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CIB financial situation improving

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Year In Review

The past year has been mighty unkind to the Capital Improvement Board, the entity charged with operating the city’s professional sports venues and Indiana Convention Center.

It began the year projecting a 2010 budget deficit of $47 million. The major culprits: $15 million in expected Conseco Fieldhouse operating costs next year and additional expenses involved in operating Lucas Oil Stadium.

A provision that allows the Indiana Pacers to break their lease after 10 years could trigger the additional cost to keep the team in the city. An agreement has yet to be reached, although CIB officials continue to negotiate with the team.

CIB may assume Fieldhouse operating costs from the Pacers. (IBJ File Photo)

Excluding the Pacers dilemma, CIB made great strides in 2009 to shore up its finances and is on target to turn the deficit into a surplus—additional money that could be used in negotiations with the team.

The organization has improved its finances by making $26 million in cuts this year and by avoiding $25.5 million in debt-service reserve payments. It also is poised to collect roughly $11 million more in annual revenue.

CIB has reduced its operating budget from $78 million at the beginning of this year to a proposed $63 million in 2010, although the organization anticipates spending as little as $52 million.

Cuts include:

• $4.5 million in budgeted renovations to CIB-operated facilities.

• $3.5 million in grant awards, including $2 million to cultural tourism efforts and $1 million in city arts funding.

• $2.5 million in salary and benefits costs from job cuts and continuing unpaid furloughs. Eleven positions have been eliminated, and pay cuts range from 5 percent to 15 percent.

• $2.2 million in printing, advertising and supply costs.

• $1 million in maintenance expenses.

In addition, the General Assembly approved a 1-percent increase in Marion County’s innkeepers’ tax, allowing the organization to capture an additional $3.4 million in annual revenue.

Lawmakers also approved expanding the Professional Sports Development Area, which enables CIB to receive $8 million in sales taxes expected to be generated at the new downtown J.W. Marriott hotel.•

 

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  1. These liberals are out of control. They want to drive our economy into the ground and double and triple our electric bills. Sierra Club, stay out of Indy!

  2. These activist liberal judges have gotten out of control. Thankfully we have a sensible supreme court that overturns their absurd rulings!

  3. Maybe they shouldn't be throwing money at the IRL or whatever they call it now. Probably should save that money for actual operations.

  4. For you central Indiana folks that don't know what a good pizza is, Aurelio's will take care of that. There are some good pizza places in central Indiana but nothing like this!!!

  5. I am troubled with this whole string of comments as I am not sure anyone pointed out that many of the "high paying" positions have been eliminated identified by asterisks as of fiscal year 2012. That indicates to me that the hospitals are making responsible yet difficult decisions and eliminating heavy paying positions. To make this more problematic, we have created a society of "entitlement" where individuals believe they should receive free services at no cost to them. I have yet to get a house repair done at no cost nor have I taken my car that is out of warranty for repair for free repair expecting the government to pay for it even though it is the second largest investment one makes in their life besides purchasing a home. Yet, we continue to hear verbal and aggressive abuse from the consumer who expects free services and have to reward them as a result of HCAHPS surveys which we have no influence over as it is 3rd party required by CMS. Peel the onion and get to the root of the problem...you will find that society has created the problem and our current political landscape and not the people who were fortunate to lead healthcare in the right direction before becoming distorted. As a side note, I had a friend sit in an ED in Canada for nearly two days prior to being evaluated and then finally...3 months later got a CT of the head. You pay for what you get...

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