From the Richmond Palladium-Item:
The city of Richmond might use income tax revenue shorted the city by the state to replenish a portion of money taken from its Rainy Day Fund to balance the 2011 budget.
That was the general opinion of the city administration and members of the Richmond Common Council during Monday's regular meeting at the Richmond Municipal Building.
City controller Tammy Glenn told council that the city will receive $461,856 this week in a "correction of error" that the Indiana Department of Revenue owed but failed to return to municipalities in the state agency's latest accounting blunder.
"It's simply a make up. It's not new money," Glenn told council members.
Glenn and Richmond Mayor Sally Hutton recommended that the $326,835 that was collected in County Adjusted Gross Income Tax, Property Tax Replacement Credit and County Economic Development Income Tax but was not distributed back to the city should be put in the city's Rainy Day Fund.
It would replace the approximately $400,000 borrowed from Rainy Day last year to balance the budget.
"We need to put it in Rainy Day since we took that money out last year," Hutton said. "I think we need to be cautious especially since we don't know what the state will come up with next."
The administration recommended the $110,021 shorted the city for the first three months of this year be placed in the general fund. Another $24,905 for January through April will be placed in the EDIT fund.
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http://www.pal-item.com/apps/pbcs.dll/article?AID=2012204170305
