Carmel City Council Budget Discussion Meeting - September 28, 2026

The Carmel City Council held a budget discussion meeting on September 28, 2026, to review the proposed 2027 budget. Department heads had posted presentations online on September 8, and this session was dedicated to councilors' questions. The meeting, which began at approximately 1:52 PM and ended around 3:45 PM, covered public safety, infrastructure, administration, and quality-of-life spending.

Discussion Items

Public Safety (CFD & CPD)

• Flock cameras and surveillance: The mayor clarified that flock cameras are used only for license plate recognition tied to active cases, not general public surveillance. Councilor Jack requested segregating the line item for flock cameras to allow a reduction motion; staff noted the chart of accounts does not enable vendor-specific segregation but can provide transparent budgeted amounts.
• Fleet maintenance centralization: Councilor Minar asked about moving CPD vehicle maintenance to the street department. Zach (Finance) explained that centralizing fleet management under street department will achieve economies of scale; CPD mechanics already moved into the street department budget. The street department will maintain all city vehicles except utilities and possibly CFD heavy equipment. No additional hires have been made yet; one vacant mechanic position exists.
• Police staffing: Chief Sterling reported 163 sworn positions in 2025/26, with 157 filled and 6 vacant; two new positions added for 2027, target 165. Four retirements expected in Q1 2027. Six lateral hires to be sworn in November, additional new hires in January 2027. A staffing allocation study determined 165 is optimal; a middle shift (1:30 PM–midnight) will be introduced in 2027.
• Police technology and force multiplier: The chief noted the drone first responder program responded to over 600 calls in 2026, arriving first on scene 46% of the time in an average of 1 minute 44 seconds. A civilian drone operator position is budgeted for 2027. Councilor Snyder cautioned against using “force multiplier” to imply fewer officers; the chief agreed technology is a tool, not a replacement.
• Fire department overtime and staffing: Overtime was down to approximately $3.2 million in 2026 (from $4-5 million in prior years). For 2027, the base overtime budget appears higher because a $1.5 million carryover PO from 2026 is not repeated; an additional $100,000 request for 2026 will come to council in October. Fire staffing goal is 195 sworn; end of 2026 target 189, currently at 184. Six lateral hires starting October 2026, 12 cadets starting January 2027. Station 47 staffing is planned for 2028 (lateral/cadet hires in January 2028).
• Firefighter shift schedule: CFD implemented a 48/96 schedule (48 on, 96 off) in July 2026 as a temporary trial through July 2027. Whoop bands track physiological data; results will be compared to baseline data taken before the switch.
• Deferred compensation for public safety: Zach explained that fire and police unions elected to opt out of Social Security (except Medicare portion) in favor of additional deferred compensation. Starting January 1, 2026 for fire, and earlier for police, the employer and employee shares (totaling 12.5%) now go to deferred comp instead of Social Security. This reduces the city’s FICA line but increases deferred comp costs.
• Ambulance fund and other equipment: Councilor Green noted a 213% increase in “other equipment” in the ambulance fund; staff will provide details later.

Infrastructure (Streets & Engineering)

• Stormwater program: Two new stormwater inspector positions were added. Street Commissioner Matt Botham said they will operate a new jet vac truck and camera van to move from reactive to preventative inspections, aiming for a 30% increase in proactive pipe inspection hours. Councilor Warren noted the budget for stormwater went from $973,000 in FY26 to $2.4 million in FY27, reflecting freed-up debt payments from a bond refinance. Brad (Engineering) noted the revenue for stormwater is flat; the higher budget is due to unspent prior year funds.
• Paving program: Total paving for 2027 is $8.5 million, sourced from MVH ($3.4 million line item), wheel tax, surtax, and the new lane mile distribution fund. Councilor Rizal expressed concern that $8.5 million is insufficient to meet desired pavement condition index (PCI) goals, noting that a decade of underfunding and inflation has widened the gap. Matt Botham responded that the city’s average PCI is around 66 (scanned data), far above failure, and that maintenance techniques (mastic, liquid road rejuvenator) extend pavement life at lower cost. Councilor Warren countered that residents perceive road quality negatively despite structural soundness.
• Fleet and facilities consolidation: Matt Botham outlined that the street department will absorb fleet maintenance and facilities management, growing to 79 FTEs (from 67). A lead technician will oversee police vehicle maintenance; a scheduler will manage preventative maintenance. They are exploring an in-house NAPA store partnership (as Fishers does) to reduce parts procurement delays.
• Engineering dues: A jump in engineering dues from $2,000 to $58,000 is due to moving the MPO (Metropolitan Planning Organization) membership cost from the mayor’s office to engineering, where it more appropriately belongs. The fee is necessary to access federal grants.

Financial & Administrative

• Property tax levy and LIT: The budget assumes the same property tax rate of 0.7783. Due to SEA 1 deductions, the CNAV decreases from $12.4 billion to $12.2 billion. The city will set the operating levy at the max 4-6% increase to maximize local income tax (LIT) distributions, preserving about $3 million that would otherwise go to other Hamilton County communities. The general fund levy is $77 million, debt service levy $11.8 million, with $5.7 million from general fund to cover debt service shortfall.
• General fund balance: Current balance $17.2 million. After a planned $5 million transfer for fire station 47, balance would be $12.2 million (~8% of expenditures, above the 5% minimum). The appropriation request will come later, not in this budget.
• HR budget: An additional $600,000 was added after video presentation for retiree health benefits. Councilor Snyder confirmed it is for long-term retiree health benefits.
• Workers’ compensation: Increase driven by high-dollar claims (mental health, cancer from chemical exposure) rather than more claims.
• Building permit fees: Director Hollibal noted that after a comprehensive fee update (first in decades), building permit revenue will be moved into a dedicated fund, reducing general fund support from $3.4 million to $1 million.
• Change.org partnership: Mayor Finkham explained that change.org is providing a free citizen engagement platform (focus groups with 100 representative residents compensated by change.org, not the city). The first topic is “how to help local businesses.” Results will be shared with council and the community.

Quality of Place (MAC, Brookshire, Parks)

• MAC department reorganization: Interim Director Aaron described outreach coordinators (arts & culture, community, business outreach) to improve communication with businesses and community groups. A part-time position was added for event support.
• Event sponsorship accounting: Councilor Green asked how donated sponsorship funds are tracked when event costs are lower than donation; staff explained it is tracked manually in spreadsheets and unused funds remain in the MAC gift fund designated for that purpose. For nonprofits, donors are encouraged to give directly.
• Brookshire golf course: Cost recovery currently at 85% ($1.5 million revenue vs $1.7 million budgeted); on track to be self-sufficient, possibly better than expected. A fee schedule update will be discussed at the Finance Committee meeting on October 5.

Key Outcomes

• No formal votes were taken; the session was informational.
• First reading of the 2027 budget is scheduled for October 5, 2026; adoption on October 19, 2026.
• Council will consider a special appropriation for fire station 47 from general fund balance at a later date.
• Staff will provide detailed breakdowns for police equipment (other equipment line), fire overtime trends, and stormwater program specifics.
• The finance committee will discuss Brookshire fee schedule on October 5.
• The change.org focus group results are pending and will be shared with council.
• Several reappropriations (adjustments) are expected in the coming weeks; two are already queued for the October 5 meeting.
• Fleet maintenance centralization will continue, with fire department heavy equipment evaluated after police fleet transition is complete.