Evansville Mayor Stephanie Terry described the 2027 proposed city budget as “disciplined” and “focused” on the future. There are no new taxes, and no new obligation bonds.
This week, the city presented the $152.1 million budget. Terry also spoke about work completed this year.
“We've made progress on investing in neighborhoods with housing more than 1,600 units underway or in the pipeline, putting us at 84-percent of our goal of 2,000 by the end of 2027,” she said.
The new budget includes an 8.5-percent increase over 2026, and a $5.3 million shortfall, proposed to be covered by cash reserves. There would still be $24.4 million in cash reserves should this expense be approved.
Mayor Terry attributes this gap to city services costing more to deliver than there are revenues. The city also pulled $10.6 million from casino income last year.
She said budget priorities in 2027 are based on resident feedback.
“We're protecting what makes us strong, and investing boldly in what comes next. This proposed $152.1 million budget is disciplined and focused on the foundation of our city — our roads, stormwater infrastructure, parks, public safety, housing, and code enforcement.”
She said the city is still very concerned about changes to the state’s property tax system. They’re expecting $62.3 million in property tax revenue in 2027 — $400,000 more than in 2026.
Still, this is more than $6 million less than the city would have gotten, if not for new Indiana Property tax law, Senate Enrolled Act1.
“While our revenue picture has improved, it's not growing at a pace that fully supports our expenses and obligations. That's why we still have a 5.3 million dollar general fund gap, and that's really the challenge before us.”
She admits that borrowing from other areas to make the budget is not a sustainable paradigm. The city has returned $6 million to the casino from last year’s shortfall.
Despite this, Terry said they’ll be making several investments into infrastructure such as city streets. They’re pulling together $6 million in road projects for 2027.
“Roads consistently rank among the number one concerns we hear from residents wherever I go-the nail shop, the grocery store, even on social media-we are being told fix those roads, we hear you. This budget responds to that.”
Other notable additions are $3.3 million for the new EMS service, and $2.5 million in salary increases.
City Council is scheduled to hold two public readings of the budget. The first on September 28 then the October 5 meeting at which they will take a vote. Both are at 5:30 PM at room 301 of the Civic Center.
This story was produced in cooperation with Evansville NewsLab.
More details on the preliminary city budget can be seen here.
Support independent journalism today. You rely on WNIN to stay informed, and we depend on you to make our work possible. Give to grow our local reporting today. Donate