North Jefferson News, Gardendale, AL

April 22, 2014

Gardendale council shifts economic development sales-tax revenue to new school system

By Robert Carter
North Jefferson News

GARDENDALE —

The Gardendale City Council has voted to divert some sales tax revenue from an economic development capital fund to the city’s new school system.

The vote to move the “surplus” funds, as the resolution calls them, came during Monday’s regular council session.

The transfer will amount to more than $2.5 million, which will be sent in three periodic payments, and will be used to fund the start-up expenses for the system. The new system will eventually be funded in part by the 10-mill property tax that was enacted late last year, but that money won’t start to come until 2015. Likewise, federal and state education funds will not flow into the system’s accounts for several months.

The board will get a $550,000 payment at the end of this month, to be followed by a $545,000 payment on July 31 and a final payment of $1,455,330 on April 30, 2015. The diversion came at the request of the new Gardendale Board of Education.

The resolution states that the rationale for moving funds previously designated for economic improvements was justified because of the findings of the feasibility study done before the system was created, which said that the system would “promote commercial and residential growth, result in increasing property values, and expand the city’s tax base.”

In other business, the council:

• gave first reading to two ordinances to rezone properties, as well as an ordinance to amend the requirements for structures zoned for multi-family residential

• Presented a proclamation to Danny and Nita Mordecai in recognition of their operation of Mordecai Sporting Goods, which was recently sold to new owners

• designated May 12-16 as Police Week

• upgraded a position in the administrative department from a laborer classification to administrative assistant.

The next council session will be held on Thursday, May 1; it is moved from its normal first-Monday time because of the Alabama League of Municipalities convention.