City budget cuts for 2027 + what's behind them

Hey Locals, 

On Tuesday night, City Council voted unanimously to approve the City's 2027 budget at $371.9M. But the road to that agreement was anything but smooth.

Council started with $19M in proposed cuts to Mayor Sharon Tucker's original budget, presented earlier this fall. They eventually settled on $11.6M worth of cuts – all of which were initiated by Republican Council members in response to a $10M deficit in the Mayor’s original budget.

In today's newsletter, we'll give you a quick recap of the most controversial cuts and saves, and the key factors driving this year's budget discussions.

To compile this report, we spoke to:

• John Perlich, City of Fort Wayne Director of Public Information
• Nick Jordan, City of Fort Wayne Deputy Controller
• Councilman Russ Jehl (R-2)

We also reviewed footage from the City Council meeting on Oct. 20, which included comments from Jonathan Leist, Director of the City’s Community Development Division.

For a quick overview:

Three factors that influenced this year's budget discussions were: 1) different opinions on "fiscal responsibility," 2) state property tax cuts, and 3) use of the City's cash reserves.

1) Different opinions on fiscal responsibility

Republicans and Democrats on Council were divided on how they sought to achieve "fiscal responsibility" regarding the 2027 budget.

• For Republicans: The primary concern was keeping the City's spending in line with its revenue, so it wouldn’t be in a fiscal crunch for years to come. These members made the case that the Mayor simply did not put forth a balanced budget to begin with, which required cutting extraneous spending, rather than relying on cash reserves to fill the gap.
• For Democrats: The focus was on maintaining investments in City programs and projects, which they believe will drive growth (and therefore tax dollars) for years to come. Since the budget shortfall could be paid for by the City's cash reserves, these members saw the budget as already balanced, making additional cuts unnecessary.

2) State property tax cuts

Another factor that played into this year's budget discussions was Gov. Mike Braun's controversial 2025 property tax legislation, SB1, now known as Senate Enrolled Act 1 (SEA1).

You might remember: Mayor Tucker assembled the SB1 Fiscal Task Force in Fort Wayne to address financial constraints and uncertainty brought about by the legislation.

Jordan tells us a few key takeaways from the Task Force were incorporated into the Mayor's 2027 budget proposal, including: 

• Using cash reserves for infrequent or one-time capital expenditures, like vehicles/equipment and/or infrastructure projects.
• Optimizing the use of special revenue funds that have sizable fund balances.
• Developing an unofficial reserve level to cover “at least two months of vital City government operations” in the event of emergencies.
• Understanding that revenues may grow, but not as much as they would pre-SB1.

3) Use of the City's cash reserves

Mayor Tucker and City Controller Pat Roller emphasized that Fort Wayne is in a “strong financial position,” and the 2027 budget's original “$10 million deficit is covered by the City’s more than $100 million cash reserve,” The JG* reports.

• Jordan tells us if the City’s revenue projections are accurate, then the 2027 year-end cash balance “would still be almost double the two months reserve figure.” According to Jordan, there’s no official policy or guidelines for the City’s reserves either.
• However, Republicans on Council saw the deficit as an imbalanced budget, meaning: the City was asking for deficit spending to finance projects that aren’t covered by current revenue. Jehl said reducing the 2027 budget wasn’t just about this one year, but ensuring the City's fiscal security for years to come – especially considering its shaky financial history during the early 2010s. “It took a dozen years for the City to go from insolvency to approximately four months cash reserve," he says. "I’m uncomfortable burning the cash down to two months reserve in just two years time, especially since the operating expenses are exceeding revenue. There isn’t a clear path forward to a balanced budget once the cash is burned.”

Now, let’s recap a few of the most controversial cuts and saves.

The cuts:

1) North River

Council voted 6-3 (along party lines) to cut $4M in proposed funding for the City's North River Development, a mixed-use district centered on a youth sports fieldhouse with housing, retail, entertainment, and other opportunities to come.

You might remember: In 2017, the City purchased the land using CIB funds, and starting in 2024, it began grant-funded remediation efforts on the site, which was previously home to a variety of industrial uses.

Why was funding cut?

• Councilman Hartman and others said they wanted to see “a more defined revenue source for the project” before committing the funds. Jehl pointed out that the $4M wouldn’t just be a one-time payment. He says the five-year development plan includes an additional $4M per year going forward, making it a large, ongoing financial commitment for the City. Ensley noted the $4M slated for North River has restricted use, but could still be used for other purposes, like alleys and sidewalks.
• Differences in opinion about how much economic activity the project will generate. Jehl and others on Council remain skeptical of North River’s projected economic benefits; meanwhile, the City's Jonathan Leist says delaying North River could have negative effects, too, making the case that “not investing in economic development opportunities as a community has the same effect as raising taxes in the long term for our residents.” Because Downtown Fort Wayne is taxed at a much higher rate than outlying areas, Downtown “remains a net contributor, and subsidizes public goods for the rest of the area,” he says.

So where does the North River development stand now?

While the North River funding was cut, the City says it will still move forward with architectural and engineering plans for the site. Leist noted Council’s history of cutting a project and then bringing it back for discussion, which can have a negative impact on the project’s productivity.

Perlich tells us: “It’s too important to pass us by. It’s a vital project that’s critical to our community’s future growth and success. We won’t give up on this effort. I’m anticipating an update before the end of the year on the project and next steps.”

2) The Portland Loo

Council voted 6-3 (along party lines) to cut funding for The Portland Loo, which totaled $40K for maintenance plus $26K+ for installation.

You might remember: The purchase of the Loo was approved by Council in early 2025 as a public restroom that would “enhance Downtown’s cleanliness and provide a restroom for Downtown visitors,” according to Leist. Perlich says the Allen County Building Department has issued a building permit for the project, and some preliminary work has begun. However, due to permitting delays, the Loo will likely be completed in early spring.

Why was funding cut?

Republicans, like Jehl, said they think the project has already gotten enough funding from Council. For maintenance, Hartman said $40K “seems like a lot,” noting that Downtown Fort Wayne (the organization) provides its Downtown cleaning service “for about $50,000 a year.” Myers agreed with cutting Loo's maintenance funding, describing it as “high cost, low priority.”

Where does the Portland Loo project stand now?

Leist says the lowest quote the City has gotten for cleaning the Loo is $70K, and cutting funding will leave a mere $11K to keep the facility clean and operating properly– something Leist says would “not be possible.” He also clarified that any potential contract with Downtown Fort Wayne to clean the bathroom would be an additional cost (not included in the existing cleaning program).

Perlich tells us: “The City is currently negotiating a contract with Blue Jacket for cleaning services, but it has not been determined how the funding will be covered. Downtown businesses, Visit Fort Wayne and Downtown Fort Wayne have repeatedly asked for a Downtown public restroom to accommodate people who are visiting the YLNI Farmers Market, conventions and other activities in the heart of our community.”

The saves:

Two of the most contentious debates of the meeting were over funding to neighborhood projects: Oxford Streetscape and Hanna-Homestead Park. Ultimately, both proposals to cut funding were withdrawn, but not before heated discussions about how Council is allocating funding to historically under-invested areas of Fort Wayne.

1) Hanna-Homestead Park
Councilman Hartman withdrew his proposal to cut $650K in funding for the park.

You might remember: Hanna-Homestead Park has been in the works for about seven years now, and Council approved the design contract a few months ago. The park was part of the East Central neighborhood plan adopted by Council in June 2025.

What saved it? Councilwoman Michelle Chambers highlighted the park’s funding situation, noting that this $650K allocation is a grant match, which means: without the City’s funding, the City loses the grant money. She also emphasized that cutting this funding would mean “balancing the budget (that’s already balanced) on the backs of neighborhoods that have been waiting almost a decade for improvements.”

2) Oxford Streetscape Reconstruction

Hartman and others withdrew a proposed $2M cut for the reconstruction.

You might remember: The project, located on Oxford Street between Lafayette Boulevard and South Anthony Boulevard, would entail multiple phases to calm traffic, redo sidewalks to meet ADA standards, improve drainage, among other goals. The project is part of the City’s Southeast Strategy, which received approval from Council in August 2026 for $3.46M for its initial phases.

What saved it? Leist clarified that this is a “big project” to be completed in multiple phases, with this $2M to be used next year for Phase 3. He also noted that there are limited other sources for the funds, since money from the Google land sale (technically known as the Adams Center TIF and the Redevelopment Capital Fund) can’t be applied in this case; TIF money has to be “inner-serving” in the district, and Oxford Street would lie outside those bounds. Chambers also called out Republicans, Ensley and Myers, for advocating for (and getting) funding for their districts, while proposing cuts for neighborhoods in the Southeast. “Let’s be equitable in how we advocate for all people,” she said.

Overall, we’re curious to see how Council handles upcoming decisions, especially as some of these projects – like the North River development and the Portland Loo – are likely to come back to them for consideration.

In the meantime, we’d love to hear from you: What City budget items are the highest priority for you? And do you agree with the rationale for cutting funding from some projects? Hit reply to this email, and let us know.

Until next time, Locals!

Your interim Local ATF team,

Rachel Horton and Jeff Blossom