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COLUMBIA CITY â Columbia City Mayor Jim Fleck addressed the townâs Common Council on Tuesday and warned the five-person panel that the city could see another financial hit coming in the next year or more.
Fleck reported at the tail end of the boardâs regular session that heâd attended a conference with other Indiana mayors and received word regarding an âover-distributionâ to local governments across the state of about $660 million.
âIn effect, they (the state of Indiana) gave us a loan. Itâs not anybodyâs fault,â Fleck said, âit's the fault of the system and the recession.â
Fleck explained that the state issues revenue to local municipalities based on previous tax revenues.
âOur distributions are two years after we collect taxes,â he said.
Since Columbia City is currently operating with a surplus, Fleck said, âit looks as though weâre going to be fine.
âBut next year when we get 2010âs certification, the expectation is we will have a shortfall.â
Fleck went on to explain that now is the time for the city to prepare for that expected dip in revenue.
âWhat theyâre telling us now is that while we have this excess, weâre to bank it,â he said.
âThis may only be a one- year blip, but it will be a severe blip. It will work itself out.â