Published: May 14, 2008 11:08 pm            

Mayor: ‘Tough’ budget cuts ahead

Bennett says Terre Haute looking at about $5M in reductions over two years

TERRE HAUTE — Mayor Duke Bennett said Wednesday that Terre Haute faces significant budget cuts over the next two years.

Speaking on WFIU radio’s “Ask the Mayor” program, Bennett said state-mandated property tax caps will cost the city an estimated $1.8 million next year and an additional $3 million the following year.

“It’s going to be tough,” Bennett said after the radio interview. “We don’t really have any way to make that money up …We’re just going to lose that money unless the County Council acts on an income tax increase.”

Bennett said he would not push for a tax increase and he does not expect the council to vote for one during the current election year.

“We’re just trying to stretch the dollars,” he said.

Another financial issue the city is facing stems from the later-than-usual property tax bills going out this year, Bennett said. Because property tax bills are going out later, the city will not get its share of property taxes until the fall instead of the usual June payment, Bennett said.

Because it costs about $2 million per month to operate the city, the delay will force the city to take out a short-term, $7.5 million loan this year, he said. The city will be able to pay off that loan at the end of the year after receiving its property tax payments for 2008, Bennett said.

“We’ll be cash-rich at the end of the year, but you have got to make it through the year,” he said.

Bennett also told “Ask the Mayor” listeners the city can save some money by eliminating a planned traffic circle that was part of the Brown Avenue project. “We can save $1.5 million by leaving that out,” Bennett said in response to an e-mail from a WFIU listener, adding that people living near the planned roundabout also expressed objections to the traffic circle.

Bennett also said the Brown Avenue project completion date has been moved forward from 2010 to 2009.

Speaking of Pfizer’s recently announced plans to leave the Terre Haute area, Bennett called the decision a “blow to the community.” He said he expects to meet with Pfizer officials soon to discuss the company’s plans for the Vigo County facility, which will be completely closed in mid-2009.

“They’ve got a big investment down there,” Bennett said after the radio interview. “They’ll have to decide how they want to get out of that asset.”

Bennett also took questions from radio listeners about Terre Haute’s 12 Points area, the city’s new trash removal contract and the possibility of a riverboat casino on the Wabash River.

“There are a lot of rebirth opportunities” in 12 Points, Bennett said, noting the city can encourage growth in the north end neighborhood by making infrastructure repairs.

Bennett also said the city’s long-term contract with Republic Services for trash removal “is not as bad as it seems at first” based on cost comparisons with other cities. He also said the city is gradually implementing the new trash removal service, which includes new trash totes and taller trash trucks, to different sections of the city.

Finally, Bennett told listeners he has not spoken with anyone about bringing a riverboat casino to Terre Haute. “I have had no discussions about casinos,” Bennett said. Bringing a casino to Terre Haute would require action by the state Legislature, he noted. “That’s not something I’m going to pursue,” he said.

Arthur Foulkes can be reached at (812) 231-4232 or arthur.foulkes@tribstar.com.

        

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