2013 budget presentation 8 13 12

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2013 budget presentation 8 13 12

  1. 1. 2013 Proposed Budget Presentation Presented to local media outlets August 13, 2012
  2. 2. 2013 Budget Summary• Approximately $65M gap between revenue and projected base expenses• Revenue is down – Income tax down by $48 million from peak in 2010 – Property tax revenue decline of $10 million from 2012• Fixed costs increasing – Increased fuel costs – 3% state mandated increase in pension contributions – 7% increase in healthcare costs
  3. 3. Tax Revenue Indianapolis/Marion County $500 $450 $400 $350 $300 $250 Property Tax $200 Income Tax $150 $100 $50 $0 2007 2008 2009 2010 2011 2012 2013 In millions
  4. 4. 2013 Proposed Budget• City-County General Fund appropriation of $595M – 2012 General Fund appropriation was $569M – Approximately 2/3 of General Fund increase dedicated to IMPD, IFD and Sheriff’s Department – Does not include DPW, DMD or DCE• Flat base budget for all departments and agencies – Base funded at 2012 levels plus increases for costs of healthcare, pensions, and fixed costs – Marion County Sheriff budgeted at 100% of his request • 8% increase from 2012 General Fund allocation – All agencies took $20M base cut in 2012• $3M budgeted for merit based pay for performance civilian raises – Raises range from 0 to 3% – Does not impact union members• No use of Citizens Energy, Rebuild Indy or Fiscal Stability Fund dollars
  5. 5. Closing the $65M Gap• Reopen IMPD and IFD Contracts: $5.5M• Eliminate local homestead tax credit: $8.1M• Utilize $20M in City/County fund balances• Utilize $17M from Rainy Day Fund• Seek $10M reimbursement from TIF Districts
  6. 6. Public Safety• Public Safety/Criminal Justice represents 85% of General Fund• IMPD and IFD have received 14% cumulative salary increases since 2008 – 2008 3% Despite the – 2009 4% recession – 2010 5% – 2011 flat – 2012 1%• 2013 Public Safety Budget includes: – Implement fuel surcharge for take-home vehicles – Fund of Crime Prevention Grants at 100% of 2012 ($2 million)
  7. 7. Local Homestead Credit• Unnecessary in property tax cap era – No impact on homes already at 1% cap• State eliminated similar state-funded credit• City pays $13M to provide homeowners only $4.5M in tax relief• Average impact of $24 per year on homes not at 1% cap
  8. 8. Other Budget Notes• Arts grants funded at 2012 level ($1M)• Mayor’s Office Budget – $500K net increase in charges paid for ISA and OCC services and charges recovered for Mayor’s Action Center (MAC) – Personnel budget increased $270K • Increased healthcare and pension costs • Added Mayor’s Neighborhood Liaison to Mayor’s Office (from DMD) • Moved Minority and Women Business Development to separate department• 3% contracted increase for AFCSME members funded – Primarily DPW (SnowForce, pothole, and parks maintenance crews) contained within existing budget
  9. 9. IMPD Budget• IMPD General Fund budgeted at approximately $187M – 5% increase from 2012 budget of $177.8M – Does not include grant dollars or capital funds• 3% contracted raise saves $3.2M• Reassigned 20 officers from administrative to field duty• Lateral hiring to fill vacancies and maintain force size• Fuel Surcharge generates $1.4M – Surcharge equals cost of one tank of gas (current $51/month) – Surcharge rate slides based on gas prices – Use of vehicle for part-time doubles surcharge – Vehicle use limited to Marion County or I-465 perimeter• Non-budgeted additional saving opportunities – Restructuring of non-merit ranks/positions – Reduction in overtime – Consolidate training, academy, property room, etc
  10. 10. IFD Budget• IFD General Fund budgeted at $139M – 3% increase from 2012 budget of $135M – Does not include grants and capital funds• 3% contracted raise saves $2.2M• Local 416 is working with City to close gap – Transfer administrative positions to field to reduce overtime• Non-budgeted additional saving opportunities – Restructuring of non-merit ranks/positions – Reduction in overtime
  11. 11. Sheriff’s Dept Budget• Sheriff Department budget at $109.2M – 8% increase in general fund allocation – 2012 total budget appropriation is $101.8M• Increased budget for Jail II operations• Increased budget for inmate/arrestee medical care• Fully funded Deputy Sheriff pension obligations
  12. 12. Looking Ahead to 2014• Projecting $20M recovery in income tax revenue• Office of Audit and Performance charged with finding additional $15M in efficiencies• $13M remaining in Rainy Day Fund• $80M in Fiscal Stability Fund• Flat base spending projected from 2013 to 2014
  13. 13. Looking Ahead to 2014 Projected Indianapolis/Marion County Tax Revenue$400$350$300$250$200 Property Tax Income Tax$150$100$50 $0 2013 2014 2015 2016 2017 2018In Millions
  14. 14. Q&A

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