(WSBT) Money from property taxes won't be available in some counties for another couple of months. That means cities have to take extreme measures to pay the bills. Many cities are cutting back on spending until the money starts flowing again. Others are taking out loans.

Mishawaka has put a hold on non-essential spending, and may have to borrow money in 30 days. The city of LaPorte has put a hold on new streets projects and the clean-up of the site of a proposed development. LaPorte County can't set its property tax rates until both Porter and St. Joseph counties set theirs.

That's because some school corporations cross county lines.

So headaches for city leaders such as LaPorte Mayor Leigh Morris continue.

“We've exhausted our cash,” Morris said. “We have about a million in cash left at the moment, which will probably get us through the month of August.”

This week, the city council voted to approve a multi-million dollar loan.

“That's going to cost us significantly,” Mayor Morris said. “It's a 5% interest rate on $5 million loan to get us through the rest of this year.”

The city of South Bend is taking out what’s called Tax Anticipation Warrants. Those warrants are sold to banks to provide financing for the city to help pay its bills. The money has to be paid back, so it is essentially a loan.

“Our city's in good financial shape,” said Charlotte Pfeifer, chair of the Common Council’s Personnel and Finance Committee. “This is a measure of making sure our bills get paid, that all of our employees get paid and all of the things we want to do get done.”

School corporations are also taking out loans. It's more critical for them, because classes start next month. All this borrowing could have an impact on next year's budgets, because all the interest on the loans has to be paid back.