Michigan City controller resigns following $5.5 million budget shortfall

This resignation, which the mayor said was mutual and on good terms, comes amid a financial crisis in which the city finds itself $5.5 million short in last year's budget due to a property tax collection shortfall – which La Porte County has been aware of since May.

Meer said he will review the job description of the city controller and begin the search for a replacement hire next week – a process he said could take a few weeks.

Resumes will be reviewed by the mayor, Shelley Dunleavy of the city's personnel department and city attorney Amber Lapaich.

In the meantime, Deputy Controller Yvonne Hoffmaster has been sworn in as interim controller, a position she held previously before Pappas was hired.

The position of city controller is a department head who answers directly to the mayor. As stated on the city website, the controller is the head fiscal officer of the city's Department of Finance.

Expressing his disappointment in the city council learning of the tax shortfall before he received that information, the mayor said communication plays a large role in this position. In the future, he hopes to have a new perspective in the controller's office and he is looking to hire a more “hands on” person for this job.

Although he did not confirm the recent budget mess as the sole reason for Pappas' resignation, he said “recent events have expedited things and moved the process forward.”

All department heads work at the pleasure of the mayor, Meer said.

“I don't have to have a reason to change,” he said.