St. Joseph County returns $3 million to Mishawaka

A month after asking for $8 million back because of a distribution error, St. Joseph County has returned nearly $3 million in property tax revenue to Mishawaka. The city received the money this week in the form of a check from the auditor’s office for $2,775,248.18. Unexpectedly, Transpo also received a check, but for far less — just $137,614.22. Like Mishawaka, the public transportation company was forced last month to return a portion of its original property tax settlement, an amount totaling $416,000. "This gives us a little room for comfort as we tackle future budget challenges," Mishawaka Mayor Jeff Rea said of the additional money. The distributions come at the expense of five other taxing units, all of which had to return money. They include: — St. Joseph County: $751,804.65; — School City of Mishawaka: $1,417,639.71; — Mishawaka Penn-Harris Public Library: $189,766.95; — South Bend Regional Airport: $46,616.38; and — Penn Township: $507,034.71. Those units received letters this week informing them of the situation, and also of a "fail-safe mechanism" created "to avoid a similar situation in the future" — namely new tax software. The $2.8 million returned to Mishawaka increases the city’s tax collection from a meager 80 percent to a more respectable 91 percent, but still leaves the city with a budget shortfall of nearly $1.8 million. As a result, Rea has asked city departments to limit discretionary spending, especially in regard to capital purchases. "We have to be really sensitive to cash flow right now," he said. Mistakes in the distribution of property taxes came to light in late January, when the county asked eight taxing units, including Mishawaka, to return a combined $10.4 million. Mishawaka’s portion of that total came to about $8 million, more than 10 percent of the city’s annual budget. Asked today if he is confident now that the county’s property tax issues have been resolved, auditor Pete Mullen replied simply, "Yes, I am." Staff writer Erin Blasko: eblasko@sbtinfo.com (574) 235-6187