Carmel council adopts 2026 budget after late-night vote; trims outside-legal pool

The Carmel Common Council approved the citys 2026 budget on Oct. 20 after a series of amendments that reworked outside-legal funding, arts and events support, and several departmental line items. The final appropriation ordinance, docketed as D27 85-25, passed 9-0.

City finance staff presented a revised package that the administration described as a compromise after weeks of council review. "With the modifications I mentioned, we would now be sitting at an annual surplus of $51,692," Zach (city staff member, finance) said during the presentation of the numbers.

The council adopted several changes during the discussion and amendment process. The highest-profile change reduced the proposed outside-legal appropriation: an initial request that had grown toward $600,000 was trimmed in stages and ultimately set at $350,000 after council amendments. That amendment passed 7-2. Councilors also moved $70,000 in economic-development membership/travel items into the redevelopment fund and added $15,000 to commission/organization support within the marketing and arts department, increasing that line to $45,000.

Supporters and critics framed the legal-fees debate differently. Councilor Snyder, who led a lengthy discussion of process, urged a path that preserved the citys ability to hire outside counsel promptly while increasing transparency for council review. "If we can't see the bills, and I presume the argument that's been put before us, then the only way to do a check and balance is to de-appropriate this line item and then force a structure where what we are receiving is a narrowed-in scope of an engagement letter for a very specific purpose," Snyder said. Mayor Finkham said she would not waive attorney-client privilege but worked with councilors on a compromise number the administration could live with.

Other targeted adjustments included shifting the cost of certain camera contracts from IT to the police department and restoring $110,000 to arts grant funding to match this years spending levels. The council also approved language moving two previously listed economic-development appropriations into the redevelopment fund so the CRC will continue those memberships and related travel work.

Council members described the vote as the product of laborious review. "This budget has been our primary focus since September 1," Councilor Snyder said earlier in the meeting; after the final vote he reflected on the compromise: "If this is a good budget, then everybody up here and the mayor should feel disappointed... that is the sign of success. Everybody leaves not feeling like they got what they wanted." Mayor Finkham thanked the council later for passing the budget and noted the effect on staff and city operations.

The final, amended ordinance (D27 85-25) establishes the citys appropriations for 2026 and includes the amendments described above. With the adjustments, councilors said they expect to continue monitoring encumbrances and year-end reversions and to return if supplemental appropriations are required.

Votes at a glance: - D27 85-25 (2026 appropriation ordinance): approved 9-0. - Amendment setting outside legal/professional fees at $350,000: approved 7-2. - Amendment moving $80,000 of economic-development items into CRC (membership/travel): approved (motion carried; recorded in final packet). - Amendment increasing commission/organizational support to $45,000: approved (motion carried).

Ending: The approved budget will be forwarded per statutory notice; councilors said they plan follow-up work to refine reporting on legal expenditures and to monitor program-based line items during the year.