19 Mil gone, time to borrow

Unbelievable but true. Who appoints these people to run the...ooop.

Board member Liz Chaplin said she has been concerned about the commission's finances for years and wasn't surprised to learn of the financial plight since the district has been selling Lake Michigan water to municipalities for years at a rate lower than what it costs to buy it from Chicago. Currently, the commission buys water from Chicago at a rate of $1.82 per 1,000 gallons and sells it for $1.42 per 1,000 gallons.

"Some of us have asked questions for years, and no one has held staff accountable," Chaplin said. "My point is that when you buy water at a rate higher than what you're selling it for you can only sustain that for so long before you get into trouble."

Really? How does one "accidentally" spend $19 million dollars?! I don't even "accidentally" spend $20 freaking dollars. This is ridiculous. And Chaplin's statement screams "DUH!"

I looove Zeilenga's statement: "It will give us time to catch up on fixing the holes in the ship"....uhm, yeah. While creating a large $300,000 worth of extra holes. What is wrong with people? "Let's borrow more money and dig our debt hole even larger to fill this other one that we already created"....where's the flipping logic in any of this?

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The board approved a contract with an accounting firm last week to perform a forensic audit on the commission's finances after the depleted reserves were recently discovered.

Isn't a "forensic audit" one that is seeking criminal financial intent?

I have been watching these DuPage Water commisars for many years now. They appear on all DuPage County property tax bills, followed by the words: *** No Levy ***

Back in the 1980s, they DID levy property taxes, county-wide. I have copies of the old bills to prove it. Why do they no longer levy property taxes?

Somewhere along the line, they were granted a 1/4 cent add-on to ALL sales tax on everything sold in DuPage County. I have read over the years that when asked what they are doing with the ever-increasing funds raised by this sales tax, their answer was: "We're saving it in a rainy day fund. You know, in case we need a major repair/replacement project or something."

OK, so they tax people just to SAVE A PILE A MONEY! That alone is suspicious and if I recall, was the justification that Schillerstrom used to wrest away some of the tax sugar.

Oh, and it has been YEARS since the Water Commission has had to share its tax revenues with the County of DuPage. More than enough time to replenish their coffers.

Further, as a water-bill paying resident of an original "charter town", there has been a line item on my water bill since around 1991 titled: Pipeline Debt.

It is never very much, a buck or two at most. When I asked what it was, I was told: It is to pay back the DuPage Water Commission bond debts.

I'm afraid we have another "Illinois Tollway" situation arising here. A quasi-governmental agency, left to their own devices for FAR too long, piling up MILLIONS of dollars that apparently, to insiders, don't appear to belong to anyone.

I think a full airing of their finances is long overdue.

Oh, and I don't believe that BS about selling the water for less than they pay for it. In fact, there will be a substantial rate increase on January 1, 2010 to all DuPage County towns/companies that buy Lake Michigan water from the Commission.

This message has been edited. Last edited by: ByTheNumbers,

The rate thing does seem suspect. If I recall correctly, years ago the sales price was deliberately set lower than purchase cost of the water as a logical way to cut down the surplus by essentially "rebating" the money to the customer.

Something fishy in the water.

It is my impression - I might be wrong - that the DuPage Water Commission raises a lot more money by way of that 1/4 cent sales tax and payments from member towns [that each water customer in such a town pays on their bill] than they do on actually "selling" the water.

I recall the HUGE stink that all of the town mayors put up when Bobby Schillerstrom went down to Springfield and talked The Combine into forcing the Commission to start actually spending some of it's cash hoard - in the form of $15 million per year payments, spread over five years, to none other than DuPage County!

One part of me sided with Bob. I mean, his entire case to the Crooks and Liars was: Hey, this Water Outfit is just taxing the good people of DuPage [as well as "visitors and guests"] and then JUST PUTTING THE MONEY IN THE BANK. The money rightfully belongs to DuPage County, as it was raised as a sales tax IN DuPage County.

Can't really argue with that, and in the meantime, Blago gave DuPage their very own 1/4 cent sales tax. Remember that? I think it was 2006, maybe 2007 when Blago gave the free rides for seniors.

Blago made sure the law was written in such a way that a county could basically do what they wanted to with the new sales tax increase.

By the way, this sentence....

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To make those payments, meet payroll demands and maintain rates, the loan is necessary.

...from the article makes me kinda wonder: Just what are their "payroll demands"? How many chairs are being kept warm on a daily basis, at $100K per year or more, over in WaterWorld?

Fantastic points, BTN! This is absolutely something worth looking into.

So, is the Water Commission then a public entity? Or is it more or less a private, sub-contracted firm?

It's yet another Ill-Annoy mishmash of quasi-kinda-sorta-public-private patronage haven for the Taxpayer-Funded Capitalists of DuPage County, Illinois.

I recall the beginnings of it very well, back in the early-to-mid 1980s. Went something like this [paraphrasing]:

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The Water Commission is being empowered to design, fund and create the required infrastructure to build-out all of the pumping stations, pipelines and valves to allow City of Chicago [Lake Michigan] water to flow to the communities of DuPage County. Municipal bonds will be issued that will initially be very expensive but over the long term, these bonds will eventually be paid off and we can then look into downsizing into a more maintenance role for the Commission.

Yeah right. And the Tollway was supposed to be FREE by the year 2000.

Once "empowered" these fiefdoms become like blood-sucking ticks, more concerned with perpetuating themselves than anything else. Oh, and "accidentally" spending $19 million buckeroos.

I LOVE the fact that locally focused reporters are FINALLY digging into Secret Societies like the DuPage Water Commission. I have personally tried to find out about many things that they ostensibly "do" as well as finding out how many Taxpayer-Funded Capitalists are on their taxroll, I mean, payroll.

Are they public? Or private?

• They have the legal authority to collect 1/4 cent sales tax.
  
• They have the legal authority to levy a property tax but currently don't.
  
• Their primary "customers" are the towns, villages and cities of DuPage County.
  

I have already contacted Jake Griffin [Daily Herald reporter] with more avenues to explore in re: The DuPage County Water Commission.

That's crazy....isn't there some sort of law or something that states that anything funded with public finances (including tax money) is to be available for public scrutiny?

DuPage United has it covered pretty well.

Note number 7....

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However, because DWC operates autonomously and without accountability..

Any way to get Bob to divulge how many employees are currently in his Chair Force?

By the way, the "Charter Member" towns are not without some culpability in the water shenanigans.

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In April 2007, DWC passed yet another rate decrease, charging only $1.25 per unit for water that cost DWC $1.33 per unit. As in the past, most Charter Members did not pass the rate reduction on to their residents. While the rate paid by the Charter Members decreased by 36% since 1993, residential rates have increased an average of 18%! Glen Ellyn, for example, now buys water from DWC for $1.25 per unit, and charges residents $4.92 for that same unit of water.

See, everyone gets a piece!

Disclaimer: $4.92 per unit [typically, 1,000 gallons] is still a great deal. Especially, for Lake Michigan water. The REAL water bill gravy for most towns isn't the actual cost of the water coming in. No, it's for all the in-town "sewer, maintenance and debt" up-charges which of course, are all based on an individual's water intake.

This is why I use three rain barrels in the summer for lawn watering and car washing.

The Chicago Tribune is apparently being drawn to the stench coming from the DWC too.

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The commission is considering increasing water rates 42 percent after revealing that its reserve funds, normally used to pay for construction projects and bond payments, shrank from $20 million in 2007 to about $1 million now, officials said.

It has also hired prominent law firm Jenner & Block LLP at $500 an hour to investigate how and why the reserve funds were spent.

Do you really have to spend $500 an hour to find out who eF'd up or stole a pile of money? Heck, I could do it for HALF that! Or even less.

Edit: Aw shucks, looks like another little Taxpayer-Funded Capitalist has already latched onto "after-the-fact" fact finding, for a price. Phil Adams.

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The board last week approved the hiring of a financial consultant, Philip Adams, to sort through finances and offer advice on future spending.

"We need to get a better grasp of what is going on with our finances," said Commissioner Jim Zay. "I am going to be blunt: My confidence in our staff is now shaken."

I am going to be blunt too: If you can't "get a better grasp" of the $$$$ pal, maybe you should JUST QUIT and let someone who can "get a better grasp" take over.

Hmmmm I'm hearing a little scuttle butt through the grapevine that this story may take an interesting twist in the coming days. Stay tuned, it may be just starting.

Everything in perspective..... This makes the cbd lights and tiger's transgressions small potatoes.

quote:

Originally posted by ackerman:
but a staff member, who is no longer there, was responsible.

Really? He expects people to believe that a single individual is responsible for this gross negligence? Come on! Even I give society more intellectual credit than that!

Haha BTN at your comment about the hired attorneys. I was thinking the exact same thing. And seriously? A financial consultant?? If board members can't figure this stuff out on their own, or even suggest future spending policies....then they shouldn't be on the board at all. That's like having a controller in a company who can't monitor bookkeeping!

Bio....what kind of dets do you have, friend??

Come on Bio! Give us a hint!

Could it have anything to do with this?

quote:

[Robert] Martin said he believes that R. Max Richter, who was forced to resign Oct. 23, was using the reserve funds too liberally to pay the water rates charged by the commission's supplier, the city of Chicago.
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"The information I received (from Richter) did not show that this was taking place," Martin said. "I got false information. I don't know why this happened."

Contacted at his home last week, Richter would not comment.

Laughing out loud!

What do these clowns know?

quote:

but a staff member, who is no longer there, was responsible

Could this be R. Max Richter? Ya think?

I didn't mean to bait the board with my comment as what I heard is scuttlebutt (rumors) and I don't need to be accused of slander, etc by posting unsubstantiated rumors. But you don't need to hire $500/hour attorneys and financial consultants because you forgot to balance your check book.

Nor do I want to jump the gun on any unfounded accuations. We do read, however, where Robert Martin, an actual employed manager at the DWC, was quoted as getting "false information" from his finance manager, R. Max Richter.

quote:

"The information I received (from Richter) did not show that this was taking place," Martin said. "I got false information."

Getting "false information" from someone responsible for "accidently" spending down $19 million, is, how to put this?

Highly suspect?