Gary’s 2026 budget is slightly smaller than last year’s, but it shifts more money into key departments and adds new workers as part of a broader reorganization of city services.
The $65.5 million general fund, the city’s primary fund for day-to-day operations, is down about $725,000 from 2025, yet income, public safety, and infrastructure funds all grew modestly. The Public Works Department saw the largest jump, climbing from about $2.36 million to $4.45 million after the city folded its vehicle maintenance division into it, adding 20 full-time outdoor maintenance positions and reclassifying several custodial roles. Common Council leaders said the changes will streamline operations heading into the new year.
“City employees will get paid in 2026,” Council President Lori Latham exclaimed as the final salary-related ordinance was passed.
Though budget-related hearings went through smoothly, the Council hit pause on a proposal from the Gary Sanitation District to raise sewer rates for commercial and industrial customers, voting unanimously to send the measure back to committee after members pressed for clarity on who would pay more and when required notices would go out.
“My concern is the public’s point of view,” said Councilman Kenneth Whisenton. “This is impacting their beautician. This is impacting their barber. That’s how they see it.”
Sanitary District officials said the hike is needed to satisfy federal EPA and Department of Justice mandates and to help finance roughly $155 million in infrastructure upgrades. Without new revenue, the city could face outside intervention similar to the recent state takeover of the Gary public water system.
Ragen Hatcher, the district’s executive director, said the change would bring Gary’s rates in line with nearby communities in Lake County, where businesses pay a higher rate than residents.
“For a number of years, they have reaped the benefits of paying what you and I pay,” Hatcher said of industrial and commercial customers. “The board at the Gary Sanitary District talked through it and for a long time, commercial users have been on the backs of residential users, which has been completely unfair.”
Under the proposal, the smallest commercial users — businesses averaging 2,000–3,000 gallons a month — would see their rate go from $8.50 per thousand gallons to $14.50. About 1,800 commercial accounts would be affected, including apartments with four units or fewer, which will remain classified as residential. Twenty-eight industrial users, including TA Truck Stop, U.S. Steel, and Methodist Hospitals, could see significant increases.
Council members focused less on the need for upgrades and more on communication and execution. Whisenton requested a one-page list of affected business types, and City Attorney Marco Molina noted the 10-day public notice requirement had not been met.
With those concerns unresolved, the Council voted to send the ordinance back to committee. A committee hearing is set for Nov. 6, followed by a public hearing on Nov. 17.
The Council also finalized several smaller budgets Tuesday, including for the Gary/Chicago International Airport.
The airport’s $4.7 million budget passed 6-2, with Council members Darren Washington and Linda Barnes-Caldwell voting against it. Airport Executive Director Dan Vicari and board Vice President Steve Mays were pressed about progress on changing the name of the Griffith-Merrillville airport, which the Gary/Chicago airport acquired in 2023 for $1.8 million.
Latham floated two potential names: Tuskegee Airman Quentin P. Smith, a Gary native, and former State Sen. Earline Rodgers.