DYER | The town's streets have been giving its residents a major headache for years, and things will not be getting better in the short term.

Town Manager Joe Neeb told the Town Council last week that Dyer will not be able to borrow more money this year to fix its streets due to House Bill 1001 being signed into law. The law caps property taxes, thereby reducing the amount of revenue to local governments.

Dyer must get its budgets below the ceiling stipulated by the new tax caps before it can borrow more money, a process that will take at least a couple of years. The town only has $100,000 of its street bond left and, when adding money from the lease of the Indiana Toll Road, Dyer will have $500,000 to spend on street repair in 2008.

That amount will pay for only about a half-mile of roadwork, Neeb said, adding he estimated there is $24 million of street repair left to do.

Despite the $1.9 million in street bond money that's already been spent, "Some of the neighborhoods are still in bad shape," he said.

House Bill 1001 does provide an alternative funding mechanism. Via a referendum, the town can ask residents to vote on whether to fund projects like street repair -- up to $10 million.

Such a referendum may go before voters this year. Neeb says there is not enough time to get a street referendum on the primary ballot this spring, but there could be one in November.

"I think we'll get it done," Neeb said. "(But) it'll take the (whole) town of Dyer to do it."