2013 Proposed Budget PresentationPresented to local media outlets

August 13, 2012

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

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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

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

Public Safety• Public Safety/Criminal Justice represents 85% of General Fund

• IMPD and IFD have received 14% cumulative salary increases since 2008– 2008 3%– 2009 4%– 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)

Despite the recession

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

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

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

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

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

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

Looking Ahead to 2014

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Q&A