McHenry County Blog

With Township Supervisor Linda Moore in Texas for her daughter’s college graduation and Rob LaPorta also absent, the meeting was relatively short and peaceful.

No one raised his voice or went off on a rant. Trustee Gerry McMahon even sat facing the audience.

Unlike the outgoing McHenry County College Board, the old Township Board, chaired Thursday by Barbara Murphy, spent much of the meeting deferring to their successors, referring several times to newly-elected Independent Supervisor Jim Kearns, who was sitting in the back row.

The Road District’s budget, for example, was not passed, even though that was the wish of outgoing Road Commissioner Jack Freund.

“The new Board comes in on the 20th,” Trustee Betty Zirk, the only member of the Board to seek and win re-election.

When it came time for to consider the bills, Zirk had a list of those to exclude. They included

• $2,644.68 charged to a BMO Harris credit card (postage, telephone, equipment maintenance, travel expenses, etc.)
• $864.20 for J.A. Jetchmark, Ltd.
• $475 for McHenry County Council of Governments dues
• $295.60 for printing to Total Point of Video, Inc.
• $24,162.50 billed for legal fees by Moore attorney John Nelson
• $39,007.89 billed for legal services from March, 2012, through March, 2013, by Moore attorney Ottosen Britz Kelly Cooper Gilbert & DiNilf

The Trustees’ law firm, Ancel Glink, however, was paid $5,747.48.

“In order to meet the payroll next week, I don’t think we can pay any bills,” Zirk said.

Zirk also mentioned that Township Road Commissioner was owed $7,161.20 to cover health insurance for his wife.

“He could get it cheaper by getting it through his wife’s than through the Township,” she explained.

The motion approving the bills noted that they would be paid when money was available.

As outgoing Township Assessor Bill Ottley was leaving after the bills were approved, he was thanked for his service for the last four years. The sparse audience applauded.

Ottley reminded them that he would be around through December, when his term expires.

“And you, too, Jack,” one of the Trustees added.

Zirk then talked about how audit expenses should be allocated. She suggested Public Assistance pay 5% and the Road District 35%.

Freund objected to the number she suggested, saying, “I’ll pay 25% like I’ve always been paying.”

Trustee Gerry McMahon suggest a compromised of 28%. Freund did not agree.

After some discussion, Zirk suggested asking the auditor how much time he spent on the Road District budget and the matter was deferred.

As the meeting was drawing to a close, Murphy said,

“There’s a part of me that is worry for the way things ended up. I regret that.”

A letter from the forensic auditor was read in which he detailed Moore’s refusal to sign the engagement letter and a payment until ordered by Judge

He also said he was unable to obtain original copies of the warrant lists.

Township Clerk Harriot Ford pointed out the documents were on the web site.

“I look forward to things moving on a real positive way,” she said shortly before the meeting adjourned.

Also in the audience was newly-elected Township Assessor Al Zielinski.

Grafton Township Supervisor has been sending emails to constituents.  Since they contain information I haven’t seen elsewhere, you can read the latest below:

Dear Residents of Grafton Township,

With the fall season now well underway, I am sure that each of you is well aware that this is an election season.

This fall also brings upon it the completion of the current term of office for your township officials.

All township officials are up for re-election every four years.

Early voting starts next Monday.. Here are some important dates to mark on your calendar:

• October 22 – Early Voting starts
• November 19 – 26 Petition filing period for Republican Primary Election
• December 17 – 24 Petition filing period for new political parties, nonpartisan and independent candidates
• February 26 Republican Primary Election
• April 9 General Election

Packets for township candidates are available at the township office or click here to print your own Candidates Guide.
TAXES!! Your number one concern.

Are you paying more than your fair share of property taxes?

If your assessment is not accurate, you might be. Grafton Township Assessor Ottley, as of October 15th has not submitted his assessment books to the county. Once the county assessor receives them, he reviews the books. This will require about two to three weeks.

When finished he will publish a notice in the Huntley Farmside newspaper, sold at Wisted’s Grocery in Huntley. You will also receive a letter notifying you of your new assessed property value. You then have 30 days to file an appeal if you do not agree with Assessor Ottley’s value.

On October 22, 6pm, we will hold a Property Assessment Class at the American Community Bank. There will be a question and answer session after a short presentation. Please call 1-847-669-3328 to register.

BOARD MEETING REPORT

We met last week and here are some of the meeting results.

Monthly Expenses:

The trustees attorneys, Ancel-Glink, bill was approved, 3 to 1, for $8,142. The trustees decided not to pay the bills for 11 vendors. While they had questions about the financial statements, none were interested in submitting their questions in writing for a complete answer. The township credit cards remain unpaid awaiting board approval.

The board also removed several agenda items, 3 to 1 vote. These items that were not considered included

• revising the budget to eliminate the deficit balance,
• paying off the road district loan, and
• housing the township food pantry in the township office.

It is important that we show fiscal responsibility by paying our bills, reducing debt, and balancing the budget. We also need to take care of the indigent.

However, as Supervisor, I must depend on the board’s cooperation to accomplish these goals.

Road District:

Our Road District has a loan of $270,000 with Harris Bank which remains unpaid despite a checking account balance of about $516,000 and a money market balance of $500,600. Without Highway Commissioner Jack Freund’s approval this loan will continue to incur interest and fee expenses.

The best news that I have is that the board unanimously decided to reduce the township official’s salaries in some cases up to 30%.

This action clearly benefits the taxpayers and the board is to commended!!

Please refer to the Board Packet tab on the www.graftontownshipsupervisor.us website for the details.

Sincerely,

Linda Moore, Grafton Township Supervisor

Somehow I posted the wrong court order from Judge Thomas Meyer in the litigation between Grafton Township Road Commissioner Jack Freund and Supervisor Linda Moore.

I have take that one down and put up the one I thought I was writing about.

An email from Grafton Township Supervisor Linda Moore about mediation being order between her and Road Commissioner Jack Freund:

“Please find attached to this email, the court order, granting my petition which requests that the Highway Commissioner Jack Freund and I enter mediation to resolve the suit filed by the Highway Commissioner.

“My earlier attempts to enter mediation with an attorney offering to mediate at no charge and without a court order were not accepted by Mr. Freund and his attorneys.”

“The court order reads:

“This cause coming on Defendants Motion to Refer to Mediation, the court being duly advised, IT IS ORDERED:

1. The Motion is Granted. The parties are ordered to attend mediation, with mediator C. Ellis, if possible.
2. Defendant granted to 10/25/12 for responsive pleading.
3. Case set for 12/14/12 at 9:00 am for further status.

“Prepared by Hoppa”

Attached was a court order signed by Associate Judge Thomas Meyer:

One could note that the mediator names, Case Ellis, is not the one who volunteered to do it for free, Rob Hanlon.

A press release from Tom Poznanski:

Tom Poznanski Announces His Candidacy for Grafton Township Road Commissioner Makes Fiscal Responsibility, Responsibility to Taxpayers Top Priorities

Lake in the Hills, IL – In the upcoming 2013 Republican primary election, Tom Poznanski has announced his candidacy to run for Grafton Township Road Commissioner.

Poznanski has worked as a Road District Highway Technician for the past eight years, serving directly under the current Highway Commissioner, Jack Freund, who is retiring at the end of this term. Poznanski brings experience and a desire to serve his community to the table.

“I am proud to endorse Tom Poznanski as the next Road Commissioner as I retire after eight years on the job. Tom has the experience, the knowhow, to be an effective servant to the people of Grafton Township. I have full confidence in him.” said Jack Freund.

Poznanski adds, “I want to continue Jack’s tradition of being fiscally responsible with the taxpayer’s money while ensuring that services provided by the Road District serve the needs of all Grafton Township citizens in a timely and professional manner.”

Poznanski says that with more than 30 years experience as a certified mechanic and over 20 years experience driving and handling all sizes of trucks, he brings a “from the ground up” wealth of knowledge to the job. “In order to be an effective leader I believe it is important to know all aspects of every job at the Road District. I bring the experience and the knowledge, and a wish to serve Grafton Township, the community I love and have been part of for more than 15 years.” Poznanski said.

About Tom

Tom and his wife Vicky live in Lake in the Hills where they raised a son and a daughter. Their son, Staff Sergeant Anthony Poznanski, a career United States Marine who served a tour of duty in Iraq, was a chief drill instructor, and currently serves in the Marine Air Wing in South Carolina, is now 28, married, and has two sons of his own. Their daughter, Lisa, has a son as well, is a State Certified Surgical Technician and a CNA, and is pursuing a RN degree. Tom has been a member of The Cavaliers Drum and Bugle Corp for more than 20 years and is a current member of the Huntley Lions Club. He has been a Grafton Township Precinct Committeeman for twelve years, and has served as the Grafton Township Republican Central Committee Chairman for the past six years.

In a motion filed in McHenry County Circuit Court Friday, Grafton Township Road Commissioner Jack Freund seeks the removal of Supervisor Linda Moore from office for failure to carry out her duties as Supervisor as well as Treasurer of the Road District.

The pleading argues that the statutes do not give the Supervisor “unilateral power, or ‘veto power’ to refuse to pay township bills” approved by the Township Board.

Not paying all the approved bills, characterized as “duties” of the Supervisor “shall” result in disqualification to serve in the office.

A series of invoices, some large, some small, are listed which have been approved by the Township Board, but not paid by Supervisor Moore.

$56,588.33 in all.

$24,450 was recently offered and deposited, but the Road Commissioner’s lawyer argues that did not cover the amount owed.

Besides being forced to pay the money owed and kicked out of office, the court document asks that Moore be prohibited from holding the office in the future, plus be fined and made to pay Freund’s attorney’s fees.

With regard to her role as Treasurer of the Road District, Freund argues that Moore didn’t pay bills he authorized and charged the Road District for items not approved by him, such as, charges for the bookkeeping Quickbooks program.

The suit requests a permanent injunction to keep Moore from taking money from the Road District checking account for Quickbooks and other payments unauthorized by the Freund.

In response, Moore said,

Linda Moore

“This is just another delay tactic.

“He had filed his complaint over a year ago and has refused all attempts of mediation or other despite resolution.

“There is nothing that is new or of substance, again, just another delay tactic which is a waste of tax payer’s money.

“In response to our motion for court ordered mediation, they have asked for two weeks to file a response and we will again be in court on October 11th

“Commissioner Freund is complaining that I am not following the instructions of his daughter, Jenny Moore, whom he has hired as his clerk.

“The road commissioner received the $24,000 check in April, but has refused to deposit it as of this date.

“He has failed to provide proof that he has personally incurred any expense for his wife’s insurance and yet demands that he be paid personally for this expense.

“He also refuses to sign his wife up for the township insurance provider.”

That’s what this email to volunteer mediator Robert Hanlon from Thomas Hoppa, the attorney for Grafton Township Supervisor Linda Moore in Road Commissioner Jack Freund’s suit against her.

Rob:

As I am sure you’re aware, my firm represents Linda Moore in the pending litigation known as Freund v. Moore in McHenry County.

I understand that you have offered your services as mediator in this matter.

Obviously, Ms. Moore welcomes the opportunity to resolve this matter short of trial.

Please consider your offer accept by Ms. Moore.

If I may suggest, the matter is set for status on August 31.

Considering that Mr. Freund and his attorneys will already be present for this court appearance, we could easily utilize that day for mediation.

This would give Mr. Freund ample time to put together a mediation statement and to tender to me documents ordered by the court.

Timothy J. Hoppa
Ottosen Britz Kelly Cooper Gilbert & DiNolfo, Ltd.

Yesterday I got a copy of a letter sent by attorney John Boyd on behalf of Grafton Township Road Commissioner Jack Freund. I published it here.

Below is the reply sent by Township Supervisor Linda Moore’s attorney Timothy J. Hoppa before last night’s meeting:

Timothy J. Hoppa | Ottosen Britz Kelly Cooper Gilbert & DiNolfo, Ltd.

1804 North Naper Boulevard, Suite 350
Naperville, Illinois 60563

Mr. John Boyd
Zanck, Coen, Wright & Saladin, PC
40 Brink Street
Crystal Lake, Illinois 60014

RE: Correspondence dated August 2, 2012

Dear Mr. Boyd:

I am in receipt of your correspondence dated August 2, 2012.

When you mention an “improper and inappropriate” meeting, I assume you refer to the mediation session that Linda Moore set up, at no cost, for the purpose of resolving the pending litigation between her and various other elected officials.

It seems inconceivable that any attorney and litigator would refer to mediation as “inappropriate” or “improper.”

Your letter demonstrates to us once again that your client has only political complaints against Linda Moore, and has no real desire to resolve anything.

The history of this case, beginning with the steadfast refusal to answer or issue discovery, and ending with your client attending a pre-trial at which he could not even begin to identify that which he claims as damages is sufficient proof that this case has nothing to do with the merits, and instead has everything to do with politics. We desire resolution of this matter.

At this point, we have attempted to use the litigation process and have attempted settlement short litigation by means of pre-trial. Your client has refused to participate in good-faith in either.

If you truly “welcome the opportunity” to resolve or even discuss matters, I recommend your client attend this evening’s meeting.

Sincerely,

OTTOSEN BRITZ KELLY COOPER GILBERT & DiNOLFO, LTD.

Timothy J. Hoppa

All I could capture was the image you see below of a letter sent on behalf of Grafton Township Road Commissioner Jack Freund by attorney John Boyd to Timothy Hoppa, whom I assume is Supervisor Linda Moore’s attorney:

An IRS finding handed down January 31st will surely be the talk of the next meeting of the Township Officials of Illinois.

It says that heretofore fringe benefits, such as the Grafton Road Commissioner’s vehicle and the reimbursement for dinners at the McHenry County Council of Governments, are income for Federal tax purposes.

And, since the state tax code is built upon the national one, probably subject to state income tax as well.

The Internal Revenue Service writes that Grafton Township owes the Federal government $2,030.36 for 2010 for income, Social Security and Medicare taxes.

“Fringe Benefit Issues” is what the Internal Revenue Service investigator was looking at.

A topic subject to a tirade by Trustee Gerry McMahnon at one of the last meetings I attended was the taxability of reimbursements for dinners at the McCOG. [I have to tell you, except for the volume of his voice, he seemed to be making sense.]

But the IRS Specialist disagreed.

The “audit,” for lack of a better term, specifically addressed this topic:

“In 2010, the elected officials and trustees of the Township received a stipend varying from $26 to $40 per month to attend monthly dinners for the McHenry County Council of Governments. The Township does not require these members to attend these meetings. The total amount of stipends issued to all officials and trustees was $1,300 for the year. These stipends were provided under a non-accountable plan.”

If I am interpreting the documents correctly, the Trustees, in toto, will owe taxes on an additional $729 because of the McCog dinner reimbursements.

Road Commissioner Jack Freund had similar $200 of non-accountable reimbursements, Supervisor Linda Moore $253 and Clerk Harriot Ford $118.

Freund was also cited for $3,125.70 which he received for “medical reimbursements made to the elected official. However, there was insufficient substantiation provided to receive reimbursement. Thus, the payment falls under a non-accountable plan.”

Freund was further cited for getting reimbursement for his spouse’s travel expenses. This included $120.56 for a number of meals, plus “a $35 spouse fee for the conference.”

Township Road Commissioner Jack Freund’s Ford F250 pickup truck was the subject of the final finding.

Purchased on December 8, 2010, “for the Road Commissioner’s use. The vehical was inspected by the Specialist and the vehicle is not deemed to fall into the category of a Qualified Nonpersonal Use Vehicle.

“There was no adequate substantiation of business uses v personal use of the vehicle.

“Therefore, the automobile lease value for this vehicle is $7,250 (see tables in Publication 158). As it was used for 23 days in 2010, the calculation is as follows:

• Annual Lease Value = $7250
• Days of Use in 2010 + 23.365
• %7,250 X (23/365) = 456.85

Also targeted by the IRS were meals provided by Assessor Bill Ottley’s office when employees were not away overnight. Called “Day Meals” by IRS Examiner John Lauer, the reimbursements of those and non-overnight meals for Ottley and Moore totaling $369.28 have been deemed taxable.

Also mentioned are uniforms costing $480.01, but detail is not given regarding the employees affected. The report sys that “under an nonaccountable plan” are considered “wages and are treated as supplemental wages”…”reportable as wages on the employee’s Form W-2.”

“It as been determined by the FLSG Specialist that the taxpayer is wiling to correct all the above mentioned isues found during the examination,” one report concludes.

Implications for the 2011 tax year were not addressed in the report.

“I was instructed to follow the precedent sent by the 2010 audit when amending the 2011 W-2′s,” Supervisor Moore said.

“All taxpayers know they that have to comply with IRS regulations.

“It’s important that township officials are IRS compliant, too, but I don’t look forward to delivering this bad news to my colleagues.”

It is not clear whether the elected officials will have to repay the township the cost of the fringe benefits targeted by IRS.

The State Constitution says that no elected official can earn no more or less than what was set before he or she was elected:

Illinois Constitution Article 7
Section 9 Salaries and Fees
(b)An increase or decrease in the salary of an elected officer of any unit of local government shall not take effect during the term for which that officer is elected.

Some of the documents can be found here.

Everybody’s got lawyers in Grafton Township.

Supervisor Linda Moore has John Nelson.

The Trustees have an Ancel Glink Partner Thomas Dicianni, at least for their case involving Moore.

Assessor Bill Ottley has Mike Poper.

Road Commissioner Jack Freund has Patrick Coen.

If one looked at expenditures to determine what the purpose of Grafton Township is, one might be excused for thinking it was to enrich attorneys.

Having heard more evidence than he undoubtedly wanted to, for the most part Judge Michael Caldwell has ruled on Moore’s side of the case.

Now the Assessor’s and the Road Commissioner’s attorneys are seeking changes of venue.

Neither want Judge Caldwell to hear their cases.

The Road Commissioner’s attorney will be in court Tuesday, the Assessor’s lawyer will be there Friday.