Published: August 20, 2008 04:29 pm      

Engle wins $60,000 grand prix

Engle wins $60,000 grand prix projects within the TIF area, such as the project to reconstruct 106th Street between Zionsville Road and U.S. 421.

The town also has set aside $3.5 million for working capital and $700,000 for a rainy day fund. The working capital is essentially interchangeable with the rainy day fund, but is specifically in place to cushion the town’s budget until the state provides the town’s allotted tax distribution. The state is behind on distributing the 2008 tax draw, and many Indiana towns will have to take out loans to make ends meet until it arrives.

For the rainy day fund, Mitro said every town should have money stashed away in case of a disaster.

While a major natural disaster is unlikely, there are impending fiscal challenges facing Zionsville, as well as every town in Indiana.

For example, the state legislature passed a large-scale tax reform bill this spring that caps residential property taxes at 1 percent. The Legislative Services Agency calculated that when the reform goes into effect in 2010, Zionsville will lose nearly $800,000 per year because 93 percent of the town is zoned residential.

In addition, the proposed government reorganization plan on the ballot in November means uncertainty for the town’s finances. Although town officials will prepare for the expansion that would go into effect in 2010, there could be growing pains as the town adjusts to a new government structure.

“This is a very good place to be with both of those things looming over our head,” Mitro said of the town’s reserves. “We want to maintain a budget that is fundable and not dip into reserves.”

He believes the main reason Zionsville has been able to maintain a healthy budget is because department heads have been prudent in their spending.

“We routinely underspend our budget,” Mitro said. “It’s almost a contest between our department heads to see who can bring the most back at the end of the year. Many communities view budget as ‘use it or lose it’, but we encourage being more prudent.”