2026-08-18 Bloomington City Council 2027 Budget Hearings – Night One

The first night of the 2027 budget hearings for the City of Bloomington convened on August 18, 2026, at 5:30 PM (the transcript references Monday, August 17; the official date provided is August 18). The council heard presentations from the Mayor's Office, City Controller, Fire Department, Police Department and Dispatch, Community and Family Resources Department (CFRD), and Housing and Neighborhood Development (HAND). The proposed total city budget is $165 million, which reduces the combined operating and ED lit deficit by more than half from the 2024 budget, a total reduction of over $10.5 million. The meeting also adopted a motion to structure debate for the week.

Public Comments & Testimony

• Kevin Keel (public commenter) thanked council members for submitting written budget questions and expressed appreciation for the scrutiny, noting that the budget document is difficult for the public to digest. He encouraged moving toward a more public-friendly presentation.
• Christopher MG (Greater Bloomington Chamber of Commerce) expressed support for continued investment in the Bloomington Police Department, citing high resident satisfaction (61%) and the department's Tier I CALEA accreditation. He also endorsed HAND's focus on increasing housing supply as a workforce and economic strategy.
• Paul Russo (online commenter) stated that speeding is a violent crime and criticized the police chief's doubt that punishment deters crime.

Mayor's Introduction

Mayor Thompson presented the 2027 budget proposal, emphasizing three priorities: maintaining core city services (clean water, safe roads, public safety); protecting and maintaining new and existing assets; and addressing root causes of housing, homelessness, wage growth, and public safety. The mayor acknowledged the difficulty of producing an outcomes-based budget due to an inadequate financial system, but noted that a new system is planned for 2027. He stated that the budget reduces the anticipated operating deficit each year. In response to Councilmember Piedmont-Smith, the mayor explained that departments were instructed to align spending with shared priorities, but the lack of data systems limits granular tracking. Councilmember Stasberg asked about prioritizing 'F to C' versus 'C to A' improvements; the mayor responded that core city services must be at B+ or higher, and that non-essential enhancements depend on available funds.

City Controller's Introduction

Controller Jeff McKim provided a financial overview, highlighting a proposed $4.8 million combined deficit in the General Fund and ED Lit Fund. He detailed key cost drivers: a 2.7% COLA for civil employees and 3% for union employees, $1.8 million increase in pension contributions for public safety (PERS rate from 23.3% to 26.5%), and a preliminary 9% health insurance increase (later revised to 5.8%). McKim reported that Senate Enrolled Act 1 (SEA1) will reduce net assessed value by $142 million in 2027, disproportionately affecting Bloomington due to many rental properties, leading to $1.3 million in circuit breaker losses. He introduced a new capital improvement plan using a rolling series of six-year General Obligation bonds. He also noted that a new financial system is budgeted in IT services to improve efficiency. Councilmember Stasberg raised a discrepancy between a $28 million overall deficit across all funds and the $4.8 million figure; McKim clarified that the $28 million includes many capital and special funds with planned spend-downs.

Fire Department Presentation

Chief Roger Kerr reported that the Fire Department is fully staffed at 120 full-time employees, with one part-time vacancy (MIH program manager). The proposed budget is largely flat except for critical capital replacements: $1 million for Self-Contained Breathing Apparatus (SCBA) and $2.5 million for a 100-foot aerial platform truck (to be bond-funded). The current SCBA warranty expires in mid-2027; the new ones will have lifetime warranty. The aerial truck has been down 90+ days in 2026. Kerr highlighted 3,145 fire calls year-to-date (2025 total: 6,745), 48,671 training hours (116% of target), and the upcoming opening of the operations center south of town. Councilmember Rollo asked about a proposed fire station at Summit Development on Tap Road; Kerr stated internal planning is underway but not near-term. Controller McKim confirmed the station would not be built in the next couple of years. Councilmember Flaherty noted the Public Safety LIT (PS LIT) is insufficient for capital needs, and McKim suggested council consider raising the PS LIT rate, though bonding against it is not viable due to uncertainty.

Police Department and Dispatch Presentation

Chief Mike Diekoff presented the 2027 budget request, an increase of $2.49 million driven by the new collective bargaining agreement ($1.66M), fuel and inflation ($179K), and reallocation of insurance costs ($770K). The department has 105 authorized sworn officers; currently 93 are filled. Crime rates decreased 6.4% overall in 2025, and vehicle accidents decreased 7%. Call volume increased 48% since 2020 (80,450 calls in 2025, up 5.9% from 2024). Key priorities: continue alternative response partnerships, design and begin construction of a new police headquarters at 714 South Rogers Street, and enhance traffic safety and violent crime reduction. Chief Diekoff stated that traffic enforcement is limited by staffing; more officers would allow more proactive patrols. Councilmember Piedmont-Smith asked for data supporting the claim that increased officer presence reduces violent crime; the chief could not cite specific studies. Councilmember Stasberg questioned the department's policy on issuing tickets to at-fault drivers in crashes; the chief said it is left to officer discretion and that he has not mandated tickets. Councilmember Stasberg requested data on how many discretionary tickets were issued for at-fault crashes. Councilmember Flaherty noted the council-appointed Transportation Commission is still awaiting a staff report on traffic safety options. Dispatch staffing: 32 authorized positions, with 14 vacancies at the time of the org chart; Deputy Mayor Knapp corrected that it is now 22 filled and 10 vacant.

Community and Family Resources Department (CFRD) Presentation

Director Shatoya Moss presented a $2 million budget (10% decrease from 2026). Key accomplishments: $46,000 emergency food investment supported 330,000 pounds of food; the Bloomington Volunteer Network's Be the Change Challenge recorded 58,000 volunteer hours (value $1.97 million); Juneteenth celebration drew 11,000 people. CFRD focuses on three pillars: resources (access before crisis), partnerships (leveraging community networks), and belonging (community events). Moss highlighted the After Hours Ambassadors Program, expansion of Helping Bloomington Monroe kiosks, and planning to modernize the volunteer network. She noted that without increasing resources, the department relies on technology, grants, and volunteers to extend reach. Councilmember Stasberg asked for data on how volunteer hours represent added value beyond existing volunteering; Moss said they are working on better tracking.

Housing and Neighborhood Development (HAND) Presentation

Director Anna Killian Hanson presented a proposed budget increase of $1.74 million, primarily to expand the Housing Development Fund by $3 million (from $1M to $4M). She detailed work: 1,631 code enforcement citations, 20 unsafe building actions, 550 complaint rental inspections, 2,984 rental inspections, 1,107 rental permits issued, housing stability assistance to 56 households, 19 homebuyers and 40 renters assisted, 78 first-time homebuyer education completions. Preservation of 48 affordable units ($600,000) and creation of 10 cooperative units ($250,000). She highlighted that 72% of Bloomington jobs are filled by commuters due to housing costs. The department is responding to federal shifts (21st Century Road to Housing Act, SB 285) and the expiration of ARPA funds. She proposed using CDBG funds to create a targeted sidewalk repair program in low/moderate-income areas, without additional city budget. Councilmember Rothell asked about adapting to federal policy shifts from 'housing first'; Mayor Thompson noted he is leading a mayors' coalition to seek state support for mental health and addiction funding. Councilmember Piedmont-Smith requested a report on Housing Development Fund expenditures and outcomes. Councilmember Stasberg expressed concern about capacity to spend an additional $3 million and requested details on contracts. Councilmember Ruff raised sidewalk enforcement for trash bins; Hanson acknowledged limited enforcement staff but noted ongoing efforts to improve route targeting.

Key Outcomes

• Motion to Structure Debate: Councilmember Flaherty moved, and the council unanimously approved, a motion to limit councilmember questions and comments to three minutes per presentation, and public comment to two minutes per speaker per comment period, for the duration of the budget hearings. The motion also provided for a public comment period after each presentation.
• No votes on budget items: As this was the first hearing, no budget appropriations were voted on. Council members will continue submitting written questions and will reconvene on August 19, 2026 at 5:30 PM for Night Two.
• Directives: Councilmember Stasberg requested data on discretionary tickets for at-fault crashes; Councilmember Piedmont-Smith requested a report on Housing Development Fund spending and outcomes; Councilmember Ruff requested better sidewalk enforcement coordination. These items will be addressed in follow-up or future meetings.