From the Terre Haute Tribune-Star:
The City of Terre Haute is living on millions of dollars of borrowed money.
According to the city’s controller, Leslie Ellis, the city’s critical “general fund” had a cash balance of approximately $41,000 at the end of June, meaning the city must borrow to meet day-to-day expenses for the remainder of the year.
The actual June 30, 2013, general fund balance has not yet been calculated, but Ellis said it will be about the same as the balance last year on June 30, which was $40,417.
The city’s “general fund” covers most of the city’s day-to-day expenses, such as salaries for city workers. To have a cash balance of just $41,000 means the city has spent much of its June, bi-annual property tax distribution already. That distribution was $11.5 million, according to figures provided by the Vigo County Auditor’s Office.
This situation is not new and is why the city borrowed $5 million in “tax anticipation” loans this year and last year. Using these borrowed dollars, the city has been able to meet its salary and other daily expenses until its next big property tax distribution. That allows the city to avoid laying off large numbers of city workers, said Mayor Duke Bennett, in an interview last week in City Hall.
Indiana local governments receive property tax payments twice a year — in June and December. The June payment is typically the larger, because some people pay their May and November property tax payments all at once.
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See the full article here:
http://tribstar.com/local/x405447212/Terre-Haute-only-has-41K-in-general-fund
