The following is an email sent to Patrick Murphy by Pat Mattison after their meeting with Belvidere Township auditors regarding the township budget. I highlighted some of the information. Bill P
Subject: Belvidere Township Contingency Meeting 9/11/12
To: Patrick J. Murphy, Belvidere Township Supervisor
Re: Summary of 9/11/12 Belvidere Township Contingency meeting
Attending: Patrick J. Murphy: Keri-Lyn Krafthefer, Township Attorney; Gary Kuhl,
Township Auditor; Terri Bullard, Township, Secretary; Patrick B. Mattison,
Township Taxpayer
From: Patrick B. Mattison
My understanding of the meeting somewhat capsulated:
A. Patrick Murphy presented his definition of contingency which basically was:
"1. dependent on something not yet certain."
Patrick Mattison presented a definition of contingency from the Illinois Township
Clerk's Handbook under Instruction Sheet Townships page l-2 which defined
Contingencies: "A provision for contingencies should be included in most funds, but
especially the General Town Fund. This provision will provide additional coverage
to meet unexpected expenditures or shortages in specific line items. The provisions
for contingencies should be small in comparison to the overall estimated expenditures.
The Illinois Supreme Court has ruled that only "an inconsiderable amount" will be
permitted. Total for contingencies should not exceed 5% of the total expenditures
in each fund. The Department of Commerce & Community Affairs computerized
forms have been programmed to include a 5% contingency. Always remember that
"contingencies" are unplanned occurrences not miscellaneous expenses."
B. Belvidere Township's Supervisor's Division Line Item 01-10-585-00 Fiscal Year
Budget 2012-2013 Contingency - $1,492,489.28
The question was asked why $1.4 million plus was projected when previous years were substantially less ($1,788,601.45-year 2011-12 and only $49.70 expended.)
Discussion: Auditor Kuhl intimated they don't follow the Clerk's Handbook; Murphy and Bullard handed out a Contingency Monies Schedule listing amounts for contingencies...
25,000 Other capital projects - Restricted for
100,000 Social Services - Committed to
25,000 Health & Welfare- Committed to
100,000 Parks & Recreation - 10 yr. plan - Assigned to
44,500 Machinery/Equipment- Assigned to
50,000 Labor - Assigned to
200,000 Building & Mechanical - Assigned to
17,683 Contingency - Assigned to
900,000 Other Capital Projects-Bldg.,Land - Assigned to
$1,462,183 Total Fund Balances
Comment: The Capital Funds statement was read from the Township Officials of Illinois "Trustees Operations Manual:
"Capital Funds
Townships may accumulate funds beyond those amounts normally allowed provided they are reserved or dedicated for specific capital improvement projects and/or a major equipment purchase.
So there is no misunderstanding about why monies are being accumulated, the annual budget and appropriation ordinance shall state the following with regard to each project to be constructed or major equipment to be purchased:
* Intended purpose or use of funds.
e.g. A new township hall.
* Amount of capital expenditure.
e.g. $450,000.
* Expected duration of any accumulation of funds.
e.g. 6 years.
In the "Township Officials of Illinois Laws and Duties Handbook" revised 2011 by:
Keri-Lyn Krafthefer, Stewart H. Diamond and the attorneys of Ancel, Glink, Diamond, Bush, DiCianni & Krafthefer, PC on page 158 it states:
B. Capital Fund
Townships and road districts may accumulate monies for specific capital improvement projects and equipment. 60 ILCS 1/235-5(9). However, when so doing, townships and road districts must list the following in a budget and appropriation ordinance when utilizing this statutory mechanism to accumulate funds for a capital project or equipment purchase: 1) the amount of money being dedicated for the project equipment; 2) the purpose of the dedication; and 3) the duration of the accumulation of funds. 60 ILCS 1/235-5(a).
C. There was a lively discussion centered on involving the public, transparency, and keeping the public informed at the end of the meeting. My goal was to make sure an explanation as to how the board arrived at budgeted figures is provided and there is plenty of time for the Township Supervisor and Trustees to answer questions from the electors/taxpayers. In other words Transparency ongoing explanation of the funds.
That being stated about the Contingency meeting, it appears to me[Mr. Mattison] that funds being accumulated in the Contingency Fund are in many cases Capital funds; there is limited or no explanation on how they were derived; and are not meeting the Statute requirement
60 ILCS 1/235-5(a), 60
ILCS 1/235-5(9) cited by Laws and Duties Handbook revised by Belvidere township Attorney, Keri-Lyn Krafthefer.
Patrick B. Mattison, Belvidere Township Taxpayer
7982 Distillery Road
Belvidere, IL 61008
815-547-1096 Work
815-985-6774 Cell
Further development:
To: Patrick J. Murphy, Supervisor Belvidere Township
Re: Annual Financial Reports on Township website
From: Pat Mattison
Patrick:
At our Contingency meeting last week I asked about information in previous township financial reports and you and Terri Bullard said that those reports were archived on the township web site. I checked the website and only found the 2011 Annual Financial Report, and no others.
If there is a way to get others on site, please let me now.
In the Contingency meeting on 9/11/12 I asked Gary Kuhl more than once if his Belvidere Township Financial Reports had notations on funds being accumulated stating the intended purpose, amount of capital expenditure, and the expected duration of any accumulation of funds (this was the reference I read at the meeting)--and it was my impression he said they were noted in the Financial Reports. I did not find any mention of such in the 2011 Financial Report.
Would you please ask Mr. Kuhls to identify in the previous reports where accumulated funds have been noted in the Annual Financial Reports. I would like to get copies of and review those reports.
Patrick B. Mattison
7982 Distillery Road
Belvidere, IL 61008
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