by Ken Toole | Jul 13, 2024 | Energy/Utilities
Public Service Commissioner Randy Pinocci has had a lien filed on his property by the Braden Tract Sewer Association and Braden Tract Water Fund for non-payment of bills in the amount of $1,720. In addition, the districts are claiming Pinocci is responsible for moving a fence which is encroaching on its property at an estimated cost of $5,500.
Perhaps the greatest irony in this chapter of the long, sad saga of Pinocci’s behavior in public office is that, as a Public Service Commissioner, Pinocci is responsible for regulating public utilities similar to these two small local utilities. One of the biggest problems these businesses face is deadbeats not paying their bills. When that happens, other ratepayers pick up the tab. Pinocci either doesn’t understand that or he doesn’t care. Probably a bit of both.
As the Public Service Commissioner representing PSC District #1, which includes Cascade County, Pinocci earns an annual salary of $111,179. That does not include benefits like state retirement and health insurance. His wife, Svetlana, works in the elections office. She gets a good salary and county benefits. In addition, Pinocci has real estate appraised at a total value of $1,006,303. You would think he can afford to pay his water and sewer bills. . . like the rest of us. But Randy isn’t like the rest of us.
Pinocci seems to want to play politics more than do his job with the PSC. In the last election, he ran for Lieutenant Governor drawing his big paycheck from you and me the whole time. Then there is the fact that he was prosecuted for intimidating witnesses in a dispute over one of his rental properties last October. https://wtf406.com/2023/10/more-republican-police-blotter-pinocci-arrested-again/
A few weeks before that, he was arrested on a warrant for failure to appear. When he is not being arrested or prosecuted, he is galavanting around the state promoting bizarre conspiracy theories.
Thanks, in part, to an organized effort to get Democrats to “cross over” and vote in the Republican Primary here in Cascade County, voters got rid of some of the far right leaders in their party. Legislators Steven Galloway and Lola Sheldon-Galloway lost. County Commissioner Rae Grulkowski also was turned away by the voters (though the rumor mill is predicting she will be hired by Clerk and Recorder Sandra Merchant). Both Pinocci and Merchant also lost their bids to be elected as Republican Party precinct people. Maybe there’s some hope for sanity in the local Republican Party.
Pinocci’s term on the Public Service Commission ends in 2026. Who knows what he will run for next. Whatever it is, we can only hope he is defeated.
by Ken Toole | Jul 9, 2024 | Taxes
In November of 2023, the Department of Revenue issued a paper warning legislators and others that Montana was facing dramatic increases in property taxes because of the increase in property values across the state. This was not the first time Montana had seen dramatic increases in property values. In the past, the legislature had avoided people’s bills going up by adjusting the state property tax rate multiplier in the residential property tax formula. It has been a simple fix. For more details follow this link https://dailymontanan.com/2023/07/26/big-corporations-get-tax-benefits-while-montana-resident-get-higher-property-taxes/
As legislators, both Lola Sheldon-Galloway and Steven Galloway were perfectly happy to let property taxes in Montana increase dramatically. But now it seems they were none too happy with the tax they were paying on their own property. Maybe it’s just that all of the public outcry following the last legislature got them thinking they might be able to play the same game large corporations, like Calumet, play in filing appeals then negotiating a “settlement” with the Department of Revenue behind closed doors. (See this editorial about property tax appeals:
https://dailymontanan.com/2024/06/26/there-is-a-way-for-montana-residential-property-taxes-to-go-down/ )
In case you didn’t know it, Galloway Investments owns the Dairy Queen located at 1651 Fox Farm Road. In late November of last year, the Galloways appealed their property taxes. Specifically, they challenged the Montana Department of Revenue’s appraisal of the value of the land the building sits on. After reviewing the appraised value at the request of the Galloways, the Department of Revenue stood by its valuation of the land value of $245,187, rejecting the Galloways’ estimate of the land being valued at $70,882. The Galloways then appealed the Department of Revenue’s valuation to the County Tax Appeals Board. The hearing on the Galloways’ appeal was held in early April. The County Tax Appeals Board denied the Galloways’ ’ appeal and left the valuation of the land at $245,187. On April 13th, WTF406 filed a public information request with the county requesting information on the Galloways’ appeal. The County Attorney’s office provided the information on June 13th.
Despite the fact that the Galloways have owned the property for at least 15 years and the property taxes have slowly increased overtime like many of the rest of us, suddenly they decided they just weren’t going to take it anymore and filed an appeal. And they proposed a dramatic reduction in the estimated value of the land, from $245,189 to $70,882, amounting to a reduction of more than 70 percent ($174,305). Wow!
Their justification in the appeal was that the land valuation is “Ridiculous.” They also argue that the Fox Farm Road Dairy Queen should be similar in value to the Dairy Queen on 9th Avenue, which they also own. According to their appeal, the value per square foot of the Fox Farm property is $17.87, while the 9th Avenue store is taxed at $5.16 per square foot.
The problem for the Galloways is that the Dairy Queen on 9th is not comparable. The Department of Revenue appraises land value of the 9th Street property at $116,250. The locations of the two properties are very different. Specifically, The Fox Farm location is just off 10th Avenue South and faces Fox Farm Rd, one of the busiest intersections in Great Falls. It is across the street from The Heritage Inn. The 9th Street Dairy Queen is tucked away in a mixed use neighborhood with far less traffic than the Fox Farm Road property. Many commercial properties have value based largely on the amount of traffic that can easily access the business.
After hearing the Galloways’ appeal, the local tax appeals board agreed with the Department of Revenue and denied their request for a tax break. They had thirty days from receipt of the local Tax Appeals Board decision to file an appeal with the State Tax Appeals Board. They apparently decided not to appeal.
It is ironic that both Galloways sat in legislative seats while the property tax crisis was tumbling through the 2024 legislature and did nothing. Lola Sheldon-Galloway sat on the House Taxation Committee for two sessions of the legislature, and Steven Galloway sat on the House Business and Labor Committee. They both had an opportunity to address Montana’s increase in property taxes. They chose to ignore it.
by Ken Toole | Apr 12, 2024 | Elections
Republican U.S. Senate candidate Tim Sheehy has a bullet in his arm. The Washington Post broke a convoluted and confusing news story about how it got there. The story is convoluted and confusing, because Tim Sheehy has been telling a couple of different stories about how it got there.
Story number 1 according to Tim Sheehy- In 2015 he was in the parking lot at Logan Pass in Glacier Park. While putting things in his car, his Colt .45 pistol slipped and fell to the ground, causing it to discharge and hit him in the arm. He was ticketed by the Park Service and paid a fine. Now Sheehy says this story was a lie.
Story number 2 according to Tim Sheehy- In 2012 while serving in Afghanistan, he was hit by a bullet in the arm. He says that he doesn’t know where it came from. He says that he did not report the wound, as is presumably required by the military, because he did not want to prompt an investigation which could have drug his platoon mates through the mud. Tim Sheehy says this is the real story.
Jackie Brown over at the Western Word Blog here in Great Falls put it this way when calling on Sheehy to withdraw from the Senate Race: “As I said yesterday, Sheehy should do the honorable thing and drop out of the U.S. Senate race this week. These are not the actions one would expect from a Naval Officer and Navy SEAL. These are not the actions Montanans would expect from a U.S. Senator. To say the least, it’s dishonorable.”
We can’t say it any better than conservative lawyer and Never Trumper, George Conway, “Let those among you who have not lied about lying about shooting yourselves in the arm in a national park in order to cover up not faking a combat wound—or something like that, I can’t quite figure it out—cast the first stone.”
by Ken Toole | Apr 12, 2024 | Elections
U.S. Senate candidate, Tim Sheehy, touts his experience as an entrepreneur as one of the major things that qualifies him for a seat in the Senate. We’ve already pointed out the irony of the fact that his business, Bridger Aerospace, makes the vast majority of its money on government firefighting contracts. Now The Montana Free Press is reporting that Bridger Aerospace is “deeply in the red” in a thorough story using Security Exchange Commission (SEC) reports. https://montanafreepress.org/2024/04/09/u-s-senate-hopefuls-company-reported-losses-of-more-than-77-million-in-2023/
Sheehy Wearing Rose-Colored Glasses While Pulling Wool Over Investors’ Eyes
While the filings with the SEC clearly show a company in deep financial trouble, with losses of $77 million last year, Bridger Aerospace Investor Relations issued a glowing report announcing record earnings of $67 million in 2023 (while bemoaning the lack of wildfires last year). The report went on to say it had received record contract awards in 2023, including a $60 million exclusive contract with the Department of Interior. The report also asserts that the company is poised to grow over 80% in 2024.
However, the disclaimer in the Investor Relations Report says in pertinent part, “Certain statements included in this press release are not historical facts but are forward-looking statements, including for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995.” We’ll save you reading the whole thing because it is quite long containing lots of wiggle words. Feel free to read it yourself at https://ir.bridgeraerospace.com/news-events/press-releases/detail/37/bridger-aerospace-announces-record-2023-results-provides
Sheehy’s Filing With the SEC Tells a Different Story
The SEC filing begins with a note from the Bridger Aerospace’s own auditors which states, “As discussed in Note 1 to the financial statements, the Company has suffered recurring losses from operations, operating cash flow deficits, debt covenant violations, and insufficient liquidity to fund its operations that raise substantial doubt about its ability to continue as a going concern.”
Montana Free Press quoted University of Montana accounting professor Terri Herron who examined the financial reports as saying, “Management concluded that they may not be around in a year.”
So Who Is On The Hook if Sheehy Goes Under? You are!
Well, actually people who live in Gallatin County. Of course stockholders stand to lose their investment but Sheehy is at risk of violating financial agreements resulting from a $160 million municipal bond agreement with Gallatin County which brought Bridger Aerospace’s long-term debt to $204.6 million. The bond came with covenants that Bridger Aerospace must have the ability to cover debt with cash in the amount of at least $8 million. If Sheehy defaults on the bond requirements, it appears Gallatin County could be on the hook.
Bridger Aerospace said in the annual filing that it is out of compliance with the required debt service amount, and that it likely won’t be in compliance in the next 12 months. At the time of the report, the company apparently had the $8 million in cash but the report stated that it probably won’t in the future, because interest payments of $18.4 million are coming due soon.
So, What Does It All Mean?
Of course all of this is complicated and confusing, so let us just boil it down a little for you. Sheehy has a business in which 88% of his total income comes from the government in the form of firefighting contracts. A big part of the way he has financed his operation comes from a Gallatin County bond offering. We assume that means a lower interest rate, because they are government issued bonds. Welcome to “entrepreneurship” Tim Sheehy style. Step right up to the public trough and proclaim your commitment to private enterprise.
Final Notes
In the short time the public microscope has been on Tim Sheehy, he has not measured up. In the last week he has admitted lying to law enforcement about an old bullet wound, and we have been treated to an inside glimpse of his business ethics. Unfortunately Montana voters don’t seem to care much about ethics, electing Ryan Zinke, Greg Gianforte, Matt Rosendale and Steve Daines, all coming from the cesspool the Republican Party has become.
This post has been written largely with the information uncovered by the Montana Free Press and reporter Arren Kimbel-Sannit. Though we did go through the SEC reports and Bridger Aerospace Investor Relations Report, the truth is we wouldn’t have understood most of it without Kimbel-Sannit’s reporting.
by Ken Toole | Mar 6, 2024 | Elections
In an unprecedented move, Montana Secretary of State Christi Jacobsen weighed in on Cascade County’s hiring process to fill an open election administrator position. The move by Jacobsen casts further doubt on the selection process in the County. The action provides further evidence of the corruption and incompetence of Republicans in our state and county.
WTF406.com has written extensively on the mess in the Clerk and Recorder’s office after Sandra Merchant was elected. Due to Merchant’s incompetence, the county commission removed election duties from her office and began the process of hiring a qualified employee to administer elections. Four finalists were interviewed by the three commissioners, and Terry Thompson was selected. Two other candidates, Rina Moore and Lynn Deroche, were passed over despite having much more experience and training for the position. Each had approximately 16 years of experience administering elections. WTF406 and others objected to the process, because Merchant’s crony Commissioner Rea Grulkowski participated in the selection process despite being directed by county resolution not to participate in decisions affecting the election office.
Now, thanks to excellent reporting by The Electric, we find out that Republican Secretary of State Christi Jacobsen weighed in on the hiring decision. Specifically, in an email from a state email account dated February 14th to county commissioners, Jacobsen wrote, “please do not hire Ms. Moore or a member of her administration as Cascade County’s Election Administrator. Doing so would directly undermine the voters of Cascade County, among other reasons.”
The Electric followed up on the story after observing Merchant and Grulkowski going into the Secretary of State’s office on March 1st. The Electric requested information from Merchant and Grulkowski about the reason for the meeting and whether public funds were used in their trip to Helena. They did not respond.
County Commissioners Joe Briggs and Jim Larson both said that they were surprised by Jacobsen’s email but both added that it did not affect their decision, because it was a scored “structured” hiring process. That may or may not be true, but Grulkowski also scored the applicants and her score alone was likely enough to jimmy the system in favor of Terry Thompson. And if we know anything about Rea Grulkowski, it is that she does whatever she pleases without regard for the rules and law.
So the liability for the county (and us taxpayers) continues to mount thanks to the arrogance of Grulkowski and her far right allies in their effort to control elections in Cascade County. Both Rina Moore and Lynn DeRoche would have had strong political belief discrimination complaints before the Jacobsen email. Now those complaints would be even stronger, and the state of Montana can also be brought into any legal action.
