City borrows $700,000 from itself for budget

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."