Depths of Corruption & Fiscal Mismanagement under McDermott?

justcallmetommy · **Joined:** Thu May 01, 2008 8:25 pm **Posts:** 5662

This post is found in the State Board of Accounts Most Recent Report filed September 30th, 2010 for the fiscal year ending December 31st, 2009, Page 23. http://www.in.gov/sboa/WebReports/B37601.pdf

Quote:

Investment Custodial Credit Risk
The custodial credit risk for investments is the risk that, in the event of the failure of the
counterparty to a transaction, a government will not be able to recover the value of investment
or collateral securities that are in the possession of an outside party. The City does not
have a formal investment policy for custodial credit risk for investments.
[b]The following investments held by the City were exposed to custodial credit risks because they are uninsured and unregistered with securities held by the counterparty[/b], or the counterparty's trust department or agent, either in the government's name or not in the government's
name:

Primary Government:

Investment Government's
Type Name
U.S. treasuries and securities $ 13,555,492
Mutual bond funds 2,200,000
Total $ 15,755,492

justcallmetommy · **Joined:** Thu May 01, 2008 8:25 pm **Posts:** 5662

This post is found in the State Board of Accounts Most Recent Report filed September 30th, 2010 for the fiscal year ending December 31st, 2009, Pages 27 & 28. http://www.in.gov/sboa/WebReports/B37601.pdf

Quote:

Casino Expansion
In February 2006, an agreement became effective among the City, Port Authority, Redevelopment
Commission, Redevelopment Authority, and Horseshoe (Horseshoe) Hammond, LLC, for
casino expansion at the Hammond Marina. The remaining in progress terms of that agreement
are:

The Port Authority and the City shall ensure the complete repair of the Hammond Marina
break wall on or before December 31, 2011. On October 4, 2006, Horseshoe made a onetime
payment of $750,000 to the Port Authority to be used for this purpose.

Any obligation of Horseshoe to make a payment to the Port Authority based on casino admissions
is hereby eliminated. In lieu of such obligations, Horseshoe shall pay to the Port
Authority a flat annual fee of $7,000,000, which shall be paid in equal monthly installments.
This payment shall commence as of the date the new casino is open to the public for gaming.

Horseshoe shall advance to the City the amount of $15,000,000 which shall be memorialized
in a written document within 90 days following the effective date. The advance shall bear
interest at a commercially reasonable rate to be determined by Horseshoe and the City and
shall be satisfied through Horseshoe's deduction of any and all amounts which become due
the City from Horseshoe in accordance with Section 5.01 of the Project Agreement, in excess
of $18,266,979 for any calendar year beginning with calendar year 2006. The City received
$7,500,000 on October 6, 2006. As of December 31, 2009, no additional loans have been
made with the Horseshoe and the remaining balance of the loan was $1,621,550.

As part of the agreement Horseshoe Casino was to pay the Port Authority boat slip rental for
slips that could not be rented during the construction period. The Casino was originally
invoiced for the 2008 boat slips totaling $748,995 on January 10, 2008, and invoiced
repeated during 2008; however, the Casino has not paid. Some other items per the agreement
that were to be reimbursed by the Casino have not been reimbursed. The attorney for
the Port Authority is currently negotiating with the Casino for these items.

justcallmetommy · **Joined:** Thu May 01, 2008 8:25 pm **Posts:** 5662

This post is found in the State Board of Accounts Most Recent Report filed September 30th, 2010 for the fiscal year ending December 31st, 2009, Pages 29. http://www.in.gov/sboa/WebReports/B37601.pdf

Hammond received $24,250 grant and built two wind turbines, at a cost of $224,655. :shock:

The grant amounted to 11% of construction cost.

The fan blades on the turbines are to be removed during bird migratory season. What does that cost?

Who paid the $200,405 balance and could almost a quarter million dollars been used for a better purpose?

How much is this reducing the park's electricity cost?

Smell fishy?

Quote:

Port Authority â€“ Wind Turbines
In 2009, the Port Authority received a grant from the U.S. Department of Interior â€“ Office of
Energy and Defense in the amount of $24,250. This was used to offset the cost of installing two
wind turbines. One of the wind turbines was installed at Wolf Lake Park and the other at Forsythe
Park. Both are currently running and generating enough electricity to support each of the parks.
Additionally, excess electricity generated is being credited to the City's electric bills. The total cost of the two wind turbines was $224,665. It has not yet been determined as to the City's
savings in electricity from use of the wind power.

freetime · **Posted:** Wed Oct 06, 2010 10:39 am

Thank goodness for the SBOA! Even if they are a toothless tiger, they give us info about our city there's no way in hell we'd find out otherwise.

Moby Grape · **Joined:** Sun Nov 12, 2006 12:19 pm **Posts:** 13802

wrote:

http://www.nwitimes.com/news/local/lake/hammond/article_4b2f89fd-dced-50de-8a08-969c8b1ff1de.html

and said the case is an unnecessary expense to the city and its taxpayers."In this time of watching budgets, it's unfortunate that the city is going to have to expend legal fees on this case,"

viewtopic.php?f=15&t=9591

mattlap · **Joined:** Fri Aug 15, 2008 7:24 am **Posts:** 2529

justcallmetommy wrote:

This post is found in the State Board of Accounts Most Recent Report filed September 30th, 2010 for the fiscal year ending December 31st, 2009, Page 23. http://www.in.gov/sboa/WebReports/B37601.pdf

Quote:

Investment Custodial Credit Risk
The custodial credit risk for investments is the risk that, in the event of the failure of the
counterparty to a transaction, a government will not be able to recover the value of investment
or collateral securities that are in the possession of an outside party. The City does not
have a formal investment policy for custodial credit risk for investments.
[b]The following investments held by the City were exposed to custodial credit risks because they are uninsured and unregistered with securities held by the counterparty[/b], or the counterparty's trust department or agent, either in the government's name or not in the government's
name:

Primary Government:

Investment Government's
Type Name
U.S. treasuries and securities $ 13,555,492
Mutual bond funds 2,200,000
Total $ 15,755,492

If the United States defaults on treasuries, I think we have a much bigger problem to worry about than what happens to Hammond's investments in them. Treasuries are considered the absolute safest investment out there because of the full faith and backing of the US Government.

justcallmetommy · **Joined:** Thu May 01, 2008 8:25 pm **Posts:** 5662

mattlap wrote:

justcallmetommy wrote:

This post is found in the State Board of Accounts Most Recent Report filed September 30th, 2010 for the fiscal year ending December 31st, 2009, Page 23. http://www.in.gov/sboa/WebReports/B37601.pdf

Quote:

Investment Custodial Credit Risk
The custodial credit risk for investments is the risk that, in the event of the failure of the
counterparty to a transaction, a government will not be able to recover the value of investment
or collateral securities that are in the possession of an outside party. The City does not
have a formal investment policy for custodial credit risk for investments.
[b]The following investments held by the City were exposed to custodial credit risks because they are uninsured and unregistered with securities held by the counterparty[/b], or the counterparty's trust department or agent, either in the government's name or not in the government's
name:

Primary Government:

Investment Government's
Type Name
U.S. treasuries and securities $ 13,555,492
Mutual bond funds 2,200,000
Total $ 15,755,492

If the United States defaults on treasuries, I think we have a much bigger problem to worry about than what happens to Hammond's investments in them. Treasuries are considered the absolute safest investment out there because of the full faith and backing of the US Government.

Matt, I do not think the funds were in us treasuries, but in a catagory called treasuries & securities. The crux of the matter the funds were held in uninsured and unregistered with securities

justcallmetommy · **Joined:** Thu May 01, 2008 8:25 pm **Posts:** 5662

This post is found in the State Board of Accounts Most Recent Report filed September 30th, 2010 for the fiscal year ending December 31st, 2009, Page 31. http://www.in.gov/sboa/WebReports/B37601.pdf

This by far was the most confusing bit of this budget, does this mean that there is $20,660,000 of debt assoicated with the Charter School.

Quote:

New Debt
On January 11, 2010, the Common Council approved Ordinance 9041 authorizing the issuance
of Economic Development Revenue Bonds (Hammond Urban Academy, Inc. Project). On April
20, 2010, the City issued $13,160,000 of revenue bonds with the bond proceeds to be used for
the financing of a portion of a new charter school within the City. The principal and interest of the
bonds are payable from gaming revenues, but only to the extent that the charter school payments
are insufficient.

On January 28, 2010, the City received $7,500,000 loan proceeds from the Horseshoe
Hammond, LLC, in accordance with Ordinance 8795 authorizing the issuance of a note for
economic development projects for education and capital improvements for education within the
City. The loan does not constitute a general obligation of the City but will be payable solely out of
the payments to be received by the City pursuant to Section 5.01 of the Project Agreement with
Horseshoe Hammond in excess of $18,266,979. Use of the proceeds by the City for any other
purpose shall constitute a default.

As of May 21, 2010, the City has paid $800,000 to the Hammond Urban Academy, Inc., for the development of a new charter school within the City. In March 2010, the Sanitary District issued $9,605,000 Special Taxing District Bonds for the acquisition, construction, installation and equipping of various improvement projects.

justcallmetommy · **Joined:** Thu May 01, 2008 8:25 pm **Posts:** 5662

This post is found in the State Board of Accounts Most Recent Report filed September 30th, 2010 for the fiscal year ending December 31st, 2009, Page 31. http://www.in.gov/sboa/WebReports/B37601.pdf

Although this is not clear, it appears Hammond Residents are responsible for $22,000,000 of this project's cost.

Quote:

Hammond Lakes RDA Projects
The City, in conjunction with the Port Authority and Park Board, has requested a three year
funding grant package from the RDA (Regional Development Authority) for the Hammond Lakes'
Area Marquette Plan Improvements, Lake Michigan Shoreline Enhancement, Wolf Lake Recreational
Area Development, and George Lake Trail Bridge. The $31,480,000 funding grant package
is divided as follows:

Year One: Wolf Lake Amphitheater, paths and trail connections, greenway enhancements,
water quality activities, and erosion and sediment control for
$16,800,000.

Year Two: Wolf Lake Aquatic Play Center and Bathhouse, formal gardens and conservatory,
road and playground improvements, shoreline enhancements for
$7,630,000.

Year Three: Shoreline enhancements, marina and street improvements, landscaping and
seeding activities for $7,050,000.

Prior to 2009, the City had invested $22,782,700 for the design and engineering of this project, for a total project cost of $54,262,700. In December 2009, the Port Authority awarded the construction contract for the Wolf Lake Memorial Park Pavilion to Gough Inc., for $3,901,970 and a contract
for the Forsythe Park little league field to Berglund Inc. for $1,392,527.

justcallmetommy · **Joined:** Thu May 01, 2008 8:25 pm **Posts:** 5662

This post is found in the State Board of Accounts Most Recent Report filed September 30th, 2010 for the fiscal year ending December 31st, 2009, Page 31. http://www.in.gov/sboa/WebReports/B37601.pdf

This project was initially identified and to be resolved back several years ago, McDermott's people have never address the concern. Now there is a non compliance portion ranging in cost from $400,000 to $300,000 in fines.

[quote]

Noncompliance â€“ Legal/Contractual Provisions

A Consent Decree resolving the case of the United States of America, on behalf of the U.S.
Environmental Protection Agency vs. The Sanitary District of Hammond, et al. Civil No. 2:93CV
225 JM was approved and entered by the District Judge on June 17, 1999. The Consent Decree
contains both specific and general tasks and obligations and goals which are to be accomplished
within prescribed deadlines. The Consent Decree provides for the payment of stipulated penalties
in the event of the District's failure to comply with specified wastewater treatment plant performance
standards or to achieve facility improvement programs within the time limits imposed.
The District is currently in negotiations with representatives of U.S. EPA Region 5, the United
States Department of Justice and the Indiana Department of Environmental Management. The
subject of the negotiations is generally to modify the terms of the above Consent Decree so as to
contain additional obligations of the District with regard to the District's Long Term Combined
Sewer Overflow Control Plan.

It is believed that the amended Consent Decree will incorporate a
long term CSO control plan, with deadlines for the implementation of the plan's components. The
scope of the long term CSO control plan will be determined in part by a financial capability
assessment designed to determine the economic and social impact of such a substantial public
works project along with a use attainability analysis established pursuant to state and federal
regulations.

The total cost of this project could be as high as $80,000,000 over 20 years.
The Department of Justice, the U.S. EPA Region 5 and the Indiana Department of Environmental
Management are seeking civil penalties as provided in the existing Consent Decree for certain
NPDES Permit pollutant parameter violations alleged to have occurred over the last five years in
the sum of $473,000.

The District denies the existence and/or the extent of most of these
violations. The District's liability is estimated to be less than $300,000 for such civil penalties.[/quote]

justcallmetommy · **Joined:** Thu May 01, 2008 8:25 pm **Posts:** 5662

This post is found in the State Board of Accounts Most Recent Report filed September 30th, 2010 for the fiscal year ending December 31st, 2009, Page 38. http://www.in.gov/sboa/WebReports/B37601.pdf

As the true budget for the Festival of the Lakes has not been established, the cost are nubious, but one thing is for certain is Parks Department has almost $1,500,000 of debt. Why?

Quote:

Parks & Recreation Department has $ (1,439,229) deficit. :shock:

justcallmetommy · **Joined:** Thu May 01, 2008 8:25 pm **Posts:** 5662

This post is found in the State Board of Accounts Most Recent Report filed September 30th, 2010 for the fiscal year ending December 31st, 2009, Page 40. http://www.in.gov/sboa/WebReports/B37601.pdf

Is this the cost of the Henry Unit, a true reflection of what the henry unit costs?

Quote:

Task force, public safety line item $ 1,427,026

with a net losss of: (232,633)

justcallmetommy · **Joined:** Thu May 01, 2008 8:25 pm **Posts:** 5662

This post is found in the State Board of Accounts Most Recent Report filed September 30th, 2010 for the fiscal year ending December 31st, 2009, Page 48. http://www.in.gov/sboa/WebReports/B37601.pdf

Quote:

Is this the actual loss for the Lost Marsh Golf Course? (494,270)

freetime · **Posted:** Wed Oct 06, 2010 2:23 pm

justcallmetommy wrote:

This post is found in the State Board of Accounts Most Recent Report filed September 30th, 2010 for the fiscal year ending December 31st, 2009, Page 38. http://www.in.gov/sboa/WebReports/B37601.pdf

As the true budget for the Festival of the Lakes has not been established, the cost are nubious, but one thing is for certain is Parks Department has almost $1,500,000 of debt. Why?

Quote:

Parks & Recreation Department has $ (1,439,229) deficit. :shock:

Do you remember McDermott's outrage at the former Park Board when he took office and they were in the red? He conducted a so-called "trial" and bounced the remaining members who had refused to quit off the board. He accused them of all sorts of wrongdoing, publicly.

Do you know the Park Department has been MORE in the red than they were every year since McDermott has been in office!

So, I wonder when he'll conduct the Trial for the current Park Board???? :lol:

justcallmetommy · **Joined:** Thu May 01, 2008 8:25 pm **Posts:** 5662

freetime wrote:

justcallmetommy wrote:

This post is found in the State Board of Accounts Most Recent Report filed September 30th, 2010 for the fiscal year ending December 31st, 2009, Page 38. http://www.in.gov/sboa/WebReports/B37601.pdf

As the true budget for the Festival of the Lakes has not been established, the cost are nubious, but one thing is for certain is Parks Department has almost $1,500,000 of debt. Why?

Quote:

Parks & Recreation Department has $ (1,439,229) deficit. :shock:

Do you remember McDermott's outrage at the former Park Board when he took office and they were in the red? He conducted a so-called "trial" and bounced the remaining members who had refused to quit off the board. He accused them of all sorts of wrongdoing, publicly.

Do you know the Park Department has been MORE in the red than they were every year since McDermott has been in office!

So, I wonder when he'll conduct the Trial for the current Park Board???? :lol:

Free excellent point! One can only point to extreme mismanagment, bloated number of political lackies. Isn't there a Moore Sr in da guy in charge here? Didn't I hear one of McDermott's commercials which led people to believe he has a finance background.

Reading these findings for the State Board of Accounts says only one thing, mismanagment.

Outside of Markovich, who has been the only member of the council who has question McDermott on spending and he has paid the price.

I heard Chico say something that there were no hirings during the McDermott sponsored hiring freeze. Two names come to mind, Woerpel and McCormick.

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