fiscal year!  65 ILCS 5/8-1-3.1 “Sec. 8-1-3.1.The corporate authorities may borrow money for corporate purposes from one fund for the use of another fund providing such borrowing shall be repaid within the current fiscal year…”

CLICK HERE TO SEE ACTUAL FOIA REQUEST

CLICK HERE TO SEE FOIA FROM AUGUST, 2016