My boyfriend and I have a Persian cat named Cole (Coleman) and a Chihuahua-ShihTzu named Lily.
The cat is an indoor cat, as any cat I will ever have will be. The city I live in borders Akron, Ohio, which has an animal ordinance strictly focused on cats. So I would never let my cat be an outdoor cat because of the ordinance.
http://www.ci.akron.oh.us/Temporary_Pages/cats.htm
The dog is an indoor dog. She is to small to be an outdoor dog, but even if I had a larger dog it would never be an outdoor dog because of the winter weather in Ohio. To dangerous to leave a pet outdoors in the cold, sometimes subzero, weather!! I would make sure it gets ample amounts of excercise though!!