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City $$$

The Ballard administration says the city’s finances are improving, even though Indianapolis faces declining revenues due to tax caps and declining revenues to local governments.

City Controller Dave Reynolds says the Indianapolis can expect $25-30 million in less revenue for the 2011 budget.  The good news however is that the interest on the city’s debt service has dropped from $166 million annually to $147 million.

The total outstanding debt for all Marion County government is $6 billion, with $2.3 billion of that debt tied to property taxes and 80% of that debt goes directly to schools.

Reynolds says the City plans to use efficiencies  to address the revenue shortfall.  It expects and 8% loss in revenue due to tax caps and $20 million in declining income and sales tax disbursements from state.

He also says the city’s finances will impact upcoming negotiations with the city’s unions and he is asking all agencies to constrain their spending as much as possible.

The city budget hearings will begin later this summer.

  • Hector

    I can't believe that Ballard would say that with a straight face. Is this part of his scheme to give a $15 million gift to the Pacers. I hope he doesn't think the citizens of Indy are dumb enough to believe this crap he is peddling.

  • Think Again

    Hector and Abdul: city finances are a maze of puzzles, and it's almost impossible to get your arms around all the pieces at any one time. Reynolds sure hasn't. And to scare you a ltitle more: of the 29 city council members, maybe 5 have it correct. From either party.

    Oft omitted from these puzzles: municipal corporations, whose budgets are, well, “odd” at best. And total debt is sometimes difficult to process, too, because those muncicorps can issue debt as well.

    Who fed you the 80-20 number, Abdul? Did you see any reason to check it out?

    This recession isn't getting much ebtter. Methinks the sales/income tax shortfalls will continue, perhaps for 2012-13, too.

    Ballard is going to have to start talkign about the kinds of cuts faced by almost every school board and public entity in Indiana. It's not a fun conversation.

    Ask Jackie Nytes and joanne Sanders. They saw this coming four years ago, and started going through each item of the city-county budget. Those budget hearings on Ch. 16 were painful to watch. Form the viewer's eye, they got almost no cooperation. In fact, elected officeholders often politely reminded them their budgets were “their own.”

  • pascal

    I wonder if our fiscal idiots are still borrowing money to meet operational requirements? And, since I don't know, does the “interest expense” mentioned include or not include the principal of the debt incurred or does our woodpile have something hiding in it like a repayment also of what we borrowed? If so, what is the plan to find the dollars to repay that?

  • Think Again

    Pascal, some of this is federally-mandated, and, quite frankly, too-long-delayed. Our Combined Sewer Overflow issue, for example, was first apointed out in the late 70s. The cost to (borrow and) fix it then was one-fifth what it is today.
    So it's true: problems delayed are problems amplified. But hyet, we had those Hudnut-Lugar-Goldsmith years with almost no new taxes!
    Yesssiree! We can't take a dump when it rains, but we had no new taxes.
    The fix: now almost a billion dollars.
    Another expensive fix delayed: the jail. A conservative Republican federal judge told the county to fix this mess 14 years ago. It's not completely fixed yet–it's a bunch of band-aids.
    I'll give Ballard and Peterson this much: both have stepped up to deal with these problems. Waiting more could cost us fines and even-higher costs.

  • pascal

    CSO systems were considered so state of the art that in Chicago the sewers were laid on the ground and the buildings were jacked up over them. For years the City was multi-level. The ground under those buildings became the “underground” later a term for the criminals who hid out there. The Tremont Hotel was raised by a crew of a thousand or so men twisting jackscrews without a single pane of glass being broken. Prior to Chicago, only Hamburg, Germany had a state of the art CSO system.
    What is the problem of the public's health with a CSO system?