Fort Wayne City Council heard the first presentation of the proposed city budget on Tuesday. That budget predicts a large loss in revenue due to changes to property taxes.
The budget presented by Fort Wayne City Controller Pat Roller predicts a $16.4 million revenue decrease due to Senate Bill 1, which was passed earlier this year. The bill changes the structure of local income tax to reduce property taxes.
The numbers used to predict that revenue loss come from the Indiana Department of Local Government Finance (DLGF). Councilman Nathan Hartman said he believes the DLGF is overestimating those numbers.
Mayor Sharon Tucker acknowledged the possibility of the DLGF numbers being off, but said planning for them will put the city in a better position.
“Should the DLGF predictions come in in a better position, we can then replace that revenue in our savings account," she said.
Tucker said the city has been preparing for the impacts of SB 1 by putting money away in places where savings could be made.
The proposed budget totals $244.8 million. The entire budget can be found on the city’s website.
