PROPERTY TAX REFORM

PUBLIC SAFETY PENSIONS

• SB 388 would increase the salary basis for the 1977 pension fund from 52% of a patrolman or firefighter’s salary to 55%. It also increases the longevity bonuses from 1% per year to 1.25% per year making the new maximum 85%. It couples this with an increase in the mandatory contribution for fund members from 6% to 8.5%.
• Aim opposes this bill because of the increase in cost for municipalities, with an estimated increase in municipal contribution rate of just over 2.3% for the change. This is, however, on the heels of some of the largest pay increases in history for public safety, the result of which has already lowered the funded status of the 1977 fund and increased contribution rates several times in the last few years.
• SB 388, authored by Sen. Linda Rogers (R-Granger), was heard in the Senate Pensions and Labor Committee on Wednesday but was held for future discussion after concerns from the committee about the fiscal impact and the impact on the funding status of the 1977 fund.

LOCAL GOVERNMENT REORGANIZATION

• HB 1233 is a large proposed overhaul and reorganization of local government. The bill would dissolve all townships, fire protection districts, and fire protection territories and place all fire protection responsibilities with the county. It would also dissolve all towns under 1,000 in population if they cannot prove that the value of the services they provide are higher than their costs.
• This bill would be a significant change for how local government is organized in Indiana. It would directly impact Aim’s smallest members, as well as, any member that is part of a fire territory or district. Aim does not support this bill as currently written.
• HB 1233, authored by Rep. Karen Engleman (R-Georgetown), has not been scheduled for a hearing at this time and faces significant opposition. The Aim legislative team will continue to update our membership as we receive more information on this bill moving forward.

RIGHT TO FOOD

• SB 14, which formerly provided a blanket protection on residential property from zoning ordinances that would have restricted food production, now only prohibits a zoning authority from completely prohibiting gardens on residential property but ensures they are still subject to common-sense restrictions like setbacks, height restrictions, etc.
• Aim worked with the bill author an amendment greatly improving the bill after receiving feedback from our members on the potential negative impact. The Aim legislative team will continue to monitor the progress of the bill as it progresses to ensure local zoning authority is protected.
• SB 14, authored by Sen. Blake Doriot (R-Goshen), was voted out of the Senate Local Government Committee on Thursday with a vote of 10-0.

WATER PLANNING

• SB 4 is an effort to ensure there is intelligent, statewide management of water issues. It requires the IURC to approve any water pipeline that moves water from one basin to another.
• Aim is monitoring the discussing around water management to ensure that local governments retain control of their own water resources and ensure that economic development projects can have the water resources they need to grow and develop our state.
• SB 4, authored by Sen. Eric Koch (R-Bedford), was heard in the Senate Utilities Committee on Thursday but was held for further amendments and will be voted on at a future meeting.

Listen to more about this week on the second episode of the 2025 Market Street to Main Street Podcast Series, Aim’s legislative episodes of the Hometown Innovations Podcast and a supplement to this e-newsletter. In this episode, Jennifer is joined by Matt Greller and Aim’s Legislative Team. Matt, Amy, Campbell, and Isabel discuss proposed property tax measures and several other important bills.

To listen to Market Street to Main Street, please visit The Terminal post and click the “play button” on the audio player. Or you can subscribe to Aim Hometown Innovations Podcast on Podbean, Apple Podcasts, and Spotify.