Marion County CIB approves 2026 budget, to use reserves for $35.5 million shortfall

The Marion County Capital Improvement Board of Managers voted to approve its 2026 budget and salary ranges and authorized using unrestricted operating reserves to cover a projected $35.5 million shortfall.

The approved 2026 budget shows revenues of $212,000,000, down about 10 percent from the 2025 budget, and expenses of $247,000,000, down about 9 percent from 2025, producing a net deficit of roughly $35.5 million. Board members approved the budget and the accompanying salary-grade resolution by voice vote during the meeting; the motion carried and the budget was adopted.

The board said the budgeted shortfall will be covered from the CIB’s unrestricted operating reserves. As of June 30, those reserves held $239,000,000; the board’s forecast assumes drawing on reserves so the balance would be about $173,500,000 if the budgeted deficit is realized.

Why it matters: board members and staff framed the deficit as a planned, temporary shortfall intended to preserve the organization’s ability to make opportunistic investments — for example, to underwrite large concerts or emergency repairs — without having to return to city and county fiscal bodies for supplemental appropriations.

Key budget details and board discussion - Revenue and expenses: The budget lists $212 million in revenue and $247 million in expenses. Admissions tax and hotel-related taxes remain important revenue streams; admissions tax was noted as up compared with recent years due to event scheduling and professional sports performance. Certain operator revenues are budgeted lower than 2025, driven largely by timing and one-time items included in the prior year. - Reserves and contingency: Board members emphasized that annual budgets have historically shown planned negative bottom lines so the CIB can retain flexibility. The board’s unrestricted operating reserves were cited as the source for covering the 2026 negative bottom line, and staff noted the organization has rebuilt reserves since the pandemic. - Hotel equity and revenue-sharing: The board discussed the previously approved $70,000,000 equity position in a downtown hotel. That $70 million is structured as an equity contribution, not additional debt. Under the hotel arrangement described to the board, the CIB would receive 14 percent of sale proceeds or revenue after hotel debt is repaid; staff said the arrangement carries no additional CIB liability. - Grants and event funding: The budget includes grant and operating-support items tied to the Signia Hotel and other projects. The board confirmed a combined commitment to the ASAE (American Society of Association Executives) event: Visit Indy and the CIB each committed $2,000,000 and the effort aims to raise an additional $1,000,000 to host the conference in Indianapolis. - Capital projects and large line items: Capital investments for 2026 total about $35,169,000, a reduction from 2025 driven primarily by the hotel construction costs the board approved in the prior year. Notable 2026 capital items discussed include roughly $8,000,000 for a skybridge from the convention center to the Signia Hotel (over Capitol Avenue); $7,000,000 budgeted for Wi‑Fi replacement; $5,000,000 for a skybridge from Gainbridge Fieldhouse to the planned Shinola Hotel (over Pennsylvania Street); $4,000,000 for new seating at Victory Field (with the team expected to reimburse about half); $4,000,000 for a skybridge from the Virginia Avenue garage to the Fever practice facility; and $1,500,000 for a convention center boardroom and lobby renovation. - Operating expense drivers: The board reviewed increases in security spending (an $4,000,000 or roughly 82 percent increase from the prior year) following a recent security review; consultant fees for stadium, hotel and food-service projects; and planned repairs and maintenance for aging facilities. - Salaries and personnel: The board approved salary grades included with the budget. Personnel costs (character 1) are budgeted at $32,386,000, an increase of about 8 percent over the 2025 budget; staff noted a placeholder 3 percent pay increase was included as a possibility but is not guaranteed.

Statements from staff "That gives a bottom line or a net amount of a negative 35 and a half million dollars," said Tim Hart, senior budget staff, summarizing the budget totals and reserves forecast. Andy (staff member) and others described the hotel equity structure and the rationale for contingency budgeting.

Other reports and context covered at the meeting Board members heard monthly financial results showing a favorable June operating variance driven by underspend in capital outlays; operator reports highlighted strong event activity (including sports and concerts) and record admissions- and food-and-beverage-tax receipts in recent quarters; Visit Indy and convention center staff reviewed hotel-market data and event pipeline metrics. Construction updates noted progress on the downtown hotel and an anticipated topping-out ceremony, with the hotel developer and Hilton continuing to set an opening timeline.

What the board approved and next steps The board approved the 2026 budget and the salary-grade resolution by voice vote. Staff said the budgeted shortfall will be covered from the CIB’s unrestricted operating reserves and that the organization plans to continue monitoring event bookings and revenues; staff also reiterated that a scheduled revenue shift in 2028 — when roughly $30,000,000 of revenue will transfer to the Indiana Finance Authority to pay stadium debt — was a factor in the board’s reserve and investment strategy.

The board also took routine procedural votes during the meeting, including approving minutes and claims vouchers and disposing of obsolete equipment; those items passed by voice vote.