New Trustee Ed Shouse sets budget

Ed Shouse

Newly sworn-in Knox County Trustee Ed Shouse has put together his budget and it looks pretty much like the one his predecessor, Craig Leuthold, filed except for one thing: Shouse submitted a letter of agreement – not a salary suit.

Without getting into the details, the fee officers typically submit salary suits, an archaic form of budget-setting paperwork in which the officeholder sues the county mayor.

At this point, I think county Clerk Foster Arnett Jr. is the only other fee officer to do the letter thing, although I’ve heard that the new criminal court clerk, Mike Hammond, also will do one.

There’s really not a lot of difference. I think the salary suit probably costs $1,000 to file, so I suppose there’s some savings there. And the letter of agreement is a little easier to ready.

Anyhoo, Shouse has said at this point he doesn’t want to make too many changes, particularly with tax season right around the corner. The combined salaries in his office aren't expected to exceed $2 million.

We’ll see after that.

Here’s a look at Leuthold’s salary suit RIGHT SMACK HERE.

Shouse’s letter of agreement RIGHT SMACK HERE.

Leuthold back to property assessor

Leuthold

Craig Leuthold got his old job back today and will be working once again as the public information officer in the Knox County Property Assessor’s Office, a job he left last July when he took over as interim Trustee.

Leuthold, a former county commissioner, began working in the trustee’s office in January 1995 before taking the information officer gig in early 2011. The commission appointed him to serve as Trustee, but he lost to Ed Shouse in the May Republican primary.

As trustee, he made more than $110,000. He’ll make about $55,000 in the property assessor’s office. His first day on the job is today, according to county records.

Leuthold said part of his job also requires meeting with businesses to talk about personal property (machinery, vehicles, equipment, etc.), which also is taxes.

Well, that’s about it. I don’t think this was really a surprise, but it’s worth noting.

I guess the next question is whether he'll run in two year's for property assessor's spot. Tune in.

Auditors: Quarterly fraud review of Trustee's Office comes back 'clean'

Leuthold

When the Hanover Insurance Group in late July last year agreed to bond interim Knox County Trustee Craig Leuthold for a cool $55,000 (you can thank his predecessors for that one), officials with the company wanted to make sure no funny business was still going on in the tax collections office.

So, the county’s external auditor Pugh & Company since then have conducted a number of fraud interviews with office employees and checked spending accounts for any unusual activity.

Well, so far so good.

Larry Elmore, vice president of Pugh & Co., said during today’s Audit Committee that his folks checked into a number of issues during the final quarter of last year (ending in December) and the results came back “clean.”

Elmore said his operation randomly picked 25 people in the 40-member office and studied their payroll checks, time cards and key card entries into the building. They also met with employees in the Halls, Cedar Bluff and Death Star offices, to ask about potential suspicions of fraud.

That, too, came back clean.

Elmore said they’ll continue looking into the department quarterly through June (that means there should be two more reports), which is when the bond coverage for Leuthold expires.

At that point, it’s not known whether they company will charge $8,000 to $9,000, which is what it typically cost to bond someone, or if they’ll continue to gouge the county. Heh.

For his part, Leuthold, who wasn’t trustee when all sorts of suspected wrongdoings were going on, said: “We all understand the issues that have happened in the past. And we’re trying to  . . .  build the trust every day. We come in and we’re going to do everything right today . . . and if for now we need someone to verify that, then that’s what we’ll do.”

Hawkins responds to CTAS questions

Barry Hawkins (Photo by Dan Andrews)

Knox County Trustee candidate Barry Hawkins on Tuesday took exception to County Commissioner Dave Wright’s request to talk about an educational bonus he received while working in the Trustee's Office years ago, calling the discussion “a political witch hunt” and “backroom politics.”

All this of course ties into the $3,000 payments former Knox County Trustee John Duncan III gave himself and six other employees in December 2010. The payments were tied to the University of Tennessee County Technical Assistance Services, or CTAS. To get the money, you must be certified as a “public administrator.” None of the employees were.

Everyone except for Hawkins paid back the money. Actually, you know what? Click right smack here for the original background post.

Back to Tuesday’s commission meeting.

Wright asked the board whether it should do something, like ask Hawkins to pay back the money.

Law Director Richard “Bud” Armstrong said he wasn’t sure the commission could do anything, noting that Hawkins no longer worked in the office when the workers were initially asked to return the payments.

He suggested that it was up to the Trustee’s Office – not the commission – to address the matter.

Hawkins spoke briefly, saying Wright was “trying to intimidate a candidate and abusing the power of the commission to help a candidate and colleague.”

Commissioner Ed Shouse, and interim Trustee Craig Leuthold (both Republicans) and Democrat James Berrier are also vying for the job.

Hawkins, who worked in the office for 17 years, said that after he received the payment he questioned Duncan but was told it was “office policy and procedure.” He said he also asked his other superiors and was told the same thing. He added that his job was eliminated before he could finish the training.

“I have done nothing wrong and don’t appreciate any accusation otherwise,” he said

You can find Hawkins’ complete speech right smack here.

Wright denied that his discussion was politically motivated. He suggested that if it was then he would have called out Hawkins on some of “his campaign promises.”

“I could say that my feelings are hurt by what he said, but then I’m the seated commissioner and I have no feelings,” he added.

Trustee candidate's CTAS payment on commission work session agenda

Well, it looks like those CTAS payments aren’t going away. Knox County Commissioner Dave Wright wants the board to talk about an educational payment given a couple years ago to Barry Hawkins, who at the time was an employee in the Trustee’s Office and is now a candidate for Trustee.

“I think that would be hypocritical, in a way, to say ‘I’m going to be able to run this office,’ when he participated in something that caused some people to lose their job,” Wright said.

Quick rehash: Former Knox County Trustee John Duncan III gave himself and six other employees each a $3,000 education bonus - most of it tied to the University of Tennessee County Technical Assistance Services, or CTAS , program - in December 2010, three months after taking office. To get the money, you must be certified as a “public administrator.” None of the employees were. Almost a year later, in late October, he gave himself and another 11 people the same payments.

Duncan and several staffers eventually pleaded guilty to various crimes connected to the disbursement of the money and resigned from office.

In the meantime, everyone paid back the money, except for Hawkins. He received $3,000 in the first go-around, but left soon after. He was not certified

“All I’m doing is asking the question . . . maybe he’s paid back the money,” Wright said.

Hawkins is one of three Republicans, including Commissioner Ed Shouse and interim Trustee Craig Leuthold, running for the seat. The primary is set for May with a general election in August. James Berrier, a Democrat, also is seeking the gig.

Wright, referring to Shouse and Leuthold, said “they’re both good guys” and that he’s not necessarily supporting either one, but that he’s been asked to introduce Leuthold at an event.

“I think they both could do a good job,” he said.

I put a note out to Hawkins to see if he wants to weigh in on the item. I’ll let you know as soon as I hear back.

For another take on the matter, click right smack here for what the Rogue has to say.

The commission will talk more about the issue during its Feb. 18 work session.

Trustee stage set: Leuthold v Shouse

Two long-time local leaders on Wednesday set up the beginning stages in a fight for the county’s top tax collector seat.

Knox County Commissioner Ed Shouse announced his intentions to seek the Trustee seat, and interim Trustee Craig Leuthold turned in his paperwork to appoint a campaign treasurer.

“The main role of Trustee is collecting and investing the county’s tax dollars, hundreds of millions of dollars a year, so having someone with a business and financial background, like myself, makes sense,” said Shouse, an at-large commissioner, and former Knoxville City Council member.

Shouse, who serves on the county’s audit committee, pension board and investment committee, spent 20 years in the banking industry followed by 17 years in the shortline railroad industry.

He will face Leuthold in the May republican Primary. The general election is set for August.

Leuthold is a former a two-term commissioner, who spent 16 years in the Trustee’s Office and more than two years in the Property Assessor’s Office.

“I’ve got 19 years experience in the property tax profession and I think that when people call in and have concerns they want someone with knowledge and experience, and I can help with questions and concerns,” he said. “I think that’s invaluable.”

The Knox County Commission in late July appointed Leuthold to fill out the remainder former Trustee John Duncan III’s term, which ends Aug. 31. Duncan resigned and pleaded guilty to official misconduct in early July.

Leuthold and Shouse were among 26 applicants who applied for the job. But Shouse pulled out, saying he didn’t want the community to feel that he got the job because he was on the commission.

The board then selected Leuthold.

The Trustee is the county’s top tax collection. The position pays about $113,000 annually and is responsible for 30 to 45 employees depending on tax season.

Commish Shouse to seek Trustee seat

Ed Shouse

This is going to be a good one. Knox County Commissioner Ed Shouse just announced his intentions to see the county Trustee seat.

“The main role of Trustee is collecting and investing the county’s tax dollars, hundreds of millions of dollars a year, so having someone with a business and financial background, like myself, makes sense,” said Shouse, an at-large commissioner, and former Knoxville City Council member.

Shouse, who serves on the county’s audit committee, pension board and investment committee, spent 20 years in the banking industry followed by 17 years in the shortline railroad industry.

He is expected to face interim Trustee Craig Leuthold in the May republican Primary. The general election is set for August.

Shouse expressed interest in the position in July when he initially applied for the job along with 25 other applicants to replace John Duncan III, who resigned and pleaded guilty to official misconduct.

Although a frontrunner for the spot, he eventually pulled out saying he didn’t want the community to feel that he got the job because he was on the commission.

The Knox County Commission then selected Leuthold, a former commissioner, who spent years working in the trustee's office and the property assessor's office.

The Trustee is the county’s top tax collection. The position pays about $113,000 annually and is responsible for 30 to 45 employees depending on tax season.

Trustee's new salary suit to save $$

Craig Leuthold

Well, it looks like interim Knox County Trustee Craig Leuthold has filed his salary suit, which is technically his budget (for the most part).

I’m still skimming through it, but it appears to save $73,000 if you compare it to the one filed in January 2012 by his predecessor John Duncan III. 

However, if you go from what Duncan filed to what Leuthold is actually paying out in salaries to the entire staff, it’s more like a $350,000 in coin savings.

He eliminated one full-time positions and has three other open positions that he doesn’t plan on filling. He also has one less seasonal position.

Additionally, Leuthold is not paying out travel allowances, nor is he giving out CTAS bonus money.

You can click right smack here for a copy of the suit. 

Click right smack here.

Officials work out Leuthold's pay

Craig Leuthold

When is Knox County's top tax collector not actually the trustee?

Well, that's a question some local officials kicked around earlier this week as they tried to determine whether Craig Leuthold should get paid for his first two days in office.

State law says the trustee assumes the position upon taking the oath of office and upon getting an insurance bond. The Knox County Commission on Monday, July 22 picked Leuthold to serve out the remaining 14 months of the term for John Duncan III, who resigned and pleaded guilty to official misconduct a few weeks earlier.

But, here's where it gets a little confusing.

A judge swore in Leuthold right after the commission picked him. However, officials didn't sign his insurance bond until three days later on Thursday, July 25.

But, on Tuesday, July 23, Leuthold stepped down from his job as public information officer in the Knox County Property Assessor's Office, asked payroll to cut him a check for his unused vacation time, and began working in the county Trustee's Office.

About that time, the county's risk management and payroll departments started processing Leuthold's paperwork. Officials there then questioned whether he should get paid for working July 23-24. Was he technically the trustee? They noted that he didn't actually sign the paperwork for his $18.5 million insurance bond until July 25.

Find out what happened by clicking right smack here for the rest of this bad a$$ story.

Leuthold's trustee bond to cost $55K

Leuthold

Well, it looks like new Knox County Trustee Craig Leuthold was able to get bonded. To the tune of $55,000 in folding paper, which is - what? - six times what it's cost in the past. (Most other trustees cost $8,500 to $9,000.)

Now, Leuthold isn't to blame for this. You can thank his predecessors who couldn't keep their hands out of the free money till. Or whatever.

Anyhoo, Leuthold, who was picked Monday in a 6-4 vote by the Knox County Commissioner to serve out the remaining months of John Duncan III's term, will be bonded by the Hanover Insurance Group. (As you might recall, Duncan pretty much pleaded guilty to paying out about - you guessed it - $55K in bonuses for educational courses that his employees never finished. Am I the only one seeing a $55K trend? Heh.)

Bonding became an issue earlier this month when the Hartford Group, the previous bonding agency, refused to bond Kristin Phillips, who served in the interim role for a few weeks between Duncan and Leuthold. Officials with the company basically said they are sick of the "track record of misconduct with the position of trustee for Knox County."

County finance Director Chris Caldwell said the $55K in coin will cover a year, and his office hopes to work out a more cheaper arrangement with the bonding company after that.

County Mayor Tim Burchett signs the bond for Leuthold

Fueling the fire for Trustee 'fix'

So at some point during yesterday's Knox County Commission meeting, a number of board members were leaning toward postponing the vote to select a trustee. One key argument was that Commissioner Mike Brown wasn't there.

Members suggested waiting anywhere between 14 days and next month's voting session. Eventually, they opted to vote instead.

This is actually a head scratcher and is only going to (cliche alert) fuel the fire that "the fix was in." (And no, I don't believe there was a fix, but whatever.)

So, think about it.

During last week's work session, the board agreed to hold off the vote on whether to fire county internal auditor Richard Walls. The reason? Brown wouldn't be there to vote.

You see, word going around is that there are enough commissioners (you need six) to vote out Walls. Yet, Brown is a Walls' supporter. So, that was the excuse: Give Brown a chance to weigh in. But, what difference does it make if the other side has its six votes? None.

However, yesterday's trustee vote - which is certainly a  more important matter - was a heck of a lot closer. It went four round until commission Chairman Tony Norman said the "heck with it" and broke the 5-5 tie, switching over vote for Craig Leuthold.

Too bad we'll never know what would have happened had Brown been there. It certainly would have made sense to wait for his return. I guess.

I mean, the board was going to wait for him on the Walls vote, which a lot of folks say is a done deal. (I hope not - Walls is a good guy.)

Like I said: What's the hurry? The board postpones practically everything else. Heh.

Anyhoo, in the meantime, congrats goes out to Leuthold.

For all the trash talk going around, I'm sure he'll do a good job, and his appointment will certainly make for a spirited race if Commissioner Ed Shouse does decide to run against him in next May's Republican primary.

Knox trustee applicants now up to 17

Well, I knew some folks would come crawling out of the woodwork for this one, to become tax collection head honcho. Course it doesn't hurt that the job pays $113K in folding paper, either. Heh.

Anyhoo, we're now up to 17 applicants. You can check out the names, right smack here. The most well-known of the new batch is Craig Leuthold.

Craig, a former Knox County commissioner, spent 16 years in the Trustee's Office before moving over to the property assessor's department in 2010. He most recently served as chairman of the Knox County Charter Review Committee, and to his credit did a pretty good job. (Hey, I can say that - I sat in almost every one of those suckers.)

As noted, yesterday, right smack here, there are a number of good candidates. And, as I recall, folks can still turn in applications up until noon on Monday.

The commission at 1 p.m. will then hold brief interviews with folks and make a final decision the following Monday during the regular monthly voting meeting. Whoever is selected will serve until the end of August 2014 (unless he or she wins the election).

Potential picks to replace Duncan

With John Duncan III out as trustee, you know folks are going to come from all around the woodwork, looking for that good $110K-a-year (or so) job. Heh.

Anyhoo, at this point it looks like the county commission will meet some time in the upcoming weeks to hash out the rules and then start taking resumes.

I know board Chairman Tony Norman would like to appoint a caretaker to the post rather than someone who intends to run for the seat. From what I’ve heard, though, not everyone is on board with the plan, so we’ll see.

So far, I’ve heard six names getting kicked around.

Sooooo, in alphabetical order: 

• Ann Acuff: Former longtime Knox County finance worker and high up on the bean counting team's totem pole before retiring about a year or so ago.
• Mike Hammond, a Knox County commissioner, former board chairman and someone who’s been rumored as a candidate for the criminal court clerk post.
• Craig Leuthold, a former Knox County commissioner, former trustee office employee, currently with the property assessor’s office.
• Ed Shouse, a Knox County commissioner, member of the pension board, chairman of the county’s investment committee and all-around sharp guy.
• Fred Sisk, former Trustee and all-around nice dude. 
• R. Larry Smith, a Knox County commissioner, the board’s current vice chairman and someone who’s been rumored as a candidate for a number of seats.

Now, I’m also hearing that of these potential picks, only Sisk  is interested in seeking the spot in the caretaker capacity. (I've heard the same also about Acuff although I haven't talked to her and I'm not absolutely sure she wants the job or if folks are just floating her name.)

“Whoever wants to run, can run and start fresh,” Sisk told me. “I don’t want to use the appointment as a leg up.”

Fred said he’d be able to start immediately and “that there are a number of things that need to be done.”

He noted that the county just wrapped up its fiscal year, so that means the annual audit is right around the corner. After that? Tax season. 

Sisk also said he’d be willing to stay on board to help mentor a new trustee through the transitional process. (This in fact should have been done under Duncan, but he opted not to keep Sisk.)

Say what you will, but the idea makes a lot of sense.

Duncan’s term expires Aug. 31, 2014.

As for Kristin Phillips, who is serving as the interim trustee, I don’t expect her to run. She’s served in a manager capacity for quite some time, however, she also lives in Anderson County. Or Blount County. Or whatever county that isn’t Knox County.

Charter review committee picks, thoughts

OK, so the Knox County Charter Review Committee, which will look into possibly amending the county’s governing documents, met for the first time tonight. I’ll have a story about it in tomorrow’s paper.

Here’s some quick thoughts.

As you may (or may not or don’t care to) know, the committee is comprised of nine commissioners (only Chairman Mike Hammond and Jeff Ownby aren’t on it), and nine of their appointees and nine picks from county Mayor Tim “Sasquatch” Burchett.

Soooo, the members had to select a chairman tonight. They chose former commissioner, former Trustee’s Office worker and current Property Assessor’s Office worker Craig Leuthold.

Here’s what happened:

Commissioner Amy Broyles nominated fellow Commissioner Sam KmcKenzie. Commissioner, Colonel, Doctor Richard Briggs – who actually appointed Leuthold to the committee – nominated Arghhh Larry Smith. Commissioner Mike Brown nominated Leuthold.

In the first round of voting, Sam and RRRRRRR Larry each nabbed six votes and Craig got nine. In the do-over, Sam got five, R. Larry got one and Craig got 15.

There were some top county leaders who were secretly hoping Sam would get the nod.

Just saying.

The committee ended up picking Ann Acuff as vice chair. Acuff recently retired from the county after serving mucho decades as the county’s deputy financial minister(ess).

Sam was selected as the committee’s secretary. Whatever that is.

Couple of other things. Commissioners initially thought they would have to sign off on any recommendations that the committee made. In other words, to get it to the ballot where the people get to make a decision, the commission would have to approve that.

Nope.

Apparently, the charter – that document that could get amended – says it goes to the election commission. So, that eliminates a layer of BS.

You know, provided it doesn’t get too political on that committee.

And it will. I feel sorry for some of the newcomers. They have no clue. Heh.

Now, in the meantime, a few folks have commented on the so-called oddity of some of the mayor’s picks. You see, a few of the people he selected don’t always see eye-to-eye with him. Don’t kid yourself. He’s got the support he needs.