Dolton 'offset' funds suspended due to Henyard administration reporting failures: Comptroller

DOLTON, Ill. - Illinois State Comptroller Susana Mendoza has immediately suspended all "offset" funds to the Village of Dolton due to what she says are ongoing reporting failures by Mayor Tiffany Henyard's administration.

"Offset" funds are monies collected from state payments that the Comptroller's office withholds from people who owe fines or other payments to municipalities, including Dolton.

The suspension follows Dolton’s alleged two-year failure to submit required annual reports, including financial statements, audits, and Tax Increment Financing District (TIF) reports.

"When municipalities around Illinois are having legitimate problems filing their annual reports with us, based on staffing or other issues, we earnestly work with them to get them into compliance," Mendoza said in a statement. "Dolton is different. The Mayor’s office has refused to communicate with us or address the problem. If Mayor Henyard refuses to follow state law, my office will use the tools at our disposal to safeguard the interests of Dolton’s citizens."

Mendoza says her office has repeatedly notified Dolton of the delinquency over the last two years.

Village Clerk Allison Key claimed in an email that she was unable to respond to Freedom of Information Act (FOIA) requests because Village Administrator Keith Freeman "has instructed department heads not to reply to any FOIA request" coming from her.

Key also alleged that Freeman illegally removed her as FOIA officer without proper authorization from the board of trustees.

The comptroller’s office advised Key to contact the Attorney General's Public Access Counselor, who handles any FOIA violation investigations.

Meanwhile, multiple reports claim that Henyard has been missing in action since multiple controversies and investigations by local and federal agencies have surfaced.

Last week, former Chicago Mayor Lori Lightfoot presented her findings from her investigation into Dolton's ‘dire’ financial situation. The findings stunned many community members after she revealed that the village's funds have been declining under Henyard's leadership.

Dolton's general fund balance in April 2022 was $5.61 million. According to Lightfoot, by May 2024, the balance had dropped to a deficit of $3.65 million.

RELATED: Dolton in Crisis: Lightfoot reveals alleged misuse of funds by Mayor Tiffany Henyard

Mendoza's office said it wants to help the remaining members of Dolton's government return to compliance with state reporting requirements.

"We would be happy to resume disbursements of fine collections referred to our office but will not do so until they file the overdue reports," Mendoza's office said in a press release.

Last year, Dolton received $120,000 in "offset" funds from Mendoza's office. This year, the village is on track to receive even more, at $135,000.

Under state law, the comptroller's office can initiate forced audits and impose fines on municipalities for failing to comply with the reporting requirements.

"If Dolton continues failing to file reports, we will initiate forced audits and fines," Mendoza's office said. "Our office can assess fines of approximately $7,000 per year per unfiled report, totaling $78,600 for Dolton as of today. That would be in addition to the roughly $135,000 the Village of Dolton could lose in offset fines our office sends the village on an annual basis if its administration does not resume filing reports."

Dolton last filed its 2021 reports in 2022, but the 2022 and 2023 reports remain unfiled.

Mendoza's office has notified Dolton of the suspension of "offset" funds and warned that a forced audit and fines will begin soon if the village continues to violate the requirements.

Statement from the Trustees of Dolton

"In light of today’s announcement from Illinois Comptroller Susana A. Mendoza regarding the suspension of offset payments to the Village of Dolton due to missing financial documents, we want to assure our residents that we take this matter seriously and are committed to transparency and accountability.

We would like to express our gratitude to former Mayor Lori Lightfoot for her efforts in shining a light on the financial challenges our community faces. Her leadership has been instrumental in bringing these issues to the forefront, and we remain dedicated to addressing them head-on.

The Trustees of Dolton are committed to working tirelessly for the well-being of our residents. We demand the finance department to take immediate steps to rectify the situation and ensure that all necessary documentation is filed promptly.

Our priority is to stabilize the village’s finances and restore trust in our administration. We will continue to keep our residents informed as more information becomes available. Your trust and support are invaluable as we navigate this challenging time, and we pledge to maintain open communication throughout this process.

Thank you for your continued faith in our leadership as we work to build a stronger, more financially secure Dolton."