10 months ago by Bob Gough
Appointee to city's number two post answers questions about unpaid business taxes
Alderman Paul Havermale, who has been appointed by Mayor-elect Kyle Moore to become the city’s next director of administrative services and purchasing, issued the following statement this evening in response to questions regarding the tax status of his family’s former business Alarm Systems.
According to Internal Revenue Service tax lien documents in the Adams County Recorder’s Office, Alarm Systems owed nearly $750, 000 in unpaid federal taxes and penalties after failing to pay taxes for 2001 to 2011. KHQA News initially reported the story Thursday afternoon.
Havermale’s father, Stephen, owned the company before it was sold and Havermale served as the general manager.
“Alarm Systems, Inc. has been sold to a local business person that is operating the business as Alarm Systems. All employees have been retained and in fact we have been expanding and hiring additional people.
The amounts listed in other media outlets while factual do not represent where we are at now. The sale of the company will or has satisfied a good portion of any liens or tax debt. Any remaining debt is being addressed via a payment plan approved by the IRS. All payment plans are current.
At no time have I had any personal tax issues, other than as it relates to the issue at hand. I do not now nor have I ever owned any part of Alarm Systems but out of a sense of responsibility I voluntarily assumed portions of the debt.
The issue arose from a downturn in business and a loss of a major customer. The decision, in my mind, became to keep employees at their job and pay their much needed benefits or pay some payroll taxes. I chose to keep employees working and maintain health care benefits. I decided to put the welfare of our employees above my own best interest. I am personally paying amounts due after the sale is applied, on a payment plan, and will do so until the debt is satisfied.
I do not believe this issue will impact my ability to help manage the City. I would hope that my ten year record on the City Council would be a better indicator of my ability to perform in the City Administration. At no time have I ever allowed any personal or professional issue to affect my duties as a Council member or my service to the people of the 3rd Ward.”
Response from Moore:
“I have known Paul and the work he has done as an alderman for ten years. There are few people in this City that knows the challenges we face, have an intimate knowledge of city government and have a passion for public service. Paul is one of those people. I know Paul will do an outstanding job for the City of Quincy as Director of Administrative Service.”
Response Alderman Steve Duesterhaus (D-2nd Ward) gave to KHQA News:
“I asked (Moore) if there was anything to be concerned about and if he should make this appointment,” Duesterhaus said. “He said that there was a minor issue and that it was being resolved. However, paying taxes is part of making payroll. It's kind of troubling.”
Havermale’s appointment goes before the City Council next Monday night.