PUBLIC FUNDS MAY NOT BE USED FOR PERSONAL BENEFIT
The starting point for any analysis concerning the misuse of public funds begins with the principle that public funds must be expended for an authorized public purpose. An expenditure is made for a public purpose when its purpose is to benefit the public interest rather than private individuals or private purposes.
Once a public purpose is established, the expenditure must still be authorized.
A public official possesses only those powers that are conferred by law. An Illinois public official only has the authority to authorize expenditures of public funds for a public purpose.
The prohibition against using public funds for personal purposes does not mean that no personal benefit may result from an expenditure of public funds. For example, the payment of a public employee’s salary confers a personal benefit on the employee, but it is an legal expenditure of public funds because it is procuring the services of the employee for public purposes.
The misuse of public funds occurs when the personal benefit conferred by a public expenditure provides no public benefit. The salaries of elected and appointed officials are set by state and local laws. Augmenting the salary of elected and appointed officials with gifts of public funds has no public purpose.
VILLAGE OF LISLE "GIFTS OF PUBLIC FUNDS"
Lisle Watchdog asked the Village of Lisle to provide copies of records that included the "public purpose" of the expenditure of $3,400 in "gift cards" purchased between July 24, 2013 and April 28, 2014.
Unlike the previous year, this year the Village Board did NOT give themselves gifts nor did the staff purchase gift cards for themselves this year. The gifts purchased last year for staff, the Mayor and Trustees were included on their W2's as taxable income as required by law. Salaries for Mayor and Trustees are set by Village Code. 2013 W2's for the Village Board show that each was paid more than the salary set by Ordinance due to the gifts they gave themselves.
This past year, the number reduced to $3,400 as the staff and elected officials did not get gifts this time around. The total amount of public funds expended by the Village of Lisle on GIFT CARDS for individuals without any public purpose exceeds $8,700.
2014 - $ 3,400 "Gift Card" Expenditures for Personal Benefit:
$ 500 Gift Cards Pizzaria Bombola 4/21/2014.
Personal Use:
$ 100 - Jeff Simeral
$ 100 - Larry Rogers
$ 100 - Ed Young
$ 100 - Brett Lauten
$ 100 - Barb Sasssen.
$ 450 Gift Cards Yerbabuena Restaurant 4/22/2014
Personal Use:
$ 50 - Tracey Cook
$ 100 - William Murray
$ 100 - Richard Brom
$ 100 - Thomas Marcet
$ 100 - Denniss Hoornstra
$ 700 Gift Cards Tairyo House 4/22/2014
Personal Use:
$ 100 - Kitty Murphy
$ 100 - Charles Rego
$ 100 - Richard Thorn
$ 100 - Richard Gaven
$ 100 - Daniel Patt
$ 100 - Maragret Sima
$ 100 - Kevin Montgomery
$ 700 Gift Cards Chef Paul Bavarian Lodge 4/22/2014
Personal Use:
$ 100 - Pat Caweizel
$ 100 - John Mueller
$ 100 - Lee Herrara
$ 100 - Diane Lauriden
$ 100 - David Heysen
$ 100 - Chuck Johnwick
$ 100 - Yvonne Daniels
$ 900 Gift Cards Chinn's 34th Street Fishery
Personal Use:
$ 100 - Richard Brink
$ 100 - Randy Russell
$ 100 - Michael Suirek
$ 100 - Lou O'Brien
$ 100 - Richard Cooke
$ 100 - Bret Richter
$ 100 - Joe Knott
$ 100 - Scott Fotre
$ 100 - Tom Maschmeier
$ 105.95 Gift Card Jewel Food Store 8/15/2013
Personal Use:
$ 100 - David Duusoi Khan
$105.95 Gift Card Jewel Food Store 12/3/2013
Personal Use:
$ 100 - Jay Dave
REFERENCES:
(1) State Statute: Illinois Municipal Code.
(65 ILCS 5/3.1-50-5) (from Ch. 24, par. 3.1-50-5) Sec. 3.1-50-5. Establishment. All municipal officers, except as otherwise provided, shall receive the salary or other compensation that is fixed by ordinance. Salaries or other compensation shall not be increased or diminished so as to take effect during the term of any officer holding an elective office. The salaries, fees, or other compensation of any appointed municipal officer, not including those appointed to fill vacancies in elective offices, may be increased but not diminished so as to take effect during the term for which the officer was appointed. (Source: P.A. 87-1119.)
As soon as possible after the original appointment of members of said planning and zoning commission or upon the appointment of a new member for the remainder of an unexpired term, the president shall designate a chairman of the planning and zoning commission subject to confirmation by the corporate authorities. Said commission may have a secretary, a staff or both, and such other officers as may in their judgment be necessary. All members and all officers of said planning and zoning commission shall serve without compensation with the exception of the secretary, who may receive such compensation as may be fixed from time to time by the corporate authorities and as may be provided for in the annual appropriation ordinance. (Ord. 2003-3451, 4-7-2003, eff. 5-1-2003)
(3) Illinois Constitution
ARTICLE VIII. SECTION 1. GENERAL PROVISIONS
(a) Public funds, property or credit shall be used only
for public purposes.
(b) The State, units of local government and school
districts shall incur obligations for payment or make
payments from public funds only as authorized by law or
ordinance.
(c) Reports and records of the obligation, receipt and
use of public funds of the State, units of local government
and school districts are public records available for
inspection by the public according to law. (Source: Illinois Constitution.)
(4) You Owe Me - Study University of California.
In a series of experiments, we show that, even without incentive or informational effects, small gifts strongly influence the recipient’s behavior in favor of the gift giver, in particular when a third party bears the cost. Subjects are well aware that the gift is given to influence their behavior but reciprocate nevertheless.
