By Robin Vargo Leader Correspondent
KNOX — Clerk-Treasurer Jeff Houston presented a list of budget cuts for 2010 to be reviewed by the city council at its recent meeting. Houston was informed by the state that he needed to cut the budget. The state did not approve the asked-for $1.5 million, but did approve, $1.3 million.

“We had to cut $207,067, out of the general fund,” said Houston, “We could have appealed it (cuts from the general fund) and made cuts out of the cumulative capital improvement, because they also impact the amount of money we get. I’d like to keep those funds available to us.”
The cuts include: From the city judge’s office, $650;  police department, $29,894 for a new squad car and $1,000 for radio and computer equipment; fire department, $65,000 for a brush truck and $2,450 for radio equipment; Board of Public Works, $3,000 from the building fund, $9,600 from building addition fund and $17,000 from building demolition fund; sanitation department, $74,923 for the garbage contract and $1,103 from the maintenance of the landfill; city hall, $1,234 from outside signage; clerk-treasurer’s office, $1,213 from furniture, fixtures.
Houston assured the council that the cuts he presented were the best and would have the least impact. For instance, the council is looking into purchasing some property which has a run-down building on it. The council, in the event that they purchased this property, would like to demolish the existing building. Funds to purchase the property could come out of a different fund other than the general fund, if circumstances go well and the council purchases the property. The garbage contract money was another chosen area for cuts. The city raised its garbage pick-up rates last year and will raise the rates again toward the end of summer this year. It is Houston’s belief that these rate increases will cause the city to come out ahead and not need to budget money to pay for the city’s garbage pick-up. The city has come a lot closer to becoming self-sufficient since 2009’s rate increase, and August 2010’s rate increase should at least help the city break even.
“A couple of these (budget cuts in specific departments) are things that I suspect we will not have to use because we didn’t have to use them last year,” said Houston. “I know these are tough cuts, but next year will be the first year that the full implementation of (Circuit Breaker Tax) will be in effect, so next year may be tough too.”
“As much as I hate to see some of these cuts, it is a necessity,” said Mayor Rick Chambers. “We are a lot better off than other cities.” Chambers informed the council that he had cut his office’s budget by five percent.
The Circuit Breaker caps property taxes at one percent on homes, two percent on rental properties and three percent on business properties. Indiana Gov. Mitch Daniels would like to see these tax caps written into the state’s constitution.
The council accepted Houston’s recommended budget cuts.