Monday, February 20, 2012

State Cuts Shelbyville Budget

"The Shelbyville Common Council is trying to wade through more city budget issues after getting the 2012 budget back from the state.

The state made cuts in several areas, including the city's general fund, despite efforts by the council late last year to cut $1.8 million to try to offset an expected shortfall.

It's unclear if the state took those cuts into account when they finalized the budget.

...

One notable fund was the utilities fund. The council voted in January to pay the city's fire hydrants from racino funds, which should have cut the utilities budget and left property tax money for use elsewhere. The state didn't take that into account in its returned budget, probably because that was passed in January.

Zerr said he will look into whether he can take money from that fund and put it elsewhere.

Other funds, including the cumulative capital development fund, had steep cuts. The fund pays for things such as police cars and leases on fire trucks and ambulances.

The city also borrowed $750,000 from the sewage improvement fund to help pay health insurance costs for employees and $328,000 from the economic development income tax fund to shore up the budget, which the city will have to repay this year.

Mayor Tom DeBaun said is considering cost saving moves such as asking department heads not to replace someone who retires or quits."

http://www.shelbynews.com/articles/2012/02/09/news/doc4f318a830df23366248653.txt