McHenry County Blog

Crystal Lake City Hall.

This past spring I asked various municipalities to provide emailed lists of their employees who made over $75,000 in salary and fringe benefits.

Many complied with the names and compensation information.

The City of Crystal Lake sent the information, but only by job title and for that information I was referred to the City web site.

I appealed to the Illinois Attorney General’s Public Access Division on two grounds:

• the response was not by email
• the response did not include employee names

November 15th Assistant Attorney General Steve Silverman sent a four-page letter affirming the appeal.

To my request for an email response, the Public Counselor’s Office ruled that referring me to the City web site, “does not satisfy the requirement that a public body furnish a requested with a copy of the record in electronic format.”

While I contended that the information had to be posted by name, the City contended, “[n]other in Section 7.3 or anywhere else in the O[pen] M[eetings] A[ct] requires public bodies to list the names of employees.”

The Assistant Attorney General agreed that “Section 7.3(a) is ambiguous to the extent that its language is silent as to whether employees may be identified by name or by title.”

But, puts out that in legislative debate on the law, which was part of reforms intended to prevent ‘pension abuses’ such as ‘spiking,” Rep. Karen May made reference to both terms. “Pension spiking” refers to giving an employee a large raise right before retirement, the letter notes.

“To detect pension abuses such as spiking, it is necessary to be able to compare the compensation and benefits of individually identifiable employees to their previous levels of compensation,” the letter continues.

“…To interpret Section 7.3(a) of OMA to permit public bodies to ‘identify’ individuals by job title rather than by name would impede the public’s access to information needed to detect pension and compensation abuses…Thus, the public is entitled to information regarding the compensation and perquisites of individual public employees.’

“We conclude that the City violate Section 7.3(a) of the O[pen] M[eetings] A[ct] by failing to post the names of employees whose total compensation packages exceed $75,000 per year. Accordingly, we request that the City immediately revise the information posted on its website to include the names of those employees, and also provide Mr. Skinner with an electronic copy of the salary compensation for those employees.”

The City has complied with the Public Access Divisions’ request.

At the last Grafton Township Board meeting, the following slip of paper was handed out by Township Trustees to those in attendance:

At last Thursday night's meeting of the Grafton Township Board, this was handed out. It relates primarily to reimbursement of dinner expenses for attending meetings of the McHenry County Council on Governments. The name of the person who talked with IRS Examiner John Lauer is blacked out.

Noting that the document has no letterhead, I gave it no credence, even though it seemed to make sense.

Today, Grafton Township Supervisor Linda Moore shared what she heard when she talked to the IRS Agent who did the audit of township books. McHenry County Blog’s original story is here. Her email follows:

“Recent Township IRS Audit

“At the township meeting last week, an attorney misinformed the board that IRS Auditor John Lauer had recanted ‘Taxable Income’ dinners ruling made during the audit.

“I have spoken with the IRS agent today and he informed me that there will be no amendment made to Grafton Township’s audit.

“Unfortunately, the trustees distributed a slip of paper to all in attendance at this meeting, with a misquote of the IRS agent.

“At this point, I recommend that the IRS documents are the most reliable source of information from the IRS and any statements made by third parties should be disregarded to avoid any further confusion.

“As the Township Supervisor I will follow the direction of the IRS when administering the township payroll operations.”

= = = = =
I have added additional parts of the IRS Audit here.

In response to comments from folks unknown under the article

Officials’ Perks Ruled Taxable in Grafton Township

prompted Grafton Township Supervisor Linda Moore sent the following:

I am writing this email to address some of the concerns brought up by anonymous commenters.

The Township Officials of Illinois arranged for the IRS to educate the Township Supervisors of Northern Illinois about the IRS rules last summer.

They also arranged for the IRS to educate all of the township officials in Illinois to learn about the IRS rules at the annual convention last November.

The Highway Commissioner and his daughter attended this training.

Recently the IRS has started offering state-wide telephone conferences to educate municipal staff and officials.

The FSLG (Federal, State, and Local Governments) is a newer division of the IRS.

The auditors completed their field work in June of 2011 and have just sent their final audit for FY 2010 and draft audit for FY 2011 in time for the February 2012 board meeting.

The auditors have provided no reason to the board for the delay in finalizing their audits.

Trustee [Rob] LaPorta has been in regular contact via phone and email, with the auditors since the fieldwork was completed.

A special meeting of the board was held in August of 2011 during which he talked with the auditors for well over an hour.

The board was informed of the IRS regulations in August of 2011 and again in January of 2012.

They discussed the IRS and IMRF audits at the January 2012 board meeting.

The Assessor and Highway Commissioner participated in the IRS audit.

The board has been provided with the phone number for the IRS contact who has audited the township.

The township has recently also been audited by the IMRF.

The board has not adopted the recommendations of the IMRF resulting from the audit.

The trustees have copies of the CPA audits, IRS audit, and the IMRF audit.

The Supervisor’s office uses three vehicles, a bus and two minivans, that were obtained by the previous supervisor using general assistance funds and county grants.

The McHenry Council of Governments reaction can be found here.

Here are 22 of 24 McHenry County Board serving from 2010-12. . Cll other County Board members are up for election in 2012 because of re-apportionment.

Here’s what McHenry County Board members will have before them about salaries that they or their successors will earn starting after next fall’s elections:

A resolution calls for “compensation beginning December 2012 and fringe benefit options are hereby approved for the Chairman and Members of the McHenry County Board:

1. Chairman of the Board: The Chairman of the Board will receive an annual salary of $82,200 for FY2013 and FY2014.
2.  Vice-Chairman of the Board: The Vice-Chairman will receive $5,000 per year more than Board Members.
3.  Members of the Board: The Members of the Board will receive an annual salary of $21,500 for FY2013 and FY2014.
4.  Fringe Benefits: The Chairman and Members of the Board may choose to participate in any or all of the benefit programs made available, now or in the future, to all County employees including, but not limited to health, dental and vision plans subject to the same rates, benefit levels, rules and regulations established for all County employees.

And about future raises, here is what is proposed:

“the Chairman and Members of the County Board shall receive an annual increase for FY2015 through FY2021 based on the Consumer Price Index (CPI), as provided by the Bureau of Labor Statistics for the Chicago-Gary-Kenosha labor market, or the same pay rate increase provided to non-union employees, or 5%, whichever is less.”

And, a slap at those county board members who do not live in the Woodstock area:

They “shall not accept mileage reimbursement attending County Board Meetings or County Board Committee meetings.”

That, of course, means that those who live closest to the courthouse will have higher compensation than those living in McHenry, Crystal Lake, Cary, Fox River Grove, Algonquin, Huntley, and other outlying areas.

And here are the salaries proposed for the countywide elected officials up this year (except for the State’s Attorney and Regional Superintendent of Schools, which are set by state stature):

McHenry County Auditor
For the year 2013…………………….$104,750
For the year 2014…………………….$104,750
For the year 2015……………………salary increased by CPI
For the year 2016……………………salary increased by CPI

McHenry County Coroner
For the year 2013…………………….$104,750
For the year 2014…………………….$104,750
For the year 2015……………….……salary increased by CPI
For the year 2016………………….…salary increased by CPI

McHenry County Clerk of the Circuit Courts
For the year 2013…………………….$104,750
For the year 2014…………………….$104,750
For the year 2015………………….…salary increased by CPI
For the year 2016…………………….salary increased by CPI

McHenry County Recorder of Deeds
For the year 2013…………………….$104,750
For the year 2014…………………….$104,750
For the year 2015…………………….salary increased by CPI
For the year 2016…………………….salary increased by CPI

= = = = =

Here's what County Board members earned in 2010.

The billboard that infuriated State Rep. Jack Franks.

Almost to the day, one year after Metra Executive Director Phil Pagano committed suicide by stepping in front of the last morning train from McHenry, Democratic Party State Rep. Jack Franks decided to send a letter to McHenry County Board Chairman Ken Koehler calling for his Metra appointee Jack Schaffer to step down.

When I write about my former legislative colleague from the 1970′s, I identify him as a former State Senator and sometimes as a former McHenry County Republican Party Chairman.

Jack Franks' May 3, 2011, letter, page 1. Click to enlarge any image.

To put Franks’ letter into context, however, it is not his membership on the Metra board that is most important. It is not his Republican Party activity.

It is his ownership of the Liberty Outdoor billboard company that is significant.

Prior to the fall election, when Franks was facing his first Republican challenger in three elections, McHenry Grade School and Library Board member John O’Neill, the man who would run for statewide office or Congress, faced a withering billboard on the way to work.

Citing a reputable source, it pointed out Franks’ main sources of campaign funding–besides his family:

Jack Franks' May 3, 2011, letter, page 2. Click to enlarge.

• Lawyers
• Labor
• Lobbyists

I understand the placement was paid for, but Franks doesn’t like bad publicity.

So, what to do?

On March 17, 2011, Franks introduced House Bill 1516 to eliminate fringe benefits from Metra Board members. I wrote earlier of how it did not make in out of the Committee on Mass Transit.

The same day Franks introduced HB 1548 to abolish Metra as a separate agency. He did not call it for a committee vote.

Jack Franks' May 3, 2011, letter, page 3. Read the post script. Click to enlarge.

Since Pagano’s financial improprieties became public in April of 2010, I looked at last year’s bill introductions by Franks.

There were so many that I might have missed one about the Metra board, one calling for replacement of all members, for instance, but all I could find after the public learned of the money Pagano made off with was House Bill 6946.

A lot of Metra trains came around this corner in Des Plaines, plus one billboard on Route 47, before State Rep. Jack Franks (D-Marengo) decided to try to get former State Senator and McHenry County GOP Chairman off the Metra Board.

It was not introduced until the week after the fall election.

It called for the 2011 election of a nine-member RTA Board, none of which would be paid. The current CTA, Metra and PACE Boards would be eliminated.

That certainly would have gotten rid of Schaffer as a Metra Board member.

The same day, November 11, 2010, Franks introduced HB 6950. Similar goal–election of a non-partisan, unpaid nine-member Regional Transportation Board and elimination of the current ruling superstructure.

Both bills were introduced after the billboard, I would note

It was right before Pagano’s death, April 28 2010, however, that the public learned that he had made off with lots of money. By May 14, 2010 more details were being made public.

So, if Franks was not interested enough in Metra governance to introduce a bill prior to the billboard paper being pasted on the Route 47 Liberty Outdoor right south of Woodstock Harley-Davidson, why would anyone question that the motivation for his trying to get rid of Schaffer from the Metra Board was vindictiveness?

Franks’ post script to his letter to Koehler reads,

Ken-

I know you and I disagree on this, but I feel so strongly that we must go  in a different direction to separate us from the past and to start over.

I know Jack is your friend but in your heart you know his departure is best for the county.

Every year or so I ask for what McHenry County Board members earn for their part-time jobs.

McHenry County Board members.

Besides a flat salary (changed from a per diem or payment for every meeting attended some years back), the members can obtain pension payments in the Illinois Municipal Retirement Fund, just as other county employees, and health benefits.  They all participate in Social Security.

Board members are free to opt out of IMRF pension and county health benefits.  If they have done so, you will see zeros in the appropriate box.

You will see that Randy Donley, Mary McCann and Robert Novak decided not to participate in the pension system.  Novak is retired from the Village of Cary, which may explain his non-participation.  He could well be receiving an IMRF pension.

The full package of health benefits is worth $19,725.

That’s almost as much as the cash salary paid for all but County Board Chairman Ken Koehler and Vice Chairman John Jung.

County Board members accepting no health benefits are

• Dianne Evertson
• Tina Hill
• Pete Merkel
• Anna Miller
• Ersel Schuster

Amounts of insurance coverage accepted ranges from $748 to $19,725.

The list of members show those serving during the past two years, as well as those newly-elected.

It’s pretty interesting how the comment section below Northwest Herald stories allow other stories to be updated.

Huntley School Board member Larry Snow—still in a minority, but no longer in a 6-1 minority after April school board elections in which one candidate he supporter, Aileen Seedorf led the pack—continued to try to recoup unauthorized fringe benefits paid to school administrators in a comment on unauthorized expenditures in Burton Township yesterday.

Not many people from the Huntley and Lake in the Hills area will probably see the comment, but it is a method to exert some pressure on fellow board members to go after the $200,000 or so found paid, but not approved by the Huntley School Board.

Among other things, Snow asks,

“Do taxpayers feel different about unauthorized township expenses and unauthorized school district expenses?”

It’s pretty interesting how the comment section below Northwest Herald stories allow other stories to be updated.

Huntley School Board member Larry Snow—still in a minority, but no longer in a 6-1 minority after April school board elections in which one candidate he supporter, Aileen Seedorf led the pack—continued to try to recoup unauthorized fringe benefits paid to school administrators in a comment on unauthorized expenditures in Burton Township yesterday.

Not many people from the Huntley and Lake in the Hills area will probably see the comment, but it is a method to exert some pressure on fellow board members to go after the $200,000 or so found paid, but not approved by the Huntley School Board.

Among other things, Snow asks,

“Do taxpayers feel different about unauthorized township expenses and unauthorized school district expenses?”