CROWN POINT | A group of Hammond taxpayers pounded away at the city's budget process for nearly 90 minutes during a hearing Thursday before the Indiana Department of Local Government Finance.
Led by Team Hammond, a grassroots taxpayers advocacy group, they detailed concerns about the city's budget-making process. The issues ranged from the accuracy of the math to access to public records to compliance with city ordinance, state statute and the Indiana Constitution.
The case presented Thursday pertained to the current year's budget only, but its central points are consistent with a new petition filed in connection with the city's 2009 budget.
Hammond resident Dale Scopelite presented most of the case. Scopelite questioned spending on such items as $2,500 in gaming dollars on a Christmas party and $600,000 on a football field. A regular at City Council meetings, Scopelite said he did not recall the appropriation of such dollars.
Also questioned was the distribution of only $35 million in gaming dollars among the city's six district council members and the mayor while a separate accounting shows $43 million in income from gaming. Scopelite said the taxpayers would like to see the $8 million difference given over to property tax relief.
Scopelite said yet other records appear to indicate the city exceeding spending limits as set by the state. He also questioned the accounting of the city's debt service, which taxpayer Jim Sheehan said exceeds the city's limit as set by state constitution.
Sheehan said his accounting shows the city's debt service, limited to 2 percent of the city's assessed valuation, should be held to $46 million. Instead, Sheehan said the city's debt service appears as $96 million.
By Scopelite's calculations, the city has approved pay raises to the tune of $10 million since 2005. He questions pay hikes in light of the city's elimination of its health department and soon its bus service.
The taxpayers said they would like an accounting of spending on consultants, who Sheehan said appeared to be doing city employees' work. Taxpayers are entitled to itemized costs whether related to property taxes or gaming dollars, they said.
"We have shown the numbers don't add up," Premeske said. But should the taxpayers have failed in satisfying the DLGF, Premeske said he challenged the state to fully inform citizens of the process. Premeske was critical of the access to information, at both the city and state level.
Robert Lendi, who will replace City Controller Barbara Cardwell in January, kept his remarks on behalf of the city brief, saying he appreciated the public's interest.
Lendi said most issues appeared to relate to the city's manner of spending, but that was a duty of the elected mayor and City Council, who act on behalf of the majority. The city has reduced its tax rate during the period in question, he said.
Lendi argued another of the issues raised was an operational, not a financial matter, and that department heads turning up at budget hearings without supportive documents didn't mean the documents didn't exist.
DLGF hearing officer Kurt Ott said the findings will next move to Commissioner Cheryl Musgrave for a ruling.
