From the Jeffersonville News and Tribune:
An ordinance establishing a separate checking account for the general fund was approved 5-4 Thursday, with New Albany City Councilman Kevin Zurschmiede labeling the move as a way to end the “open ended line of credit” administrations have used to pay bills.
Zurschmiede sponsored the measure, and said it spawned from consecutive years of the council being asked by administrations to approve funding to cover for money that had already been spent.
Essentially there have been cases where administrations have shuffled money from one account to cover spending in the general fund without the council’s approval, Zurschmiede said.
The money was moved so bills could be paid, as the city doesn’t always receive its tax revenue from the state and county in time to account for budgeted expenses, several council members said.
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By ordinance or resolution, state code calls for the fiscal body of a political subdivision — in the case of New Albany the city council — to approve a transfer for cash flow purposes.
Mayor Doug England’s administration was cited by the State Board of Accounts for failing to garner council approval before transferring $1.5 million of tax-increment financing money to the general fund for cash flow in 2009.
Administration officials at the time stated they didn’t realize the transfer required council approval.
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http://newsandtribune.com/business/x439048659/Measure-ends-co-mingling-of-some-New-Albany-funds
