WL Town Council defends Allebach’s actions in new statement

This post was provided by News Now Warsaw

By Dan Spalding
News Now Warsaw

WINONA LAKE — Winona Lake leaders issued another statement Tuesday in the aftermath of the critical state audit, and this one was more defensive in posture.

While the first statement by town council soon after the report was released accepted blame and admitted to serious problems, the one issued at Tuesday’s meeting — the first in which the public had a chance to respond — downplayed one major issue.

Town Council President Ashley McGinnis read the new statement and defended Town Manager Caig Allebach’s actions after delays in the residential project temporarily left new homes without water.

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The new two-page statement can be seen
at the bottom of this article.

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The audit by the state board of accounts shows that Allabach used more than $100,000 of town money to purchase wells for 11 homes for new homeowners in Raccoon Run subdivision without formal approval by the town council.

McGinnis described that as a “procedural” oversight.

“The use of the TIF funds to purchase the wells was a practical, legal and economically responsible solution that enabled the sale of the homes, supporting both the developer and the town’s growth,” McGinnis read.

The statement says each well purchase was submitted through the town’s normal claims process and reviewed for approval and signed by town council members.

“The town manager did not act inappropriately, in fact acted within his administrative role in coordination with town leadership,’ the statement said.

Allebach did not address the issue during the meeting.

No other town officials discussed anything about the audit during the meeting.

The new statement reiterated that the town understands the gravity of details laid out in the 88-page audit, but said it could have been worse.

“While the report highlights serious matters that require corection, it is equally important to note that this audit was reviewed twice by the SBOA’s internal charge committee and at no point was it escalated for further enforcement aciton. This reflects the state’s determintion that the issues are administrative and proceedural in nature,” the statement said.

Several people in the audience offered comments, some of which were cast as questions that received no replies from town officials.

Town resident Jim LeMasters summed up concerns by some and expressed shock that town employees could so easily access and use town credit cards.

“Whether it was intentional or unintentional, people shouldn’t be able to go buy things without being approved,” he added.

“I have no idea how you guys got into the mess you got,” LeMasters added.

“Winona’s got a black eye. Everywhere I go, people talk about it because they know I live in this town. So you’ve got to fix the problem,” he said.

He also complained about what appears to be a lack of leadership in the town.

Others, including some who suspect some money has already been returned, called for a full accounting. At least one said those who misused money need to return it.

Misuse of the credit cards included extensive use to cover the cost of cell phones by the park director and one instance in which a deputy clerk used it to cover the cost of a rental car while vacationing in Hawaii.

Another town resident, Lynn Howie, asked, “What will happen to the monies that are being discussed? And will those be accounted for by various people?”

The town is expected to make recommendations on any possible repayment from officials at next month’s meeting. The advice is expected to come from the town attorney (who did not attend Tuesday’s meeting) and a financial consultant.

The audit spans four years of town activities and goes as far back to when Kent Adams served as clerk-treasurer until his death at the age of 85.

On Monday, the town’s park board also issued a statement that addressed serious concerns and listed a few policy changes.

The park board said they are waiting to hear reccomentations about any further moves, which could include determining the employment status of park director Holly Hummitch, whose misuse of town credit cards was documented in the audit.

At the end of Tuesday’s meeting, one person complimented Allebach for his work over the years in leading the town. Another acknowledged park director Holly Hummitch’s role in developing park programming.

Both comments drew strong applause.

Allebach, who announced plans to retire last fall, is expected to step down after he help prepare the new town manager, Pam Howard, who began work last week.