Bloomington City Council Special Session - October 27, 2026

This special session was convened to consider Resolution 2026-23, which would increase the Public Safety Answering Point (PSAP) rate and the overall Public Safety Local Income Tax rate to fully fund dispatch operations, as recommended by the Monroe County Local Income Tax Council's PS Lit Committee. The resolution failed after extensive discussion and public testimony.

Public Comments & Testimony

• Kevin Keel opposed the resolution, arguing that the projected funding gap does not by itself justify a tax increase without a formal plan for reserves, equipment, and staffing. He noted that actual spending has differed from budget due to recruitment challenges and that the county holds significant dispatch reserves. He urged the council to take more time to develop a combined financial forecast and reserve targets.
• Eric Oz raised multiple material questions about the lack of required annual meetings, the late creation of a dedicated PSAP fund (April 2025), gaps in revenue tracking, and compliance of the interlocal agreement. He recommended not increasing the PSAP rate until these issues are transparently addressed, and called for an immediate meeting of the PS Lit committee.

Discussion Items

• Financial Presentation: Controller Jeff McKim presented updated financials for the city's PSAP fund, showing a projected year-end balance of about $1 million for 2026, and a deficit budget of $4.8 million against $4 million in projected revenue (from the county) for 2027, leaving reserves nearly exhausted. He noted that the county's PSAP reserves ($3.26 million) and 911 reserves ($2.7 million) could be used, but that major technology replacements (e.g., $2.3 million for radios) are imminent.
• Interlocal Agreement Concerns: Council members discovered that the 2018 interlocal agreement requires an annual joint work session between city and county councils before September 1, which apparently has not been held in recent years. The agreement also requires the city and county to cover budget shortfalls equally after reserves are exhausted.
• Rate Impact: An increase would cost approximately $37 per year for a household with $100,000 adjusted gross income (71 cents per week).
• Alternative Funding: Some council members suggested using General Fund dollars or a General Obligation bond for capital equipment, rather than a tax increase.
• Timing: The county must also adopt the increase by November 1 for collection to start January 1, 2027; a later adoption would delay collection.

Amendment

• Councilmember Stasberg introduced an amendment to correct a rounding error (changing 0.287 to 0.2869) and fix a formatting issue in Section 1, Item 5. The amendment passed unanimously on a voice vote (no roll call recorded).

Key Outcomes

• Resolution 2026-23 Failed: After discussion and public comment, the resolution was put to a roll call vote. Councilmembers Piedmont Smith, Daily, and Stasberg voted no; no yes votes were recorded. The motion did not pass.
• Next Steps: Council acknowledged the need to revise the interlocal agreement, schedule a joint meeting with the county, and develop a comprehensive funding plan for dispatch operations. A special Plan Commission session was announced for Wednesday, and a Fiscal Committee meeting for Friday.