(WSBT) Roseland's clerk/treasurer says the town is broke. It doesn’t have the money to pay its employees past this weekend, and that includes the police department.

Clerk/Treasurer Cheryl Gridley says the town has been rejected for a loan by at least three banks now.

On Friday, she sent an application for an emergency loan from the state, but that won't come in time to prevent the layoffs.

Gridley said the town has only $14,000 in the bank. It will be all gone after the town's employees are paid this week. She said at the same time, the town has more than $65,000 in unpaid bills.

At a special town council meeting Friday, the council learned about $77,000 from Major Moves is also gone.

Gridley was not at the meeting.

Several people blamed the previous council, lead by David and Dorothy Snyder, for the financial problems.

"The claims we've been signing, or I've been signing, are bills incurred last year or the first part of this year," said Council President Charlie Shields.

Council Member David Snyder blamed the town's financial problems on past lawsuits.

"All these people sued the town," said Snyder to those at the meeting, "when you sue the town it takes money."

Earlier in the day, Snyder called for drastic action.

“So at this juncture, our choices are getting slimmer and slimmer. So, right now, we're down to selling assets. The town does not own that many assets,” Snyder said.

He wants to sell a house the town owns, the town hall and the Veterans' Park. Snyder said those moves would bring in almost $200,000.

Council President Charley Shields agrees with selling the house, but nothing else.

“It's a slap in the face for every citizen in this town to do something like that,” Shields said.

At Friday's meeting, Shields announced a local businessman Ralph Dobson has offered to loan the town $200,000 to $300,000.

While there's still a lot to work out, Shields says the town park would be used as collateral.

However, a motion by Shields to move forward with the offer did not pass.

Shields said the police have offered to work for free until the town's financial situation is resolved, but both the clerk/treasurer and Snyder say they can't do that.

“The council, the fiscal body, is facing the fact that we have to cut all of the town staff. We cannot go forward one more day. To do so breaks state law,” Snyder said.

Snyder said the town should collect more than $150,000 in unpaid fines, imposed while he and his wife, Dorothy, made up the majority of the council.

“The clerk's office has moved ahead as is her responsibility as a fiscal officer to collect these fines and they will be collected,” he added

Many of those fines were forgiven by Council Member Ted Penn, who is also the zoning commissioner. He criticized Gridley for trying to collect those fines.

Penn says options for the town include selling its park or raising taxes on average $70 per property.