Zion ‘in desperate need of funds right now’

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Lane Harrison

Updated: February 25, 2012 8:19AM

ZION — Mayor Lane Harrison was back at the head of the City Council Monday as officials discussed infusing $2.5 million in tax-anticipation funding to prevent the city’s working cash from running dry.

The spectre of Zion’s financial troubles over the Lake County Fielders weighed heavily on the conversation as commissioners took the first step toward issuing both the tax-anticipation measure and a bond issue that, in tandem, would fund city expenses.

“The baseball (venture) cost us money,” Commissioner Jim Taylor said at a special meeting Monday evening. “We have a lawsuit pending and hopefully we’ll recoup some of those funds, but we’re in desperate need of funds right now for payroll and day-to-day expenses.”

Asked by Commissioner Shantal Taylor for a budget estimate for the coming fiscal year, Taylor said projections indicate a $2 million deficit is looming.

Tax-anticipation warrants can be issued by municipalities to fund short-term expenses that are expected to be covered by the future collection of taxes.

The city’s plan is to secure the anticipated $2.5 million to fund a bond issue that would be paid off over a number of years. Taylor and Harrison both said property tax levies will not be affected.

Without the special measures, Taylor added, “by late February or early March at the very latest, (Zion will) be out of funds.”

“Hopefully, this will get us to the end of the fiscal year, which is at the end of April, and in mid-June we will start seeing (income and sales tax) dollars,” Taylor said. “This money is for March, April, May and at least the first part of June.”

Harrison was attending his first council meeting in more than two months, having missed about a half-dozen sessions due to an illness that he described in general terms Monday.

“I’m fine. Everything medically is on an even keel,” said Harrison, repeating past statements that he was adjusting to medication for a medical condition. “It’s something that’s back to normal now, and I thank God for that.”

Regarding the working-cash situation, Harrison said the tax-anticipation warrants would follow “some drastic measures to save money over the last two years,” including the layoff of nine city employees.

Harrison added that city finances were close to balanced before the failed Fielders effort, saying “it wasn’t until the costs for the baseball program — which this entire council voted for — started to filter into the budget process” that the books turned red.

Monday’s action files the planned measures with the city clerk. The council scheduled a special meeting at 6:30 p.m. on Jan. 30 to vote on the proposals.