RACELAND — Raceland may have to borrow money to keep the city afloat after the Internal Revenue Service swooped in and seized $97,000 from its bank account Wednesday.
The IRS took the money to cover taxes withheld from employees over the last six months of 2007, plus interest and penalties, said city clerk Ramona Barber in an emergency city council meeting later that day.
The arrearage to the IRS piled up because Barber used the money to pay other bills, she said.
However, no money is missing from city accounts, said Mayor Don McKee.
Barber said she contacted the IRS in January to inquire about arranging a payment plan but didn’t hear anything back until she got a call from the bank Tuesday.
The IRS temporarily released $14,000 that will allow the city to meet its payroll, but that will have to be paid in 30 days, McKee said.
To stave off the crisis, McKee has furloughed two part-time city workers and ordered all city vehicles to remain parked. He has frozen overtime. Firefighters will be able to answer fire and emergency calls but not much else.
McKee said the arrearage resulted from overspending by the council, but several members said the IRS debt was never in their monthly financial reports.
The seizure left about $21,000 in the city’s account, according to McKee, with no relief coming until November at the earliest when property tax receipts start coming in.
The city has expenses it will have to meet, including payroll and payments on its fire truck and police cruisers.
The council authorized McKee to apply for loans of between $50,000 and $75,000 and will decide at a later meeting how much to borrow.
After the meeting, city attorney James Lyon Jr. was reluctant to comment about whether the city will face legal difficulties rising from the financial snafu.
“We’re going to have to work some things out,” he said.
MIKE JAMES can be reached at mjames@dailyindependent.com or (606) 326-2652.
Local News
IRS seizes $97,000 in Raceland
City might borrow to meet short-term needs
- Local News
-
-
Man has cellphone stolen by woman soliciting sex
A man reported Tuesday his cell phone was stolen by a woman who got into his vehicle and solicited sexual favors for money.
-
Kentucky Teleworks looking for workers
Kentucky Teleworks will soon be screening eastern Kentucky applicants for several jobs where they can work at home for two companies that are global leaders in the telework industry.
-
Carter sets June 5 for 2nd reading
Carter Fiscal Court will have a special meeting on June 5 at the Carter Fiscal Courtroom, room 201, in the Carter County Courthouse.
-
Tempers flare in Carter County
Angry voices called out from a standing-room-only audience during the Carter County Fiscal Court meeting Tuesday as elected officials proceeded with plans for a proposed regional jail.
-
18 from area died in dinner club fire
Eighteen members of Ashland’s Roadrunners Club were killed in the third-worst nightclub fire in U.S. history on May 28, 1977. In total, 165 revelers died in the Beverly Hills Supper Club fire just across the river from Cincinnati.
-
The long ride home
Adventure, says Ryan Curry, is in his blood.
- News in brief, 5/30/12
-
2 recipes revealed in Sanders autobiography
Want to cook like the Colonel?
-
Vet picnic will be Saturday
Tri-State veterans are invited to a free outing on Saturday.
-
‘Building Doctors’ will make rounds in Portsmouth June 14,15
Main Street Portsmouth, TSHD Architects and the Ohio Historic Preservation Office of the Ohio Historical Society will sponsor a Building Doctor Clinic for old-building owners in the Portsmouth area June 14 and 15.
- More Local News Headlines
-
Man has cellphone stolen by woman soliciting sex
No Limits for Disabled Hunters at Mich. Base
Victim Identified in Fla. Face-chewing Attack
Radioactive Bluefin Tuna Crossed the Pacific
90 Guns Seized, Dozens Arrested in Oakland
Raw Video: Hail Storm Batters Oklahoma City
6-Year-Old Going to National Spelling Bee
California's Foie Gras Ban About to Begin
Video Essay: Funky Winkerbean Comic Turns 40
Hurricane Andrew Remembered, 20 Years Later
Judge's Ruling Halts Tenn. Mosque Construction
Romney in Las Vegas on Texas Primary Day
Sister Says She Reported Brother in Patz Killing
Even Fla. Police Shocked by Face-Mauling Attack
Angry Birds Spreading Their Wings
