Cairo Association of Teachers - Newsletter

CAT Tracks for February 10, 2006 DEFIANT CAIRO MAYOR SEEKS RE-ELECTION

From the Southern Illinoisan...

Mayor Farris announces re-election plan despite controversies

BY JIM MUIR
THE SOUTHERN

CAIRO - Cairo Mayor Paul Farris confirmed Thursday the city is facing loss of city employees' health insurance and also is in arrears on two different loans. But Farris said he isn't worried. In fact, he said, he plans to seek re-election in 2007.

The latest battle in Illinois' southern-most city once again pits Farris against several city council members. The standoff could land the city in a lawsuit with a local bank and also cost city employees their health insurance.

During a telephone interview, Farris said two major storms are brewing in the river community, both of them financial in nature.

Farris said the Southern Illinois Laborers' and Employers Health and Welfare Fund will drop the city's health insurance coverage unless payment is made by the end of March.

Farris said the city missed payments on the health insurance during 2003 and 2004 and he has asked the council to issue anticipation bonds for $136,000 to catch up on payments and make sure employee insurance will not terminate.

Anticipation bonds are issued by taxing districts and are secured by future real estate tax revenue that will be received during the next tax cycle.

"The only way the insurance coverage will go on is if the council approves the $136,000 amount of money we need to pay this up," Farris said. "What this is is a judgment that we agreed to and the council approved this payment plan. We've made one payment of $136,000 and we need to make one more to get squared up from the old past due."

So far the city council has twice rebuffed Farris' attempt to get its approval to borrow the needed funds to make sure the insurance does not lapse.

"This is just another example of the same four members of the city council trying to make it look I'm not doing my job as mayor," Farris said.

On another front, Farris also confirmed the city clerk received a letter from First National Bank saying the city is in arrears on two different loans.

Farris would not discuss the amount of the loans or how far the city is behind in payments, but said details of the letter sent by bank president Jay Manus are common knowledge throughout the community after being "disseminated to the public" by city employees.

"Pertaining to First National Bank, this is not a doom and gloom, end-of-the-city-of-Cairo situation," Farris said. "I'll tell you the same thing I said when I heard about the letter. I'll hold a press conference and invite Mr. Manus to attend and we'll discuss the financial situation in the city of Cairo."

Citing privacy issues, Manus would not discuss any details concerning the two loans, the amount of the notes or how long the city is overdue. Manus said the problems the city is facing go far beyond the details of the loan.

Manus said the biggest concern is that the city doesn't have hazard insurance for required properties and also has not provided audited financial statements to bondholders, which places it in default on the loans. State law requires that municipalities provide audit reports each fiscal year.

Manus said First National Bank has had a good working relationship with the city since 1859 and emphasized that he would be willing to work with any or all city officials to try and remedy the ongoing financial situation. Manus said he has discussed the current situation with both Farris and the city treasurer.

Farris was elected in April 2003 and has been embroiled in controversy even before he was sworn in as Cairo mayor. He says the ongoing battle with council members is "more fallout" from his victory three years ago.

"They tried to keep me from even being sworn in," Farris said. "But, when I raise my hand to take an oath, after I went out and campaigned and walked the streets, I'm not a quitter. I never have been."

Farris took his defiant tone one step further and announced that he will seek re-election in 2007.

"Not only do I plan to finish this term - I plan to run again for re-election. I'm already in re-election mode," Farris said. "I'm going to run for re-election and run with a slate of candidates to get a new council elected."