FINANCES GET LITTLE ATTENTION BUT PUBLIC COMMENT TAKES CENTER STAGE

SAUK VILLAGE |  The Village Board met last night and were presented with the Village's Audit Report.  The audit showed few surprises and virtually no change in financial position of the Village according to the Susan Jones of Miller, Cooper & Co LTD of Deerfield, Illinois.

Trustee Derrick Burgess asked about the issuance of immediate checks and then having them approved after the fact by the Village Board.  Susan Jones said that is not common and that there should be few exceptions to for immediate checks, payments should go through the normal payment process.  Burgess also asked about borrowing funds from the water fund or other funds, the auditors said that there appears to be adequate documentation and general ledger information, however, the Village Board should vote to borrow money according to Illinois Statute and in some cases that has not happened.

Trustee Cecial Tates said he only had a matter of minutes to review the audit report and asked if they would be returning so that he could review the report and prepare his questions.  Mayor David Hanks said that any questions could be directed to Village staff at a future date. 

While the audit review was underway, Trustees Lynda Washington, Rosie Williams and Ed Myers sat mute for the twenty minute time it took for the auditors to present the audit.  Each of them did, however, chime in when it came to Public Comment and each had their own opinions and comments.  Rosie Williams suggested that the Ordinance for the public comment period be no longer than 60 minutes, but the discussion of the matter took 1 hour 13 minutes.

Burgess merely wanted the Village Board to get rid of its current restriction that says the public can only comment on "agenda items only".  "Why should we restrict what the public has to say.  We do have a First Amendment and the Illinois Attorney General has issued binding opinions that state public bodies cannot restrict the content for public comment" Burgess said following last nights meeting.  Burgess does not want residents intimidated when they come up for Public Comment by threats of arrest or removal from the meeting

Myers and Williams, who comprise the Ordinance Committee will once again take up the matter at a Special Meeting on Friday.  Williams, who was not present at the Village Meeting Tuesday night was on the telephone during the entire time will apparently be required to attend in person Friday, as someone attending a meeting by conference call cannot constitute a quorum according to state law.

"Why is it that public comment take more time and it seems every one of the trustees who remained silent during the auditor's presentation all spoke up on public comment" Tates said after the meeting.  "It's interesting to see where their priorities are".

During the Public Comment period of the meeting Bernice Brewer asked why Hanks has not removed the Village Treasurer James Griegel who admitted to purchasing heroin for sex and allegedly admitted to embezzlement from the Police Pension Fund.  Hanks' response "we're not talking about the Village Treasurer".

AUDIT REVEALS MULTI-MILLION DEFICIT

By Joseph Wiszowaty
SAUK VILLAGE |The Village Board received a copy of the audit from April, 2014 which was due in October but as they say better late than never.  Susan Jones of Miller Cooper and Company of Deerfield, Illinois presented a 7 page management report to the Village Board.  The 12 month audit report, which has been available on the Illinois Comptroller’s website since mid-January was only presented to the Trustees on Tuesday.  The audit paints a bleak picture of the village’s finances the Village’s net position is showing a multi-million dollar deficit and deficits in various funds. 

Chart provided by SAUK VILLAGER NEWS:  History of the General
Fund  Balance since 1999 (Source: Village Audits)

Despite the fact that Hanks’s 2013-14 Budget called for $5.2 million in revenue the Village actually brought in $5.6 million but still outspent the revenues brought it by some $493,610.  For the 12-month period ending April 30, 2014, the audit reveals that the Hanks Administration spent $6,149,110 well more than was taken in adding to the General Fund deficit.  The General Fund began the fiscal year with a deficit of $1.38 million and ballooned to $2.02 million by April 30, 2014.  The General Fund funds police and general administration functions for the Village.

Trustee Derrick Burgess, who voted no on the most recent budget, projected in his budget analysis that the General Fund will be $962,677 in deficit going into this budget cycle in July, 2014 and the actual amount according to the audit report is $632,706.  Burgess said that this figure would have been even greater had the Village booked the additional $758,080 which was owing at the beginning of the fiscal year.  The actual amount is probably worse than even Burgess projected which would balloon the General Fund Deficit to closer to $2.7 million according to the Audit Report.

Above Chart was created by Trustee Burgess.  Hanks disagreed with Burgess's
Analysis and the circle and arrow indicates where Hanks thought the numbers
were going to be.   Hanks's comments are in the box above
The TRUTH is that BURGESS WAS RIGHT!

Mayor David Hanks called Burgess’s General Fund projections “skewed and incorrect” and Hanks actually was calling for a more modest deficit of $700,000 in July during Hanks’s 2 ½ hour review of Burgess’s Budget analysis.  The actual numbers are about what Burgess had projected at about $2 million in deficit.  Burgess said that if there are no changes in the policy of this administration that the General Fund Deficit will continue to sink near $3 million. 

“This is proof positive that the current budget that this Board passed was anything but balanced” Burgess said.  “I tried to warn the Village Board then that this budget was not right, provided a 23 page analysis pointing out some points we were going to have a difficult time with and asked to work together on solutions and was slapped down in a political game.  I’m not playing a game. I was elected to represent the residents and nobody should run their business or a government the way that this village has been running” Burgess said.

Burgess warned his fellow board members Tuesday night that they are responsible for the finances of the Village and they will be held to account for the votes that they take on the finances of the Village.

Also revealed in the Audit report is a mess that the Hanks Administration appears to be kicking the can to another administration to address the unfunded pension obligations.  The Village’s Police Pension Fund is owed some $2.2 million and other post-employment benefits totaling some $784,000 nearly $3 million.  Hanks has not directed a penny into the Police Pension Fund since taking office.  The Police Pension Fund has not had an independent Audit conducted or filed since 2008.

The Hanks Administration also blew past the amounts appropriated by the Village Board of Trustees to the tune of $1,620,545 without a supplemental appropriations ordinance the Audit Report revealed.

 

To view the entire 2013-14 Audit Report:  CLICK HERE