Uncertain property tax rates force Mishawaka Schools to borrow moneyby John Paul (jpaul@wsbt.com)
Mishawaka Schools trustees approved a request Wednesday, October 1, 2008 to let the district borrow up to $1.25 million with Teachers Credit Union. They also agreed to start advertising for bids for a second, temporary $1.6 million loan to meet expenses. (WSBT photo) MISHAWAKA — Talks are continuing between the Department of Local Government Finance and the St. Joseph County auditor. But, tax rates still have not been set. So some cities, and now Mishawaka Schools, have to borrow money. Multimedia Related Content
Mishawaka Schools' business manager says not only are cities and libraries and other entities borrowing to make ends meet, because the property tax rates still haven't been finalized it's leading to thousands of dollars in interest at the taxpayer's expense. In a 4-0 vote during Mishawaka Schools' special board meeting, trustees approved borrowing additional funds. "We wanted to make sure that we have enough money to meet our payroll and so forth," said R. Steven Mills, Mishawaka Superintendent. The district is now forced to borrow up to $1.25 million with Teachers Credit Union. Trustees also supported another measure to start the bidding process to receive a $1.6 million temporary loan to help the schools get through the year. The last few months, Mishawaka Schools has done a lot of waiting. "With just trying to anticipate when are you going to get money, how much are you going to get, how much will be available," said Mills. "We did receive $2.3 million back in August," said account manager Randy Squadroni. "Even though that was helpful, it was not enough money to help us get through the year." A few weeks ago, the school district met with the St. Joseph County Treasurer's Office. "We wanted to make them aware that we just didn't have much news in terms of being able to set due dates and to allow them to be able to schedule for when they might receive distributions," said St. Joseph County Treasurer Sean Coleman. While the meeting was helpful, Coleman said, "It didn't relieve their crisis, [but] it did allow them to know what to expect." A final announcement for the tax bills is still unknown. "The delays in the process only mean more difficult times for local governments because they are faced with borrowing," said Coleman. It all adds up to interest costs — passed down to taxpayers. While Mishawaka trustees were hoping that Congress would support the government's bailout, they are confident they will receive a bid, in spite of the nation's current financial climate. Coleman says this isn't a problem that is only affecting Mishawaka Schools. South Bend Schools had to borrow money three times this year, according to Judy Tovey, a spokesperson with the district. Meanwhile, Elkhart Schools were also forced to borrow money. Most PopularMore Good Stuff |
WSBT WeatherWSBT Weather
Stock QuotesYouNews
This content requires the latest Adobe Flash Player and a browser with JavaScript enabled.
Click here for a free download of the latest Adobe Flash Player.
|
This content requires the latest Adobe Flash Player and a browser with JavaScript enabled.
Click here for a free download of the latest Adobe Flash Player.
Tonight On WSBTFull Schedule
7.00
Paid Programming
7.30
Jeopardy
8.00
The Mentalist
9.00
48 Hours Mystery
10.00
48 Hours Mystery
11.00
WSBT News
11.35
CSI: NY
12.35
CSI: NY
1.35
CSI: Miami
Question of The DayMost Popular
|
Sat, Nov 21
South Bend
