Senior Council offers Antioch $50,000 loan

Funds would help meet village expenses

ANTIOCH -- An offer made last month by the Antioch Senior Center Council to loan $50,000 to the village to offset this year's revenue shortfall was contingent on village officials approving a utility tax.

The first reading of the ordinances approving the utility tax on phone, electric and natural gas bills was approved this week. "The offer still stands," said Senior Council Treasurer Roland Pedersen.

"The council believes a utility tax is a legitimate way to raise revenue, as long as the village has done everything possible to eliminate any fat or waste in the budget," Pedersen said. "We believe they have done that, so we support the tax and agree to make the loan if they still want it."

The 14 council members, led by President Dorothy Otte, were approached in October by Village Administrator James Keim. He proposed the council give the village $50,000 to help cover expenses budgeted to the senior center.

Mayor Lawrence Hanson said initially the request made for the Spiering funds was a way to seek more revenue without instituting a utility tax.

"I was really surprised when they said yes, making it contingent on a utility tax," the mayor said. "We might not have to ask the council for money now; it was just one idea to get some help."

Hanson said if taking the money means keeping the senior center intact, he would ask for the loan.

"We will wait to see what our administrator and staff comes up with," he added. "It's cool that the people we are affecting are willing to step up to the plate. I know the tax is not popular, but this is not some new-fangled tax that we created. We will monitor it and show residents its purpose is to protect the village."

If a loan is made, the money would come from the Dolly Spiering Memorial Fund. The $1.5 million fund was left to the center following her death in 1999. The village controlled the funds because the senior center is owned by the village.

In 2001, it was discovered Antioch's then-Village Administrator Tim Wells had used the seniors' $1.5 million gift for other village expenses. Wells was later convicted of criminal wrongdoing and the village paid back the Spiering Fund with proceeds from utility taxes that were rescinded after the money was returned to the fund.

Since that time, the fund has been invested into certificates of deposit. The council maintains a small slush fund. The only big expense to the fund was the addition to the senior center at a cost of about $500,000.

The Spiering funds also pay for the center's part-time assistant to Paul Howard, the center's director.

Despite that history, the seniors are willing to extend a loan to the village, said Pedersen. "It was a legitimate request. When Village Administrator Jim Keim approached us he was very professional and respectful of the council. What he proposed made sense to us."

Pedersen said the council will loan the money without interest, only requiring that the funds be paid back within three years.

"We just want it returned. That is good enough for us," he said. "We want to help, but everyone in the village should help as well. With a utility tax, everyone will contribute to getting the village back on track."