COLUMBIA CITY â€” Columbia City Mayor Jim Fleck addressed the townâ€™s Common Council on Tuesday and warned the five-person panel that the city could see another financial hit coming in the next year or more.
Fleck reported at the tail end of the boardâ€™s regular session that heâ€™d attended a conference with other Indiana mayors and received word regarding an â€śover-distributionâ€ť to local governments across the state of about $660 million.
â€śIn effect, they (the state of Indiana) gave us a loan. Itâ€™s not anybodyâ€™s fault,â€ť Fleck said, â€śit's the fault of the system and the recession.â€ť
Fleck explained that the state issues revenue to local municipalities based on previous tax revenues.
â€śOur distributions are two years after we collect taxes,â€ť he said.
Since Columbia City is currently operating with a surplus, Fleck said, â€śit looks as though weâ€™re going to be fine.
â€śBut next year when we get 2010â€™s certification, the expectation is we will have a shortfall.â€ť
Fleck went on to explain that now is the time for the city to prepare for that expected dip in revenue.
â€śWhat theyâ€™re telling us now is that while we have this excess, weâ€™re to bank it,â€ť he said.
â€śThis may only be a one- year blip, but it will be a severe blip. It will work itself out.â€ť