The GOP mayor and the Democratic-led City-County Council had disagreed about strategies for closing a gap between projected expenses and revenue, as well as how to fund a new class of police recruits.
The new agreement will cover all spending planned in the mayor's 2014 budget, underwrite a second police recruitment class for 2014 for a total of 80 new officers and allow police officer raises, according to a news release from Ballard's office on Monday afternoon.
The council is set to vote on the matter tonight, Oct. 14, at a meeting set to begin at 7 p.m.
"This agreement achieves my goals of adding a second IMPD recruit class and avoiding months of budget debates that shake confidence in the City's fiscal stability," Ballard said in the release. "This deal is not perfect as it delays long-term fiscal questions to 2015, but it will provide the necessary revenue to hire new police officers and continue making the necessary investments that make Indy a great place to live, work and raise a family."
Ballard hoped the council would eliminate the Homestead Tax Credit to close a projected $15 million deficit that arose by adding a second recruit class and raising police pay. Instead, leaders agreed to utilize the following funding sources: a $6.9 million loan of from the Fiscal Stability Fund; $2.4 million from the rainy day fund; and $5.7 million leftover in an escrow account set up to cover any claims stemming from the transfer of the water utilities to Citizens' Energy Group.
"From the beginning of the budget process the Council has pursued an approach to ensure more IMPD officers," Council President Maggie Lewis said in the release. "I am pleased this budget does that. In the end a bi-partisan approach worked well for our city."
"While not perfect, this compromise does represent the best interest of the citizens of Indianapolis," added Michael McQuillen, the council's minority leader. "Now that this budget agreement is resolved, we can turn our attention to the 2015 budget."
While the national political scene is still deadlocked over budgetary issues, Mayor Greg Ballard's office announced Monday afternoon that city leaders have arrived at a budget compromise.