Many South Bend city employees would get a three-percent pay raise next year, under a series of salary ordinances presented to the common council Monday. This comes as the city has been asking departments to cut costs, in response to Indiana’s property tax reform.
Mayor James Mueller told council members that inflation means the city has to pay workers more to stay competitive, but revenues aren’t keeping up. “For the next few years, there are no new dollars," Mueller said during Monday's budget hearing. "We can’t come up with new programs. We’re going to have to find additional cuts, in order to fund cost of living increases and inflation costs.”
Three-percent raises are proposed for non-bargaining employees of South Bend’s executive departments, as well as elected officials. That would put the mayor’s 2026 salary at $130,481. The city clerk would make $85,097, and council members would make around $23,000.
City employees represented by the Teamsters Union will also get a three-percent raise, under their current contract. Salaries for police officers and firefighters will be finalized, once new contracts are ratified. The city didn’t immediately respond to WVPE’s interview request concerning the salary ordinances.
Senate Enrolled Act 1 is projected to limit the growth of South Bend’s revenues over the next couple of years, then likely cause a drop in 2028, when income tax changes take effect.
The salary ordinances and the 2026 budget will be up for the council’s final approval on October 13.
