State auditors concerned about Lake Station finances
Times, The (Munster, IN)
October 29, 2011
INDIANAPOLIS -- State auditors reported Friday they have "substantial doubt" about Lake Station's "ability to continue as a going concern" due to the city's $1.8 million general fund deficit and the effect of property tax caps limiting future revenue.
A State Board of Accounts audit said Lake Station must reduce spending to pay off its outstanding debt, which is projected to reach $2.4 million by the end of this year.
This is the second consecutive year the state's auditing agency has questioned the city's ability to stay afloat.
Lake Station Mayor Keith Soderquist said he inherited a $1.5 million deficit when he took office in 2008.
It grew larger due to Clerk-Treasurer Brenda Samuels omitting part of the tax levy on a required state budgeting form, and because of city spending on the 2008 floods that was not reimbursed by the federal government, Soderquist said.
"I didn't get us in this situation; I think people should know that, but I will get us out of it," Soderquist said.
City spending for 2011 is projected to come in below city revenues and the mayor has proposed a similarly lean budget for 2012. But Soderquist said the city's finances can't be fixed in a year.
"I'm not going to cut police, fire, ambulance; I'm just not going to cut safety services," Soderquist said. "It's going to be a multiyear repair and until we are completely repaired, we will continue to get these audits that question what's going on financially."
The mayor said Lake Station might be able to get most of the money needed to resolve its budget deficit by selling the Ind. 51 site of its former city hall for commercial development.
Soderquist said that while he'd prefer to spend any money from that sale on other city projects, it's just as important to use it to get the city's finances in shape.
No comments:
Post a Comment