Hammond Mayor Presented Fiscal Year 2027 City Budget
The proposed $170 million plan includes significant allocations for public safety and the College Bound scholarship program.
Updated on Oct. 14, 2026 in Gambling
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Mayor Thomas McDermott Jr. has presented a $170 million budget for fiscal year 2027 to the Hammond City Council. The proposal aims to balance rising operational costs with consistent funding for city services and student scholarships.
Why it matters
The city is navigating potential revenue shifts caused by Senate Enrolled Act 1, which may impact property tax collections. Local officials are balancing these constraints against mandated cost increases for public safety and essential waste management services.
The city has a net assessed value of $3.94 billion and expects to earn between $20 million and $24 million in gaming taxes. Horseshoe Hammond carries an assessed property value of $175 million.
The players
Thomas McDermott Jr.
Thomas McDermott Jr. is the Mayor of Hammond and is responsible for introducing the annual municipal budget.
Horseshoe Hammond
Horseshoe Hammond is a major local property owner and gaming venue that contributes to the city's tax revenue base.
The details
The budget earmarks $40 million for the police department and $26 million for the fire department, while pension contributions for both divisions saw a 3.2% increase. Additionally, landfill and recycling costs rose by 5%, though the city plans to offset expenses using $12 million from water sales and $6 million in payments in lieu of property taxes.
Timeline
October 13, 2026: Mayor Thomas McDermott Jr. presented the fiscal year 2027 budget.
October 26, 2026: The City Council is scheduled to hold the final budget reading.
Culture Shift
The city's financial strategy reflects broader efforts by local governments to adapt to legislative changes in property taxation. This approach highlights a transition toward reliance on utility revenue and commercial development to maintain public services.
Residents may see adjustments in municipal services as the city manages a 5% increase in landfill and recycling costs. The continued $3.5 million funding for the College Bound program ensures that scholarship opportunities for local students remain intact for the coming year.
The takeaway
The proposed budget reflects the city's ongoing reliance on diverse revenue streams to maintain public services. Residents should monitor the upcoming October 26 final reading to see if any adjustments are made to the current spending plan.
What happens next
The City Council will hold the third and final reading of the fiscal year 2027 budget on October 26, 2026.
Further reading
For more context on local gaming revenue, visit the Gambling section.
Source note: This article includes information reported by Nwitimes.
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