City awaits legislature’s budget impact

Richmond completed the second step in a three-year quest to balance its budget, but it now waits to see if state legislators help or hinder that effort.

“The concern now will be with the long session at the statehouse coming up in January,” Mayor Ron Oler said Oct. 19 after Richmond Common Council unanimously approved the 2027 budget. He added: “We’re somewhat dependent on what the statehouse does.”

Tweaks to property and local income tax structures originating with 2025’s SEA 1 could impact the timeline for Richmond’s balancing efforts. Oler said he’s also curious about Gov. Mike Braun’s 2027 agenda.

Of the 28 funds the city submits to the Indiana Department of Local Government Finance for approval, 20 are balanced. The other eight are expected to spend about $1.5 million in cash reserves.

The total budget anticipates $69,314,140 in expenditures, including $26,885,485 in the general fund. The general fund is expected to need $323,281.48 from its cash reserves to cover next year’s expenditures.

“I thought it was a very good budget,” said Larry Parker, vice president of council. “I think the administration and the department people worked very diligently to make sure that they could handle what monies we had and still provide the services that are needed.”

He, too, waits for state actions between now and forming the 2028 budget that council mandated be balanced.

“It’s very difficult to balance a budget, particularly when the state continues to take money away from us,” Parker said.

Council member Jerry Purcell repeated a statement he made during the finance committee meeting that preceded council’s meeting. Richmond Fire Department expects to need additional funding for its overtime line item, which was cut from $1 million to $800,000 in the 2026 budget. Purcell said some lines are underfunded for 2027; however, those items could not be increased after the budget was advertised.

“When we look at the budget at the end of every year, there are certain accounts within our budget that we have to appropriate additional funds for because of underfunding,” Purcell said. “And it seems that we’re continuing to underfund some line items in order to create a budget that at least looks somewhat balanced. I do believe that in the future that department heads and we need to put our heads together and find solutions to these accounts that are spending deeply over what we are appropriating.”

Oler said discussions are taking place about how to better calculate and budget overtime leading into the 2028 budget. Redesigning the infrastructure and development department also moves the city toward a balanced budget. The new divisions are:

• Planning and zoning, with a planning director, planning technician and zoning administrator.
• Engineering, with a new city engineer position.
• Airport, with an operations manager and line operator.
• Transportation, with a manager, assistant operations manager, dispatcher, 12 bus drivers and a maintenance worker.
• Building safety and community standards, with a building commissioner, inspector, two code enforcement inspectors, a crew leader and two laborers.

“That helps us get close to where we need to be, too,” Oler said.

Other actions

• Council passed the 2027 salary ordinance establishing salary ranges for city positions.
• Council approved a resolution appropriating $48,562.49 for Richmond Fire Department mostly for training costs and $7,200 for the mayor’s office’s HVAC service agreement with Trane US Inc.
• Council approved creating a new fund outside the general fund for code and building money. The fund was mandated in Indiana’s HEA 1001.
• Council approved 7-1 creating a rainy day fund for Richmond Parks and Recreation Department, using food and beverage tax funds. Lucinda Wright voted against.
• Council will meet as Committee of the Whole at 6 p.m. Nov. 2 to discuss an ordinance proposing a nonreverting capital fund for RFD. The meeting will precede council’s regular 7 p.m. meeting, which the public may attend.