Consultant: Fishers in strong budget position for 2027 but statewide tax changes pose risks

Consultant Mike Ritter of Policy Analytics told meeting participants the city’s 2027 budget starts from a healthy position thanks to recent adjustments and unusually strong local-option income-tax (LIT) collections.

Ritter said the city’s certified assessed valuation rose only 0.4% this year—well below last year’s 2.7%—but a recent special legislative adjustment and a countywide LIT increase have improved Fishers’ near-term cash position. "If you have a $750,000 home, by the year 2031, they will only be paying on $250,000 of that assessed valuation," Ritter said, describing how growing homeowner deductions will change the taxable base over time.

Ritter walked through a large, one-time county special distribution that increased countywide LIT proceeds and noted Fishers’ portion is approximately $10,000,000. He said the administration is considering how much of the available maximum levy to use in its model and cautioned the $10 million special distribution should not be treated as fully recurring revenue.

The consultant emphasized that while revenues "look good" for the 2027 budget, statewide policy changes create caution flags. He pointed to a six-year nonfarm personal income factor that currently produces a 6% maximum-levy increase and said the legislature could cap or otherwise modify that approach in coming sessions.

The meeting closed with staff scheduling department-level presentations next week (police, fire, public works, parks and the community center) to refine spending priorities and cash-flow projections ahead of formal rate-setting.