A divided Coatesville council last night approved withdrawing $200,000 from the city's Trust Fund so that it can pay down some $600,000 in overdue bills and make payroll. The city's financial woes have worsened because of more than $150,000 in overtime costs related to a string of arsons that continue to terrorize the city.

The $200,000 withdrawal approved by a 4-to-3 vote is well below the $900,000 City Manager Harry Walker had originally requested. Walker originally asked for some $600,000 in police over time and funds to hire an extra police officer and firefighter.

But that was before council learned last Wednesday, Feb. 18, that Walker had taken $500,000 out of the Trust Fund without informing council. He argued the $500,000 was what reamined of a $8 million withdrawal approved by the previous council in 2005 as it sought to correct the excesses of the Janssen Administration.

Council Member Ed Simpson last night termed Walker's request for $900,000 nothing more than a covert attempt by Walker to use the costs of the arson investigation to cover up financial missteps made over the last several months.

Simpson, along with council President Marty Eggleston and Vice President Kareem Johnson, voted against the $200,000 withdrawal. Council members Patsy Ray, Kurt Schenk, Robin Scott and Karen Jorgenson voted for it.

The resolution approved from council last night was a drastically different in tone and language than the previous $100,000 request. Specifically, the approved ordinance laid out the city's troubling finances. by saying it was unable to meet its payroll and is unable to pay its vendors, a statement missing from the $900,000 request.

"I'm here to ask for that money because we need to pay some bills," said Walker.

Some council members have claimed they did not learn until after the its Feb. 9 meeting that the city had amassed $634,000 in unpaid bills, some dating back almost six months. Eggleston has said he learned of the amount from press reports.

Interim Finance Director Donald McKenzie said the city is able to meet its next payroll. He promised council would get detailed reports on how the $200,000 was spent. "Every penny spent. You will see it. I guarantee it," he said.

Walker said the city's present financial emergency was caused by the costs of the arson investigation and its failure to sell off city assets last year. One of those sales involved the Flats. Originally, Iacobucci Homes/Baker Company had offered $5 million for the property in a partnership agreement with Mosaic Development Partners. Now, Mosaic is offering $2 million for just part of the Flats, with a requirement the city fund site improvements.

"We're not going to get two cents from the property once we give them all the concessions," said Johnson, who over the last month has become extremely critical of how Walker is managing the city.

Johnson said he he was losing trust in how decisions were being made. "The information keeps changing. We had bills we didn't now anything about," he said.