Chicago suburb of Dolton dips into "TIF" money for payroll, freezes credit card spending

CHICAGO (CBS) —  Dolton's dire financial situation was addressed at another fiery village board meeting on Monday night. 

Officials revealed they've had to dip into Tax Increment Financing fees to pay public-sector employees. They also approved layoffs of eight village employees, citing financial issues.

"It's unfortunate, but we have to make these decisions so we can make payroll," Trustee Brittney Norwood said. 

The board also froze credit card spending. This means only the director or administrative services can use the village credit card on approved expenses. Only $5,000 can be spent at a time. 

Trustees also discussed putting a village-owned property on the market. It was supposed to become a Dolton police station, but the village doesn't have the money to make that happen. The board did not vote on possibly selling that property.

The board also voted to place Deputy Police Chief Lewis Lacey on administrative leave, although they did not explain why.

During the meeting, the village's embattled Mayor Tiffany Henyard ordered residents in the viewing gallery to pass through metal detectors, after they'd already taken their seats.

As the meeting became heated, attendees were led out. 

Henyard lashed out at those investigating her and well as the media. 

"You guys have bills on the list as it relates to political issues. And you guys know you can't use it for political bills," she said. "Remember they say we ain't got no money, but they got money for a lawyer. Remember that." 

Lori Lightfoot's investigation   

Former Chicago Mayor Lori Lightfoot, a former federal prosecutor, in April agreed to investigate claims that Henyard misused public funds. After Lightfoot tried to speak from the crowd during June's village board meeting things quickly started to get chaotic.

In an email read during July's meeting, Lightfoot wrote she is making "consistent progress" digging into the accusations that Henyard misused village money.

Henyard has repeatedly denied those claims.

Lightfoot will deliver a preliminary report to the public on Thursday with her findings so far.

"We've made some pretty significant progress, and we believe that it's very important for us to share that with the residents of Dolton, who for almost two years now have really been in the dark about what the true state of the financial condition of the village is," Lightfoot told CBS News Chicago on Tuesday.

Lightfoot called those findings sobering but necessary.

The FBI is conducting an investigation at Dolton Village Hall, although they haven't elaborated on who is being investigated.