Capital Funds and Operating Funds

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CincyStreetcar.com

Q: Can the City of Cincinnati use Capital Funds to pay for city employee’s salaries?

Lea Eriksen, City Budget Director

A: The sources of funding for the City’s General Capital budget include a dedicated portion of City’s Income Tax (0.15% of the 2.1%), a dedicated portion of the City’s Property Tax (5.36 millions out of 9.89 mills), and lease payments from the City owned Southern Railway.   All of these sources are restricted by City Charter and/or State Law to be used for “permanent improvement” purposes.  A permanent improvement is defined as an asset with a useful life of at least five years and a value of at least $10,000.   The City can not by Law use the funds from the General Capital budget to pay for operating expenses such as Police Officer salaries.

The sources of funding for the City’s General Capital budget include a dedicated portion of City’s Income Tax (0.15% of the 2.1%), a dedicated portion of the City’s Property Tax (5.36 millions out of 9.89 mills), and lease payments from the City owned Southern Railway.   All of these sources are restricted by City Charter and/or State Law to be used for “permanent improvement” purposes.  A permanent improvement is defined as an asset with a useful life of at least five years and a value of at least $10,000.   The City can not by Law use the funds from the General Capital budget to pay for operating expenses such as Police Officer salaries.

5 thoughts on “Capital Funds and Operating Funds

    5chw4r7z said:
    August 24, 2009 at 9:02 am

    Coast makes a big deal about how easy to understand their anti-progress amendment is, so I hope they find this just as easy to understand.
    Although I think they are more interested in FUD than the truth.

    Adam said:
    September 2, 2009 at 5:29 pm

    The next question is, how difficult would it be to change the rules so that money from the General Capital budget could be used to pay for city workers?

    Penny Stocks said:
    September 5, 2009 at 12:06 am

    Great site and nice article really like what its talking about, I will be linking back to your site from mine.

    Penny Stocks said:
    September 5, 2009 at 12:06 am

    Great information, I will be linking back to you and going to look around at your other posts.

    Penny Stock Picks said:
    September 7, 2009 at 11:19 pm

    Great information, I will be linking back to you and going to look around at your other posts.

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