Should taxing bodies buy local?
Small-business owner in Frankfort says they could do it more often
A Frankfort small-business owner thinks some public officials are hurting taxpayers by missing opportunities to reinvest tax dollars in local communities.
JimMcFarland, who owns Local Printing + Design, raised concerns about purchasing practices in a letter thisweek to the Frankfort Elementary School District 157-C Board.
“I am asking the board to please consider passing a resolution to encourage the district to do business locally first,” McFarland wrote.
Many businesses are struggling due to theCOVID-19 pandemic. Many provide products and services that local taxing bodies must purchase. Government should do business with local companies whenever possible, McFarland said.
“In these hard economic times, even the smallest expenditures make a massive difference to small local business owners and allowus to survive which, in turn, allows us to continue to pay residential and business taxes— supporting the school district,” he wrote.
McFarlandwanted to know why the district paid a company based inMorris, in Grundy County, $22,762 to supply face masks for the district’s more than 2,500 students and employees.
McFarland and other businesses with local connections were ignored when they offered to provide the district with masks at lower prices, he said. State law does not require that competitive bids be sought for purchases less than $25,000, he said.
The district could have sought
bids, even though thatwas not legally required, McFarland said. In his letter, hewanted to knowwhy the district received no bulk discount fromthe vendor inMorris andwhy it paid more than the price advertised on the company’swebsite.
“My company, along with at least three others in the district, offers the same type of masks for nearly half the price,” McFarlandwrote.
He asked that the purchase be investigated and claimed the vendorwas chosen because of favoritism.
I phoned district SuperintendentMaura Zinni Thursday to request a response and emailed detailed questions about the purchase of masks.
She replied with a brief email.
“This matter is under investigation and I cannot comment while the investigation is pending,” Zinni wrote.
McFarland said he founded his business about five years ago and moved into space at 9W. Nebraska St. in downtown Frankfort about three years ago. The company offers printing and graphic design services such as business forms, promotional products, banners and apparel. His company offers a range of
COVID-19 personal protective equipment.
Previously, McFarland was elected to positions on the Joliet Junior College Board, the Joliet City Council and the Troy Township Board inWill County. He has been an advocate for transparency and accountability by public bodies, he said. He and his wife live in Frankfort and have a daughter who attends a District 157-C school.
He said he emailed Zinni back in April offering his company’s services if the district needed to buy personal protective equipment. He pointed out that in the past he has praised the district for being fiscally responsible. The board minutes of
Sept. 18, 2019, showed that McFarland spoke during a public hearing on District 157-C’s budget.
“He stated the expense sheet is vague and suggested posting the tentative budget online next year instead of having to come to the office,” according to the minutes.
McFarland said he obtained documentation about the mask purchase from the district through a Freedom of Information Act request. He shared
copies of the documents he received. An invoice showed theMorris company billed the district $6.50 per unit for 3,500 masks printed with tiger pawlogos. A $12 shipping chargewas added for a total of $22,762. The company advertises masks on itswebsite for $5.50 per unit.
Thiswas not the first timeMcFarland has encouraged a local taxing body to reinvest tax dollars in the local community. He provided a copy of a letter he sent in June to members of the Frankfort Village Board.
In the letter, McFarland criticized the village’s purchasing practices related to a program that reimbursed Frankfort residents by discounting theirwater bills up to $50 when they spent money at qualifying retailers and restaurants in town. The programwas called Resident Incentive for Purchases to Promote the Local Economy, or RIPPLE.
McFarland used the Freedom of Information Act to obtain communications between the village and a contractor asked to create print products to mail to Frankfort residents, informing them about the incentive program that encouraged people to spend money at Frankfort businesses.
Ironically, the printing vendor that performed the taxpayer-fundedworkwas an out-of-town company.
“The village does not practice what it preaches when it comes to securing services and products,” McFarlandwrote.
Receipts showed that the village awarded no-bid work to a printing business in Indiana, McFarland wrote.
“Not only is the village doing a disservice to us local business owners by shopping outside the village and state limits, but it affects us taxpaying residents by not guaranteeing us you secured the lowest price available,” McFarlandwrote.
FrankfortMayor Jim Holland said Thursday he
agreed withMcFarland.
“I think he’s absolutely right,” Holland said.
The Indiana company in questionwas previously based in Frankfort but had relocated, the mayor said.
“I’m glad (McFarland) pointed that out to us,” Holland said. “I believewe do a pretty good job spending money locally.”
Dozens of south and southwest suburban municipalities, school districts and other taxing bodies pay vendors millions of tax dollars every year. Government contracts involve everything fromcleaning services at a local library to fighter jets ordered by the Pentagon.
Citizens should be able to easily followthe money. Some units of government do a good job with fiscal transparency. The city of Blue Island, for example, publishes its payroll register on itswebsite twice a month. No Freedom of Information Act request is needed to learn howmuch cityworkers are paid.
Other taxing bodies publish line-item accounts payable records that show payments ranging from millions of dollars for construction to a few dollars for office supplies.
School District 157-C shares some financial information online. A tentative budget summary for 2020-2021 showed the district anticipated a need to spend an additional $500,000 in the next year on supplies and personnel costs related to the COVID-19 pandemic.
Taxpayers deserve easier access to accounting records that show exactly howpublic funds are actually spent, not just budget projections.
Also, McFarland is correct that citizens deserve to knowthat their local elected representatives aremaking every effort to ensure that, whenever possible, public funds are reinvested in their communities by doing business with local vendors.