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Updated: 3:16 PM Jul 23, 2010
City of Freeport Strapped for Cash
As the state continues to lag on income tax payments, the City of Freeport faces a hard truth... they are running out of cash to pay the bills.
Posted: 10:43 PM Jul 19, 2010Reporter: Chip Brewster Email Address: Chip.Brewster@wifr.com |
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1 Comments 
The City of Freeport may go broke. That's according to the city treasurer who gave a cash flow update at tonight's city council meeting.
With the State of Illinois owing Freeport nearly one-million dollars, a strained cash flow is causing some major concerns among city administrators, who aren't sure if city funding will make it through 2010.
City Treasurer Linda Buss told Freeport's city council tonight that as it stands right now the city will only have enough money to carry them through October. Barely.
The problems stem from 5 months of income tax funds owed by the state. Another issue? The city still owes more than $400,000 for borrowing cash in order to pay a third pay check out this past April. They will also face a similar month this October.
If the state does not begin paying regular checks and no new revenue is found Buss says the city will be broke.
"We will literally be broke which we were in April. We literally had no money that we could tap into... We've never ever been in this situation before and our backs are against the wall. We truly are hanging our hat on income tax from the state."
The city has been trying to cut about $900,000 from their budget in order to survive without what they state owes them. That includes a newly proposed wage freeze for all non-bargaining employees which may be voted on next month.
If the city does go broke Buss says she doesn't know what will happen.
The city is also in negotiations with the fire union to cut back in order to help the budget. Mayor George Gaulrapp had hoped to finish those talks today however neither side could come to agreement.
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Latest Comments
Why couldn't Gaulrapp make that announcement? Because he is running for congress, that's why. It would look awful for him to go to the podium and announce that Freeport is broke. It is not all the State of IL fault. Now if people from other parts of the 16th district would do some investigating about what is really going on here in Freeport with people getting laid off, they would see that Mr. Gaulrapp is giving taxpayer money to NIDA which can show NO return on the hundreds of thousands dollars that were to have paid for city services, now we are going without because of Gaulrapps mismanagement and possible misappropriation of funds.
