Council Eyes 2% Raise Amid Budget Tightrope...Discussions continue over police-fire union status and funding options

The council is considering a 2% raise for city employees as part of its 2025-2026 budget planning process, but officials emphasized that the increase depends on finding additional revenue or making tough choices elsewhere in the budget.

At a recent workshop, council members reviewed a draft plan that reflects a $751,000 line-item reduction spanning the current and upcoming budget years. Deputy Clerk-Treasurer reported that a 1% raise would cost the city approximately $48,800 but could be covered using existing funds—specifically, extra money typically reserved in the health insurance line item. That would allow for a 1.1% raise without increasing the overall budget.

However, moving to a full 2% raise would require an additional $43,250—unless previously budgeted increases for police and fire departments are rescinded, which would reduce the need to just $18,350.

Whether those increases for police and fire will hold is uncertain, as legal questions remain about the legitimacy of their new representative organization. Two labor attorneys have issued conflicting views on whether the group qualifies as a union under Indiana Code. Some council members worry that allowing the group could open the door to broader unionization efforts across other departments.

While the council cannot yet take a formal vote, several members expressed support for the 2% raise. Officials say they will examine potential increases in revenue, particularly from sanitation services and other departments, to see if the raise can be funded without cutting services. If not, some departments may face cuts.

The Clerk-Treasurer's office will continue crunching numbers and have updated figures at the next budget meeting.