City’s 2027 budget dips into cash

Richmond expects to spend more than $300,000 from its general fund’s cash reserves during 2027.

Next year’s budget, which includes $26,885,485 in general fund expenditures and $69,314,140 across all 28 funds that must be submitted to Indiana’s Department of Local Government Finance, was presented to Richmond Common Council during its Oct. 5 meeting. The general fund’s cash balance is anticipated to be $3,282,121 after 2026, so the $323,281.48 expected expenditure represents 11% of the balance.

Beth Fields, the city’s director of strategic initiatives, said the general fund had been structurally balanced, meaning cash would only be used for capital projects; however, council approved hiring two part-time clerks to staff Richmond Police Department’s information desk. That makes the general fund one of six funds expected to use cash reserves for operational expenses. Two other funds — motor vehicle highway and cumulative capital development — are structurally balanced, spending $184,519.54 and $8,830, respectively, from cash reserves.

Overall, the general fund, local road and street ($868,435.39), parks ($20,164), unsafe building ($20,987), fire pension ($69,615.92) and cumulative capital improvement ($1,120) expect to deplete cash reserves by $1,303,603.79.

During the budget’s public hearing, only Bob Coddington spoke. He complimented Fields on her budget preparation and presentation. 

“What you have a savings account for is to spend a little bit of it when you have a need,” Coddington said. “The department heads and you have said these are the needs, and it’s funded.”

Council last year mandated the city fully balance the budget within three years. Fields said the administration hopes to meet that target with this year’s strides and increased efficiency from departmental restructuring.

After council’s mandate, the city eliminated 21 positions this year and opted not to provide civilian employees raises. The 2027 budget includes a 3% raise for those workers.

The budget is scheduled for a council vote during the Oct. 19 meeting. 

Council also was presented three ordinances that would establish new funds. One creates a code enforcement fund that complies with House Enrolled Act 1001 requirements, one would accumulate funding for Richmond Fire Department capital purchases and one would save food and beverage tax money in a rainy day fund for parks projects. All were referred to council’s finance committee.

Council member Jerry Purcell moved to kill the RFD ordinance, saying the fund duplicates the emergency medical service fund’s purpose; however, the motion died for lack of a second. He said language surrounding the EMS fund’s purpose could be clarified to stop the city from using those funds other than for RFD capital purchases.

Other budget-related ordinances including the 2027 salary ordinance for all civilian positions and ordinances setting compensation for elected officials, Richmond Police Department, Richmond Fire Department and Richmond Sanitary District were presented for first reading. Council approved the ordinances for elected officials, police and sanitary district, while referring the civilian salary and fire ordinances to finance committee. City Attorney A.J. Sickmann advised council not to approve the fire ordinance until the Richmond Board of Public Works and Safety approves the fire union’s newly negotiated contract.

Transporting homeless

Council unanimously defeated an ordinance that would have fined anyone transporting homeless people to Richmond if the people had nowhere to stay. Mayor Ron Oler had presented the ordinance to prevent other municipalities from taking advantage of Richmond’s services.

Council member Doug Goss reported that the public safety committee discussed the ordinance with police Chief Kyle Weatherly and was concerned about the ordinance’s enforceability and legality. The committee recommended council not pass the ordinance.

During public hearing, Howard Price favored the ordinance.

“If you just think people aren’t coming here because they know it’s easy to get in here and other people are bringing them here, I think you’re deluding yourself,” Price said. “I think you should put something down at least in writing whether it’s enforced or not that we’re not going to put up with that kind of thing.”

Purcell said that homelessness is a problem Richmond needs to address with a comprehensive approach, and council member Bill Engle agreed. Council President Justin Burkhardt said he spoke with organizations providing homelessness services who did not want the ordinance creating more barriers to their efforts.

Other actions

• Council approved annexation of 8.36 acres at 2243 U.S. 35, where a new 7-Eleven fueling station and convenience store is under construction. The Richmond Advisory Plan Commission recommended approval after conducting a public hearing Sept. 23. Council also accepted the fiscal plan prepared by Baker Tilly that concluded the city would not incur additional expenses by annexing the land.
• Council authorized RPD to apply for and accept up to $60,000 in an Indiana Criminal Justice Institute grant that reimburses RPD for officer overtime aiming to reduce highway injuries. The grant includes a $12,000 in-kind local match.