Views from the Linn County Auditor

Midwestern Disaster Area bonds for PCI – Q and As

lcauditor — Fri, 03 Jun 2011 17:44:09 +0000

Last week, I had a citizen inquire about Linn County issuing bonds for the PCI medical mall project. I could not answer the citizen’s questions so I asked a local attorney for answers. Here are the questions and answers:

1. What is the County’s role in the Midwestern Disaster Area bonds?

The County does not guarantee them with tax dollars. The County serves as the “conduit” issuer pursuant to Iowa Code Chapter 419. In this role, the County is the necessary governmental body in the transaction as part of the tax-exempt bond issuance process (a governmental body must be the issuer to permit tax-exemption on the bonds). The County has no liability for any payments due on the bonds and the governing documents make it clear (as does Chapter 419) that the only funds available to repay the bonds are funds from the project and its owners / guarantors. The County is in no way liable for any payments on the bonds (thus, no future taxes or assessments or other County funds will be used to pay debt service on the bonds). In summary, this is basically a commercial loan transaction from the bank (bondholder) to the borrower with the County acting as the necessary governmental issuer at the inception of the deal.

Prior to issuance, the project must receive an allocation of authority to issue the Midwestern Disaster Area (“MDA”) bonds from the Iowa Finance Authority. Notwithstanding the MDA nature of these bonds, the process under Chapter 419 is similar to other non-MDA conduit bond issues for manufacturing projects. The difference is the MDA law allows a broader category of projects to access tax-exempt bonds.

2. What happens if someone defaults?

If there is a default in payment, the bank (bondholder) will look to its negotiated security in the deal including any mortgage, guaranties, and security interest in revenues of the project. The negotiated security under the bond and loan documents is the sole recourse for the bank on the transaction. Pursuant to the documents, the bank has no ability to seek funds or a tax levy from the County.

If you have additional questions, I will attempt to provide answers on this blog. The Linn County Board of Supervisors is scheduled to hold a public hearing on the issuance of the bonds to PCI at 10am on June 15th in the Boardroom at Linn County West.

Furniture giveaway results

lcauditor — Thu, 02 Jun 2011 20:18:33 +0000

On Friday, May 27th, Linn County gave away some of its surplus used furniture to local non-profits. The 14 non-profits taking advantage of the giveaway were:

Boy and Girls Club of Cedar Rapids
Catherine McAuley Center, Inc.
Cedar Amateur Astronomers, Inc.
Cedar Rapids Family Church
Cedar Rapids Museum of Art
Diakonos Mission Inc.
Geneva Corporation
Horizons – A Family Service Alliance
Iowa Valley Resource Conservation & Development, Inc.
Jane Boyd Community House
Junior League of Cedar Rapids, Inc.
Kids First Law Center
Linn-Mar School Foundation
Summit Schools Inc.

If your non-profit was unable to take advantage of the May 27th giveaway, we still have some furniture available and more should be available after LCCS/Options relocates to their new building in September. Please contact me if you have any interest.

Who do you trust?

lcauditor — Wed, 18 May 2011 21:53:32 +0000

A lack of trust in elected officials seems to be the common theme in recent letters to the editor. Some people believe a big chunk of the May 3rd LOSST Election NO votes were cast because voters do not trust some local elected officials.

As your employee, I would like to know: Do you trust me? Do you trust any of us?

Trust seems to be the “elephant in the room”. It’s not going anywhere so we might as well confront it. Take my poll or better yet, leave a reply.

Take Our Poll

County elected officials’ cash on hand

lcauditor — Wed, 18 May 2011 18:27:03 +0000

Most elected officials will tell you they hate asking for money for their election or re-election campaigns. Based on reports filed with the Iowa Ethics & Campaign Disclosure Board some of my peers have overcome their hate of “the ask”.

Cash on hand according to the 1-19-2011 reports:

$50,106.67 – Supervisor Oleson

$16,925.42 – Supervisor Barron

$10,478.91 – Sheriff Gardner

$8,806.73 – Supervisor Langston

$3,603.43 – Supervisor Harris

$2,870.44 – Supervisor Rogers

$1,599.66 – Recorder McCalmant

$1,380.59 – Treasurer Gonzalez

$343.69 – Auditor Miller

$0.00 – Attorney Vander Sanden

Mr. Vander Sanden avoided “the ask” by doing the unthinkable – he didn’t form a campaign committee (or if he did, it didn’t need to file a report). Not too many candidates try that strategy … even if they don’t have opponents. Hats off to Jerry!

Organizational chart – I work for you

lcauditor — Sat, 02 Apr 2011 19:55:33 +0000

When your business has only five employees, an org chart is not too important, i.e., unless you are trying to make a big sale and the buyer is concerned you are too small to deliver the product on-time at the agreed to price. Suddenly, your org chart might contain more than you and your five employees. It might have lines to this supplier and that vendor and this partner and that consultant. And don’t forget all of the part-time employees who are available on a moments notice.

I will admit that org charts are a pain. They are usually out of date by the time they are printed. But they serve a purpose and one of those purposes is to graphically illustrate the command and control structure within an organization. They can help you determine if an organization is balanced at each level of management or out of whack. Are wages equitable for like positions? What is the employee to manager ratio? Who does that employee report to?

Creating and maintaining an org chart is a basic function of management. It’s one of the first tasks I completed in 2007 when I became Auditor and I’ve posted an org chart or spreadsheet of my organization on http://www.linncountyauditor.org for years.

On March 18th, I sent an email to my peers, the other nine elected Linn County officers, and their department heads asking for a recent (not older than 12 months) version of their org charts. Coincidently, I thought posting an org chart would fit in with the theme of recognizing April as National County Government Month.

I created an organizational chart with the name, position, and estimated FY10/11 wages for the employees and managers reporting to your 10 County Officers. For some positions, I’ve indicated “co-mgr” (co-manager) or “co-sup” (co-supervisor) meaning the employees are managed by several managers/supervisors. For example, the shifts for the Jail Sergeants may differ from the Jail Deputies so supervision may change from day-to-day or week-to-week.

I believe the following organizations are 99% accurate: Auditor, Treasurer, Recorder, Purchasing, Planning & Development (P&D), VA (Veterans Affairs), Engineer (Secondary Roads) and IT (Information Technology).

The Sheriff’s org is based upon the March 2010 chart posted on his web site. The Attorney’s org is based upon my guesswork. And the remainder of the departments were either non-responsive or they are still working on getting me their charts. I will revise my initial org chart draft when/if I receive updated information.

If you think it’s important for managers to have current org charts for their organizations – the organizations you pay for with your property taxes - then I suggest you contact your County Supervisor. The Supervisors can be reached at 892-5000 or via bd_supervisors@linncounty.org.

If you think my org chart project is a waste of time or you want to comment on this topic or any other, please post below.

I work for you. I’ve indicated that on the org chart.

Polls, polls, and polls

lcauditor — Wed, 23 Feb 2011 22:03:29 +0000

Miss one of my polls on Twitter? Here’s another chance to vote.

Take Our Survey!

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Other active polls

Linn County Voters: Do you plan to vote in the May 3rd election?

Should local government provide services NOT required by law?

Should the Offices of County Sheriff, Attorney, Treasurer, Auditor, and Recorder be non-partisan offices?

Closed Polls

Take Our Poll

Whistleblower protection

lcauditor — Fri, 10 Dec 2010 00:37:24 +0000

We have laws to protect local government whisteblowers. Right? Yes, we do have a law (see 70A.29), but if you get fired from your job for whistleblowing, you might be financially ruined or die before you get the chance to be vindicated in court or elsewhere.

Our State’s law is below.

The Linn County Board of Supervisors has approved two policies related to whistleblowing. One is Whistleblower Protection and the other is Reporting and Investigation of Fraud or Financial Misconduct. To my knowledge, neither has been utilized since being approved on March 28, 2007. Then again, maybe someone blew the whistle and it didn’t make the news?

70A.29  REPRISALS PROHIBITED -- POLITICAL SUBDIVISIONS
-- PENALTY -- CIVIL REMEDIES. 
1.  A person shall not discharge an employee from or take or fail
to take action regarding an employee's appointment or proposed
appointment to, promotion or proposed promotion to, or any advantage
in, a position in employment by a political subdivision of this state
as a reprisal for a disclosure of any information by that employee to
a member or employee of the general assembly, or an official of that
political subdivision or a state official or for a disclosure of
information to any other public official or law enforcement agency if
the employee reasonably believes the information evidences a
violation of law or rule, mismanagement, a gross abuse of funds, an
abuse of authority, or a substantial and specific danger to public
health or safety.  This section does not apply if the disclosure of
the information is prohibited by statute. 
2.  A person who violates subsection 1 commits a simple
misdemeanor. 
3.  Subsection 1 may be enforced through a civil action. 
a.  A person who violates subsection 1 is liable to an
aggrieved employee for affirmative relief including reinstatement,
with or without back pay, or any other equitable relief the court
deems appropriate, including attorney fees and costs. 
b.  When a person commits, is committing, or proposes to
commit an act in violation of subsection 1, an injunction may be
granted through an action in district court to prohibit the person
from continuing such acts.  The action for injunctive relief may be
brought by an aggrieved employee or the county attorney.

Official delinquency

lcauditor — Fri, 12 Nov 2010 18:32:15 +0000

I was reviewing Chapter 12B – Security of the Revenue – in the Code of Iowa and stumbled upon 12B.15 OFFICIAL DELINQUENCY.

If any auditor or treasurer or other officer shall neglect or refuse to perform any act or duty specifically required of the officer, such officer shall be guilty of a simple misdemeanor, and the officer and the officer’s surety shall be liable on the official bond for any fine imposed, and for the damages sustained by any person through such neglect or refusal.

When was the last time an officer was charged and convicted under 12B.15? And who was it? And for what?

Duties versus discretion

lcauditor — Fri, 05 Nov 2010 22:50:49 +0000

COUNTIES: County Attorney Duties. Iowa Code ch. 331 (1993). The county attorney has a duty to perform all responsibilities enumerated in Iowa Code sections 331.756, 331.323. Beyond those specific duties, any action by the county attorney is solely within his or her discretion. (Reno to Maddox, State Senator, 6–24–93)

The preceding is the summary paragraph for Iowa Attorney General’s Opinion No. 93-6-4(L). I have to wonder if the same logic regarding “duties” and “discretion” applies to other county officers? And if it does not apply, then why doesn’t it apply?

Article I, Section 6 of the Iowa Constitution reads, “All laws of a general nature shall have a uniform operation; the General Assembly shall not grant to any citizen, or class of citizens, privileges or immunities, which, upon the same terms shall not equally belong to all citizens”. [added 8 November 2010]

In other words, “what is good for the goose is good for the gander” and what is good for the County Attorney should be good for the County Recorder, Sheriff, Treasurer, … and Auditor. [added 8 November 2010]

County money

lcauditor — Sat, 09 Oct 2010 01:03:13 +0000

This week, I have been doing lots of research and having lots of conversations on the topic of “county money” as defined in the Code of Iowa. As with anything related to the County, it’s always more complicated than you might think.

For example, over the last three plus years, I have noticed there are at least three distinct camps when it comes to the Code: those that think it’s a suggestion book, those that interpret it one way on one day and another way the next day, and those that think it should be adhered to and if you don’t like it, then lobby the Legislature/Governor to get it changed. Guess which camp I’m in?

Here are some Code sections I found or that I was directed to along with a few other tidbits I may use in the future. I’m posting this information because I know if I don’t, then someone will ask me for it in a week and I’ll have to go through the whole process of finding it again. Just this past week, I’ve directed a 2-3 people to this blog for data I posted months ago.

Alas, this is a work in progress so don’t be surprised if the content changes from time to time.

331.552 – The treasurer shall: (1) Receive all money payable to the county unless otherwise provided by law. (2) Disburse money owed or payable by the county on warrants or checks drawn and signed by the auditor and sealed with the official county seal. (3) Keep a true account of all receipts and disbursements of the county, which account shall be available for inspection by the board at any reasonable time.

331.402(2) – The board may (e) authorize the auditor to issue checks in lieu of warrants. The checks shall be charged directly against a bank account controlled by the county treasurer. [added 13 October 2010]

331.902(1) – … the fees and other charges collected by the auditor, treasurer, recorder, and sheriff … belong to the county.

64.2 - All other public officers, except as otherwise specially provided,
shall give bond with the conditions, in substance, as follows: That as [Supervisor, Auditor, Attorney, Sheriff, Recorder, Treasurer] in Linn County, the officer will render a true account of the office and of the officer’s doings therein to the proper authority, when required thereby or by law; that the officer will promptly pay over to the officer or person entitled thereto all moneys which may come into the officer’s hands by virtue of the office; that the officer will promptly account for all balances of money remaining in the officer’s hands at the termination of the office …. [added 11 October 2010]

331.902(3) – Each elective officer … shall make a quarterly report to the board …. The officer shall pay at least quarterly to the county treasurer the fees and charges collected ….

331.901(5) – A county or township officer … shall not appropriate, give, or loan public funds to or in favor of an institution, school, association, or object which is under ecclesiastical or sectarian management or control.

331.605A – … The treasurer, on behalf of the recorder, shall establish and maintain a county recorder’s records management fund ….

331.605B(1) – The recorder shall make available any information required by the county or state auditor concerning the fees collected under section 331.605A ….

331.605C(3) – The treasurer, on behalf of the recorder, shall establish and maintain a county recorder’s electronic transaction fund ….

331.605C(5) – The recorder shall make available any information required by the county auditor or auditor of state concerning the fees collected under this section ….

331.655(3) – The sheriff shall keep an accurate record of fees collected in the county system, make a quarterly report of the fees collected to the board, and pay the fees belonging to the county into the county treasury as provided in section 331.902. [added 11 October 2010]

445.1(3) – “County system” means a method of data storage and retrieval as approved by the auditor of state including, but not limited to tax lists, books, records, indexes, registers, or schedules. [added 11 October 2010]

331.756(7) – The county attorney shall give advice or written opinion … to the board and other county officers … upon any matters in which the … county … is interested, or relating to the duty of the officer in any matters in which the … county … may have an interest ….

331.756(9) – The county attorney shall give a receipt to all persons from whom the county attorney receives money in an official capacity and file a duplicate receipt with the county auditor.

331.504 – The auditor shall maintain the books and records required to be kept by the board under section 331.303.

331.303(1) – The board shall keep record books as follows: (b) A “warrant book” which records each warrant drawn in the order of issuance by number, date, amount, and name of drawee, and refers to the order in the minute book authorizing its drawing. The board may authorize the auditor to issue checks in lieu of warrants. If the issuance of checks is authorized, the word “check” shall be substituted for the word “warrant” in those sections of this chapter and chapters 6B, 11, 35B, 336, 349, 350, 427B, and 468 in which the issuance of a check is authorized in lieu of a warrant. (c) A “claim register” which records all claims for money filed against the county. Claims shall be numbered consecutively in order of filing and entered alphabetically by the claimant’s name. The claim register shall show the date of filing, the number of the claim and its general nature, and the action of the board on the claim including the fund against which it is allowed. The claims allowed at each meeting shall be listed in the minute book by claim number.

331.506(5) – An officer certifying an erroneous bill or claim against the county is liable on the officer’s official bond for a loss to the county resulting from the error. [added 11 October 2010]

64.8 - The bonds of members of the boards of supervisors, county attorneys, recorders, auditors, sheriffs, and assessors shall each be in a penal sum of not less than twenty thousand dollars. The amount of each bond shall be determined by the board of supervisors. [added 11 October 2010]

331.303(2) – The board shall maintain its records in accordance with chapter 22.

22.2(1) - Every person shall have the right to examine and copy a public record and to publish or otherwise disseminate a public record or the information contained in a public record. [added 12 October 2010]

331.303(5) – The board shall select official newspapers and cause official publications to be made in accordance with chapters 349 and 618.

349.18(1) – All proceedings of each regular, adjourned, or special meeting of a board of supervisors, including the schedule of bills allowed, shall be published immediately after the adjournment of the meeting.

349.18(2) – The publication of the schedule of the bills allowed shall include a list of all claims allowed, including salary claims for services performed, showing the name of the person or firm making the claim, the reason for the claim, and the amount of the claim, except that the publication of claims shall comply with the following: (a) The names of persons receiving relief shall not be published. (c) If the reason for the claims is the same, two or more claims made by the same vendor, supplier, or claimant may be consolidated if the number of claims consolidated and the total consolidated claim amount are listed in the statement. However, the board shall provide at its office upon request an unconsolidated list of all claims allowed.

11.6(4a) – In addition to the powers and duties under other provisions of the Code, the auditor of state may at any time cause to be made a complete or partial reaudit of the financial condition and transactions of any city, county, county hospital, memorial hospital, entity organized under chapter 28E, merged area, area education agency, school corporation, township, or other governmental subdivision, or an office of any of these, if one of the following conditions exists: (2) The auditor of state receives from an elected official or employee of the governmental subdivision a written request for a complete or partial reaudit of the governmental subdivision.

331.437 - It is unlawful for a county official, the expenditures of whose office come under this part, to authorize the expenditure of a sum for the official’s department larger than the amount which has been appropriated for that department by the board. A county official in charge of a department or office who violates this law is guilty of a simple misdemeanor. The penalty in this section is in addition to the liability imposed in section 331.476. [added 11 October 2010]

66.1A - Any appointive or elective officer, except such as may be removed only by impeachment, holding any public office in the state or in any division or municipality thereof may be removed from office by the district court for any of the following reasons:

1. For willful or habitual neglect or refusal to perform the duties of the office.
2. For willful misconduct or maladministration in office.
3. For corruption.
4. For extortion.
5. Upon conviction of a felony.
6. For intoxication, or upon conviction of being intoxicated.
7. Upon conviction of violating the provisions of chapter 68A. [added 10 October 2010]