Jeff Burton, Times of Northwest Indiana
jeff.burton@nwi.com
HAMMOND | City officials say a $13 million budget deficit is now just about $5 million after the release of funds in a now-dissolved TIF district.
Hammond Mayor Thomas McDermott Jr. said the city petitioned the state to have some $7.5 million in a marina area TIF district fund made available for city use, after the TIF district achieved its goal upon construction of the Horseshoe Casino parking structure. He said he received word last week the funds would be released to help the city bridge a budget shortfall that prompted talk of layoffs for city employees.
McDermott said while the TIF revenue is an important step toward fiscal solvency, it's not the answer.
"We're not home. We still have a hole," he said.
City Controller Bob Lendi said each city department is looking into reorganization plans to combine positions in an effort to further deplete the shortfall. As part of the process, he said departments are also looking at employee efficiency. Even if cuts do become a reality, he said, residents should not see a drop-off in city services.
"Every department head is going to be providing the same quality of services they are now," Lendi said.
Last week, in an effort to avoid involuntary layoffs, City Council members agreed to entertain a two proposals allowing early retirement incentives for employees and also using casino-generated revenues to temporarily relieve shortfalls in police and fire budgets until attrition can be put into practice.