Beech Grove city councilors will consider a proposal to keep the municipality’s 2027 budget around $19.6 million, similar to what they budgeted for this year.
Jim Coffman, the Democratic mayor of the southside city, said he’s confident the proposed budget can be funded without dipping into the city’s cash reserves.
“The cuts are minimal, but we’ll continue to hold the line on the budget until we have a more clear picture on what is to come in the next couple years,” Coffman said during the Sept. 8 council meeting.
Beech Grove, like many local governments, is facing an uncertain financial future. A 2025 law cut property taxes for residents and business owners, reducing tax revenue for local governments to fund public services. That includes first responders, trails and community centers.
For Beech Grove, the funding cut is projected to be around $600,000 and $1.2 million within the next few years, according to 2025 estimates.
Overall, the city budget will increase about 1.4%, or around $265,700, from last year. Some dollars will directly support public services for multiple departments, while much of those funds will go toward a 1% raise for all employees, excluding elected officials. The 2027 budget doesn’t include raises for councilors, board of works members, the mayor and clerk-treasurer.
Coffman said he’s working to prioritize and retain city staff while also planning for an uncertain financial future.
“When you look at this budget, you’ll see a focus on the people that serve our city, that provide the services that our residents have come to enjoy and appreciate,” he said.
Funding police vehicles and infrastructure
The city is planning to spend around $50,000 for police vehicles and $15,000 for maintenance to the police station and the gunnery behind the building.
The city hall budget, which pays for electric, gas and water bills for all government buildings, will increase around 5%, or $19,000.
A new roundabout will be constructed along Churchman and Emerson avenues beginning in late 2027 or 2028, paid using a $3.5 million grant from the Indianapolis Metropolitan Planning Organization. Additionally, the city will be eligible for state infrastructure funds, which could be around $400,000 to $500,000, according to Coffman.
Other areas of the budget are higher than last year, but that’s mostly addressing the increase in costs, partially due to inflation. Clerk-Treasurer Samantha Stratton said department resources seem okay for now, but things could change if the 2028 budget doesn’t increase.
“I think they can only sustain a plateau for a year before people start seeing the effect on their services,” Stratton said. “Especially community programs in the parks, they have very limited budgets.”
Ongoing budget concerns
The draft budget comes after financial discussions became heated last year as the city prepared for funding cuts.
The $19.4 million budget for 2026 narrowly passed last year, partially due to councilors’ concerns about raising salaries in light of the 2025 tax cuts. In response, the councilors, mayor and clerk-treasurer opted out of a salary increase.
Coffman said city departments made “substantial cuts” over the past year to help pad the budget for the future. Still, it’s been challenging to plan when municipalities still don’t know when and how they’ll be impacted.
“We have a fiscal plan and it goes beyond 2027, 2028. But also, there’s a little asterisk because we don’t know,” Coffman said. “I keep going back to the state legislature, but again, we don’t know what they’re going to do and that’s a scary part for all municipalities.”
Coffman said an increase in new business properties will help prop up the city’s revenue. The city’s assessed property value will jump by roughly 8.5% for 2027, increasing from from $781 million in 2026 to $848 million. So while individual businesses won’t pay as much in property taxes, the additional businesses in the area will help maintain the city’s tax revenue, if not raise it.
Still, Councilor Ryan Matkins, a Republican, said it’s important that the city is able to keep spending low because they don’t know what’s coming the first part of next year.
Councilors are still trying to be mindful of community members’ wallets. The city passed its own wheel tax last month to support road infrastructure while aiming to reduce the financial strain on neighbors. The minimum $25 fee per vehicle is less than Indianapolis neighbors, who will pay a minimum $100.
Councilor Elizabeth Lamping, one of two Democratic councilors, said she’s grateful for the work of city department leaders as they navigate difficult financial decisions.
“Hopefully there will be times in the future that these budgets won’t be so difficult,” Lamping said.
What’s next
Councilors will formally introduce the budget during the Oct. 5 council meeting.
Beech Grove Councilors are expected to vote on the 2027 budget at 7 p.m. Oct. 19 in the Council Chambers of Beech Grove City Hall, 802 Main St. Community members can also livestream the meeting remotely.
Mirror Indy, a nonprofit newsroom, is funded through grants and donations from individuals, foundations and organizations. Sign up for our free newsletters.
Mirror Indy reporter Elizabeth Gabriel covers the south side of Marion County. Contact her at elizabeth.gabriel@mirrorindy.org. Follow her on X at @_elizabethgabs.
Republish our articles for free, online or in print, under a Creative Commons license.
