CHICAGO — Indianapolis will get a $1 billion new budget that wipes out a $15 million shortfall with proceeds from the sale of its utility systems.

The City-County Council approved the budget Monday night after reaching a compromise deal with Mayor Greg Ballard.

Ballard had proposed eliminating the homestead tax credit to offset the shortfall, but the council objected.

"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 said in a statement.

To offset the $15 million shortfall, the city will take a one-time "loan" of just under $7 million from the fiscal stability fund, set up with proceeds from the city's 2010 sale of its water and sewer systems to Citizens Energy Group. It will take $5.7 million in funds from an account set up to pay legal claims stemming from the utility sale, and another $2.4 million from the city's rainy-day fund.

The budget does not tap proceeds from the so-called Parking Meter Fund, set up with proceeds from the city's sale of its parking system, which is dedicated to infrastructure improvements.

The budget calls for 80 more police officers, a compromise reached between Ballard and the city-county council that still falls short of the 700 new officers recommended by a public safety report released last year.

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