SCHERERVILLE | A downswing in the housing market has hit Schererville in its pocketbook.

During the past 10 years, annual building permit fees came in between $700,000 and $800,000. But last year, that number was down to $400,000.

"Schererville isn't building the amount of houses in 2006 and 2007 as in previous years," Clerk-Treasurer Janice Malinowski said.

To cover that unexpected shortfall, the town appropriated money generated by a hydrant user fee toward its general fund, money that one councilman said should've gone only toward public safety.

In July 2006, the town added a $3.80 hydrant user fee to customers' water bills. The town had been paying that rental fee out of its general fund to the water department.

"By moving it over to the ratepayers, it basically freed up a significant amount of money in the general fund to be used for other expenses and public safety," Councilman Hal Slager said.

Slager said he voted for the fee because he understood at least 30 percent of the funds generated would go toward public safety.

But building permit revenue has been down substantially.

"Because we had made this move, we have, in effect, a funding source to cover that shortfall," Slager said. "In my opinion, rather than every department sharing that burden a little bit, public safety ended up sharing the lion's share of it."

But the majority of the general fund covers public safety costs anyway. It ended up being a wash, Town Manager Bob Volkmann said.

"In essence, the money did go to support public safety, but it didn't increase the amount of money available," he said. "The money the town would've saved was going to be earmarked to support public safety funds for fire and police, but there was no savings because there was a drop in revenue."

Malinowski said she understands that Slager hoped the funds would support public safety.

"But it didn't work out that way because we didn't get the money in building permits," she said.

The council is making a concerted effort to keep public safety well funded, she said.

A developer who plans to build a lifestyle center in Schererville has agreed to donate $75,000 a year over a period of time toward the town's public safety.