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Gary council approves incentive pay program for city employees

December 3, 2025 by Chicago Tribune

With about 50 city firefighters and police officers watching, the Gary Common Council unanimously approved an employee incentive pay program at its last meeting of the year.

According to the ordinance documents, incentive payments are available to full or part-time employees who have worked for the city for at least 90 days before Dec. 19, and they must be employed by the city on Dec. 19, when the payments are made. Part-time employees will receive $500 through the program, full-time civil employees will receive $2,000 and public safety employees will receive $7,500.

Incentive pay will come from three TIF revenues, which the Gary Redevelopment Commission has approved, and the casino operating fund. The employee incentive pay budget is more than $3.5 million, according to ordinance documents.

Before the council’s Tuesday vote, Gary Mayor Eddie Melton urged members to approve the program.

“This ordinance is about recognizing the hard work and resilience of our employees during a challenging year, marked by staffing shortages, failing building infrastructure and increased service demands,” Melton said. “Incentive pay acknowledges that despite these challenges, our employees consistently have shown up.”

In 2024, the Gary Common Council approved a similar, more than $2.6 million employee incentive pay program for city employees, using American Rescue Plan Act funds, according to Post-Tribune archives. At the time, Melton told council members that his administration wanted to recognize its employees and ensure they wouldn’t be poached from “other communities to work with their police and fire departments.”

As the Indiana General Assembly’s 2026 session approaches in January, Melton said he’s expecting to see bills that might impact the city’s revenue, and he wants employees to continue to work hard. He also said the goal is for the city to continue to increase its tax base and bring more residents and businesses to the city.

“We want to make sure that folks understand that in order to pay our police and our officers more, which they deserve compared to other reasons and other municipalities, we have to increase that revenue,” Melton said. “But today, we’re using the tools … to make that happen as a gesture to our employees.”

Before the council’s Tuesday vote, Councilman Darren Washington, D-at large, showed his support for the incentive pay program, saying it’s an “excellent opportunity” and use of TIF funds.

“Hopefully, we’ll pass it tonight to show the public safety community that we really appreciate the work that they’re doing,” Washington said.

In a Wednesday morning Facebook post, Melton thanked the council for approving the incentive pay program, saying that the more than 600 city employees are “the backbone of Gary.”

“And to all of our workers: even when people count Gary out, we do what we’ve always done — we fight, we rise, and we keep building,” Melton said in his post. “You are part of history. Together, we are writing the greatest comeback story in American history. Thank you for giving your best to the people of Gary. Let’s keep moving forward — strong, united, and unshaken.”

mwilkins@chicagotribune.com

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