Burns Harbor park director Kim Burton asked for direction Wednesday from the Park Board after learning that the department likely will use up all its 2009 budget appropriations with five months yet to go this year.

A $2 per-hour increase over the past two years in the minimum wage, higher insurance costs and developing/maintaining a new third park were blamed.

“What am I supposed to do, keep the people working?” asked Burton.

It was agreed daily lifeguarded swimming at Lakeland Park will end Aug. 17. Duneland School Corp. resumes classes Aug. 19. Additional weekend swimming could be allowed, budget and weather permitting.

Tonight’s Back-to-School family party at Lakeland from 6 to 8 p.m. is funded with donations and will take place with pizza, a DJ, snowcones and activities as planned.

The season’s last children’s day camp will continue, and rentals of the arts & crafts building and shelters will be honored. Park Board members indicated they would call a special meeting if necessary to deal with the budget crisis.

Clerk-treasurer Jane Jordan attended Wednesday’s meeting to explain the park’s options. They were few.

Jordan said this year’s proposed park budget of $70,005 hasn’t been approved by state tax officials who still could order cuts, which would complicate the existing problem.

Prior to the 2001 Bethlehem Steel bankruptcy that dramatically slashed all town revenue, the park budget was $92,000. For a time the Park Department operated on donations alone, but its budget has remained about $70,000 the last three years.

The Park Board plans to have a representative at next Wednesday’s Town Council meeting to discuss the current situation.

Authorized spending limits known as appropriations and cash-on-hand are two separate matters. The park can’t spend money that wasn’t appropriated, and an appropriation can’t be used unless cash is there to back it up.

Burton inquired about a loan from the town’s Rainy Day fund. Jordan said the park has no way to pay it back so the loan can’t be made. All town departments have been using money from the Rainy Day fund while awaiting distribution of 2009 property taxes, income that will be used to repay those loans.

Vote was 3-0 with Leann Perrine absent to cover payroll for maintenance and teen help out of the park’s $5,600 non-reverting fund where Lakeland gate fees are deposited. The park donation fund has $900, but donations earmarked for a specific purpose can’t be used for operating expenses.

While there is $30,000 in the non-reverting capital fund from a payment in lieu of land for Parkwood Estates subdivision, that money can’t be used for operating expenses either, only for capital park improvements and purchases.

Park Board member Clark Hamilton said he will not take his $400 annual board salary this year so the money can be transferred to another line item. Members Jennifer Barnes and Ron Day did not make a similar offer.

Burton said park maintenance will be kept to the minimum possible and no large projects are being undertaken. Ways were discussed to cut costs in the first months of winter this year when NIPSCO bills will increase; only $289 is left in the natural gas line item.

Burton said added maintenance costs this year for the new Bolinger Park in Harbor Trails subdivision had to be absorbed without a budget increase, and new parks in Trail Creek and Corlin’s Landing subdivisions eventually will be coming online as well.

In addition to Lakeland and Bolinger parks, Burns Harbor now has Shadyside Park.

Day said people in town want parks to expand but the Park Department doesn’t get more money when they do. Agreed Burton, “We can’t keep adding more parks and property without more for salaries because we have to maintain it.”

What will happen with the 2009 park budget is unresolved, let alone 2010’s that has to be submitted soon. Jordan said the 2008 budget, which typically is approved by the state in February, wasn’t until late October last year.

“What this means for next year is a lot of restructuring and rethinking,” said Hamilton.