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.
