Hammond city employees are set to get pay raises, under the city's proposed 2025 budget.
Mayor Tom McDermott Jr. presented a series of budget and salary ordinances to the city council Tuesday. That includes a civil city budget of almost $162 million, a sanitary district budget of $15.8 million and a redevelopment commission budget of almost $553,000 dollars.
"Even though this is a challenging time, even though we're negotiating big contracts, I'm encouraged because it seems like our property taxes are picking up, our assessed value's picking up, and that's a healthy thing for our economy," McDermott told council members.
As it stands, most city employees would see a two-percent raise next year, but McDermott said police and firefighters could get significantly more, once contract negotiations are complete. "The police department is on record, their first year, asking for a 15-percent pay raise, and we're discussing that," McDermott said. "The pay package would be 25 percent over four years if they accept it, and I have every reason to think they'll accept that."
McDermott worried that police officers will quit if Hammond's wages don't stay competitive. He said the budget includes $37 million for the police department and $25 million for the fire department.
While gaming revenue has taken a hit, the mayor said Hammond has diversified its revenue by selling water to other communities and attracting new businesses. He said the city's net assessed value has increased by 12 percent, driving up property tax revenues.
"That's something that's phenomenal," McDermott said. "It's encouraging for our city that we have grown our property tax revenue to $42 million, and that's significant for me, O.K.? Forty-two million dollars was the amount of money that we used to make before property tax caps took effect."
But resident Ken Rosek worried that the environmental impact of that new development could end up costing the city in the long run, by pushing it further away from complying with a federal consent decree over Clean Water Act violations. "I see parking lots going in, draining right into the city drains. I see buildings going in and they just get fully approved and, boom, all the green space is being taken up. I don't see any mitigation," Rosek said during the public hearing on the proposed budgets.
McDermott said the Hammond Sanitary District will likely have to spend at least $200 million within the next 10 years to upgrade its sewer system. "When that happens, we will be forced to raise rates on Hammond residents, when that happens," McDermott said. "This is happening! This isn't the evil Mayor McDermott plan. This isn't the evil city of Hammond plan. This is the U.S. federal government, a mandate with the Department of Justice."
But he said none of those expenses are included in the proposed 2025 budget.
The budget and salary ordinances will be up for final approval on October 28.
