Allen County Council adopts 3.75% COLA placeholder, directs non-payroll lines held flat

The Allen County Council on July 8 tentatively adopted a 3.75% cost-of-living adjustment for county employees as a placeholder for the 2027 budget and instructed departments to hold non-payroll budget lines in the 200-, 300- and 400-series flat while allowing appeals during budget hearings.

Auditor Jackie Scheuman presented preliminary 2027 numbers showing projected revenue of $160.6 million, a general fund property tax levy of about $98.5 million (using a calculated 6% levy growth), and roughly $88 million in cash across county funds. Scheuman said the county’s revenues are being reshaped by recent state changes to excise and income tax distributions and by anticipated increases in circuit breaker losses tied to property tax deductions.

Council members debated the size of the COLA. Several members argued for a higher placeholder to protect employee purchasing power amid rising prices; Councilman Fries advocated for a figure close to the 4.2% inflation rate he cited from May 2025–June 2026 data. Others urged fiscal restraint, noting sizable fund balances in units such as highway and LIT accounts. The council ultimately voted to set 3.75% as a placeholder and to hold 200/300/400-series lines flat, while allowing departments to appeal if they can justify additional needs.

Scheuman said that final COLA and appeals will be settled during budget hearings after certified revenue numbers are available. She recommended using limited one-time cash balances for one-time transition costs rather than permanent increases. Council members emphasized expectations that departments with recurring large rollovers should plan to reduce those balances or apply them to planned projects.