Evansville City Council Approves $847 Million Budget, Freezes Utility Rates for 12 Months

Evansville's city council voted 6-3 on Thursday to approve a $847 million operating budget for fiscal year 2026-27 and implement a 12-month freeze on water, sewer and electric utility rates. The freeze means residents will pay the same rates they paid in July 2026 through July 2027, regardless of inflation or operational cost increases for the city's public utilities division.

The council's action addresses a core concern residents have raised at six public hearings over the past two months. Utility costs have risen 8 percent annually in Evansville since 2023, outpacing the region's 3.2 percent average wage growth, according to data presented by the city's Finance Department. The freeze does not affect trash collection fees or stormwater charges, which remain subject to annual adjustment.

What the Rate Freeze Means for Your Household Bills

A typical Evansville household using 60,000 gallons of water monthly will pay $78.40 in water charges through July 2027, unchanged from the current rate. Electric customers consuming 1,000 kilowatt-hours monthly will see their bill locked at $112.16. The council president, Margaret Chen, noted during the vote that the freeze protects fixed-income seniors and working families from absorbing additional costs during the budget period.

The freeze does not eliminate the city's infrastructure backlog. The council deferred a decision on allocating $12 million for street resurfacing in neighborhoods south of the Pigeon River, a project previously scheduled for 2026-27. Public Works Director James Kotowski told council members that delaying the street work by one year would cost an additional $400,000 in repair expenses but would preserve the utility rate freeze. The council will revisit street repair funding in October when revised revenue projections become available.

Staffing Decisions Pushed to Fall as Budget Uncertainty Persists

The council also postponed a vote on hiring 14 additional firefighters for the Evansville Fire Department, a request the fire chief submitted in March. Fire Chief Robert Duffy said current staffing levels of 287 personnel cannot adequately cover three of the city's five fire stations during peak call hours. The National Fire Protection Association recommends one firefighter per 1,000 residents in mid-sized cities. Evansville's population of 117,000 means the NFPA standard calls for 117 personnel, but staffing shortfalls across the department have created a gap of about 30 positions when accounting for sick leave and training assignments.

The 14-position hiring plan would cost $1.2 million annually in salary, benefits and equipment. Rather than commit those funds now, council members voted to request updated revenue forecasts from the city's Finance Department by September 15. If property tax collections exceed current projections, the council said it would fund firefighter hiring before the end of calendar 2026. If revenues fall short, the hiring would be deferred to 2027-28.

The budget vote also confirmed $34 million in capital spending for downtown infrastructure, including $8 million for pedestrian streetlight upgrades along Main Street and $6 million for parking garage repairs at the Civic Center. These projects are expected to break ground in September. The council allocated $2.4 million for affordable housing grants to nonprofits and set aside $900,000 for youth violence prevention programs in neighborhoods where homicide rates have risen 18 percent since 2024.

Council meetings resume August 14. The next session will include public comment on a proposed revision to the city's zoning code, which would permit mixed-use residential and commercial development on vacant industrial parcels near the riverfront. That vote is scheduled for August 28.