The Knox City Council had to change the way it compensates for the circuit breaker tax credit in the city’s budget.
Back in April, council members approved a budget reduction resolution, to acknowledge that a certain amount of money won’t be coming into the city, due to property tax caps. But now, the Department of Local Government Finance says that’s not how the paperwork should be done, according to Knox Clerk-Treasurer Jeff Houston. “They told us that they did not want us to do a budget reduction,” he explained. “It was not a budget reduction, in that we were not reducing the amount of our appropriations. We were just conforming to the budget order.”
To fix the issue, the city council passed another resolution Tuesday that will repeal and replace the previous one. Houston says the change will make the paperwork more compatible with the DLGF’s software.
