VALPARAISO | With property tax bills delayed again this year, local municipalities may be forced to borrow another round of funds to stay afloat until they receive payments.

The Porter County Council began discussions Tuesday about whether the county should offer taxing units some type of relief to offset the anticipated interest on the loans.

Council President Bob Poparad proposed using interest from the hospital proceeds fund as a type of reimbursement. The fund, which was created after the county sold Porter hospital last year, has about $5 million of interest available annually.

Poparad said local taxing units spent more than $3 million in interest to continue to operate during last year's delay, and he hopes to prevent another year of skewed budgets and cash crises. The hospital fund essentially would subsidize the loans by paying for a portion of the interest.

"The use of the (hospital) interest money has bandied about, and the majority of us feel the money should go for property tax relief," Poparad said in a statement. "This, in effect, is property tax relief for all taxpayers in the county, whatever municipality it might be, as all taxpayers pay the interest costs."

Poparad's comments come in the wake of a state decision that instructed local officials to send out provisional tax bills for only 25 to 30 percent of the prior year's bill. Earlier this year, county officials were hoping to collect about 50 percent.

Poparad said this year's expected loans would not be nearly as high as last year, since taxing units will receive some funds from the provisionals, which are expected to be mailed in mid-June.

Four councilmen were appointed to a committee to collect information on the tax anticipation loans. Mike Bucko, Jim Burge, Bill Carmichael and Dan Whitten will contact local taxing units to find out how much money they expect to borrow this year and the anticipated interest amounts.

During the discussion, Bucko said he is not in favor of "biting the bullet to save the state."

"Personally, I just don't think this is the best use of the money," Bucko said. "We're here trying to be nice guys, but who and what loses because of that? An opportunity will be lost -- somewhere down the line taxpayers will lose out because of what is happening with the state."