MONROE — Nearly a year after he was fired by the city for mishandling fire department funds, former Monroe Deputy Fire Chief Lane Heins is still causing headaches.
He and former chief Daryl Rausch, who left the city in September 2016 to take the position of fire chief in Fort Atkinson, had established a limited liability corporation for the MERIT Center, a six-acre plot in the North Industrial Park used for training.
Current Monroe Fire Chief Dan Smits revealed this information to the city Finance and Taxation Committee during its meeting Dec. 12 at City Hall with the aid of City Administrator Phil Rath.
According to the Wisconsin Department of Financial Institutions, MERIT Center Inc. was established Nov. 21, 2016, after Rausch had resigned. The registered agent listed under the non-stock corporation is Lane A. Heins. It was deemed delinquent because of inaction on Oct. 1, prompting a letter to be sent to the address on file, 601 W. 17th Street, the location of the Monroe westside fire station.
Rath told the committee that the LLC and a nonprofit organization through the use of the MERIT Center had been started by Heins, with firefighter Chuck Montgomery, former comptroller Bridget Schuchart and Heins as board members. There were descriptions provided for other members, like representatives from Monroe Common Council and other groups, but no names had been put forward.
It was noted during the meeting that plans for the board included a member of the Monroe Jaycees group, which committee member Chris Beer noted has not existed “for years.”
Rath said the process did not come before council members, though administrative staff was aware efforts were being made by officials with the fire department at the time.
Smits noted that previous fire officials, like Heins and Rausch, operated with the understanding that the MERIT Center is not a part of city overview. Smits does not agree, noting that the intent behind the corporation and subsequent nonprofit was not necessary. He said he doesn’t see the establishment of a nonprofit as needed because the department uses the Monroe Fund for the its funding needs at the training center. The Monroe Fund is a permanent endowment fund established by city residents in 1996. It provides grants for citywide projects each year.
Beer noted that the Monroe Fund provides the center with a nonprofit classification.
Smits said he was not immediately informed about the creation of the LLC or any intentions of establishing a separate nonprofit for MERIT. He said he had been informed about the Monroe Fund, but was initially told “they don’t give you your money right away when you want it,” though he feels it is an impressive method to support the community.
Committee member Michael Boyce questioned whether the city has any jurisdiction over the non-stock corporation, which was the primary topic of discussion during the meeting. Rath said the city could either work to dissolve the entity or allow for it to expire by not reapplying. Smits noted the letter, which indicated the limited corporation was going to expire if no action is taken.
Ultimately, the committee noted that the responsibility falls to Rausch and Heins. The 501(c)(3) application had not been completed, Rath said.
“We can’t dissolve a board we never set up,” Beer said.
The committee took no action on the issue, agreeing to let it lapse and continue use of the Monroe Fund.