Redkey looks at 2020 budget

REDKEY — The town’s initial budget estimate for next year shows an increase of about 5 percent.

Redkey Town Council took its first look at the proposed 2020 budget — $576,166 — during a special meeting Monday.

Clerk-treasurer Debbie James presented the budget, which is up 4.8 percent from the $551,493 council approved for 2019, to council members Terri Taylor, Doug Stanley, Ted Friddle, Dave Dudelston and Randy May.

James explained that she figured 3-percent increases for expenditures across the board, including employee salaries.

The only significant changes to the budget came in the motor vehicle highway and rainy day funds.

James bumped up the “other contractual” line item in the motor vehicle highway fund to $20,000 for 2020 to account for the addition of a part-time employee, which the town added earlier this year. The 2019 budget had only $1,500 in that line item.

The budget also calls for $3,500 in the rainy day fund, where no money was allocated for 2019. That amount matches what was budgeted for 2018.

The full breakdown of the budget, by fund, is as follows: general – $449,325; motor vehicle highway – $68,365; cumulative capital improvements (rate) – $15,657; park – $10,719; local option income tax (LOIT) – $10,000; economic development income tax (EDIT) – $10,000; rainy day – $3,500 cumulative capital improvement (cigarette tax) – $3,500; special education – $3,100; and local road and street – $2,000.

The next step in the budget process is for clerk-treasurer Debbie James to meet Thursday with officials from Indiana’s Department of Local Government Finance. The council in August will vote to give permission to advertise the budget, which will then be up for approval on first and second readings in September and October, respectively.

Redkey resident Erik Hammers, who will be a candidate for town council in the November election, asked questions about road paving in Pennville and how much money can be rolled over from a budget year.

Stanley explained that Pennville was able to complete significant paving this year thanks to an Indiana Department of Transportation (INDOT) Community Crossings grant. The local matching funds came from economic development dollars from Bluff Point Wind Energy Center. (Salamonia, Bryant, Dunkirk, Portland and Jay County also completed paving projects through those funding sources this year.)

Redkey used a Community Crossings grant last summer to pave all or part of Daugherty, Burr, High, Logan, Main, Union, Nixon and Mill streets, and Central Avenue. The town plans to apply again this year for paving in 2020.

On carrying over money from year to year, James explained that 10 percent of the dollars budgeted for a given fund may be moved to the rainy day fund.