Tribune Reports Michigan City to Borrow Money Due to Continued Delays in Countywide Property Tax Billing

From the South Bend Tribune:

For the first time, Michigan City will have to borrow money from a bank to operate because of continued delays in the countywide property tax billing.

In an executive order issued Thursday by Mayor Ron Meer, a hiring freeze and other measures such as restrictions on overtime were imposed to limit spending to help the city get by on someone else's money during the first six months of 2014.

 

In previous years, the city used a combination of casino money and other in-house financial resources to operate until money came in from unofficial provisional bills while the property tax reassessment was being corrected.

 

This time, however, the estimated bills are not going out, leaving municipalities throughout the county without any funds whatsoever until after official property tax bills go out next year.
 

Meer said the city will have to obtain a bank loan because there are not enough casino funds and other monies combined to cover the income loss.
 

The loan will not exceed $11.9 million and should be enough for the city to operate through June, when tax monies from the first official bills in years are expected to start rolling in.
 

LaPorte County deputy treasurer Mike Mauer said no provisional bills are going out in 2014 because the billing is nearly caught up with the official 2012 and 2013 property tax bills both set to go out in 2014.
 

The 2012 bills should be sent in late January or early February, and property owners will be given an extra six months to pay those bills.

http://www.southbendtribune.com/news/politics/michigan-city-to-borrow-money/article_d080b778-6e6c-11e3-8645-001a4bcf6878.html