Higher fees might be the result of mismanagement of funds at the Gary Sanitary District and the Lake County Council is still talking about the premature declaration of death of the proposed Lake County income tax needed to continue business as usual.

Gary Mayor Rudy Clay refuses to quit his job as special administrator at the Gary Sanitary District, despite requests from the U.S. Attorney’s office that the mayor do so because of allegations of mismanagement of funds, reports the Post-Tribune.

The U.S. Attorney’s Office has asked Mayor Rudy Clay to resign as special administrator of the Gary Sanitary District alleging mismanagement of funds, a city attorney said Friday.

Hamilton Carmouche, the attorney for the Gary Sanitary District and corporation counsel for the city of Gary, said Clay has refused the request from Assistant U.S. Attorney Wayne Ault.

Meanwhile, Carmouche said the district is likely to raise its rates for the first time in about five years. He said it probably should have happened sooner, but he said Ault put additional pressure on the commissioners.

The Post-Tribune reports “the city borrowed about $11 million from the sanitary district to cover operating expenses” in 2006.

The news of the U.S. Attorney’s Office investigation another case of mismanagement of funds within a Lake County governmental unit comes right at the time that the Lake County Council is talking about the need to “regroup” because a proposal to raise taxes was defeated by voter opposition. Councilman Will Smith’s departure — he was a key tax proponent despite his own personal opposition to taxes which resulted in a conviction — also hurt the proponents of higher Lake County taxes.

Writes Bill Dolan in the Northwest Indiana Times:

Former Councilman Will Smith Jr. worked behind the scenes last fall to pass the tax following his conviction on a federal tax fraud charge. Smith resigned last week after the tax failed. His sentencing is scheduled for Wednesday, although Smith is asking for a delay.

It’s just too bad that people didn’t see the need to sacrifice some of their hard earned money in the form of higher property taxes and a brand new income tax so that government officials and their kids can have several lucrative government jobs and money to spread around to their cronies.

It’s selfishness!

Shame on you, anti-tax protesters asking local government to cut back at a time when it is obvious that the only people who think there is waste and abuse of taxpayers’ funds are those folks at the U.S. Attorney’s Office with all of their investigations and such.

Lake County’s soon-to-be approved 1% income tax — masterminded by convicted tax felon Will Smith, Jr. who was called an “asset” for getting the Lake County Council to support the imposition of a new tax burden behind closed doors away from public comment — will cost Porter County $1 million, reports the Northwest Indiana Times.

Merry Christmas, Porter County, from the Lake County Council!

Meanwhile, Will Smith, Jr. prepares to go away to the slammer for his own tax woes when he is sentenced by a federal judge in January.

Too bad he won’t be able to get work-release so he can continue to “serve” on the Lake County Council — the law probably isn’t crystal clear on that issue.

Reports Bill Dolan in the Northwest Indiana Times:

Lake County Councilman Will Smith, D-Gary, underwent a humiliating public trial and was found guilty three months ago of filing a false federal income tax form.

Critics say those circumstances — and the Lake County Council’s refusal of public input before adopting the measure — cast a pall over the county income tax that appears poised to become reality.

Smith and like-minded council members met outside public view to maneuver a fractious council — within a brief window of opportunity — into a series of votes that seem likely to conclude Friday with enactment of a 1 percent county income tax.

At that time, the Lake County Council is expected to override a veto of the tax cast by Lake County commissioners last week.

Sources within county government claim council members who supported the tax timed the only public discussion to take place late enough in the year so the move would not influence the election of big city mayors supporting the tax. The timing also satisfies a Dec. 31 deadline to avoid a state-mandated freeze of property tax increases.

Want to read something funny?

Robert Pastrick says he didn’t realize he was running a political machine all of those years.

Writes Joe Carlson in the Northwest Indiana Times:

Robert Pastrick, the 80-year-old man who sat at the helm of Lake County’s most potent political force for decades, says he never realized he was running a political machine.

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