Illinois state comptroller withholds funds from struggling city over 'super mayor's' refusal to follow state law

An Illinois city has its funds withheld because of the scandal-plagued administration of its self-proclaimed “super mayor.”

All “compensated” funds to the village of Dolton have been suspended by Illinois State Comptroller Susana Mendoza, who said Democratic Mayor Tiffany Henyard “refuses” to comply with the law and turn over financial records.

Annual reports, including financial statements, audits and tax increment financing (TIF) district reports, have not been filed by Henyard in the past two years, he said. Fox 32 Chicago.

“When municipalities in Illinois have legitimate problems filing their annual reports with us, based on staffing or other issues, we work hard with them to bring them into compliance,” Mendoza said in a statement. “Dolton is different. The Mayor's office has refused to communicate with us or fix the problem. If Mayor Henyard refuses to follow state law, my office will use the tools at our disposal to safeguard the interests of the citizens of Dolton.”

(Video credit: CBS News Chicago)

Dolton was reportedly already facing financial difficulties, and the projected $135,000 in matched funds from Mendoza's office, up from $120,000 received last year, would have helped the struggling city.

“If Dolton continues to fail to file reports, we will initiate mandatory audits and fines,” Mendoza's office said. “Our office can assess fines of approximately $7,000 per year per failure report, for a total of $78,600 for Dolton as of today. This is in addition to the approximately $135,000 the Village of Dolton could lose in fines compensations that our office sends to the people annually if their administration does not resume reporting.”

Freedom of Information Act (FOIA) requests could not be processed, according to Village Clerk Allison Key, because Village Manager Keith Freeman “has instructed department heads not to respond to any FOIA request” he submitted.

Henyard, who was up for election in 2021, “has been missing in action since multiple controversies and investigations by local and federal agencies have emerged,” according to Fox 32.

On Monday, Deputy Chief Lewis Lacey was federally indicted on bankruptcy fraud and other charges, and while the mayor's police department ally was placed on administrative leave by trustees, he still appears to have gone to work.

Henyard ordered the officers to continue following the orders of their handpicked police chief in a video obtained by WGN.

(Video credit: WGN)

“Stop playing these silly games,” Henyard is heard saying at a meeting.

“Do whatever you want, but anything after that is insubordination,” Lacey said.

Meanwhile, Mendoza's office is signaling its willingness to help the rest of Dolton's government get back on track with its reports.

“We would like to resume disbursements of fine collections referred to our office, but we will not do so until they submit the overdue reports,” the office said in a press release.

In a statement after the comptroller's decision, Dolton trustees said they “take this matter seriously and are committed to transparency and accountability.”

“We demand that the finance department take immediate action to rectify the situation and ensure that all necessary documentation is promptly filed,” they said, according to Fox 32.

“Our priority is to stabilize the town's finances and regain confidence in our administration. We will continue to keep our residents informed as more information becomes available,” the statement continued. “Your trust and support are invaluable as we navigate this difficult time and we are committed to open communication throughout this process.”

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Originally from New York, Powers graduated from New York University and eventually made her way to sunny South Florida, where she has been writing for the BizPacReview team since 2015.

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