Bloomington City Council 2026 Budget Hearings Night One - August 19, 2025

The Bloomington City Council began the first of five nights of budget hearings for the 2026 fiscal year on August 19, 2025 (though the mayor referenced the date as Monday, August 18, creating a discrepancy with the provided meeting date). The evening focused on the "High Performing Government" priority area, covering internal support departments. Key themes included the impacts of Indiana Senate Enrolled Act 1 (SEA 1), a transition to priority-based budgeting, and a projected $11.2 million general fund deficit.

Procedural Motion

• Speaking Time Limits: Councilmember Stasberg moved to limit council member questions and comments to three minutes each per presentation and public comment to two minutes per speaker. The motion passed unanimously (8-0).

Mayor's Budget Introduction

• Mayor Thompson presented the administration's budget vision, emphasizing that SEA 1 will cause a $1.4 million loss in local income tax revenue this year, growing to tens of millions annually by 2028. The city will need to "do less with less" but will prioritize existing commitments, maintenance of assets, and core services. The mayor acknowledged this is a "learning year" for priority-based budgeting and expects mistakes. Council member questions explored the definition of "existing commitments," collaboration with county and school entities, potential revenue enhancements, and clarification on the $16 million deficit figure used in messaging. The mayor explained that the deficit reflects spending exceeding recurring revenues but noted the council had intentionally spent down reserves in prior years.

Public Comments & Testimony

• Kevin Keogh (CPA, resident) commented on the controller's presentation, expressing confusion about the "budgetary basis" accounting in the city's financial schedules, which he said showed a large variance between final budget and actuals. He questioned the accuracy of deficit projections.
• Chris Rimgie (Greater Bloomington Chamber of Commerce) expressed support for the mayor's budget with no new initiatives and urged the city to make hard decisions on personnel cuts as part of the outcome-based budgeting process.

Discussion Items

• Controller's Budget Overview: Controller McClellan presented a $54 million projected revenue vs. $65.2 million in expenditures, a $11.2 million deficit. Key points: declining property taxes, SEA 1 bond restrictions, a 2% COLA for employees (council members argued for matching the 2.7% Social Security estimate), and a shift of interfund transfers into the controller's budget for clarity. Councilmembers debated the messaging around the deficit and the use of cash reserves.
• High Performing Government Overview: Deputy Mayor Knapp explained the rationale for clustering certain departments under this priority and acknowledged the need to refine program definitions and outcome measurements. She welcomed council input through the budget task force.
• City Clerk: Clerk Nicole Bolden presented a budget with near-zero increases. Council members asked about the resumption of wedding officiations and the clerk's role in council support.
• Common Council: Council Attorney Lisa Lanor highlighted challenges from new state laws, ADA compliance (effective April 2026), and increased workload from the Jack Hopkins and sidewalk programs. She proposed a $30,000 increase for consultants and workshops. Council members discussed the need for resources vs. concerns about budget bloat.
• Mayor's Office: Deputy Mayor Knapp presented a budget with a 2% decrease, partly due to the absence of the biennial community survey. New: a part-time emergency management planner ($50,000). Council members supported the role and discussed overlapping responsibilities and FOIA improvements.
• Controller's Office: Controller McClellan presented reductions in training, supplies, and consultants. She noted revenue ideas: wheel tax, sanitation rate increase, parking fee study. Councilmember Rallo pushed back on the assumption that development automatically increases net revenue, citing nexus studies.
• Legal Department: Corporation Counsel Margie Rice highlighted a high volume of contracts (654 year-to-date), improved FOIA response time (avg. 9.71 days), and a budget of $917,800 for outside counsel (mostly for annexation litigation). Council members asked about AI use and the risk of underestimating future legal needs.
• Human Resources: Director Shar Paychak reported 2025 accomplishments (onboarding tool, employee handbook update) and 2026 goals focused on policy efficiency and workforce strategy. The HR budget reflects decreases; no new FTEs. Council members asked about employee retention and exit interviews.
• Information Technology Services (ITS): Director Rick Dietz presented a $6.47 million budget, with increases in cybersecurity (due to reduced federal support) and enterprise software. No new FTEs. Council members discussed website revamp timeline (launch in summer 2026) and opportunities for efficiency gains through technology.
• Public Works Administration: Director Adam Wyson requested a new Deputy Director for Operations to oversee street, sanitation, and fleet, allowing him to focus on strategic issues. The budget also reflects planning for a new public works operations center, delayed by SEA 1 bond restrictions.
• Facilities Maintenance: Wyson presented a budget with a requested new Downtown Specialist to cover weekend gaps. Council members expressed support for the role and noted the department's work on council office relocation.
• Fleet Maintenance: Wyson reported on vehicle maintenance, a focus on asset management, and an apprenticeship partnership with Hoosier Hills Career Center. Council member questions covered technician training and the status of a new fleet facility (delayed due to bonding constraints).

Key Outcomes

• Motion to limit speaking times was adopted (8-0). The meeting adjourned at approximately 9:30 PM after completing all scheduled presentations for Night One. No formal votes on budget items were taken; the hearings continue on subsequent nights.