BY CARMEN McCOLLUM, Times of Northwest Indiana
cmccollum@nwitimes.com
GRIFFITH | Ron Szafarczyk's experience as clerk-treasurer in Griffith exemplifies what's going in cities and towns across Lake County.
Heading into the second year of a tax freeze is challenging. Frustrating.
And for Szafarczyk, who will be 67 on Feb. 3 and is in his fourth term of office, it has gotten harder and harder to make ends meet.
In April 2007, Indiana lawmakers passed legislation prohibiting local government in Lake County from raising property taxes until the county approves a 1 percent income tax and dedicates the proceeds to property tax relief.
Szafarczyk said he often asks himself how long the town will be able to manage on a frozen levy.
The cost of salt, insurance, utilities and gasoline are all up.
"I'm feeling the pressure," he said. "The town is feeling the pressure. The county is feeling the pressure.
"Unless things change, 2010 is going to be a big problem."
Griffith also has several projects that need to be completed, including some road repairs for which a bond issue likely will be issued.
The state's decision in 2002 to link property taxes to changes in the real estate market, a process called trending, has created delayed property tax bills and, even worse, delays in municipalities and schools getting their property tax collections.
Property tax disbursements to municipalities and schools has lagged since about 2004.
Szafarczyk said Griffith historically has been pretty conservative in its spending, running a "tight ship." But the town has had to apply for a loan, known as a tax anticipation warrant, every year since 2003.
Right now, Szafarczyk said, he has a warrant out for $2.5 million.
"I've paid back $500,000 of that, but if the county doesn't get me any tax collection money soon, I'm going to have to extend that loan," he said, adding he doesn't enjoy having to do that.
He said the tornado that struck the region in August hit the town hard.
Szafarczyk said another reassessment is due in 2009, and, if that happens, 2010 may be a problem.
"It's not like it used to be," Szafarczyk said, when government could count on getting its property tax revenue in a timely manner. It also could count on a certified budget.
It was not long ago that the Indiana Department of Local Government Finance finally certified the town's 2008 budget of $12.6 million. The town advertised a similar budget for 2009. With 80 employees, the town is operating slightly short, with four people down in the public works department.
But Szafarczyk said it's not much different around the country. He said he was visiting his daughter in Spokane, Wash., fairly recently and turned on the news. He said he listened to a segment about how the city was struggling to pay its bills and escalating prices.
"I thought I was back home," he joked.