IBJNews

CIB audit shows agency finances improving

Back to TopCommentsE-mailPrintBookmark and Share

The Capital Improvement Board’s financial outlook is looking a lot less gloomy as it continues to negotiate over who will pay Conseco Fieldhouse operating costs.

The CIB’s 2009 audit report, issued to the City-County Council’s Municipal Corporations Committee Thursday evening, shows the agency was $10 million in the black last year compared with a loss of $16.8 million in 2008.

Revenue slipped 4.6 percent, to $123.1 million. But the decrease was offset by an even more dramatic drop in expenses, which fell 22.5 percent, to $113.1 million in 2009.

The CIB has improved its finances by making $26 million in cuts and by delaying installments on $25.5 million in debt service reserve payments.

Staff reductions in 2009 resulted in a 14.4 percent drop in salaries and wages, to $11.3 million, according to the routine audit conducted by the State Board of Accounts. The CIB also reduced expenses related to repair and maintenance, security, parts and supplies.

The CIB anticipates meeting its financial obligations again this year, the audit said, but warned of continued volatility in the economy.

“Current economic conditions have made it difficult to predict future tax revenues,” the audit said. “A significant decline in tax revenues could have an adverse impact on the CIB’s future operating results.”

CIB revenue last year was hampered by a decrease in investment income and a drop in the amount of state and local taxes it collects—including the county innkeeper’s tax, food and beverage tax, admissions tax, auto rental excise tax, and a share of the state cigarette tax. But revenue would have been down even more in 2009 if not for a 1-percent increase in the innkeeper’s tax and an expansion of the Professional Sports Development Area to include the hotels that comprise the massive J.W. Marriott hotel complex.

Adding to the uncertainty is $15 million in annual Fieldhouse operating costs the CIB could inherit from the Indiana Pacers. The CIB owns the arena, where the Pacers and Indiana Fever play.

The Pacers’ current lease runs through 2019, but the team has an out clause if it is losing money. Pacers Sports & Entertainment contends it has been in the red every year but one since moving into Conseco Fieldhouse and can no longer afford to pay to operate the facility.

The team had hoped to have the situation resolved by June 30, but negoitiations continue.

ADVERTISEMENT

  • Funny Economics
    The funny thing about the improved finances of the CIB is that the increase in the budget of the CIB was about the same amount as their reductions in spending for this year.
  • Accounting 101
    What about the explosion of long term debt to almost a billion dollars?

    What about the deferment of tens of millions in building maintenance and the elimination of all of CIB reserve accounts?

    What about those Capital Lease Agreements?

    The CIB has no money to give the Pacers anything.

    They gave it all to the Colts!

    P.S.

    Maybe the Pacers will provide their audited financials now that the CIB has shown theirs;)
  • Wrong
    It's a gross mistatement to say the contract has an "out clause if it is losing money." It contains a Early Termination provision that allows the Pacers to break the contract if the team is being sold and moved out of the city AND is losing money. Even then the penalties are about $150 million.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. The deductible is entirely paid by the POWER account. No one ever has to contribute more than $25/month into the POWER account and it is often less. The only cost not paid out of the POWER account is the ER copay ($8-25) for non-emergent use of the ER. And under HIP 2.0, if a member calls the toll-free, 24 hour nurse line, and the nurse tells them to go to the ER, the copay is waived. It's also waived if the member is admitted to the hospital. Honestly, although it is certainly not "free" - I think Indiana has created a decent plan for the currently uninsured. Also consider that if a member obtains preventive care, she can lower her monthly contribution for the next year. Non-profits may pay up to 75% of the contribution on behalf of the member, and the member's employer may pay up to 50% of the contribution.

  2. I wonder if the governor could multi-task and talk to CMS about helping Indiana get our state based exchange going so Hoosiers don't lose subsidy if the court decision holds. One option I've seen is for states to contract with healthcare.gov. Or maybe Indiana isn't really interested in healthcare insurance coverage for Hoosiers.

  3. So, how much did either of YOU contribute? HGH Thank you Mr. Ozdemir for your investments in this city and your contribution to the arts.

  4. So heres brilliant planning for you...build a $30 M sports complex with tax dollars, yet send all the hotel tax revenue to Carmel and Fishers. Westfield will unlikely never see a payback but the hotel "centers" of Carmel and Fishers will get rich. Lousy strategy Andy Cook!

  5. AlanB, this is how it works...A corporate welfare queen makes a tiny contribution to the arts and gets tons of positive media from outlets like the IBJ. In turn, they are more easily to get their 10s of millions of dollars of corporate welfare (ironically from the same people who are against welfare for humans).

ADVERTISEMENT