The Michigan City Common Council on Dec. 2 approved several additional appropriations to cover remaining police and fire salaries and overtime expenses after a public hearing and extended discussion.

Council moved funds within existing budgets rather than authorizing new revenue. The council approved general‑fund and public‑safety LIT appropriations after sponsors and department chiefs explained that vacancy, training timelines and unanticipated overtime contributed to higher year‑to‑date overtime costs.

Public speakers — including firefighter representative Christopher Budis and members of the Fraternal Order of Police Wage Committee — told the council they felt bargaining had been insufficient. "The firefighters and police are looking at no raise and no contract for 2026," Christopher Budis said during public comment, arguing the city had not negotiated in good faith and had provided only limited meeting time. Union members pushed back against proposed language trimming longstanding benefits and questioned how many retirees would be affected by changes to retiree insurance cost sharing.

Council members and labor committee leaders cited a sudden loss of roughly $4.2 million in county local income tax (LIT) funding that had previously supported public safety raises, and said that constraint forced a 2% across‑the‑board proposal combined with requests for concessions. Councilman Dabney said the administration is attempting to balance pay increases against citywide budget limits and that negotiations were ongoing.

Council also voted to move certain ordinance readings ahead and, in some cases, to waive rules to complete second and third readings for appropriation ordinances so departments could pay already‑worked overtime. Police and fire leadership agreed to provide more detailed monthly overtime reporting going forward so council can track spending more granularly.

Next steps: labor negotiations continue; council will review additional information from police and fire on retiree counts and overtime details as requested.