Daily Herald|Taxpayers question park district's spending on food, gifts for staff

Taxpayers United of America’s operations director, Jared Labell, was interviewed by Daily Herald in an article about Wildwood Park District’s expenses


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 Critics say spending on staff should go to facilities; district defends itself

Among the thousands of dollars in credit card charges for food, gift cards and employee awards under scrutiny in a small Lake County park district is one from a supermarket in Racine, Wisconsin.
Just four days before Christmas in 2013, records show a Wildwood Park District credit card was used at Pick ‘n Save on South Green Bay Road to buy $120.45 in groceries that included two beef tenderloins, creamed corn, lemons, shaved parmesan cheese, crackers, butter, apple pie, bread, five pounds of potatoes and cage-free eggs.

Critics say the tab is an example of what they contend was about $6,000 in questionable credit card charges in 2014 and 2013 and vague record keeping on those expenses at the park district in an unincorporated area near Gurnee. Residents began raising questions earlier this year.
“I guess what it comes down to is should they really be doing this to begin with,” said resident Brian Frederiksen, who has raised spending concerns at public meetings. “That’s really the first question. From that point on, it’s a matter of, ‘Well do you really need this going on?’ Doing it four days before Christmas, beef tenderloin?”
But Wildwood Park Director Maureen Jekot said her Pick ‘n Save trip was an example of government frugality and proper credit card use. Instead of keeping with a custom of going to a restaurant for a holiday appreciation for some park district volunteers and board members, Jekot said, a down economy in 2013 led her to cook for everyone.
“It’s my specialty,” Jekot said of the beef tenderloin.

Watchdog’s concerns

With roughly 4,000 residents, three full-time employees, up to 40 part-time workers and an $819,000 budget for 2015-16, Wildwood is small potatoes compared to other suburban park districts. For example, in nearby Gurnee, the park district has a $15.7 million budget and serves 34,300 residents, while the Naperville system has a $56 million budget and about 144,900 residents.
Jekot said the employee incentives, appreciation awards, meals and training food typically average 0.3 percent to 0.4 percent of annual budgets. This year’s part-timers eligible for the perks have a pay range of $8.25 to $18.30 an hour, records show.
“I understand their concerns, totally,” Jekot said of the critics.
Jared Labell, the director of operations for the Taxpayers United of America watchdog group who reviewed some of the Wildwood park expenses at the Daily Herald’s request, said such spending may be “especially problematic” at small-budget government agencies that typically receive little media or public scrutiny. He complimented residents for raising concerns about the credit card charges.
“Taxpayer-funded agencies, like the Wildwood Park District, should not spend its limited budget on thousands of dollars’ worth of appreciation dinners, gift cards and other unnecessary perks,” Labell said. “Residents are rightfully upset and would like to see their tax dollars go toward proper infrastructure improvements and park services which need to be addressed instead of employee parties.”
By comparison, employees do not receive meals or awards paid for with public money at the similarly sized Grandwood Park Park District near Gurnee, said board Commissioner Nancy Carlson. The district, which serves about 3,000 residents and largely relies on part-timers, gives $25 gift cards instead of cash to substitute preschool teachers, she said.
Frederiksen said Wildwood’s small stature is a reason it should devote as much money as possible to park facilities. He said he started filing open-records requests for the credit card statements this year because he became curious about expenses during a long-running dispute over a water problem commonly known as “swimmer’s itch” in a park district lake in his neighborhood. He and others contend the problem has not received enough financial attention — a point disputed by Wildwood officials.
Jekot said $7,500 was spent to use copper sulfate to treat Valley Lake on Aug. 3, in the hope of getting rid of the problem.

Expense details?

Documents received through a Daily Herald Freedom of Information Act request show $93,636 was charged to four Wildwood park credit cards during 2014 and 2013.
Park board Treasurer Dan Van Erden said the heavy credit card use is justified because the district doesn’t have a finance director and it’s a more efficient way to track spending.
A Daily Herald examination found instances of vague spending justification and missing itemized receipts, but Van Erden said some steps taken late last year are now in place that should result in a greater level of detail.
For example, Van Erden said, a list of names now will be requested for documents if a general description of a group purchase at a restaurant is not clear enough to describe who attended. He said there has been nothing wrong with how money was spent.
“At the end of the day, we realized that our processes were not originally built to be able to answer detailed questions about purchases going back several years without a great deal of research,” Van Erden said. “The goal going forward would be to have easier access to details for past expenses, especially requests that relate to purchases made in past fiscal years.”
However, park board member Dan Bundalo said he’s skeptical about the credit card spending. He said he considered the spending to be “disturbing.”
Of the $93,636 in credit card charges that include equipment and office supplies, Frederiksen and other residents have identified about $6,000 for food, gift cards and employee awards in documents from 2014 and 2013. In addition to the December 2013 Pick ‘n Save visit, documents show those expenses covered by taxpayers included:
• $177.20 for six “long winters nap throw” from Green 3 in Oshkosh, Wisconsin, in December 2014. The expense was for “staff safety annual awards” and the merchandise was shipped to Jekot’s Wisconsin home. Records did not specify who received the gifts.
• $288.50 on food from Saluto’s Pizza and Pasta in Gurnee in June 2014. It was listed as a “staff/volunteer appreciation dinner” with 45 to 50 in attendance. Names were not included in documents.
• $132.98 on a park district teacher appreciation end-of-year luncheon at Giordano’s restaurant in Gurnee in May 2014. An itemized receipt was not available and records didn’t indicate who attended the luncheon.
In September 2014, documents show Jekot mistakenly used a Wildwood Park District credit card for a $193.14 bill at Archer House River Inn in Northfield, Minnesota, while visiting her daughter at nearby St. Olaf College. Jekot later wrote a personal check to the park district to cover the tab.
“Everyone who works for the park district is, in fact, a human being,” Van Erden said. “And as you know, human beings can make mistakes.”

Facility spending

As for the dispute over whether enough money has been devoted to fighting swimmer’s itch in the 12-acre Valley Lake, documents show $10,500 has been budgeted for potential maintenance uses there in 2015-16. Van Erden noted that compares to $6,656 budgeted for the district’s roughly 70-acre share of the 143-acre Gages Lake.
Parasites from birds and other animals can lead to swimmer’s itch, a skin rash also called cercarial dermatitis. The parasites typically are passed from the feces of ducks, geese, beavers and other animals, followed by larvae released by infected snails into lakes, streams and oceans.
During the swimmer’s itch dispute with some residents last year, Van Erden said, officials initially decided against using copper sulfate as a possible solution. In September 2014, the Illinois Department of Natural Resources stocked 2,000 redear sunfish in Valley Lake in an effort to reduce the snail population by feeding off them and ultimately doing away with swimmer’s itch.
Jekot said the food and other perks for the mostly part-time workforce are not taking away from spending on the parks or lakes.
“Our goal is to maintain an excellent, productive staff with the help of incentives and appreciation programs,” she said.

Policy group offers plan to fix Illinois pension problems|The State Journal-Register

TUA’s Jared Labell was quoted by The State Journal-Register about battling the state’s pension crisis, during the pension release of Springfield and Sangamon County.

The director of a conservative fiscal policy interest group thinks he has a plan to shore up Illinois’ pension woes. featsjr
Taxpayers United of America Director of Operations Jared Labell said in a Statehouse news conference Tuesday his group has a three-point strategy to battling the state’s pension crisis: a constitutional amendment to address guaranteed pensions, requiring workers to pay 10 percent more into the system and passing legislation allowing municipalities to declare bankruptcy.
Labell said only 5 percent of Illinois residents collect a state pension but was against taxing retirement income. He said his group is against any form of tax increase.
“I’d be hard pressed to say which tax is worse than another, but in general lowering taxes is good and limiting spending has to be a goal,” he said.

QC | Former Moline superintendent tops Q-C pension list

Taxpayers United of America’s operations director, Jared Labell, was quoted by QC Online in an article about Taxpayers United of America’s recent pension release for both Rock Island County and Moline.


A look at the pension list

Top Rock Island County pensions by city, county and school district. Does not include, among others, state employees such as judges, state police and Department of Corrections and Illinois Department of Transportation.A complete list of people receiving government pensions can be found at taxpayersunited.org.

Top pensions in city of Rock Island
John C. Phillips. Retired at 61. Current annual pension – $127,571.
Jack L. Fogel. Retired at 62. Current annual pension – $81,315.
Gregory S. Champagne. Retired at 62. Current annual pension – $79,926.
Robert T. Hawes. Retired at 64. Current annual pension – $79,261.
William S. Scott. Retired at 61. Current annual pension – $76,856.
Rock Island police
John D. Wright. Retired at 52. Current annual pension – $93,312.
Scott D. Harris. Retired at 53. Current annual pension – $86,370.
Wayne L. Sharer. Retired at 54. Current annual pension – $81,910.
Donald J. Reichert. Retired at 53. Current annual pension – $79,232.
Mark B. Poulos. Retired at 55. Current annual pension – $75,638.
Rock Island firefighters
Gary L. Mell. Retired at 58. Current annual pension – $88,592.
Jerry W. Shirk. Retired at 51. Current annual pension – $82,290.
Douglas R. Vroman. Retired at 52. Current annual pension – $82,137.
Albert C. Sinksen. Retired at 59. Current annual pension – $80,374.
Timothy E. Gibbons. Retired at 54. Current annual pension – 75,149.
Top pensions in city of Moline
Alan L. Efflandt. Retired at 50. Current annual pension – $82,930.
George H. Stevens. Retired at 59. Current annual pension – $82,462.
Sandro L. Kennedy. Retired at 56. Current annual pension – $74,914.
Elizabeth C. Clark. Retired at 58. Current annual pension – $64,984.
John R. Browning. Retired at 59. Current annual pension – $62,305.
Moline police
Floyd S. Etheridge. Current annual pension – $120,288.
Gary C. Francque. Current annual pension – $115,385.
Gregory S. Heist. Current annual pension – $94,419.
Douglas L. Burke. Current annual pension – $91,200.
Thomas E. Marxen. Current annual pension – $78,699.
* Age at retirement not available.
Moline firefighters
Ronald L. Miller. Current annual pension – $93,933.
Richard C. Jewell. Current annual pension – $84,418.
Ivan L. Sederstrom. Current annual pension – $81,600.
Ted E. Smith. Current annual pension – $79,173.
Richard C. Rogenski. Current annual pension – $76,476.
*Age at retirement not available.
Top pensions in city of East Moline
William T. Phares. Retired at 70. Current annual pension – $65,226.
Paul F. Schutz. Retired at 61. Current annual pension – $61,698.
George D. Hubbard. Retired at 59. Current annual pension – $57,964.
Steven C. Verdick. Retired at 55. Current annual pension – $57,169.
Lizette L. Desseyn. Retired at 59. Current annual pension – $56,708.
Top pensions in Rock Island County government
Marshall E. Douglas. Retired at 65. Current annual pension – $135,975.
Michael T. Huff. Retired at 54. Current annual pension – $97,291.
Louise A. Kerr. Retired at 57. Current annual pension – $95,296.
David Vanlandegen. Retired at 60. Current annual pension – $93,870.
James E. Bohnsack. Retired at 69. Current annual pension – $82,450.
Black Hawk College government retirees
Dorothy Beck. Retired at 64. Current annual pension – $115,145.
Linda Lindaman. Retired at 55. Current annual pension – $106,246.
Philip Johnson. Retired at 56. Current annual pension – $100,900.
Dorothy Martin. Retired at 60. Current annual pension – $99,309.
Mardon Hanson. Retired at 63. Current annual pension – $96,959.

ROCK ISLAND — Rock Island County residents pay for the pensions of 64 retired school district employees who collect more than $90,000 per year each, according to figures compiled by a Chicago-based taxpayer organization.
Taxpayers United of America compiled data on some of Rock Island County’s retiree pensions. The nonprofit, non-partisan organization out of Chicago looked at Rock Island County government, schools, Rock Island, Moline and East Moline municipal government and Black Hawk College, along with Rock Island and Moline police and firefighters.
The top five public pensions being paid in the county all go to former school superintendents: Moline’s Calvin Lee at $197,826; United Township’s Randall C. Whitlock at $154,103; Rock Island’s Richard Loy at $152,995: East Moline’s Garry Rudish at $152,770, and Rock Island’s David Markward, at $149,189.
All Illinois pensions are partially funded through tax dollars, whether it be through local property taxes or through the legislature’s general fund. Other funding sources are employee contributions and interest on investments.
In Illinois, there are five state-funded pension systems, one covering state universities, one for state employees, one for teachers, one for the General Assembly and one for judges. There also is a public pension fund (Illinois Municipal Retirement Fund) neither funded or managed by the state. In addition, there are 658 local police and fire pension systems statewide.
TUA director of operations Jared Labell said Wednesday at a news conference in Rock Island, “these government pensions explain why bureaucrats in Rock Island County keep trying to pass a new sales tax.”
He said about 930 retired Rock Island County teachers each collect a pension of at least $50,000 annually. “The median household income across the county is only $48,702 and the poverty rate is 13.3 percent,” he said.
Mr. Labell said the five state pension funds collectively paid more than 12,154 government pensioners more than $100,000.
Mr. Labell said Mr. Lee retired at 58, and his taxpayer pension estimated payout will accumulate to more than $7.2 million. Thus far, he has collected $476,968 on his pension, according to TUA. Mr. Whitlock has collected more than $1.45 million to date.
“And his personal investment in that payout? A mere 5.4 percent,” Mr. Labell said of Mr. Lee.
Mr. Labell said besides 3 percent annual cost of living increases compounded annually for many of the retirees, many take on second jobs while receiving pensions. He said some pensioners, “double, triple and quadruple” dip on their pensions.
“You see a lot of this throughout the state, specifically with law enforcement,” Mr. Labell said. “A lot of them retire in one municipality and then go on to another city. Teachers retiring from the superintendent’s position or tenured college positions are taking up positions at the community college level as well.
“Part of our goal is not to demonize these particular people, but to make it much more understandable to everyone when we’re talking about billions of dollars in debt (in Illinois). It doesn’t make sense, and then they see this.”
Mr. Labell said while the five state-funded pensions are facing an estimated $111 billion in debt, if all pensions throughout the state were combined, he said figures approach $1 trillion.
He said Rock Island County is not unique.
“Unfortunately, it’s like this throughout the state,” Mr. Labell said. “Taxpayer money is chasing the pensions while current services will fall by the wayside. Five percent of Illinois’ population falls under these pension plans.
“Ninety-five percent of the state is held hostage for this money.”
TUA is recommending placing all new hires into 401(k) style retirement savings accounts along with increasing member contributions to their retirement fund, along with increasing retirement age and retiree contributions to health care premiums.