Remember Mark Todd? He’s the former VP of Farmers and Traders State Bank in Shabbona who got himself appointed DeKalb County Treasurer, ran unopposed for the same office as the bank failed, and then resigned to move to Hawaii.
The Federal Deposit Insurance Corporation (FDIC) is just finishing up with him.
The FDIC considered the matter and determined it had reason to believe that:
(a) The Respondent has engaged or participated in violations, unsafe or unsound banking practices, and/or breaches of fiduciary duty as an institution-affiliated party of Farmers’ and Traders’ State Bank, Shabbona, Illinois (“Bank”);
(b) By reason of such violations, practices acid/or breaches of fiduciary duty, the Bank has suffered financial loss or other damage, the interests of the Bank’s depositors have been or could be prejudiced, and Respondent has received financial gain or other benefit; and
(c) Such violations, practices and/or breaches of fiduciary duty involve personal dishonesty on the part of the Respondent or demonstrate the Respondent’s willful or continuing disregard for the safety or soundness of the Bank.
The FDIC further determined that such violations, practices and/or breaches of fiduciary duty demonstrate the Respondent’s unfitness to serve as a director, office, person participating in the conduct of the affairs, or as an institution-affiliated party, of the Bank, any other insured depository institution, or any other agency or organization enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A).
Todd has waived his right to a hearing on the above allegations and entered into an agreement with FDIC that he is prohibited (except with express written permission from FDIC) from “participating in any manner in the conduct of the affairs of any financial institution or organization” including voting for directors and so on.
To read the prohibition order yourself, go here to find and download the PDF file.
Filed under: County Watch
| Tagged as: ethics
**Update** 1/26. Related: “Sales tax coffers could get boost with new law”. Discusses the Marketplace Fairness Act and its impact (if it ever passes the U.S. House) on state revenues.
**Update** 1 p.m. Related: “Now comes the Internet Sales Consultants”. It provides more food for thought on this scheme, as well as a description of an omission that sounds like a possible violation of the Open Meetings Act.
DeKalb’s city council is considering a new kind of retail revenue source. You should know about it because your tax money is involved.
City leaders are trying to lure Internet retailers with an 85 percent sales-tax rebate.
The first step in the coaxing process came Monday when aldermen unanimously approved an agreement with a shell company called Great Lakes Economic Development LLC.
The company was created by Tom McPeak, a partner with Atlanta-based Barnwell Consulting, who said he has an undisclosed client interested in setting up shop in DeKalb.
McPeak is an acquaintance of Roger Hopkins. Hopkins used to head the DeKalb County Economic Development Corporation, and after that contracted with the city to provide economic development services for a time. And it looks like he’s done us a solid in facilitating an introduction.
Let’s take a closer look at the potential in this gift. Read the rest of this entry
A few days ago in another post I said this:
Fine/fee revenue can be highly variable, as we’ve seen with the disappearance of building permit revenues. TIF districts have time limits and both of ours expire at the end of the decade. These are appropriate sources for making capital improvements as you can. They are not meant to cover permanent, fixed costs yet that is exactly what is happening.
That post ran long, so I saved elaboration on the above point for another day. But now I’ve picked it back up with a vengeance. Read the rest of this entry
The City of DeKalb released its FY2014 Comprehensive Annual Financial Report last month, and as usual there’s plenty to digest. A large part of this report draws data from supplemental reports found in the back of the CAFR, some of which track the past 10 fiscal years and are therefore useful for understanding the lingering effects of the Great Recession on the local economy.
First up, I’ve prepared a chart of taxable sales. Retail sales taxes make up more than 40% of DeKalb’s operating budget — no other single revenue category comes close — so sales and the taxes they generate are important indicators of economic health.
The advantage of looking at the sales themselves instead of the tax revenues is that you don’t have to account for sales tax hikes, abatement deals and other “noise” in the data.
Of course there’s a lot of overlap between state and local sales, but showing them both underscores the trend, which is this: Taxable sales have stabilized since 2009, but they’ve more or less stabilized at 2005 levels.
And it’s not just retail sales that have stagnated. DeKalb’s share of the state income tax is climbing, but so far has only made it back to 2008 levels. Utility tax revenue totals for FY2014 were less than FY2012’s.
Water sales were down by 5.2%. If you think about the combo of utilities and water falling, it seems likely that it can’t all be about plugging leaks and conservation. DeKalb’s likely still losing population.
City government, however, is bucking that trend. Read the rest of this entry
Overtime comprised most of DeKalb PD’s excessive spending over budgeted amounts for FY2014, but another major culprit was spending in the “Commodities” category that came to roughly twice as much as the $260,000 budgeted.
Commodities were clearly under-budgeted in 7 of 10 accounts in that category and in a couple cases downright unrealistically. For example, actual costs for gas, oil and antifreeze for that department came in a bit over $117,000 for FY2013, yet PD budgeted only $95,000 for the same item the following year.
What’s going on? My guess is that the decision to return expenses from off-budget accounts back into the department’s budget accounts was an unexpected development.
Fortunately, spending for general government was lower than budgeted and this partially offset the excessive spending on public safety, leaving the city at a mere $347,773 over its General Fund budget for the year.
City of DeKalb FY2015 Budget
Comprehensive Annual Financial Report for Fiscal Year 2014
Auditor’s Letter to Management (see p. 6 of the PDF)
City of DeKalb’s Downloads Page (Look under the Finance heading for annual budgets and CAFRs)
The Comprehensive Annual Financial Report (CAFR) for FY2014 is out. So far the document is only accessible as part of the December 8 council meeting agenda, but at some point will probably appear on the city’s downloads page under the Finance title.
Let’s stick a toe in by first visiting the DeKalb Taylor Municipal Airport (DTMA) annual operating deficits:
The city has to make up for the deficits using tax money that would otherwise go to general operations.
DTMA took on fuel sales a couple years ago, and all of its hangar space is rented out (PDF p. 143). I do not know whether the city has recently compared rental rates with other airports, but if not that might be a good next step to ensure that taxpayers aren’t subsidizing operations any more than they have to.
Déjà vu. DeKalb County Board is considering placing a proposed sales tax increase on the ballot next spring, for…an improved jail.
“What I plan to do is on the county board meeting on Dec. 17 is to review where we’re at with the jail expansion and some options for where we might go, one of those options being whether we go for referendum,” [County Administrator Gary] Hanson said.
Never mind that they’ve told us ad nauseam about how the tipping fees from the landfill expansion will pay for the jail expansion.
[The landfill tipping] fees are estimated to total about $2.2 million a year, with about $1.9 million being available for the jail expansion project.
But that also is what the county would lose if Sycamore’s sales tax agreements with two airline fuel-purchasing companies collapses under a legal challenge from the Regional Transportation Authority, which is arguing that the companies don’t actually buy the fuel in Sycamore.
When the airlines set up shop in Sycamore about 10 years ago, it doubled the county’s annual sales tax take from $2 million to $4 million.
Did you hear all the discussion back then about how to use the extra $2 million? Me neither. The jail expansion project was apparently not important enough to get a piece of the windfall.
And windfall it most certainly is: So much money was coming from just two companies, and they made it clear during the referendum discussion of 2006 that they would leave for cheaper pastures if the county tried to apply any sales tax increases to them. They have no loyalty to DeKalb County.
Nevertheless, instead of setting aside a stream that — clearly — could disappear at a moment’s notice, the county quietly absorbed the extra revenue into operations faster than a Bounty® brand towel.
Do we really want to reward this kind of shortsightedness?
The agenda for last night’s joint meeting between DeKalb city council members and the city’s Finance (sic) Advisory Committee included a list of 14 communities besides DeKalb and their “comparable economic data.”
The argument seems to be that DeKalb taxpayers can afford to pay more in property taxes than the “bargain” they are currently getting relative to residents of other towns.
The comps had DeKalb’s median family income as $61,806. I laughed.
Don’t get me wrong — DeKalb’s median family income really is $61,806.
But you only come up with that figure if you leave more than half of DeKalb’s households out of the calculation. Read the rest of this entry
DeKalb city staff have come up with a proposal to raise the city’s property tax levy by 10%. Daily Chronicle reports that the council gave initial approval on Monday.
Here’s how the city is presenting the recommendation:
City staff want to move away from the current practice of using the general fund to pay for pension obligations property tax revenues don’t cover. Finance Director Cathy Haley explained property taxes currently fully fund police and fire pension obligations and 97 percent of Social Security and Medicare costs. But only 26 percent of the city’s costs for the Illinois Municipal Retirement Fund comes from property taxes, leaving the general fund to cover more than $720,000.
A 10 percent increase would bring in an additional $495,000, fully fund Social Security and phase in fully funding IMRF obligations through property taxes, Haley said.
Council will furthermore consider the recommended hike in a joint meeting with the Financial Advisory Committee tonight.
The most important thing to understand is that the discussion is not just about setting the levy for the upcoming tax year, but about committing to a significant policy change in how the city chooses to fund its pensions — possibly for years to come. Read the rest of this entry
As City Barbs turns nine today, I want to express my pleasure and gratitude to you who have let me know in so many ways that the blog has value to you.
I am as excited as ever to begin another year. There’s the fresh smell of grassroots growing in the air and it makes sense to me that City Barbs continues to operate in service of perspectives and ideas that differ from those of the local political-media establishment.
Do you come here often? If so, you’ve noticed less frequent postings over the past several months. Schedules come into play, of course, but much of the change reflects a shift to posting more on Facebook. A lot of interesting public documents have come to light since the College Town Partners leak and I can’t resist the Facebook photo album format for displaying pages side-by-side with descriptions of their context. Hope you will check out the group if you haven’t already.
Lastly, here’s a plug for some o’ that grassroots freshness. You are invited to attend FOCUS DeKalb’s latest meeting — Part Deux to the town hall that drew almost 100 individuals. Find the deets here: Town Hall Meeting Tonight.