Zionsville budget would tap $1.6M of $40M reserves, end soft hiring freeze to add firefighters and staff

Zionsville Mayor John Stehr presented a proposed 2026 budget that would use part of the town’s reserve balance to cover temporary shortfalls connected to incoming property tax and local income tax changes. Stehr said the town holds $40 million in reserves, about an 85 percent surplus relative to guidance, and that the 2027 budget projects drawing roughly $1.6 million from those funds. He said the town expects revenue allocation shifts under new local income tax rules and forecasts a return to positive cash flow by 2030.

The plan would also end a soft hiring freeze and expand staffing: Stehr said the town plans to add six firefighters in 2027 and expects 18–23 more hires over the next four years to address fire department staffing. The budget seeks a street technician, an IT role focused on police and fire, and a deputy planning director. Stehr said police won’t hire next year, though up to five officers could be needed by 2031 as new neighborhoods move into the urban service district. He proposed roughly 3 percent raises and a 3.85 percent pay adjustment tied to the 27-paycheck 2027 calendar, to become the base in 2028.

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