Bloomington City Council 2026 Budget Hearings - Fourth Night on Transportation (August 28, 2025)

The meeting was the fourth and final night of departmental budget hearings for the 2026 budget, focused on the transportation priority area. Presentations were heard from Bloomington Transit, the Department of Planning and Transportation, the Engineering Department, and the Department of Public Works (Street & Traffic and Parking Services). The meeting also included a council discussion on potential budget modifications, particularly raising the Cost of Living Adjustment (COLA) to 2.7%.

Public Comments & Testimony

• Kevin Keogh (online) inquired about the planned external audit of permitting processes, asking about criteria, frequency, public reporting, and whether it is a requirement.
• Chris Fernie (Greater Bloomington Chamber of Commerce) commended Director Hiddle for outreach efforts and expressed hope for improvements in permitting and outcome-based budgeting.
• Steve Olin (Chair of the Transportation Commission) urged the council to fill two vacancies on the commission to ensure it can function effectively.
• Chris Fernie (second appearance) praised Public Works Director Wyson for accessibility and excellent service.

Bloomington Transit Presentation

General Manager John Connell presented the 2026 budget of $19,383,402. Key points included:

• Use of ED LIT funds for capital projects (16 zero-emission electric buses, microtransit, Sunday service) and new operations complex.
• Personnel increase of 3.92%, health insurance up 18.5%, liability insurance up 161%.
• Electric buses cost $0.27 per mile vs. diesel at $0.80; 18 electric buses now 41% of fleet.
• Revenue: passenger fares budgeted at $2.5 million (up 27%), advertising down, $824,870 in reserves used.
• Goals: begin design/construction of new operations complex, prepare for SB impact, market Blink microtransit.
• Council questions: reserves at ~$10M after drawdown; union contract expiring Dec 31; staffing adequate; microtransit ridership low but targeting awareness; positive feedback on bus stop improvements.

Planning and Transportation Presentation

Director David Hiddle presented the 2026 budget, with significant personnel increase due to salary lift and two proposed FTEs (long-range planner and alternative transportation coordinator). Key points:

• Development Services handles permits, zoning map, UDO amendments; 2024 saw 30 BZA petitions (28 approved).
• Floodplain management strengthened; housing attainability study underway; external audit of permitting process planned.
• Planning Services active on corridor studies (College Walnut, Kinser Madison Rogers, Indiana Avenue, 10th Street), Safe Routes to School, crash dashboard.
• New FTEs would increase capacity for studies, comprehensive planning, and safe streets implementation.
• Council questions focused on level of service (deferred to Engineering), BZA patterns, linkage fee study, permitting efficiency, and concerns about studies outpacing implementation.

Engineering Department Presentation

Director Andrew Seabor presented the 2026 budget of approximately $7.5M (nearly double 2025, partly due to bond funding shift). Key points:

• Personnel changes: promote one field specialist to program manager; add project engineer and construction inspector (expected savings from reduced consulting).
• Department turnover rate 29%; never had all 15 positions filled.
• Transportation Commission established; still two vacancies.
• Project life cycle: planning (Planning Dept), design/ROW/construction (Engineering), then maintenance (Public Works).
• Recent success: $1M bond claim against contractor for right-of-way violations.
• Council questions: concerns about hiring challenges, capital outlay details, and savings projections; discussed High Street sidepath ROW acquisition (ongoing).

Public Works Street & Traffic Division Presentation

Director Adam Wyson highlighted maintenance, paving, traffic signals, and emergency response. Key points:

• Successful paving seasons in 2024-2025; pavement condition index data collection underway.
• Challenges: equipment costs, staff retention (CDL training), budget constraints.
• Street lights and traffic signals budget cut nearly half; intended to offset by parking meter funds.
• Council questions: repaving goals (20-year for residential, 10-year for arterials); Kirkwood stress from festivals; parking meter fund usage limitations.

Parking Services Division Presentation

Director Adam Wyson (also presenting) described ongoing master planning, frustrations with elevator projects and enforcement harassment. Key points:

• 2026 budget reductions from completed projects (ADA markings, study).
• Goals: implement master plan recommendations (code updates, ADA spaces, pavement markings).
• Turnover high; challenges with elevator vendor.
• Council questions: Fourth Street garage capacity for convention center (uncertain for largest events); license plate readers (efficiency vs. privacy); scooter enforcement (fines issued in commercial districts). Public comment from Chris Fernie asked about Trades District garage capacity with new hotel and Forge.

Key Outcomes

• Council unanimously approved (roll call 9-0) a motion to amend the agenda to add a discussion item: "Common council discussion and reflection on the proposed 2026 budget, including consideration of reductions and consideration of increases" (discussion only, no vote).
• During the discussion, multiple council members expressed support for raising the proposed 2% COLA to 2.7% to match inflation. Administration (Deputy Mayor Knapp and Controller McClellan) indicated willingness to accommodate the increase, noting it would cost just under $500,000.
• Council members suggested potential cuts to fund the COLA: special legal services budget, consultant studies, padded budget lines, and delaying elective projects. Controllers noted that some funds (e.g., MVH, parking facilities) may require offsets, but general fund can absorb.
• No formal vote on budget changes occurred tonight; controller plans to bring a revised budget ordinance incorporating the 2.7% COLA and corresponding cuts to the September 24th public hearing for council consideration.