Tom Guevara, the town's financial advisor with Crowe Horwath, told the Speedway Town Council during the July 29 and 30 budget meetings to be prepared for financial difficulties in 2011 and 2012, due to the economy and circuit breaker thresholds decreasing by a half percent across the board.
"It is unfortunate, but if the circuit breakers don't get you, the economy will.
said the worst years are ahead because this year's economy will not be felt until 2011 and 2012.
explained that property tax levies are based on the average change in non-farm personal income for the prior six years.
told the council last year to keep a reserve cash balance of around 15% to 20% to prepare for difficult times.
Councilor Gary Raikes asked if the town was maintaining its reserves, Guevara could not answer since the 2009 taxes have not all been distributed.
cautioned the town that the CCD fund will probably drop because the legislature failed to pass HB 1447 to neutralize the effect of raising the homestead credit deduction for homeowners to $45,000.
said the change in homestead credits could lower the assessed valuation by 12 percent.