Cook County News Herald

County board criticizes EDA’s budget request




It’s probably safe to say that the Cook County board is not happy with the EDA. Commissioners discussed their thoughts on the Cook County/ Grand Marais Economic Development Authority’s request for a 2013 levy increase at their regular meeting on August 28 and at a budget meeting later in the day.

Commissioner Sue Hakes took issue with the EDA’s approval of payment in the amount of $2,000 a month for Community Fundraising Solutions, contracted to coordinate the housing and commercial rehab program, to staff the EDA office. “That’s $2,000 a month…to guide a few people,” she said. “I’m appalled that the EDA approved that.”

At the August 21 county board meeting, the EDA requested a 2013 levy of $200,000, an increase of $51,434 from its 2012 levy. Included in the new budget was payment of $74,900 (including $8,000 for insurance) to Community Fundraising Solutions (CFS), an increase of $27,590 over last year.

The EDA’s budget request stated that Nancy Grabko and Steve Grabko of Community Fundraising Solutions would staff the EDA office three days a week, although they would work a combined total of more than 40 hours a week.

Commissioner Hall said she was not interested in giving the EDA the budget and levy increase it requested after it approved such a large increase in compensation for Community Fundraising Solutions.

Commissioner Bruce Martinson indicated that CFS included answering phones for the EDA in its increased budget request. It’s not their job to fill in for the EDA, Commissioner Hall said. Auditor- Treasurer Powers said he was “kind of concerned” that CFS was mixing the work they were contracted to do with EDA work without that being part of the EDA’s plan.

The EDA currently has no funds to pay a director now that previous director Matt Geretschlaeger is no longer working for them, Commissioner Sue Hakes said. The EDA has had qualified applicants for his position but didn’t hire anyone because they had no money to do so, she said, but they’ve agreed to pay $2,000 a month for CFS to answer the phone.

Without a plan, the EDA has requested a budget increase of over $50,000, Hakes said. While they propose paying CFS $74,900, their 2013 budget request includes a salary of only $36,000 for the director’s position. “This is ridiculous!” she said. She would reduce the EDA’s levy increase to 0 percent if she didn’t think the EDA would “implode,” she said.

Commissioner Hakes said she believes the housing and commercial rehab program has done good work in the county. If the EDA offered Arrowhead Economic Opportunity Agency $50,000 to do some things in the community, however, she thought they might be able to get more done.

“Yep,” said Commissioner Hall. “I’m not willing to tax the county taxpayers for what they’re asking.”

“The irresponsibility of the decisions being made is just horrible,” Hakes said. The prices for Cedar Grove Business Park lots, owned by the EDA, have been listed wrong on the EDA’s website for four years, she said. She thinks the EDA has merit, she said, but they need some leadership.

“When are they going to show that?” Commissioner Hall asked.

The EDA’s rationale is that they would pay for office support out of what they would have otherwise paid for Geretschlaeger’s salary, Commissioner Martinson, the county board liaison to the EDA, said. Geretschlaeger is currently being paid unemployment after his job was cut.

“Let’s give them half the money because they gave us half the story,” said Commissioner Fritz Sobanja.

“You’ve got to think about if you’re going to throw the baby out with the bathwater, how valuable is the baby?” Commissioner Johnson asked.



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