$2 million property tax shortfall will result in cuts for Evansville government

The shortfall was related to the state’s property tax caps, Controller Russ Lloyd Jr. said. “It’s related to the caps. The city’s caps jumped pretty good last year. Instead of a 1-1/2 or 2 percent increase, it was a decrease.”

Still, the shortfall’s amount surprised city officials.

“We didn’t anticipate it because our property taxes have gone up the last several years due to the city’s annexation, but it also made it harder to forecast,” Lloyd said. “The county’s is kind of a straight line, while ours is kind of bouncing around.”

Lloyd said Winnecke will mention the situation during Tuesday’s annual state of the city address at the Noon Rotary Club. The administration, Lloyd said, is working on a proposal for City Council on how to handle the revenue shortfall.