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Zionsville council introduces 2026 budget; consultants flag ongoing uncertainty from state tax changes
Summary
On first reading the council introduced a balanced draft 2026 budget that reduces capital spending and includes proposed salary adjustments. Consultants warned long-term revenue impacts from Indiana Senate Bill 1 and recommended follow-up steps including a possible excess-levy appeal.
The Town of Zionsville Town Council received the first reading of the 2026 budget on Sept. 22 and introduced the ordinance for further review. Tim Berry, the town's financial consultant with Crow, presented the draft budget and five-year projections.
Berry said staff and department heads reduced expenditures to offer a balanced 2026 operational budget after factoring early estimates of the impact of Indiana's Senate Bill 1 (SB1). He reported a conservative supplemental local income tax estimate of $1,850,000 for 2026 and described an estimate of $1,540,000 in potential additional revenue if the town's excess levy appeal is approved by the Department of Local Government Finance. Berry said the town expects a one-time near-term effect from SB1 of roughly $800,100 for the coming year (figure quoted from DLGF estimates) and noted the state-level adjustments will continue to affect property-tax-derived revenues.
The draft 2026 budget reduced capital outlays and some other expense lines from the 2025 budget, while incorporating approximately $725,000 in additional personal-services costs, including $411,000 for longevity pay and $314,000 for a proposed salary adjustment. Berry said the salary adjustment currently is modeled as a $1,500-per-employee addition but noted the council could alter that approach when department-level details are finalized.
Councilors asked for department-level breakdowns and committed to meeting with department heads and the mayor in the two-week window before the next meeting. The council president and the mayor's office confirmed departmental budgets have been entered in Gateway and that the budget advertisement for public hearing is in place.
Berry and councilors noted risk: capital spending reductions are not indefinitely sustainable and SB1's long-term effect on supplemental homestead deductions will grow over time. The council introduced ordinance 2020-5-20 (2026 budget) on a first reading and directed staff to prepare departmental detail and follow-up materials for final consideration.
