This is still in the preliminary stages of investigation, but a town councilor in Indiana may never had been a resident of the district in which he was elected (a requirement by law).
Furthermore, there is talk of redrawing the district so this town councilor will be in the district, which if I recollect correctly, it is too late to do for the November 2007 election. If I recollect the law correctly, after the Decennial redistricting is approved, a municipal district can not be redraw during the one year period before the next municipal election. It's too late to do so for 2007.
Luckily for the citizens of this town, the local Libertarian Party affiliate is involved and is diligently making sure this matter is properly investigated and properly handled by the local authorities.