Speedway, County Differ on Tax Payments

(posted 8.1.09)

The Speedway Town Council approved a resolution to borrow $293,692 from the sewer fund to cover general obligation and park bond payments due to insufficient funds in the debt service account. The July 27 council action transferred the money at the request of Clerk Treasurer Sharon Zishka.

Zishka sent out an amended agenda that afternoon so the council could take action. She stated it was necessary because the Marion County Treasurer's office had not distributed tax dollars in time to make the debt service payments. "We were advised that we would have ... a debt service fund would have dollars available by the middle of July to pay any outstanding funds; ie our general obligations bonds, our parks bonds, etc, by the middle July. Well, unfortunately that did not hold true. We've not received those funds, so this resolution is needed so that we may go ahead and pay our general obligation bonds on time."

Councilor Gary Raikes asked if Indianapolis was receiving their tax funds. "They have been receiving, as you know, tax dollars all along," she said. Zishka said she submitted figures in May but did not receive funding. Zishka said she would call the treasurer's office the next day and report to the council.

Resident Don Katterhenry wanted to know if there was anything the town could do legally to get their money since Indianapolis was receiving its share. Raikes said he was not sure if a lawsuit would solve the issue because of the time and costs involved to litigate.

Cindy Land, Administrative Deputy of the Marion County Treasurer's Office, said that Speedway, like other local units of government, has been receiving tax dollars concerning the 2007-2008 tax bills.

"The final due date for 2007 pay 2008 was July 9, 2009, we are required by law to settle with the units 51 days from the due date. Normal due dates are May 10 and November 10 and we would settle the end of June or December, but ever since the Governor ordered a reassessment the timeline for billing has been delayed. The DLGF certified rates to us May 13th and the bills were sent by June 12th with a July 9th due date."

"We had advanced to the Town of Speedway 65% of their levy prior to 5/27/2009 and we are advancing today for pay Thursday an amount that will have them and all units at 80% of their levy. We held a meeting with all of the units explaining what our plan and the estimated timeline on 4/7/09 and Sharon Ziska did attend. We have not received any calls asking for additional funds although we continued to advance without any formal request," Land said.

Land also provided a spread sheet showing the distribution of payments to all local units of government. She said that local units could call in to ask for advances to pay general obligations bonds, and the treasurer's office coordinated with the bond bank on this issue.

Proposed ordinance 1153 regulating RVs and trailers on residential property was removed from the agenda.