Chroback
At a special meeting of the LaPorte City Council on Monday, March 15, 2010, Mayor Kathy Chroback said the county tax reassessment mess is “about to have devastating results in the City of LaPorte,” including the possibility of shutting down some city departments within months.
Here is the mayor’s announcement in its entirety:
“The failure of LaPorte County officials to properly bill and collect taxes is about to have devastating results in the City of LaPorte. The unending battle amongst county officials, Nexus, DLGF and certain elite citizens has delayed tax collection to the point that critical services are about to evaporate in LaPorte.
“It is beyond comprehension that in the year 2010 LaPorte County has not completed its 2006 reassessment and has not issued a final tax bill since taxable year 2005. There does not appear to be an end in sight. Rumors abound that the assessed valuation issue is soon to be resolved before the tax court. However, in fact, nothing has happened.
“A recent news article trumpeting resolution of the tax issues through mediation appears at first reading to offer hope, but closer reading discloses further delays are to be expected. The article reflects that the mediator has yet to be appointed by the court, and at least one of the parties is already calculating its options in the event of failure of the mediation. The article actually reflects that there will be further delay and that at least one of the parties has developed the wrong attitude.
“During all this delay, tax collections have significantly dropped. LaPorte’s general tax revenue dropped by 31% in 2008 and by 38% in 2009. Further, unnecessary costs have been incurred. The delay in distributing tax dollars has caused LaPorte and other taxing units to borrow funds at a significant cost. In LaPorte’s case, hundreds of thousands of dollars in unneeded interest expenses have been paid out by the city taxpayers.
“The continued delay and ineptitude has put the city’s ability to borrow at risk. Because the unpredictability of tax collection in LaPorte County, the Indiana Bond Bank is now reluctant to loan the City of LaPorte the cash it needs to operate.
“It’s not that the county officials don’t have sympathy for LaPorte or wish us well, they do both. However, you can’t run a city on sympathy and good wishes – it takes cash.
“It is a fact that the City of LaPorte is running out of operating cash. All departments have significantly cut back in expenditures. This effort is not going to be enough. Within the next three to four months, the City of LaPorte is going to start shutting down departments. Hard decisions are now being made that will result in the loss of services in areas that had previously been considered critical and untouchable. It is all a shame and absolutely unnecessary. Action needs to be taken and needs to be taken now.
“What needs to be done at this point is a minimum of two things. First, the parties and attorneys involved in the tax court litigation need to quickly resolve the issue of the 2006 assessed valuation. This is going to take compromise and leadership. Egos and the need to assign blame need to be set aside so as to advance the greater good. Further delay cannot be justified.
“If these issues can be resolved in mediation, they can be resolved more quickly through good faith negotiations between the parties on an intense day-to-day basis until the issues are resolved. There is no need to wait for further court dates, action should be taken now.
“Secondly, the county officials must recognize that the reconciliation of past tax years and getting the tax system back on track is going to require monumental effort. It is likely that there is not adequate staff in terms of numbers and training in either the Auditor’s Office or the Treasurer’s Office to move matters along on a timely basis. It appears likely that the county is going to have to hire outside assistance to get these matters back on course.
“In the end, few will remember whose numbers were right and whose numbers were wrong. Beyond the impact on the city and other local governmental units, what will be remembered is that the arrogance and ineptitude of elected officials has put our school systems and our children’s future at risk.”
