Published: October 04, 2008 09:13 pm            

New Albany City Council will vote on freeing funds for cash flow

As predicted previously by some members of the New Albany City Council, the body is being asked to approve an emergency transfer of funds for cash flow purposes.

A resolution set to be voted on Monday would provide City Controller Kay Garry with $1 million for paying bills and salaries, the result of the city still not receiving property tax money from the county and state that usually arrives in May.

“Since there hasn’t been any taxes being paid we’re running short,” Councilman Jack Messer — who is sponsoring the resolution — said.

With disagreement among members, Councilwoman Diane McCartin Benedetti changed the amount of an appropriation in September from $150,000 to $60,000 that would have given Garry cash flow to deal with some of the issues without having to wait for another council vote.

The argument was that while $60,000 was to be used for police purposes, the remaining $90,000 had no earmark which made some council members uncomfortable.

While the resolution being brought to the council calls for $910,000 more than what was originally in the first appropriation, the money won’t be freed until after another council vote and a public hearing if it passes Monday.

That will likely take 40 days, as the appropriation also has to be advertised.

Messer and others supporting the original appropriation argued that type of wait would be unnecessary, but now it looks to be the only option.

“It’s a waste of time that {Garry} is going to have to come to us,” Messer said. “It’s the way the city has to work when we don’t have the money coming in on a normal basis.”

Council members who originally voted against a $150,000 appropriation, including Dan Coffey and Steve Price, said appropriated money should have a specific line item attached to it, a purpose that can easily be checked.

If the resolution is approved the money will be paid back to tax-increment funds when the city receives its portion of tax revenue from the Floyd County Auditor.

The wait for property tax money and rates will also likely lead to the council deciding to freeze the 2009 budget at its current level.



Also at the meeting

• A public hearing will be held and a vote taken on the additional appropriation of $250,000 to be used for storm damage clean-up. The council approved the initial resolution last month, but a second vote is required before the funds would be released. The money is coming from Economic Development Income Tax funds.

• Council members will meet at 6 p.m. Monday for a work session to tour the set-to-open Scribner Place/YMCA. The YMCA is scheduled to open Nov. 15.

• The council meeting will begin at 7:30 p.m. in the third floor assembly room of the City/County Building.

        

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