INDIANAPOLIS (WISH) — Westfield Mayor Scott Willis said even preemptive spending cuts aren’t enough to stave off the long-term impacts of the state’s new property tax law.

In an interview with News 8 for All INdiana Politics, Willis said his city’s 2026 budget, enacted last month, already makes cuts to every city department except police and fire. For now, he said the city’s rapid growth will help it stay ahead of reductions in property tax revenue. By 2028, however, he said his budget analysts estimate a net loss of revenue of $12.5 million. So far, he said estimates of the property tax’s impact have been accurate.

Willis said the city already plans to open two new fire stations over the next couple of years, each of which carries $5 million in annual fixed costs. He said that means the city already will have to spend an additional $10 million by 2028 against that loss of revenue.

“We’ve talked about stopping future growth projects, road infrastructure in particular,” Willis said. “We’ve got several roundabouts planned and street widenings planned in our city. We have a $180 million comprehensive plan over the next 7-8 years. We’re scaling that back. Those are things we can proactively do. We’re going to have to maybe cut staff as well if we fall off of that cliff. $12.5 million can’t all come from future projects.”

Willis said the changes to the state’s property tax law already cost his city a chance at a AAA bond rating because credit rating agencies are worried about the reduction in property tax revenue could impair cities’ ability to make bond payments on time. He said this means the city won’t be able to borrow money at the lowest possible cost to taxpayers, though he added Westfield likely will be able to achieve a AAA bond rating next year. He said his city will have to raise its local income tax rate to offset those losses, and he expects many other cities in Indiana to do the same.

All INdiana Politics airs at 9:30 a.m. Sunday on WISH-TV.

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