By Dan Spalding
News Now Warsaw

WINONA LAKE — The state has released a long-awaited audit of Winona Lake town government that documents widespread misuse of town money, extensive lack of normal bookkeeping, and a failure by town council member James Lancaster to file a conflict of interest form with the state.

The 88-page report by the Indiana Board of Accounts, dated June 19 looks closely into practices by town employees over a four-year period beginning Jan. 1, 2019.

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The state audit is extensive and impossible to cover thoroughly in one news story.

To read the entire report online, click here.

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The report documents credit card abuse, misuse of town dollars, and a lack of standard recordkeeping over the years, as well as documents that — in some cases — made it challenging for investigators to determine what had happened.

News Now Warsaw reached out for comment from Town Manager Craig Allebach and Clerk-Treasurer Heather James (who assumed her position in 2024). Both had left for the day and were unavailable by mid-afternoon Tuesday.

Lancaster was also contacted for an opportunity to react, but did not reply as of late Tuesday afternoon.

Lancaster was one of two people who were part of K&J Operations, which discontinued its contract with the town in July of 2024 after some town council members expressed concerns about the arrangement.

The town council now oversees the pavilion, which the town constructed without a financial plan in place to cover costs.

Among the many allegations, the audit documents:

• Allebach used town money to cover the cost of 11 wells for residents of Raccoon Run subdivision, which cost $104,000 without any approval from the town council.
• Lancaster failed to file a conflict of interest form with the state over his direct involvement in a private firm that was paid to operate the Miller Sunset Pavilion. The failure to file represents a level 6 felony, the report said.
• Sixty-nine credit card transactions by town employees included personal expenses or expenses that were determined not to be related to the functions of the town. One of those was a $507 charge for a rental car in Hawaii in 2019 that is linked to a former deputy clerk.
• Park Director Holly Hummitch used a town credit card to make 52 purchases totalling $3,685 for 81 Straight Talk Monthly phone service plans over a 65-month time period. The report said she did not have a town-issued cell phone. Investigators asked about 16 extra monthly service plans during the time frame and the park director was unable to provide the reason, purpose or use of the extra plans.

The report also points out that the town prohibited the park director from purchasing cell phone plans with town funds over a recent ten-month period before council passed a resolution allowing a $30 cell phone stipend in February.

In another area of concern, the report said Hummitch made four purchases totalling $2,015 at Darlingon Holiday Warehouse over a four-year period. More than 1,000 items were purchased for the Kringle Fest Secret Santa Shop, in which tickets were sold to the public to purchase the items.

But only one deposit ($417) of revenues from the ticket sales for one year was documented.

Due to a lack of records, the state was unable to determine if purchases made in the three other years were related to the Santa Shop. "Therefore, we have determined this purchase was unallowable and not related to the functions and purposes of the town," the report said.

Concerns over record-keeping and finances have simmered for several years after the death of Clerk-Treasurer Kent Adams, who died unexpectedly in December 2021.

His replacement, Laurie Renier, soon fell out of favor with town leaders and she resigned in October of 2023, claiming town leaders turned on her after she raised questions about finances involving the pavilion and other issues.

At one point during her tenure, she talked to two council members about concerns and was told "that the council would absolutely not address the situation in public."

The report concludes, "The contents of this report were discussed on May 15, 2025, with Heather A. James, Clerk-Treasurer; Laurie A. Renier, former Clerk-Treasurer; Ashley McGinnis, President of the Town Council; Austin Reynolds, Vice President of the Town Council; Jason Zaugg, Town Council member; Barry Andrew, Town Council member; James G. Lancaster, Town Council member; Kristie Maiers, President of the Winona Lakes Parks and Recreation Department; Travis Trump, Vice President of the Winona Lake Parks and Recreation Department; Kallie Chapman, Park Board member; Diane Wulliman, Chief Deputy Clerk; Teena Pence, former Deputy Clerk-Treasurer (July 25, 2022 to October 10, 2023); Craig Allebach, Town Manager; and Holly Hummitch, Park Director."

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WARSAW — As 2023 comes to an end, News Now Warsaw is looking back at some of the biggest, most impactful stories. Here are ten issues that stood out, not necessarily in order of importance.

• LSC Communications closes, hundreds lose jobs

LSC Communications, formerly known as RR Donnelly and Sons, closed its operations in Warsaw, leaving more than 500 people without jobs. The move comes after decades of decline in the catalog printing business.

• Downtown business changes

Downtown Warsaw saw lots of changes — likely the most in recent memory in terms of new stores, renovations, relocations and expansions. It also included the opening of Atelier, an art gallery on Center Street. More changes are expected in 2024. 

• Orthopedic growth

It was a big year in local orthopedic news. A Singapore-based company, Mentore Media, opened a new facility in the Warsaw Technology Park while Paragon finished expansion plans and was then abruptly sold. Two much smaller firms with an eye on expanding announced plans to take up shop in a shared space provided by KEDCO.

• OrthoWorx money

In an unprecedented move in Kosciusko County, the state legislature announced it would provide $30 million to OrthoWorx for the purpose of coming up with projects that would boost job attraction and retention in the local orthopedic sector

• [caption id="attachment_87615" align="alignright" width="290"] The first phase of residential work on the David Mattews development on North Buffalo Street can be seen in the background, but constructtion materials sit unused in the foreground where work was halted unexpectedly in 2023. News Now Warsaw photo by Dan Spalding.[/caption]

  Buffalo Street development 

Developer David Matthews LLC reneged on long-held plans to construct a series of upscale homes and a multi-use building on the shores of Center Lake in Warsaw. As a result, he lost out on a large but uknown amount of money from the state. A new plan, in which he would finish some of the residential, remains in doubt, based on the lack of activity.

• Changes in city hall leadership

Warsaw Mayor Joe Thallemer announced plans to retire after three terms in office and longtime city councilman Jeff Grose, whose name rose to prominence decades ago as Indiana's  Mr. Basketball was unopposed in his run for mayor. Juegen Voss is the only other newly elected official.

• Winona Lake Clerk-Treasurer

After months of animosity from Winona Lake Town Council members, Clerk-Treasurer Laurie Renier resigned in October and blasted town officials over how she was treated and claimed town finances were a mess before she arrived two years earlier when she replaced the late Kent Adams. Two other employees resigned. A long-awaited audit by the Indiana Board of Accounts is expected to be released in 2024.

• Blight be gone

Mayor Joe Thallemer’s administration was able to take major steps to eliminate the two biggested blighted properties in the city — Gatke and the Arnolt building. Apartments will soon open on the old Arnolt property and demolition is close to happening on the old Gatke property where a multi-use building project has been proposed. The city also announced redevelopment plans for the old Owens grocery store and lined up a company charged with finding a new use for the old Marsh grocery store.

• Parks – city and county

It was a memorable year for parks. The city of Warsaw constructed a new parks office, renovated the old Center Lake Pavilion with the support of Zimmer Biomet and established a recreational trail along Center lake with funding from a private family. At the same time, Kosciusko County established a parks system that will initiallly focus on development of bike trails.

• Hospitals expanding

Two hospitals in Warsaw continue to evolve. Lutheran Kosciusko Hospital, formerly known as Kosciusko Community Hospital, began major renovations to its facility, including a revamped entrance and surgical centers. Meanwhile, Parkview Warsaw has changed its name to Parkview Kosciusko Hospital (PKH) and has more than doubled its square footage, adding inpatient care, surgery and specialty care, and oncology services via an extension of the Parkview Packnett Family Cancer Institute. LKH renovations are still underway. Patients can begin using new parts of PKH in early January.

The post Signs of change: 2023 was a year of transition appeared first on News Now Warsaw.

WINONA LAKE — Town Council put the brakes on appropriations Monday night amid questions and confusion.

Council met in a special meeting Monday and attempted to approve the moving of $990,000 in money for several line items, but ultimately pulled back on the plans after realizing legal advertising was inaccurate. 

That became apparent after Retha Hicks, working as a part-time consultant after financial accountability issues arose earlier this year with the clerk's office, took the blame in presenting council with incorrect plans to move the money. She apologized during the meeting.

The town turned to Hicks and the Indiana State Board of Accounts to sort out problems with town finances after town council began wrangling with Clerk-Treasurer Laurie Renier over numerous issues.

Renier resigned three months ago and claimed the town’s finances had been a mess before she arrived in office some two years ago.

The state board of accounts is currently in the middle of review of town finances.

Heather James, who replaced Renier, was unable to answer several questions on the additional appropriations Monday night as well as another issue involving proposed Christmas bonuses for town employees.

The appropriations proposed from the town TIF fund (totaling $740,000) and another $250,000 from the town's EDIT fund were prepared for consideration, but officials were vague on some of the intended uses until town resident Jerry Nelson sought details.

Nelson was told that $620,000 was sought from the town TIF fund to pay on a bond issue for the Miller Sunset Pavilion ice rink.

Money for the rink was listed as a capital expense.

James could not provide details on the $250,000 request which was also listed as a capital expense.

Nelson had more questions until council member Barry Andrew came to the clerk-treasurer’s defense.

"I think Jerry's questions are legitimate questions and they are questions and answers I'm looking for too, but I also think we need to extend a level of grace to Heather and her team, knowing that she came into a position that had a lot of stuff involved with it and I think her and Retha are probably doing the best they can," Andrew said.

Nelson said he wants more details on finances of the pavilion.

"Before we get into approving money like that, I'd like to see a breakdown of where the heck we're spending our money. If's it's gonna be a million bucks on the ice rink, I think the town taxpayers are entitled to know that," Nelson said.

He added, "I don't have a clue as a taxpayer what's in that $250,000."

Other questions arose over plans to provide bonuses and comes after questions arose involving a similar situation with elected state officials.

In both proposals, council pulled back the plans and decided to investigate more before reconsidering the requests.

The post Winona Lake puts brakes on appropriations involving pavilion, other items appeared first on News Now Warsaw.

WINONA LAKE — There’s another new face in Winona Lake town government.

Barry Andrew was ready to step into his new role with Winona Lake Town Council moments after being chosen by a Republican caucus as the new town council member on Monday night.

Andrew, 48, was the lone candidate seeking to to fill the vacancy created after council member Heather James was chosen last month by another caucus to be the town’s new clerk-treasurer after Laurie Renier resigned on Oct. 10.

Andrew sought to run for the seat this spring (and was unopposed), He's also unopposed in today's general election so his choice to fill the remaining portion of the vacancy was an easy one for the caucus members.

Minutes after being chosen and signing paperwork, Andrew headed into his first initial duty, an executive session with town council, then followed by a public town council meeting.

the executive session was held shortly after the 6 p.m. caucus meeting and was followed by a 7:15 p.m. regular council meeting.

he works as the Director of Kosciusko County Community Corrections and has been involved in corrections for nearly two decades.

He said he thinks his background, especially in terms of budgeting, can be a benefit and hopes to address issues the town has faced in the past year.

"We all know this town has had a rough few months," he said, adding that there needs to an emphasis on "treating people with respect and dignity and making sure we're leading by example."

His new role on town council, representing Ward 4, extends his family’s legacy of public service. His grandfather, Porter Polston, was a Warsaw City Council member and his uncle, Randy Polston was a longtime educator and now sits on the Warsaw Community High school board while also running Combined community Services.

He said he looks forward to carrying on the legacy.

The post New Winona Lake town council member begins work within minutes appeared first on News Now Warsaw.

WINONA LAKE — As expected, Heather James was appointed as the new Winona Lake Clerk-Treasurer Tuesday night by a Republican Caucus to fill the vacancy left by the resignation of Laurie Renier.

James, who beat Renier in the May Primary and was set to take office in January, will now have the chance to begin rebuilding the office.

She said she's been gearing up to take over for months and knows there is plenty work to be done

"It is a big challenge. I don't think anyone can deny that," Thomas said. "I think this opportunity — especially what we've done here in the recent past — we've identified some problems and an opportunity to correct them and move forward and and make sure we're doing everything as we should."

She said one of her first priorities will be to begin filling two vacancies by deputies who quit their jobs along with Renier earlier this month.

The clerk’s office remans in the middle of a audit by the Indiana State Board of Accounts. Town council contends Renier did a poor job and Renier claims the office was a mess before she arrived in 2021.

James said she believes it could very well take several months to right the ship.

As a result of taking the job, James had to resign her seat on council, and Republicans will now work to fill that vacancy.

A caucus to fill that seat is now scheduled for Nov. 6.

The post James assumes office after WL caucus appointment appeared first on News Now Warsaw.

WINONA LAKE — The deadline to file for the Republican caucus to replace Laurie Renier after she abruptly resigned as Winona Lake clerk-treasurer, has passed — and as expected — only one person sought the job.

That would be Town Council Vice President Heather James.

[caption id="attachment_84509" align="alignright" width="234"] Heather James[/caption]

Renier resigned after a lengthy dispute with town council and had already lost in the Republican primary to James.

Even though James is the sole candidate to file, a caucus is still required to elect her to the clerk-treasurer position.

The caucus to replace Renier is set for 6 p.m. Tuesday at town hall.

If  elected by the caucus, James will have to resign her position as the Ward 4 council representative and Ragan will have to call a caucus to replace James on the council for the remainder of 2023. 

Barry Andrew ran for the Ward 4 seat this year unopposed and is slated to take office Jan. 1.

The post Heather James the lone candidate in upcoming Winona Lake caucus appeared first on News Now Warsaw.

WARSAW — Plans have been finalized for a Republican caucus needed to replace Winona Lake Clerk-Treasurer Laurie Renier who resigned Tuesday after nearly ten months o contentious relations with town council.

The caucus will take place at 6 p.m. Oct. 24 in the Winona Lake Town Hall Council Chambers.

Declarations of candidacy are available at the office of Kosciusko County Clerk of the Circuit Court, 121 N. Lake St., Warsaw, and must be filed with GOP chairman Mike Ragan by Oct. 21.

Renier was one of three town employees who resigned Monday.

Renier lost to Heather James in the May primary. James will assume office in January and could very well seek to fill the vacancy through the caucus.

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WARSAW — Below are allegations contained in the resignation letter of Laurie Renier, clerk-treasurer for for Winona Lake, who announced she was quitting her job effective immediately on Tuesday night.

Two other employees in the clerk's office also resigned Tuesday after extended difficulties with town council members dating dating back more than ten months involving various issues in the clerk's office.

Town officials claim the clerk’s office was not sending out bills and salary checks in a timely manner. Renier countered that the office was disorganized when she took over in 2021, was not following standard protocol and that the council refused to follow advice from the Indiana State Board of Accounts.

Renier issued a five-page resignation letter listed concerns that she said she noticed from the outset after taking office following the death of Kent Adams in December of 2021.

Town officials declined comment about the resignation Tuesday night.

[gallery size="large" columns="1" ids="84066"]

The post Renier’s letter outlines concerns with Winona Lake financial operations appeared first on News Now Warsaw.

WINONA LAKE — Clerk-Treasurer Laurie Renier and two employees in the clerk's office abruptly resigned Tuesday night, ending months of acrimony between Renier and town council members.

The resignations came at the start of a public hearing for the 2024 budget when Renier spoke up and said she wanted to make an announcement.

Despite on-going tensions with council and others, Renier said Tuesday she had  committed to remain in office during a state audit.

She said she had been informed that the audit was “still nowhere near completion," but that a "substantial completion of the on-site portion" of the auditing procedures had been reached.

“I have therefore fulfilled my obligations by being present and providing them with the documentation they requested,” Renier told council.

She then continued reading a five-page resignation letter that outlined 13 problematic issues she encountered after arriving in office shortly after the death of clerk-treasurer Kent Adams in December of 2021.

She also addressed what she called “a lack of support and the hostility toward myself and my staff” that had carried over to other department, town residents and the media, which she said made it "nearly impossible to serve the community."

She concluded by saying her resignation was effective immediately and was then joined by Chief Deputy Teena Pence and Utility Clerk Cindy Justice in announcing they were also quitting immediately.

Town officials had no comment as they left the council chambers and had no comment after the brief budget meeting concluded.

As the three left the building, they also took down their portraits that hung in the hallway that were part of a collection of town employees.

A fourth worker employed in the office did not attend the meeting and it was unclear if she intends continue working for the town.

Renier told News Now Warsaw afterward she planned to contact the Kosciusko County Republican Party, the county clerk of the court and the state board of accounts.

The Republican Party will now have to choose a replacement to fill out the remaining ten weeks of Renier's term in office.

Renier lost in the May primary to Heather James, who currently serves on town council.

For several months, council questioned Renier's work practices and complained that not all bills or payroll checks were issued in a prompt manner.

Renier defended her work at times in recent months, but also admitted that she and some of her staff struggled with some of the duties, in part because of a lack of familiarity with office procedures as well as the resignation of a deputy at the tail end of the year when bookkeeping for the new year was just beginning.

Council, she said, "did not hesitate to call me out at every public meetings for all the things I didn't know."

She also reminded council that she had reached out and received help from a software company and other professionals and "spent countless hours researching and teaching ourselves how to do our jobs."

"As we received the help we asked for, it quickly became clear there was not much in the office being done correctly. At every turn, we not only needed to learn how to do things the right way, but we had to find the way to correct what was wrong," she said.

Renier chose to not work with council in its preparation of the 2024 and council created a committee to help prepare the new budget, which turned out to be a mirror copy of the 2023 budget.

On Tuesday, Renier explained, she did not feel her input in budget preparation would be of much benefit. "I realize that was misinterpreted as an unwillingness to participate," she said.

The post BREAKING NEWS: Renier and two clerks resign at Winona Lake town council meeting appeared first on News Now Warsaw.

WARSAW — It appears the working relationship between Winona Lake Town Council and the clerk-treasurer has hit rock bottom.

Problems surfaced months ago when clerk Laurie Renier began feuding over record keeping and payment of town bills and the problems have apparently continued to simmer.

Renier has not attended or participated online in at least the last two council meetings including one Tuesday night.

The latest spat involves the preparation of the 2024 budget. Town officials claim Renier suggested they just use the 2023 budget as a template for 2024

As a result, the town approved an agreement with former clerk-treasurer Retha Hicks to provide consulting services. Hicks will provide advice to the town council, but officials said the council will make final decisions on related matters.

Hicks will be paid $40 per hour and could receive up to $5,000 this year for her work.

On top of that, the council has created two committees — one for budget preparation and another to help department heads understand protocols related to working with the clerk.

Renier hired an attorney to represent her earlier this year in the ongoing dispute and then submitted a $3,400 bill which the council has declined to pay.

Town council member Ashley McGinnis discussed the budget issue afterward.

"Since there's some issues with getting that accomplished, that's why we did the budget committee, because we would still l like to move forward in the ways that we can to plan for next year," she said.

"It's not what anyone wanted, I think," she added, referring to the overall situation.

In the May primary, Renier lost the Republican nomination for clerk-treasurer to town council member Heather James who will now take office in January.

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