Lawrenceburg council reviews draft budget; discusses insurance, SRO funding, part‑time fire pay and personnel changes

At a Sept. 17 work session, Lawrenceburg City Council members reviewed the draft 2026 budget and heard staff outline key revenue and spending items, including a projected general‑fund surplus of roughly $1.3 million after an estimated $600,000 reduction tied to “Senate Bill 1.” City staff also flagged rising health‑insurance costs related to weight‑loss drugs, proposed a $4 increase for part‑time firefighter pay, discussed moving school resource officer (SRO) support into the MDF account, and proposed several personnel and retirement plan adjustments.

City staff opened the session with a page‑by‑page review of the budget book. Mark Graber (staff member) summarized year‑to‑date projections and said the general fund has performed well in recent years and that, after the Senate Bill 1 reduction, the draft shows a projected surplus of about $1.3 million. Graber told the council that the MDF account is benefiting from about $1.5 million in interest earnings, which is supporting additional expenditures in the draft. "I feel good about this budget," he said.

Why it matters: the items discussed affect the city’s operating costs, nonprofit support and public safety staffing costs, and several of the changes would take effect in the coming budget year if adopted. Council members discussed tradeoffs among maintaining nonprofit funding levels, covering personnel costs and responding to rising insurance expenses.

Insurance and weight‑loss medication costs: Staff and council members described unusually high projected health‑insurance expenses tied to weight‑loss drugs. Graber said the city is projecting roughly $730,000–$750,000 in additional costs related to those medications and that about 62 plan participants are enrolled in the pertinent therapies. He told the council the city and the union are discussing options and that the union will likely need to vote on coverage changes; staff warned that a nearly $1 million insurance cost would squeeze other areas of the budget.

Part‑time fire pay and public safety: Council members raised concerns about difficulty recruiting part‑time firefighters at current pay rates. Staff reported that part‑time pay is currently $16 an hour and proposed raising it to $20 an hour; staff estimated that change would add about $30,000 to the relevant line item and still leave the fund slightly positive in the draft. Council members expressed support for increasing pay to improve staffing and reduce overtime burdens on full‑time personnel.

SROs and school funding: Councilmembers questioned how School Resource Officer (SRO) funding is shown in the draft. Graber said he has moved SRO payments into the MDF account for now and that a $100,000 contribution from the school and a $200,000 city allocation had been recorded previously; for next year the SRO line in the budget shows $0. The council discussed a new Saint Lawrence principal’s intent to apply for a school safety grant for 2026.

Ivy Tech contribution and nonprofit support: Council members asked about a proposed $100,000 contribution to Ivy Tech’s Riverfront Campus nursing lab upgrade; staff described the contribution as a one‑year, year‑to‑year proposal. Council members also discussed the city’s MDF discretionary grants to local nonprofits (described in the session as “well over a million dollars” annually) and cautioned nonprofits that funding could be reduced if revenues tighten.

Personnel, wages and retirement: The draft includes multiple personnel proposals. Staff asked to reclassify two employees (Liz and Steve) to meet Department of Labor minimum salaried thresholds and to post an office manager position in the engineering department effective Jan. 1 if the council approves. Council discussion also covered proposed 3% increases for two employees (Joy and Morgan) to be implemented as a memorandum of understanding (MOU) or CBA addendum until a new contract is negotiated. Staff proposed increasing the employer match on a 457(b) plan for certain contract employees from 3% to 6%; staff said five of seven eligible employees currently participate.

Procurement and funds with deficits: Council members discussed eliminating the procurement officer position (staff said the position is being removed from the draft). Staff also noted several small enterprise or special funds showing deficits or low balances, including the riverboat revenue fund and a firefighting equipment fund that will need one‑time funding for a new engine arriving early next year.

Timeline and next steps: Staff said the budget will be posted and the statutory timeline followed: a public hearing will be held in early October and adoption scheduled for the second meeting in October so the budget is adopted before Nov. 1. No formal budget adoption occurred at the work session; the meeting concluded with a motion to adjourn that passed unanimously.

Ending: Council members thanked staff for the work on the draft and asked staff to return with any requested changes before the public hearing and final adoption.