Town Budget and Finances
2027 Budget
The proposed budget will be presented at the Town Council Meeting on October 6th, 2026. You can view the meeting on our YouTube Channel.
Documents related to the proposed budget are available below.
2027 Budget IntroductionTown of Cedar Lake, Indiana · October 6, 2026
Presented by Jennifer N. Sandberg, IAMCA, CMC, CPFIM, CMO, Clerk-Treasurer
Budget Form 1 – Budget Estimate
The 2027 Budget at a Glance
- $14,742,988 Total 2027 budget estimate, all 18 funds
- $8,497,800 General Fund
- 45% Of the total budget goes to public safety (police, fire, EMS, 911)
- $1,183,413 Property tax credits in 2026, up from $116,046 in 2025
- $1,404,400 Street funds (MVH and Local Road & Street)
- $425,000 PSAP (911 dispatch) contract moved to LOIT Public Safety
Down from the 2026 adopted budget: total $16,168,556 to $14,742,988 (−8.8%); General Fund $8,972,100 to $8,497,800 (−5.3%). The goal is restructuring our organization for sustainability. No major budget additions until full understanding of property tax losses and revenue replacement opportunities as well as timing.
Source: 2027 Budget Form 1 – Budget Estimate (DLGF Gateway, generated 10/02/2026).
History
Summary of Selected Cash Balances
| Fund | 6/30/2026 | 12/31/2025 | 12/31/2024 | 12/31/2023 | 12/31/2022 | 12/31/2021 |
|---|---|---|---|---|---|---|
| General | $3,807,230 | $4,056,022 | $4,178,801 | $4,361,543 | $5,076,767 | $4,787,348 |
| MVH | $893,267 | $768,557 | $739,542 | $861,575 | $578,388 | $422,107 |
| LRS | $986,093 | $963,542 | $862,768 | $666,230 | $548,351 | $397,051 |
| CCD | $313,647 | $349,945 | $308,551 | $484,786 | $414,960 | $383,756 |
| CCI | $50,121 | $44,898 | $35,213 | $35,181 | $29,327 | $20,202 |
| CEDIT | $1,445,058 | $1,120,510 | $767,899 | $640,939 | $532,147 | $754,196 |
| LOIT Public Safety | $677,674 | $496,616 | $321,425 | $199,068 | $137,143 | $121,515 |
| Casino Gaming | $275,745 | $273,498 | $188,911 | $179,784 | $107,447 | $220,383 |
| Redevelopment General | $137,498 | $131,602 | $124,220 | $106,533 | $91,570 | $54,372 |
| Total | $8,586,333 | $8,205,190 | $7,527,330 | $7,535,639 | $7,516,100 | $7,160,930 |
Sources: 2026 Budget Introduction (12/31/2021–12/31/2024) and Annual Financial Report.
History
Assessed Value and Property Tax Credits
| Pay year | Certified Net Assessed Value (CNAV) | Change in CNAV | Property tax credits |
|---|---|---|---|
| 2026 | $1,150,882,236 | 9.17% | $1,183,413 |
| 2025 | $1,054,202,916 | 10.57% | $116,046 |
| 2024 | $953,451,766 | 9.51% | $156,842 |
| 2023 | $870,658,101 | 16.93% | $475,875 |
| 2022 | $744,576,738 | 12.27% | $46,592 |
| 2021 | $663,205,480 | — | $75,254 |
What this shows
- Assessed value grew about 74% from 2021 to 2026.
- Credits are taxes the Town levies but cannot collect.
- 2026 credits rose tenfold: $689,638 from SEA 1’s new homestead credit, the rest from the 1% / 2% / 3% caps.
The Department of Local Government Finance estimates a 2027 credit loss of $686,200.
Sources: 2025 and 2026 Budget Introductions; DLGF 2026 budget order and circuit breaker report. Credits for 2026 include the new SEA 1 homestead credit.
History
Historical Assessed Value and Tax Rates
Certified net assessed value has risen every year, from $491,469,612 in 2017 to $1,150,882,236 in 2026. The Town’s tax rate per $100 of assessed value ranged from 0.5663 (2022) to 0.9569 (2026).
| Year | Certified Net Assessed Value | Tax rate (per $100) |
|---|---|---|
| 2017 | $491,469,612 | 0.8083 |
| 2018 | $521,450,289 | 0.7024 |
| 2019 | $556,389,622 | 0.6204 |
| 2020 | $600,232,689 | 0.6657 |
| 2021 | $663,205,480 | 0.5772 |
| 2022 | $744,576,738 | 0.5663 |
| 2023 | $870,658,101 | 0.8122 |
| 2024 | $953,451,766 | 0.7905 |
| 2025 | $1,054,202,916 | 0.7450 |
| 2026 | $1,150,882,236 | 0.9569 |
Sources: 2026 Budget Introduction; DLGF Budget Orders.
Property tax and local income tax reform
Senate Enrolled Act 1 (2025): What Changes, and When
2026 Already in effect
- Levy growth capped at 4%
- New homestead credit: lesser of 10% of the bill or $300 of net, absorbed by local units
- Homestead standard deduction begins to phase out
2027 This budget
- Three-year growth appeal eliminated
- Levy growth limit returns to the formula: 6%
- Standard deduction drops to $40,000
- Business personal property exemption rises to $2 million
2028 Next year
- Standard deduction drops to $30,000
- Current local income taxes (CEDIT, LOIT Public Safety) continue through 2028
- Must opt into county-wide municipal services LIT or adopt municipal LIT rate
2029 and later Looking ahead
- New local income tax structure collection begins (delayed from 2028 by HEA 1210-2026)
- Lake County municipalities negotiate distributions
- Homestead deduction phase-out complete in 2031
Sources: DLGF memos (June 10, 2025; July 17, 2026); LSA fiscal note; Baker Tilly.
Impact
What SEA 1 Means for Cedar Lake
The Growth Appeal Is Gone
- Growth appeals added $389,654 (2024), $423,411 (2025) and $427,118 (2026) in recurring levy.
- That revenue funded firefighters, a mechanic and public safety wages.
- Pay 2026 was the last year. Growth now has to be paid for within the formula.
More Credits, Less Collected
- The new homestead credit cost the Town $689,638 in 2026, its first year.
- Total credits rose from $116,046 (2025) to $1,183,413 (2026).
- The homestead deduction keeps phasing out through 2031, pushing more bills into the caps.
Local Income Tax After 2028
- We have to wait an additional year to replace lost property tax revenue with new LIT.
- Opt into county-wide LIT or adopt municipal LIT.
- 2029 full collection year and 2030 first distribution year.
- Cedar Lake’s share depends on new rates and a Lake County distribution agreement.
The State’s Estimate Held Up
- State’s April 2025 estimate for 2026: −$645,160
- Actual 2026 homestead credit: −$689,638
- Most neighboring towns came in close. A projection for 2027 and beyond is still needed.
Sources: 2024–2026 budget filings; DLGF 2026 circuit breaker and LIT reports; LSA unit-level estimates, April 9, 2025.
2026 actual property tax credits
SEA 1’s First Year in Lake County Towns
| Town | 2026 Levy | New SEA 1 Homestead Credit | Total Credits | % of Levy |
|---|---|---|---|---|
| Lowell | $6,526,877 | $378,179 | $1,040,341 | 15.9% |
| Cedar Lake | $11,012,793 | $689,638 | $1,183,413 | 10.7% |
| Highland | $11,989,624 | $692,045 | $1,084,481 | 9.0% |
| Munster | $13,474,530 | $725,754 | $1,166,621 | 8.7% |
| Dyer | $11,246,330 | $834,858 | $909,969 | 8.1% |
| St. John | $10,367,011 | $826,873 | $837,213 | 8.1% |
| Schererville | $13,990,918 | $942,871 | $987,663 | 7.1% |
What this shows
- The new homestead credit took 5% to 8% of every town’s levy.
- Towns with almost no prior losses, like St. John and Schererville, were hit just as hard.
- Every town in the table lost at least $837,000 in the first year.
Source: DLGF 2026 Circuit Breaker Report, Lake County. Percentages calculated from the report.
Context
Revenue Challenges
Statewide projections for SEA 1
- $114 million Projected 2027 revenue loss for Indiana cities and towns
- $231 million Projected 2028 loss for cities and towns, as the deduction phase-out deepens
Legislative Services Agency fiscal note (April 2025). LSA also projects Lake County taxing units will lose $235.2 million over three years, more than any other county.
Pressures on the Town
- Growth comes before revenue. New homes need police, fire, roads and parks before new levy catches up, and the growth appeal no longer closes that gap.
- Costs keep climbing. Public safety is 45% of the budget, and fuel, vehicle repairs, road salt and equipment cost more each year.
- Uncertain income tax. Two funds that pay for roads and 911 dispatch depend on local income tax rules that change in 2029.
Lake County declined to hold a MUST meeting before the October 1 deadline and has no plans for one. There is a lack of adjusted gross income data for our Town to truly estimate income tax collections versus property tax losses.
Sources: LSA fiscal note, April 10, 2025; NWI Times, September 9, 2025; 2027 Form 1.
Appropriations
2027 Proposed Budget by Fund
| Fund | 2026 Adopted | 2027 Advertised | Change |
|---|---|---|---|
| General | $8,972,100 | $8,497,800 | −$474,300 (−5.3%) |
| Motor Vehicle Highway | $936,800 | $979,400 | +$42,600 (4.5%) |
| Cumulative Capital Development (CCD) | $550,900 | $557,800 | +$6,900 (1.3%) |
| Building and Construction Related Fees (new fund) | — | $496,260 | New |
| CEDIT | $440,000 | $490,000 | +$50,000 (11.4%) |
| LOIT Public Safety | $375,000 | $425,000 | +$50,000 (13.3%) |
| Local Road & Street | $390,000 | $425,000 | +$35,000 (9.0%) |
| Police Pension | $200,000 | $197,000 | −$3,000 (−1.5%) |
| Redevelopment General | $85,900 | $75,500 | −$10,400 (−12.1%) |
| Cumulative Capital Improvement (CCI) | $25,000 | $25,000 | No change |
| Debt funds (Debt Service, Bond #2, Lease Rental, Redevelopment Bond)* | $3,994,456 | $2,347,728 | −$1,646,728 (−41.2%) |
| Other (Solid Waste, Casino, Law Enforcement Continuing Education, Park Non-Reverting) | $198,400 | $226,500 | +$28,100 (14.2%) |
| Total | $16,168,556 | $14,742,988 | −$1,425,568 (−8.8%) |
* Prior to issuance of road debt.
Sources: 2027 Form 1; 2026 Budget Form 4.
All funds, by service area
Where the 2027 Budget Goes
Public safety (police, fire, EMS and 911 dispatch) receives $6,698,600, or 45% of the $14,742,988 total across all 18 funds.
| Service area | 2027 Proposed |
|---|---|
| Public Safety | $6,698,600 |
| Debt Service | $2,347,728 |
| General Government | $2,153,500 |
| Public Works and Streets | $1,637,400 |
| Parks and Recreation | $844,000 |
| Economic Development and Redevelopment | $565,500 |
| Planning, Zoning and Building | $496,260 |
| Total | $14,742,988 |
Each service includes every fund that pays for it, so departments outside the General Fund (Public Works, Planning and Building) are counted in full.
Source: 2027 Form 1, grouped by service area.
2026 Budget
The proposed budget was presented at the Town Council Meeting on October 7th, 2025. The meeting can be viewed on our YouTube Channel.
Documents regarding the proposed budget can be found below.
2026 Budget Introduction Town of Cedar Lake, Indiana
Presented by:
Jennifer N. Sandberg, IAMCA, CMC, CPFIM — Clerk-Treasurer
Sue Haase, CPA — Certified Public Accountant and Utility Account Specialist
Summary of Selected Cash Balances
| Fund | 6/30/2025 | 12/31/2024 | 12/31/2023 | 12/31/2022 | 12/31/2021 | 12/31/2020 |
|---|---|---|---|---|---|---|
| General | $4,501,982 | $4,178,801 | $4,361,543 | $5,076,767 | $4,787,348 | $3,158,900 |
| MVH | $918,968 | $739,542 | $861,575 | $578,388 | $422,107 | $334,570 |
| LRS | $813,775 | $862,768 | $666,230 | $548,351 | $397,051 | $290,817 |
| CCD | $194,174 | $308,551 | $484,786 | $414,960 | $383,756 | $338,149 |
| CCI | $43,192 | $35,213 | $35,181 | $29,327 | $20,202 | $15,416 |
| CEDIT | $951,527 | $767,899 | $640,939 | $532,147 | $754,196 | $624,532 |
| LOIT Public Safety | $455,572 | $321,425 | $199,068 | $137,143 | $121,515 | $98,345 |
| Casino | $189,868 | $188,911 | $179,784 | $107,447 | $220,383 | $232,340 |
| Redev Gen | $135,438 | $124,220 | $106,533 | $91,570 | $54,372 | $19,579 |
| TOTALS | $8,204,496 | $7,527,330 | $7,535,639 | $7,516,100 | $7,160,930 | $5,112,648 |
Senate Bill 1
There is a tremendous amount of uncertainty regarding how Senate Bill 1 will impact municipalities.
The goal for our 2026 budget:
- Manage and correct Bond Obligations
- Operate with last year’s budget with minimal changes
- Submit for Growth Appeal
Budget Changes
2026 will be the same as our 2025 budget with some minor adjustments for Public Safety. Once we see how the new Senate Bill impacts us, we can begin to make changes as needed in the following year(s).
- Adjustment in the Public Safety Retirement Program (77 fund) to accommodate the State increase of 3%
- Increase in Facility Line Item for new Police and additional Fire building
- Raises for Police and Fire Departments
Growth Appeal
This is our final year of eligibility for the Growth Appeal. Those funds will be applied to the General Fund.
| Year | Certified Net Assessed Value (CNAV) | Adjustments (Circuit Breaker Credit Loss) | Assessed Value | Increase |
|---|---|---|---|---|
| 2025 | $1,054,202,916 | $(116,046) | $1,054,086,870 | 10.57% |
| 2024 | $953,451,766 | $(156,842) | $953,294,924 | 9.51% |
| 2023 | $870,658,101 | $(475,875) | $870,535,301 | 16.92% |
| 2022 | $744,576,738 | $(46,592) | $744,530,146 | — |
| 2021 | $663,205,480 | $(75,254) | $663,130,226 | — |
| Growth Appeal Average | 12.33% | |||
Bond Corrections
As a result of the potential impact of Senate Bill 1, and good accounting practices, we will be correcting an issue with our 2017 Bonds.
- Eliminate the need for a temporary loan from other line items before our disbursement is received
- Additional payment to be made in the 2026 period — this will allow us to properly close out the bond within the 2026 Budget
Sustainability Projection
Summary of Historical Property Tax Rates and Levies
Certified Net Assessed Value has risen every year from $491,469,612 in 2017 to $1,054,202,916 in 2025, while the tax rate has generally trended downward over the same period — from 0.8083 in 2017 to a low of 0.5663 in 2022, then rising again to 0.745 by 2025.
| Year | Certified Net Value | Tax Rate |
|---|---|---|
| 2017 | $491,469,612 | 0.8083 |
| 2018 | $521,450,289 | 0.7024 |
| 2019 | $556,389,622 | 0.6204 |
| 2020 | $600,232,689 | 0.6657 |
| 2021 | $663,205,480 | 0.5772 |
| 2022 | $744,576,738 | 0.5663 |
| 2023 | $870,658,101 | 0.8122 |
| 2024 | $953,451,766 | 0.7905 |
| 2025 | $1,054,202,916 | 0.745 |
2027 Proposed Budget Form 1.pdf
2027 Budget Form 3 Notice to Taxpayers.pdf
2026 Proposed Budget Form 1.pdf
2026 Budget Introduction Powerpoint.pptx
2026 Budget Form 3 Notice to Taxpayers.pdf
2026 Budget IntroductionPDF.pdf
2025 Proposed Budget Form 1.pdf
2025 Budget Introduction PresentationPowerpoint.pptx
2024 Water Budget Analysis.pdf
2024 Stormwater Budget Analysis.pdf
2024 Sewage Budget Analysis.pdf
2024 Proposed Budget Form 1.pdf
2024 Budget Introduction PresentationPowerpoint.pptx
2024 Budget Introduction PresentationPDF.pdf
2024 Budget Form 3 Notice to Taxpayers.pdf
2023 Water Budget Analysis.pdf
2023 Stormwater Budget Analysis.pdf
2023 Sewage Budget Analysis.pdf
2023 Preliminary Sustainability Plan.pdf
2023 Budget Form 3 Notice to Taxpayers.pdf
2023-Budget-Introduction-PresentationPowerpoint.pptx
2023-Budget-Introduction-PresentationPDF.pdf
2022 Proposed Budget.pdf
2022 Budget Public Hearing PresentationPowerpoint.pptx
2022 Budget Public Hearing PresentationPDF.pdf
2021 SustainabilityPlan.pdf
2019 Proposed Budget.pdf
2017 Proposed Budget.pdf
2016 Proposed Budget.pdf
2015-01-20 Amended-Fiscal-Plan-Adopted.pdf