New Albany City Council 2027 Budget Workshop - August 26, 2026

The New Albany City Council held a budget workshop for the 2027 fiscal year on August 26, 2026, at 7:01 PM. The workshop was informal, with department heads presenting their proposed budgets. Key themes included the implementation of a new integrated software system, consolidation of line items, and the redistribution of insurance benefit costs across departments.

Discussion Items

• Budget Overview (Shane Gibson, Budget Director): Gibson introduced the new software system, which integrates payroll with the budget, allowing for more accurate projection of benefits (health, dental, life insurance). He noted that line items have been consolidated to reduce duplication, and that the budget is preliminary and subject to change. The large stack of documents provided is a mid-year snapshot for reference.

• Police Department (Chief Allen): Staffing is at 71 officers, aiming for 74. The budget is largely unchanged, with minor increases due to inflation. The new software caused some line items to merge (e.g., vehicle maintenance, radio leases, body cameras). Questions were raised about side-by-side vehicles for parks enforcement and the impact of the new system on benefit projections.

• Street Department (D): The budget is flat, with overtime dependent on weather. The department is currently short one person, but the budget reflects lower salaries due to unfilled positions. Salt is budgeted in the local income tax fund, not the street department. The temporary move during construction of the new facility is not expected to increase costs significantly.

• Cemeteries: The budget was merged from two separate cemeteries several years ago. The increase seen is due to insurance benefits being allocated to the department for the first time via the new system. Overtime is driven by burials, which are weather-related.

• Animal Shelter (Wendy): The budget increase is primarily from insurance benefits. Staffing is 7 full-time and 5 part-time, with plans to hire one more full-time animal control officer and two part-time positions. The shelter handles mostly cats and dogs, but also other animals (chickens, roosters, etc.). The new facility will include a small animal room and outdoor space for farm animals. Concerns were raised about residents from other counties attempting to surrender animals, but this is not frequent.

• Planning Department (Scott): The budget includes an increase for training and seminars to support staff certification through the American Planning Association (AICP). Contract services are for a dimension set person (contractor). The department is working on credentialing planners to improve city services.

• Building Commission (David): The budget is similar to previous years, with the insurance benefit increase. Demolition costs have risen (from $7,800 to $15,000 per house). The department is absorbing rental inspection duties from a separate department, and the rental housing budget line is being phased out. The new software integrates code enforcement, rental registration, and animal control data.

• Parks Department (Alicia): The budget is largely unchanged except for insurance benefits. The park has 17 full-time and up to 150 part-time seasonal employees. River Run pool attendance is slightly down due to a rainy season. The spray park at Silver Shoot Park had two features out at the start but were repaired. A new synthetic turf soccer field is planned, with construction starting in October 2026. The playground at the flood wall was removed due to repeated flood damage and insurance complications; the stairwells were also removed for structural safety. The future RV park and mountain bike area will be phased in over two years, with maintenance costs not yet known.

• Fire Department (Chief): Staffing is at 78. The budget shows a decrease in other services due to merging line items (leases, repairs). Overtime remains a challenge due to injuries and leave. A new fire truck is delayed and expected in fall 2026; the department is moving to a regular replacement cycle with lease payments. The former 911 space will be repurposed for crew quarters. A $750,000 line item for station renovations is in the public safety local income tax fund.

• Flood Control (Brad): The budget is stable. The playground at the flood wall was removed because of repeated flooding, debris, and FEMA insurance requirements. The stairwells were structurally unsound and removed. Future access improvements to the riverfront from downtown are challenging due to railroad and Army Corps of Engineers restrictions. The RV park and mountain bike area are in design, with phased construction.

• Revenue Discussion (Shane Gibson): Gibson reviewed revenue estimates, including property tax levy (maximum levy ~$3.4 million, budgeted at $3 million), circuit breaker calculations, local income tax estimates, and MBH (Motor Vehicle Highway) funding. He noted that the state now requires that half of MBH funds be spent on roads, and that building permit fees must be placed in a separate fund and expenses directly related to those fees must be paid from that fund. The city is adjusting to these requirements. The police and fire pension funds are reimbursed by the state. The impact of recent state legislation (Senate Bill) has been a one-time property tax loss of $900,000, not cumulative. Future legislative changes are anticipated, and the city is monitoring them.

Key Outcomes

• No formal votes were taken; the workshop was informational.
• The budget is preliminary and will be refined. Department heads will provide updated numbers after verifying the new software's projections.
• The next steps include introduction readings and a committee-as-a-whole meeting before the budget ordinance is finalized.
• A clean copy of the budget will be distributed to council members.
• The council noted the importance of planning for future revenue constraints and thanked the staff for their work.