I just finished sitting through my eighth annual media budget briefing from Scott Fadness.  The first few years he was the town manager, in more recent times as mayor.  But this is the first time the mayor, just a few days away from the public hearing on the budget before the city council Monday, could not provide an overall budget number for 2021.

“This is, hands down, the most unusual situation we find ourselves – from a budget – that I can recall,” Fadness said.

The pandemic is to blame for the budget uncertainty, according to the mayor.

There has been some good news that will ease the financial pressure on the city.  The state budget office had forecast a 10% decline in income tax revenues available to local governments, but numbers released Wednesday reveal a 10.8% income tax revenue increase in Hamilton County.  Fadness said this development changed the city’s financial situation “dramatically” literally overnight.

An agreement reached with Carmel dealing with local income tax distribution says any growth in the income tax revenue over 2.5% will go to Fishers.  The new income tax numbers from the state indicate Fishers will gain an additional $4 million based on that agreement.

The mayor, who had shaved spending from the 2021 budget plan bracing for lower revenues, now finds the city with a surplus in the coming year of about $7 million.  He will take time between now and Monday to determine where the extra money will go.

When the state warned of lower revenue numbers in the spring, Fadness eliminated 7 full-time positions through attrition, including 2 deputy mayor jobs (no public safety jobs were impacted).  He also eliminated all travel and training for staff.

City Controller Lisa Bradford says the cuts in spending for 2020 totaled at least $1.2 million.

The mayor also addressed the creation of the Fishers Health Department.  The city dipped into cash reserves to the tune of about $2 million to create the department and establish a COVID-19 testing program.  The city is utilizing CARES Act money, which can only be used for certain qualified expenses, such as testing and overtime, to be reimbursed for nearly all the money taken from reserves for testing and the health department.  Beginning in 2021, the one cent tax rate used by the county to fund the county health department will, for Fishers residents, go to pay for the city health department.  This will be tax rate neutral, the mayor said, with city residents paying the one cent rate to the city health department instead of funding the county health operation in 2021.

Based on the CARES Act funding, the mayor says he is confident that the demand for testing by residents and businesses in Fisher will be met.

Fishers remains the only city in Indiana to maintain a AAA Standard & Poor’s bond rating, and Fadness said the actions taken by the city in reaction to the COVID-19 crisis contributed to keeping that debt rating.

Before the latest revenue numbers, Fadness planned to present a 2021 spending plan to the council with no additional staff and no additional compensation for city employees other than longevity raises already embedded in the pay system.  It would have allowed for a $700,000 surplus to help the city deal with any income shortfalls for 2021.

With the additional money in the pipeline, with a $7 million surplus, Fadness says he will be cautious on how to handle the additional money.

Property tax values are going up, according to the mayor, and commercial values look strong for the time being in Fishers.

The mayor said he had recommended a reduction in the amount of money the city council nonprofit committee would have to distribute to local organizations, down from $250,000 to $100,000.  With the latest income figures, Fadness anticipates more than $100,000 in funds available for nonprofits, since those groups are hurting.  However, at the briefing, the mayor would not commit to a number.

With additional money available, the mayor said he will consider additional staff and possible increases in staff compensation, and will reveal his decision to city councilors Monday.

In terms of city building projects, the Geist Waterfront Park and Nickel Plate Trail will continue to move forward with funding in place.

As to funding the continuing construction on State Road 37, the mayor says the city has bonds rolling off in 2024, allowing the city to issue new bonds handling any additional money needed for completion of the State Road 37 construction without needing a tax rate increase.  The city estimates a need to find an additional $18 million to fully fund the project, according to Fadness.

The mayor described his 2021 budget plan as tax neutral, without any increases in city fees. “It really should be a neutral budget when it comes to (taxpayers’) wallet.”  The mayor did caution that increases in housing values could increase some property tax bills, but that is outside the power of city government to control.

What the mayor described as a “robust” road resurfacing plan will continue in 2021, with wheel tax money and an annual bond issued each year funding that.

One capital project that Fadness will factor into his budget deliberations is the proposed new fire station on the northeast side of the city.  Staffing the station, as well as the building costs, will be a part of that decision.

On another matter, Fadness says he expects the 126th Street roundabout at State Road 37 to be fully open sometime in November.  The construction on 96th Street should be done this fall.