The Hobart City Council voted on Wednesday to approve a first reading of the city's $69 million 2026 budget ordinance.
The draft budget represents a modest spending increase over this year's budget, including a 2% cost-of-living raise for full-time city employees. The city also plans to increase the longevity rates that reward employees for time spent with the city.
Next year will bring unique challenges for Hobart's finances. Signed by Indiana Gov. Mike Braun in April, Senate Enrolled Act 1 will overhaul local taxation in the Hoosier state starting in 2026. The new law gives homeowners a 10% annual property tax credit of up to $300 and significantly expands the de minims exemption for taxes on personal property held by businesses, among other tax cuts.
Hobart expects to lose 4.6% of its 2026 property tax revenue as a result of the changes, based on data compiled by the civil engineering firm SEH.
Clerk-Treasurer Deborah Longer said that the city has worked to offset the impact of the bill on next year's budget by drawing more heavily on other funding sources.
Wednesday's meeting saw the council give first reading approval to an ordinance sought by the prospective developers that will vacate a public right-of-way in the project area. The project's opponents were once again out in force.
Hobart Mayor Josh Huddlestun has cited SEA 1's impact on his city's finances to explain his support for a planned data center complex on 61st Avenue. The project, proposed by an entity called Hobart Devco, LLC, promises a significant new source of property tax revenue but has provoked strong opposition from some city residents. The project's critics main concerns are over noise and environmental impacts and they speculated that the new facility will negatively impact surrounding property values.
