Residents question city budget

TERRE HAUTE, Ind. (WTHI) - Terre Haute is planning next year's budget, but some citizens have concerns over the city's current debt.

In a special public hearing on the budget the city council and mayor heard concerns about the financial state of the city.

It's been a topic of discussion several times this year: the city's debt and the deficit in their budget.

Several city council members have raised concerns over the state of the city in the past and Thursday night several citizens joined them.

"The general fund had a 6 million dollar positive balance at the beginning of 2009. Three years later it's got a 4.5 million dollar negative balance,” Earl Elliot a concerned citizen said.

Elliot stepped forward as one of several residents distressed over hearing the about the city's budget shortfalls.

As an accountant he took it upon himself to look at the numbers. But, he says he wants the information made available to everyone.

"You know open honest discussion and transparency with the administration, the council and the taxpayers that pay the bills,” he said.

Given a chance to respond, Mayor Duke Bennett first addressed the negative balance in the general fund.

"The one we need to deal with is the general fund, and the problem with that is we've lost 21 million dollars over the last few years, and so it’s hit the general fund. The majority of that, 18 million of that 21 million, has come directly out of the general fund,” Bennett said.

The mayor says a majority of that lost revenue is caused by the property tax caps that went into effect in 2010.

Each year the city has been given figures from the state that explains what they stand to get from taxes; and each year they are lower than expected.

But he says they plan to solve the debt problem this year.

"By the end of the year our goal, with some council action, we'll be able to wipe out that deficit and end the year with a small cash balance. If they choose not to implement some of the things we are gonna propose, we can get to that point next year,” Bennett said.

The city council will vote on the 2013 budget on October 29th.