Mayor Gahan Opposes City/County Merger

MAYOR GAHAN OPPOSES CITY/COUNTY MERGER

As Floyd County's Municipal Unit Strategic Taskforce (MUST) prepares for its third meeting, Mayor Jeff Gahan said New Albany will continue participating in the process but still has concerns about “MUST” and the problems that Senate Bill 1 and Senate Enrolled Act 1 have already caused for cities in the state of Indiana.

Most cities across Indiana are preparing for dramatic cuts to public safety and services caused by Senate Bill 1, but Mayor Gahan has said that the City of New Albany will oppose any proposal that reduces public safety funding or lowers the quality of life for city residents.

Mayor Gahan noted that New Albany enters the process with one of the strongest financial records in the region, having finished under budget for 15 consecutive years, maintained excellent financial audits, earned an A+ financial rating, and never raised local taxes.

By contrast, Floyd County's most recent audit identified an approximately $45 million accounting discrepancy that remains unresolved.

"It is difficult to negotiate the future when the county still cannot explain a $45 million discrepancy in its own financial records," Gahan said.

Mayor Gahan also raised concerns about the direction of the MUST process, saying it increasingly appears to be an attempt to move Floyd County toward a UNIGOV-style consolidation and merger of city and county services, all without the approval or consent of local voters.

“It’s clear that mergers like this do not work, and they typically result in decreased services for cities, and increased taxes for everyone,” stated Mayor Jeff Gahan. “That’s why we cannot support this.”

As it currently stands, the Floyd County-led initiative could lower public safety funding as well as other quality of life services that the people of New Albany rely on. Mayor Gahan reiterated that the city of New Albany will not support any proposal that lowers funding for public safety or quality of life services.

CITY COUNCIL PASSES MAYOR GAHAN’S NEW DATA CENTER BAN

CITY COUNCIL PASSES MAYOR GAHAN’S NEW DATA CENTER BAN

At the request of Mayor Gahan, the New Albany City Council has approved a 1 year ban on the construction of new data centers within the City of New Albany. The freeze will allow the City to study issues including utility demands and their potential effects on electric and water rates, environmental impacts, noise concerns, infrastructure needs, and other issues related to data center development.

Under the new law, no new data center can be constructed within the City of New Albany. The ban will remain in effect for up to one year and could be renewed after that.

Mayor Jeff Gahan is also encouraging Floyd County’s elected officials to adopt similar protections for residents living outside New Albany’s boundaries.

“We encourage Floyd County’s elected officials to follow New Albany and other cities and counties throughout the Midwest by enacting their own data center ban so families throughout Floyds Knobs and Floyd County are protected from unchecked data center development while these important issues are fully studied,” said Mayor Gahan.

Mayor Gahan first proposed the ban in June, citing the rapid growth of data center projects throughout the region and the need to ensure New Albany is prepared before considering future proposals. Councilperson Elaine Murphy sponsored the ordinance before the City Council.

“I believe it’s important to understand how data centers could impact our future,” stated Mayor Gahan. He also thanked members of the City Council and the New Albany Plan Commission for their quick, proactive work.

“As technology continues to evolve, great cities must also evolve, and this proactive step helps us better prepare for tomorrow,” Mayor Gahan said. “Our responsibility is to protect our families, conserve our natural resources, and make decisions that are in the best interest of our people. This action will allow us to do exactly that.”

🚧 Progress Update: The Monon South Freedom Trail is Taking Shape!

🚧 Progress Update: The Monon South Freedom Trail is Taking Shape!

“We are excited to announce that construction on Phase 1 of the Monon South Freedom Trail in New Albany is now more than 50% complete!” stated Mayor Jeff Gahan. “This statewide amenity will create new opportunities for residents and fresh connections to cities and towns throughout our state.”

Phase 1 will connect the Ohio River Greenway and the New Albany Shoreline to the future Monon South Freedom Trail, creating a route that travels north along 4th Street and continues past Fairview Cemetery. Future phases will extend the trail from there, ultimately connecting New Albany to Mitchell as part of the 63-mile Monon South Freedom Trail, the longest continuous recreational trail in Indiana.

We're excited to see this trail taking shape and look forward to sharing more updates as construction continues!

Special thanks to our partners for helping make this trail a reality: New Albany Redevelopment Commission, New Albany City Council, Caesars Foundation of Floyd County, Radius Indiana, Indiana Department of Natural Resources, the Indiana Economic Development Corporation, and Our Southern Indiana RDA.

We also want to thank our downtown business owners and residents for their patience and understanding while construction of this trail is ongoing.

MAYOR OF NEW ALBANY EXPRESSES CONCERNS OVER NEW “MUST” TASKFORCE CREATED AFTER SENATE ENROLLED ACT 1

MAYOR OF NEW ALBANY EXPRESSES CONCERNS OVER NEW “MUST” TASKFORCE CREATED AFTER SENATE ENROLLED ACT 1

The City of New Albany has concerns about the new Municipal Unit Strategic Taskforce (MUST), established shortly after the passage of Senate Enrolled Act 1 (SEA 1).

Under previous law, local income tax distributions were determined through formulas established by the State of Indiana. New laws passed by state government replace that process by requiring local governments to negotiate certain local income tax structures through a county-level taskforce.

Mayor Gahan said the City is particularly concerned that these discussions will rely on financial information from Floyd County government, whose most recent audit by the Indiana State Board of Accounts identified significant financial reporting issues, including an approximate $45 million variance between balances reported by the Floyd County Treasurer and Floyd County Auditor (found on page 9 and 14 of Floyd County’s 2025 State Board of Accounts Supplemental Audit).

"Before any decisions are made that could impact taxpayers or local government services, we need confidence that the financial information being used is accurate," said Mayor Jeff Gahan. "When the State Board of Accounts identifies discrepancies of this magnitude in Floyd County Government, it raises legitimate concerns that should be addressed before any changes are considered.”

Local income tax revenues are a critical funding source for city services, particularly public safety. In New Albany, the majority of these funds go directly to support police officers, firefighters, emergency response, and other essential city services.

The MUST Taskforce requires unanimous agreement among participating units before recommendations can move forward, and so the City of New Albany intends to carefully evaluate any proposal brought before the taskforce.

"As requested, the City Controller will attend the initial meeting to gather information and better understand the process," Mayor Gahan said. "However, New Albany will not support any proposal that reduces the resources needed to maintain the high level of police, fire, and emergency services our residents expect and deserve."

Mayor Gahan also expressed broader concerns about the implementation of SEA 1 and its potential effects on local governments across Indiana.

"Our first responsibility is keep New Albany residents safe. This program from state government directly jeopardizes that. As this new process moves forward, we will continue to be a strong voice for New Albany taxpayers as well as for the resources needed to keep our city healthy and vibrant," said Mayor Jeff Gahan. “The City has worked very hard over the last 15 years to keep our budgets balanced and our infrastructure in good repair. We should not be penalized for the conduct or performance of other government entities that have not done the same.”

NEW ALBANY CALLS SPECIAL MEETING ON DATA CENTERS:

In early June, Mayor Jeff Gahan called for a moratorium on data center construction within the City of New Albany. The proposed ordinance would pause new data center development for up to one year, allowing the City time to study potential impacts on infrastructure, utilities, environmental resources, noise, and other community considerations.

To support that effort, multiple City departments and boards have begun reviewing the issue and gathering public input.

Last week, the New Albany City Council took its first step by referring the proposed ordinance to committee for further review. The Council held its first committee meeting this afternoon, and the proposal remains on track for consideration by the full Council in July.

Additionally, the New Albany City Plan Commission has scheduled a Special Meeting and Public Hearing on Tuesday, June 23, at 5:30 p.m. The hearing will provide residents an opportunity to share their thoughts on data center development and the proposed moratorium. As the body responsible for recommending development standards and helping shape the City’s new zoning ordinance, the Plan Commission is seeking public feedback to help guide future zoning regulations related to data centers.

“We encourage residents to make their voices heard throughout this process,” stated Mayor Jeff Gahan. “The upcoming public hearing is one opportunity to provide input, and there will be additional opportunities for public comment as this proposal continues through the review process before a final vote by the City Council.”