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Logansport officials flag multimillion-dollar gap as LIT revenues fall in 2028 projection
Summary
City staff presented long-range Local Income Tax (LIT) projections showing a sharp revenue decline by 2028 that could leave the city with a $600,000–$1.4 million budget gap under current assumptions. Councilors began line-by-line review of the 2026 draft budget and discussed using reserves, geo-bond dollars and cuts to close the shortfall.
City finance staff told the council on Monday that long-range projections for Local Income Tax and other dedicated revenues show materially lower receipts in later years, forcing discussion of mid-term cuts and use of capital reserves.
The presentation showed projected combined LIT and dedicated revenues for city funds falling from roughly $10.1 million in 2025 to about $7.8 million by 2028 under current assumptions. Staff said the most favorable scenario — which depends on reallocation of 0.4 points to the fire department and other assumptions — would still leave a shortfall of about $600,000 in 2028; a less favorable alignment could produce a gap approaching $1.4 million.
Why it matters: the city’s draft 2026 general-fund disbursements were described as roughly $15.4 million against projected revenue near $13.97 million, producing a near-term structural shortfall. Staff said several fixed items have grown (for example, PERF employer contributions) and that possible new stormwater fees and other contingencies could change the calculation further.
Council members and staff began a department-by-department review of the 2026 draft to narrow the budget gap. Examples discussed included reducing the mayoral contractual-services line, shifting large parks capital items into the geo-bond program, and removing a one-time signage allocation pending visitor-bureau coordination. Staff said some capital items already budgeted in the general fund could instead be financed by the geo-bond to preserve operating reserves.
Council president (unnamed staff presentation) summarized the projection to the group and urged intergovernmental coordination: officials from the county and school district had been shown the same material during a prior meeting to highlight how property-tax and LIT changes ripple across entities. The finance staff recommended more detailed, itemized cost estimates for major capital projects before final adoption.
Next steps: the council continued detailed line-item deliberations and directed staff to circulate the full budget file and to bring ordinance/resolution language where necessary. No formal budget vote was taken at Monday’s session.
