Monday, January 11, 2016

Fox Chicago: "Insolvent" Harvey IL is worse than broke

Abandoned Harvey gas station
Once again Harvey, Illinois is back in the news. It is "worse than broke."

From Fox Chicago:
FOX 32 asked experts at the Civic Federation to analyze the numbers. They called Harvey "insolvent." Even worse, city officials did not give auditors documents showing where money was spent.

"Potentially millions of dollars unaccounted for, that include both the TIF fund, the general fund and other things for which they have no receipts, bank statements or any other back up information," said Civic Federation President Laurence Msall.
The administration of Harvey Mayor Eric Kellogg - first elected 13 years ago - simply ignored a state law requiring every local government in Illinois to have an independent audit every year. Only recently did state officials move to enforce that law. Audits for 2011 and 2010 were recently completed by accountants at Lauterbach and Amen.

From what they could piece together, Mayor Kellogg's Administration was spending about 10 percent a year more than it collected, leaving Harvey $59 million in debt in 2011, about $2,500 for each resident.
Abandoned Harvey apt. building
As I explained this afternoon in my Harvey Part Two post, because Harvey's City Council refused to approve Kellogg's property tax levy, the Cook County Clerk will not collect the city's share if that tax--leaving Harvey about $13 million short of funds this year.

Municipal bankruptcies are not allowed under Illinois law, although Illinois state Rep. Ron Sandack (R-Downers Grove) wants to change that.

Earlier posts:

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