City borrows $700,000 from itself for budget

Thursday, September 25, 2008

In this time of lean finances for Greencastle, city officials have been forced to turn to the water and sewage departments to help float the city's budget through the end of the year.

On Wednesday, the Board of Public Works signed a resolution allowing Clerk-Treasurer Teresa Glenn to move $700,000 from the two departments ($350,000 each) over to the city's general fund.

Glenn said the transfer is necessary to help the city with its expenses, including paying salaries, providing police and fire protection and other services that are housed in the general fund.

"The general fund is the one that has the least amount of revenue coming in," Glenn said.

With the year more than half over, the city has yet to receive the first of two annual tax draws from the county.

Glenn said the county told her recently that it would be November before the first property tax bills would be sent out and February of next year before the second billing for 2008 would take place.

But unlike many schools in the county and cities across Indiana, Greencastle has not had to get a loan from a bank in order to pay its bills. All of Greencastle's borrowing, so far, has been done from one place in the budget to the other.

They chose the water and sewer budgets to take money because their revenues haven't been as adversely affected by the loss of property taxes.

"We're fortunate that we don't have to go out (for loans)," Glenn said. "This should take us through the end of the year."

Board members Sue Murray, Trudy Selvia and Thom Morris approved the transfer of money unanimously with Morris adding a few comments for damage control.

He said he wanted to make sure city residents understand that the city is not responsible for late tax bills.

"This (borrowing) is a necessary evil," he said. "This is not our fault."

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  • Now we're following in the footsteps of the feds... Can't anyone think to cut spending?

    If the city can't afford it, we can't have it.

    -- Posted by hoop2077 on Thu, Sep 25, 2008, at 12:08 AM
  • *

    Greencastle has a surplus in their water utility? They should show Cloverdale how to do the same. If Clovertucky's was a piggy bank, too, they wouldn't be looking to sell it.

    -- Posted by tackleberry65 on Thu, Sep 25, 2008, at 7:26 AM
  • The $700,000 may not be a surplus in their budget... in fact I can guarantee you it's not. Those funds are earmarked for the general fund of the water/sewer departments for other things... and besides, the money will be paid back. Instead of everyone being so negative, why don't you try to be helpful and offer solutions versus criticism?

    -- Posted by MsBehaving on Thu, Sep 25, 2008, at 9:56 AM
  • I agree with you hoop and bondsman. How about trimming the budget!!!! But instead, the new mayor spent an outrageous amount of money on street lights.

    -- Posted by ExHoosier on Thu, Sep 25, 2008, at 1:04 PM
  • How about adopting some names like Freddie Castle and Green May and get a nice check for a bail out?

    -- Posted by Focus on Thu, Sep 25, 2008, at 4:12 PM
  • Please remember that this was necessary in order for us as citizens to continue to be safe and protected by our fire and police departments. Because the county has not sent out property taxes, the city has had no income. What would you do if you had no income - you would start looking for places to find money for your expenses. The issue is not funding new street lights, but how our emergency personnel can continue to be paid - and none of them are paid enough for the work that they do.

    The question should be asked of the real source of the problem: To the county officials - why is the year nearly 3/4 complete and property taxes have yet to be mailed out?

    -- Posted by hoosierbychoice on Thu, Sep 25, 2008, at 10:05 PM
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