Coatesville has amassed more than $600,000 in unpaid bills, some dating back more than six months into last year. At the same time the city is struggling with $100,000 in police overtime because of an arson spree that has locked the city in terror.

Meanwhile, City Manager Harry Walker is asking council to approve a $900,000 withdraw from the city's Trust Fund. Walker plans to use the money as follows: $624,00 for police overtime; $40,600 for fire department overtime; $77,000 for a new firefighter, $81,000 for a new police officer; and $77,000 for a new public works employee.

But, Council Member Ed Simpson believes Walker plans to use a large part of the $900,000 to pay off overdue bills council was not aware of when it approved this year's budget. "Last year's numbers weren't in order. He lied to us and now the real numbers are coming to light."

Council President Marty Eggleston agrees. Questioned about the unpaid bills following last night's Redevelopment Authority meeting, Eggleston said he is concerned. too, that Trust Fund money would be diverted to pay outstanding bills.

According to an aging report of payables prepared by the finance department, the city is behind $38,111 in the 151-day and over category; behind $16,928 between 121 to 150 days; behind $258,907 between 61 to 90 days; behind $236,512 between 31 to 60 days; and behind $94,780 between 30 to 60 days. In total, the city is $643,245 behind in paying vendors.

Walker has said there would be no "carte-blanche" use of any money taken from the Trust Fund. "If we're going to keep policing out there, we're going to have to put something back in the till," he said.

At the Feb. 9 council meeting, Walker's request to raid the Trust Fund was tabled by a 5 to 1 vote. Council Member Karen Jorgenson cast the only affirmative vote. "Haven't you ever heard of cash flow," she asked while Simpson sought to get an answer on how delinquent the city was in paying its bills.

"There isn't any cash flow because their isn't any cash," said Simpson yesterday.

Simpson said the city administration was over optimistic in predicting how much money the city would receive from its Earned Income Tax (EIT)in the final quarter of last year. According to budget documents, the city had collected $2 in EIT by the end of August. The administration predicted it would collect another $1 million by the end of 2008. "It isn't going to happen," Simpson said at the time.

Tonight at 6 p.m. council is holding a special meeting at City Hall to reconsider Walker's request to draw down $900,000 from the Trust Fund. Walker's request came just days after Gov. Ed Rendell promised the city $500,000 to cover overtime costs and aid to aid fire victims.

Walker has also requested $49 million in grants through U.S. Sen. Bob Casey's office. Almost all of it, $46.8 million would go toward redevelopment project with developer Carl Chetty being the largest beneficiary with $21.5 million. The remainder would be divided between city departments, with the police department getting $1.6 million for 10 new police officers and equipment.

In describing the city's problems, Walker said in his letter to Casey that "Coatesville continues to grow its deficits." However, when council voted to approve this year's budget, they were told by Walker it was balanced.

"One of those is a lie," said Eggleston.