VALPARAISO | Concern over the parks department's financial future has eased somewhat with the help of volunteers and an $800,000 loan from the city's rainy day fund.

Parks Director Steve Doniger told the Park Board on Tuesday the loan has turned what would have been a $400,000 to $500,000 deficit into a $468,179 balance after the first six months of the year despite the fact the department has not received any of its 2007 property tax revenue normally paid by this time.

"We've used the loan to keep the services and maintenance of the parks running," Doniger said. "What we are not able to do is make major reinvestments in things or start new programs."

In early spring the board talked about possibly making drastic cuts in personnel and programs because of continuing delays in receiving property tax revenue. Doniger said additional anxiety was caused by rising costs and uncertainty over the impact of the state law imposing a cap on property taxes ranging from 1 percent to 3 percent of assessed value.

"We always want to be very conservative in our planning," he said. "We wanted to position ourselves so people would use their recreation dollars locally. What we've found is fewer people are buying season golf passes, but rounds are up and greens fees are up at both courses.

"We're seeing our youth programs increased. The soccer program has been a big boon to us. Our day camps are still being used to the fullest extent. If families need child care, they are still going to us. Their discretionary dollars are still going to the parks to provide programs. All the programs have been used.

"We are cautiously optimistic about where we are at in the recreational world," he said. "What we are finding is people still want to spend time with their families and be out, and the neighborhood park is the place to do that.

"Valparaiso citizens are still demanding a high level of services and they are willing to pay for it, but we are seeing a large number of volunteers willing to put in the sweat equity. That enabled us to hold off on expenditures and use that money on other things."