HAMMOND, Ind. — Hammond's 2027 budget cleared its first two readings Tuesday. One vote remains.
Mayor Thomas McDermott Jr. presented a proposed $170 million fiscal year 2027 budget to the City Council, The Times reported. He called it "very similar" to the $167 million 2026 budget, according to city budget records cited by The Times. The council approved the first and second readings at that meeting.
Indiana cities and towns expect property tax cuts under Senate Enrolled Act 1. McDermott pointed to economic development in Hammond to offset those cuts, The Times reported.
Key facts
| Item | Detail | Source |
|---|---|---|
| Proposed 2027 budget | $170 million | The Times (Requena, Oct. 14) |
| 2026 budget | $167 million | City budget records, via The Times |
| Council action | 1st and 2nd readings approved Tuesday | The Times |
| Final reading | Oct. 26 Common Council meeting | The Times |
| Payments in lieu of taxes | $6 million from major developments | The Times |
| Gaming tax estimate | $20 million to $24 million (peak above $35 million a year) | McDermott, via The Times |
| College Bound | $3.5 million, unchanged from 2026 | The Times |
Where the money moves
The plan counts $6 million in payments in lieu of property taxes from major developments. It also lowers the hit from property tax circuit breakers, The Times reported.
Some costs went up. McDermott said landfill and recycling service costs each rose 5%. Police and fire pension contributions rose 3.2%.
Casino money keeps shrinking
McDermott expects Hammond to collect $20 million to $24 million in gaming taxes next year. At its peak, that money brought the city more than $35 million a year.
"All the big gamblers used to go to Hammond, and now there's a lot more options," McDermott said, according to The Times. "There's a lot more competition now."
He named Rivers Casino in Des Plaines, Illinois, and Hard Rock Casino in Gary.
Horseshoe Hammond is still the city's largest taxpayer. The budget proposal lists its assessed value at $175 million, or about 4.5% of the city's total. The Times put Hammond's total assessed value at $3.94 billion.
College Bound stays whole
The College Bound program gives eligible Hammond students up to $10,500 a year for four years at Indiana colleges and universities. McDermott set aside $3.5 million for it in 2027, the same as this year.
Gaming taxes have long paid for the program, McDermott previously told The Times. Water sales to nearby towns have helped fill the gap. The budget expects $12 million from water sales next year.
What's next
The council takes up the third and final reading at its Oct. 26 meeting. The budget lands as Hammond also pushes for a possible Chicago Bears stadium, The Times noted. Region N3 has not seen the full 2027 budget document and does not report line items beyond those The Times published.
Photo credit
¹ Hammond City Hall (lead photo) — photo by Lotzman Katzman, Wikimedia Commons, licensed under CC BY-SA 3.0. Resized for web; this copy is shared under the same license.
² Horseshoe Hammond — photo by Bohao Zhao, Wikimedia Commons, licensed under CC BY 3.0. Resized for web.
³ Downtown Hammond, Aug. 22, 2005 — photo by John Delano, Wikimedia Commons, licensed under CC BY-SA 3.0. Resized for web; this copy is shared under the same license.
