The Jeffersonville City Council mapped out the cuts it plans to make at a special meeting Monday to pull the budget within the reductions needed as a result of circuit breaker tax caps.
The city was forced to cut $3.25 million out of its budget to cover the reductions as a result of hitting the tax caps. The state of Indiana limits how much money can be collected in property taxes. It limits property taxes for individual homeowners at 1 percent of the assessed value of the property, 2 percent for rental properties and 3 percent for businesses. Any amount over the percentages cannot be collected by the taxing unit.
Indiana’s Department of Local Government Finance approved Jeffersonville’s 2013 general fund budget at $25.6 million, the same amount at which it was submitted by the council. The Parks Department budget before the tax caps totaled $2.7 million, and the Sanitation Department’s budget totaled $2.99 million.
With the tax-cap hit taken out of all of the budgets that were approved for the city, the total amount Jeffersonville has to operate on for 2013 was $28 million. In 2012, the city was forced to cut $3.5 million out of the city budget to account for the caps.
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