From the Indianapolis Business Journal:
The Capital Improvement Board hopes a formal proclamation it adopted Monday will deter some City-County Council Democrats from moving forward with a plan to tap its coffers to plug the city’s budget gap.
Council Vice President Brian Mahern is leading a charge among Democrats who want to collect “payments in lieu of taxes” on CIB-operated properties in Indianapolis.
The so-called PILOT fees would be collected on properties that are exempt from property taxes, including the Indiana Convention Center, Lucas Oil Stadium, Bankers Life Fieldhouse, Victory Field, Capital Commons and a Virginia Avenue parking garage.
It's not yet clear how much the payments could raise. City officials are looking for ways to close a $65 million shortfall in Indianapolis' $595 million general fund, which covers daily operating expenses.
The once-cash-strapped CIB expects to have a balance of about $67 million by year’s end. But the municipal agency’s president, Ann Lathrop, insisted that much of the reserve—$52 million—is earmarked for debt payments and improvements to the properties.
“Once you peel those two out, you still have mall investors and a state loan,” Lathrop said of the CIB’s additional obligations.
More than $33 million in Circle Centre mall investor loans come due in 2017 and a pair of $9 million state loans mature in 2019 and 2020, adding to the CIB’s debt obligations. In addition, city tourism bureau Visit Indy needs financial help to replace a $2.5 million grant to market the Indiana Convention Center.
And without sufficient cash reserves, the CIB likely would cut contributions it provides to the Indiana Black Expo, Indiana Sports Corp. and Indiana Arts Council, Lathrop argued.
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http://www.ibj.com/cib-standing-firm-against-city-plan-to-tap-reserves/PARAMS/article/37147
