Terre Haute’s advance payment for spring property tax collections has fallen far short of what was expected, leaving the city unable to pay a $320,000-plus debt it owes to Vigo County and about which the county has threatened to sue.
The city received more than $1.23 million on Friday, but Mayor Duke Bennett said Tuesday the advance is not enough for the city to pay off its past due share for combined county-city emergency 911 dispatch service required by a city-county contract.
“We didn’t get as much as we thought and are not caught up on things the way I had planned,” Bennett said.
Vigo County government officials said earlier this month they would take the City of Terre Haute to court if it did not pay $320,991 by May 15.
The county took that position after the Indiana State Board of Accounts gave an opinion saying that while a city-county contract can be changed in future budget years, for 2015 the city is obligated to make payments as per that contract.
Bennett on Tuesday said the city will make its payment, but it will be pushed back until the end of June.
“We will have discussions about the payment with the county,” Bennett said. “We were hoping to get more, but it will all be paid in June. We will have a conversation” with the county. “We will just see, as they are threatening [a lawsuit], but I hope we can work together and make this work out.”
Vigo County Commissioner President Judith Anderson said commissioners are willing to listen.
“We are always willing to sit down and talk. We want to make it happen as much as we can, but not overextend ourselves either, but we are more than willing to talk,” knowing that the bulk of city spring property taxes would come in late June, Anderson said.
Anderson said as of mid-afternoon Tuesday, the mayor had not yet requested a meeting with the commissioners.
Anderson said she understands that the city could only collect “however much has been collected so far in tax payments” and that may be lower than what was expected.
“We are good on payroll,” Bennett said of the city’s financial status, “but we have some bills still to catch up on, as we are running about 45 to 60 days [late] on some bills and want to get that caught up.”