Following their failure to reach a quorum at their regularly-scheduled meeting on April 23, the Knox City Council last night met in a special meeting to conduct the business they were unable to conduct the week prior – particularly the re-establishment of the cumulative capital development fund for the city. Clerk-Treasurer Jeff Houston explained that because the fund is rate-driven rather than levy-driven, the percentage of funds going toward the cumulative capital fund decreases over time.
So, Houston explained, in order for the fund to get the full amount of money, the council must routinely raise the fund percentage up to five cents for every $100 of assessed property value. He said the council started the process last year, and have been doing it over a two-year period.
Houston said the funds can be used for virtually any legitimate city business, but will be focused on bid projects such as the County Road 300 East project or the work on the lift station. The state modified the law last year regarding the cumulative capital development fund, allowing the money to be used for any legitimate purpose.
Currently, Houston said the fund has roughly $104,000, and with the increase it should bring in another $48,000 per year.
The council approved the ordinance to re-establish the fund on its first reading, followed by another motion to suspend the rules and approve the ordinance on its second reading. The council will review the ordinance and vote on its third approval at their next regular meeting.