Harvey requests to be declared 'financially distressed' under state law during special meeting

HARVEY, Ill. (WLS) -- The City of Harvey held a special city council meeting Thursday to discuss declaring the city "financially distressed" under Illinois state law.

The designation was approved, and they city will request for the state to take control of the city's finances.

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After the contentious meeting with the south suburb taking the step to declare itself a distressed city, they are preparing for all the political fallout that entails.

Harvey citizens filled a local church to witness a hastily-called city council meeting, where the mayor sought to pass an ordinance that opens the door to the state helping to bail out a city that is $164 million in debt with little ability to pay its bills.

Some 150 interested residents came to hear Mayor Christopher Clark say Harvey needs to invite Springfield to come in, examine the books and help design a way forward.

Harvey has a 52% property tax collection rate, bringing in less money than it spends, even though it has the third highest property tax rates in Cook County.

Also, 35% of state revenue & restricted funds gets diverted by the State Comptroller to fund the fire pension.

Municipalities can't declare bankruptcy in Illinois.

The current administration under Clark has been sounding the alarm for six years

"If we can bring brighter minds to our community to help us to move forward, if we can find ways to deal with such a sizeable amount, then we welcome that," Mayor Clark said.

The city say it needs $51 million to operate and only receives $30 million, and there is a bill in Springfield that would provide immediate relief. The passing of the distressed city ordinance here makes that bill more likely to become law.

"We're very hopeful that we can change our tide with new bodies that will oversee our financial situation," 2nd Ward Ald. Colby Chapman said.

The City of Harvey laid off about 10% of its municipal workers in August amid their financial crisis.