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April 30, 2013

Jeffersonville city council outlines cuts

Vote on budget reductions expected at the next council meeting

JEFFERSONVILLE —

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.

The largest cuts were made to the city’s parks department at $349,202, and the city’s sanitation department at $423,823. Cuts to the parks department also included $245,500 that was cut when the city received its 1782 notice.

According to a worksheet provided by City Controller Amy Deering, the parks department’s major cut came in its capital outlay line item. The total amount cut was $594,702, which reduced the total for 2013 in the line item to $858,119.

Shifting of employees resolved the cuts that needed to be made to the city’s sanitation department.

Stephanie Miller, administrative assistant to the Jeffersonville street commissioner, explained that 16 of the department’s 38 employee salaries should not be in the sanitation department’s budget.

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