What’s the difference between a town and a city? Most Hoosiers would answer by saying cities are big and towns are small, but that’s not accurate. For example, Brownsburg, with a 2020 population of 28,973, is a town – while Greencastle is a city, although its population was only 9,820. Nor does Greencastle’s status as a city have anything to do with it being the seat of Putnam County. Danville, our county seat, is also a town.
Indiana law classifies three different types of cities. Third-class cities have a population of less than 34,000 and are governed by an elected seven-member council and an elected clerk-treasurer. Second-class cities fall between 34,000 and 599,999, with an elected nine-member council and clerk. There’s only one first-class city, Indianapolis. Municipalities that aren’t cities are called towns by default. (States do things differently. For example, most Illinois communities are called villages.)
The biggest difference between Indiana towns and cities involves the roles of elected officials. In a city, the council is the legislative branch of government, while the mayor and clerk head the executive branch. The mayor serves as the city’s chief executive, responsible for overseeing the city’s day-to-day operations and the employees who handle the work. There are no cities in Hendricks County, so there are no mayors. In towns, the council functions as both the executive and legislative branches. Larger towns hire a town manager to run things.
Indiana towns and cities operate under a concept called home rule that gives them the freedom to do pretty much anything that isn’t prohibited by state or federal law. However, the General Assembly has taken many opportunities over the years to constrain the powers held by municipalities. For example, in recent sessions, state legislators have taken steps to overturn decisions made by the people who Indianapolis voters elected to run their city.
Can an Indiana town become a city? If the town’s council adopts a resolution to become a city, residents can petition for a referendum to be placed on the next election’s ballot. Similarly, a city can switch back to the town form of government if two-thirds of taxpayers sign petitions to the county’s circuit court.
Generally speaking, cities deliver more services to residents than towns, which is reflected in higher taxes. Why then would residents embrace the idea of becoming a city? A common driver is a belief that mayors are inherently more responsive to residents than council members or town managers, but that’s true only on a case-by-case basis. In my experience, most town council members are happy to discuss issues with and answer questions from residents. After all, they’re proud of the work they put into governing their communities.
Both towns and cities elect clerks, who are essentially the keepers of the official records. In many municipalities, that role is performed by a clerk-treasurer, who is also responsible for overseeing the community’s budget and finances.