By: Diane Benjamin
Some readers still remember RIMCO, it is mentioned in comments from time to time. I remember it coming up at a Council meeting a few years ago, somebody stated there wasn’t a FBI investigation. Yes, there was!
History: 1995 the City of Bloomington created a company called CIRPA to self insure property-casualty risks. In 2001 the City created a not-for-profit corporation called RIMCO. That company supposedly provided specialized consulting and training and assisted in the management of CIRPA.
Thank Tom Hamilton – the guy who is also responsible for the never used Fire Station #5. Keep in mind the Council refuses to release Executive Session minutes during Hamilton’s tenure. They lavished him with raises anyway.
Somebody at the City smelled a rat and contacted the FBI since RIMCO was run from an Indiana office. The FBI investigates when multiple states are involved.
I FOIA’d the FBI for just the summary report before closing the case. What I received hilariously claims that both companies were audited. Long time readers know audits are not meant to do anything but make sure the numbers are in the right columns and the required legal disclosures are present.
The FBI did not find fraud. They did find “poor fiscal management of taxpayer money” and RIMCO’s employee compensation package was very high. I know the Coliseum was required to have insurance through RIMCO for at least a few years, their insurance costs dropped significantly when RIMCO disbanded.
The FBI summary reported CIRPA transferred $5.25 million of taxpayer money to RIMCO in 2008.
In 2009, City reports show $5,028,375 paid to RIMCO PDF page 36 http://www.cityblm.org/Home/ShowDocument?id=6239
RIMCO must have ended in 2010, they only got paid $404,789 PDF page 2 http://www.cityblm.org/Home/ShowDocument?id=6240
Treasurer’s reports prior to 2008 are not available on the City website, it looks safe to assume from 2001-2007 somewhere close to $5 million each year was paid.
How much money did the City waste with this scheme?
Casualty insurance in 2011 only cost the City $3,650,000. PDF page 14 (2.5% of $146 million) http://www.cityblm.org/Home/ShowDocument?id=2019
From the current City budget – PDF page 54 http://www.cityblm.org/home/showdocument?id=18370
Casualty insurance for 2018 was $4,530,817
2019 is down slightly – $4,385,221
11 years later the cost is still less than the scheme run by the City in 2008. Data from 2001 forward isn’t available. Likely really high legal fees to incorporate aren’t included either.
Government doesn’t have to be competent, they know where to get more money and how to bury their folly.
Understand “limited government” yet?
The City Council supposedly represents the citizens in their ward. Just like now, they rarely tell the City NO when schemes are presented.
See the two page FBI summary here, page two is first. start reading the second page. FBI RIMCO summary