“We are confident we have more than enough coverage,” Merkley said. “Obviously, redevelopment is expecting some assistance from LOIT down the road on the bond payments.”
The city’s plan is to pay off the bond debt using public safety LOIT funds, but a state restriction will not allow the money to be pledged as the source of funds to repay the bond. As a result, the city, and subsequently the redevelopment commission, had to approve the TIF money as the source of the bond’s repayment.
Financial reviews presented by the city and accounting firm Umbaugh and Associates show that the LOIT funds will be sufficient to cover the bond payments. The 2013 disbursement of LOIT money to Jeffersonville is expected to total $2.2 million, leaving an estimated $1.4 million remainder in the fund after the bond payments has been made.
“The plan is to break ground by June 1,” Merkley said.
SALARY ORDINANCE CHANGES
City Engineer Andy Crouch was on hand at the beginning of the meeting to request a water resources coordinator be added to the salary ordinance. The position will be paid a minimum of $37,391, manage all drainage projects for the city and be paid for by the Drainage Board.
The position was approved to be added to the city’s salary ordinance. While the resolution to add the employee was approved, as well as revisions to the salary ordinances on its first reading, an ordinance outlining some cost-cutting measures was tabled.
The council was hesitant to move forward on the action, which includes consolidation of parks funds and cuts to the department of $245,500. The action would also change the reporting structure of employees in two city departments.
City Court Judge Ken Pierce presented three state statutes that outlined the duties and employees he is to hire to manage the city court functions.