1. 2013 Proposed Budget
Presentation
Presented to local media outlets
August 13, 2012

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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 2018
In Millions

14. Q&A