An error in Iolas prepared budget will likely result in a second hearing before City Council members can approve the citys 2019 spending plan.
City Administrator Sid Fleming explained the mistake.
A July 30 public notice detailing the 2019 budget spelled out expenditures for the city totaling $28.4 million, but did not include money shifted from equipment reserve funds into a separate line item for a newly developed Capital Improvement Projects fund about $3.3 million.
The CIP line item should make it easier and quicker for city planners to determine how much money should be set aside for utility departments for such things as equipment purchases and major projects.
But without the CIP included in the July 30 notice, that means the Council must republish the budget to give the city the authority to set aside the funds.
It should be noted the spending plan spelled out by Fleming is still about $200,000 less than what the city plans to spend this year a fair amount, but not the $3.3 million difference from the initial budget notice.
Fleming will ask the Council on Monday to set an Aug. 27 budget hearing for the final budget approval.
He said he has contacted the county about the revised timeline.
The higher budget authority will have a minimal effect on the expected ad valorem levy Iolans must pay in the form of property taxes.
The anticipated levy of 48.5 mills is less than a 10th of a mill higher than was paid this year.
That means the owner of a $75,000 home will pay about $418 in taxes to support the city in 2019, within a dollar of this years levy. The levy does not account for taxes to support Allen County, Allen Community College or USD 257.
IN RELATED budget news, Council members are expected to go back to local voters to renew a half-cent sales tax, which is set to expire at the end of 2019.
The sales tax has been in place since 1989, and has been extended by local voters three times since then, with revenue earmarked for major street projects and other capital improvements.
The city also has agreed to use a portion of the tax $300,000 annually to support Allen County Regional Hospital since the new hospital was built in 2013.
Fleming was uncertain if the county would approach the city again for assistance if the sales tax is extended.
