CIB; Back on the Road to Bankruptcy?

The Capitol Improvement Board says using its fund balances to shore up city of Indianapolis’ budget shortfalls could put the agency back on road to bankruptcy.

Some Democratic members of the City-County Council have proposed dipping into the CIB’s $67 million fund balance to cover Indianapolis’ $65 million shortfall.  They see that as an alternative to eliminating the Homestead Property tax credit exemption and several other of Mayor Greg Ballard’s proposals.  Councilors have proposed levying a PILOT (payment in lieu of taxes) against the CIB.  PILOTS are used to get dollars from institutions that don’t pay property taxes.

However Leonard Hoops of Visit Indy says the fund balance is needed to shore up the CIB’s finances and it would greatly hinder its ability to promote the city.

Leon-Tailored Audio - Leonard Hoops, President of Visit Indy - (6 minutes)

CIB officials say $52 million of the $67 million is used to fund debt service and capital improvements.  The rest is for day-to-day operations.

In addition CIB attorney Toby McClamroch says there are serious legal questions as to whether the Council could levy the PILOT.  He says state law does not allow PILOTS to be levied against properties that have never been assessed.

The Council is expected to vote on the budget October 15.