From the Jeffersonville News and Tribune:
The Jeffersonville City Council cut $2.5 million out of the city’s budget to account for money lost to state circuit breakers.
Indiana tax caps limit the amount that can be collected on property tax bills to 1 percent of a home’s assessed value, with 2 percent caps on farmland and rental property and 3 percent limits on business property. The city was notified in March that it would have to reduce its budget to $19.3 million, compared to $22.8 million last year.
Ordinance 2012-OR-30 outlined the cuts made to cover the shortfall. Among the departments that had the deepest cuts were three city council funds totaling $819,400; the city parks department totaling $294,000; the mayor’s office totaling $288,000; and more than $331,000 between the police and fire departments.
City Controller Monica Harmon said the actual cuts outlined in the appropriation reduction ordinance totaled about $2.5 million, despite the circuit breaker amount totaling $3.5 million, according to a previous report in the News and Tribune.
She explained that the difference will be covered by city revenues collected.
“We will make up the shortfall in other revenue,” she said.
Harmon said there are a variety of revenue sources that are helping to cover the gap, including previously unanticipated money from items like building permits for the Amazon.com distribution center. She said some of the additional revenue has already come in and even if what is expected is less than the total anticipated amount, there will be enough money to cover the shortfall.
Councilman Nathan Samuel offered a motion to suspended the rules and pass the cuts on one reading. The ordinance was unanimously passed, weeks before the city will start planning for next year’s budget.
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http://newsandtribune.com/business/x651523506/Jeffersonville-budget-cut-by-2-5M
