Carmel leaders seek feedback on $252.4 million 2027 budget
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Carmel city leaders say they want to offer the best with the least impact on taxpayers. Photo: Courtesy of City of Carmel
Carmel proposed a $252.4 million 2027 budget that aims to keep the city's property tax rate flat while navigating a major change in how much money that rate generates.
Why it matters: Carmel is trying to protect core services while absorbing Indiana's property tax tweaks through spending controls, shifting money between funds, department consolidation and its existing reserves.
Driving the news: Carmel's certified net assessed value fell 1.6%, from $12.4 billion in 2026 to $12.2 billion in 2027, according to Carmel Chief Financial Officer Zac Jackson.
- Jackson says the gap from previous forecasts could approach $40 million by 2030.
- He added that Carmel's goal is to provide "the best services at the lowest costs" and do so "without asking taxpayers for more funding."
Between the lines: To protect revenue, the city plans to prioritize its operating levy over its debt levy, keeping about $3 million more revenue in Carmel.
- The tradeoff is a $5.7 million debt-levy shortfall that will be covered with general-fund dollars. Jackson called it "paying for it out of a different pocket."
- What appear to be on-paper cuts are actually reorganizations. For example, property maintenance and facilities management are being folded into the Street Department.
- Jackson said those departments will "no longer appear on this list," while their functions and funding move elsewhere.
Zoom in: Personnel costs are going up, too. Carmel is budgeting a 3% cost-of-living increase, a 4.1% increase in city health insurance contributions and higher pension costs for public-safety employees.
- New positions include additional police and fire staff, plus IT, building inspection and code-enforcement positions.
- Personnel is a recurring expense, so the city is trying to target new spending toward services it considers essential rather than simply freezing staffing.
State of play: Reserves provide another buffer. The general fund is projected to end 2027 with $17.2 million, or 11.2% of its budget.
- The rainy-day fund is projected at $15.2 million, including a planned roughly $700,000 transfer from the general fund. About $5 million of the general-fund balance is already earmarked for Fire Station 47, Jackson said.
By the numbers: General-fund revenue is projected at $152.69 million, about $2.1 million above the current year, while proposed general-fund spending is roughly $50,000 below projected revenue.
- The Carmel fire and police departments represent the two largest general fund line items with proposed budgets of $49.9 million and $41.3 million, respectively.
What's next: Carmel will hold a joint budget meeting with the mayor, city leadership and council on Sept. 28, followed by the formal presentation on Oct. 5.
- Residents can attend both meetings and submit questions to [email protected]. Answers will be posted online.
- Click here to see the 2027 proposed budget in full, and view individual spending plan presentations for each city department.