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May 7, 2013

Jeffersonville approves cuts and salary ordinance

Changes still require final readings from city council

JEFFERSONVILLE — The Jeffersonville City Council preliminarily approved cutting more than $2.48 million from this year’s budget at its Monday night meeting.

An ordinance — 2013-OR-9 — was approved on its first and second readings to reduce Jeffersonville’s 2013 budget to make up for the amount lost to property tax cap circuit breakers.

Indiana limits how much money can be collected in 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.

The total cuts the city was required to make to fall within the guidelines of the 2013 budget was $3.25 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 is $28 million.

Earlier in the meeting, ordinance 2013-OR-4 was passed on its third and final reading to approve cuts made to the city’s parks department as required by the 1782 notice returned by the Department of Local Government Finance.

An additional cut to the parks department budget of about $350,000 and cuts to the city’s sanitation department of more than $450,000 accounted for the bulk of the reductions. The remaining amount was cut in a work session by the council last week.

A large portion of the cuts to the sanitation department came as a result of moving employees’ salaries out of the operating fund and back into the city’s motor vehicle fund.

Among the other cuts made during the work session, and approved Monday, were across-the-board cuts for performance-based pay, which allows department heads to give their employees raises in a given year. Approval of the ordinance on its third and final reading will still be required before the cuts officially go into effect.

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