Bloomington area budget prep: Income tax revenues for 2023 projected up 13%, property tax levy up 5%

Indiana’s state budget agency has released its estimated county-by-county local income tax (LIT) distributions for 2023, which are numbers local governmental units will use for 2023 budget planning.

For the certified shares category, Monroe County (across all government units) is projected to see about a 13-percent increase—from $34,232,607 in 2022 to $38,815,238 in 2023.

That news comes shortly after the maximum levy growth quotient for property tax revenue was announced for the 2023 budget year: 5 percent.  That’s the biggest percentage increase since at least as far back as 2003. Continue reading “Bloomington area budget prep: Income tax revenues for 2023 projected up 13%, property tax levy up 5%”

2023 budget notebook: Historic inflation, impact on pay get first look by Monroe County councilors

The past practice used by Monroe County to make a cost of living adjustment (COLA) for employees could lead to a historic fiscal impact on the 2023 budget.

That’s because the county’s fiscal body—the seven-member county council—has typically tried to key its COLA to the percentage increase in the consumer price index (CPI) between the previous December and the December before that.

That number is already in the books: 7.5 percent. That’s the percentage increase in the US Bureau of Labor Statistics midwest urban CPI between December 2020 and December 2021.

And it’s the biggest December-to-December percentage increase in the CPI since 1979 to 1980, when inflation was at 12.2 percent.

The question of how to approach employee compensation for next year’s budget got some initial discussion at the county council’s Tuesday night meeting. Continue reading “2023 budget notebook: Historic inflation, impact on pay get first look by Monroe County councilors”

COVID-19 impact: 2021 budget previewed by Bloomington mayor shows more expenses than revenues

Single Bar Barchart of City Budget 2021 preview
Re: the gray bar. A detailed breakdown of proposed major categories of expenses has not yet been released for the proposed 2021 Bloomington budget.

Bloomington mayor John Hamilton’s proposed 2021 budget will be presented by city department heads next week in four sessions that will take place over successive nights, starting Monday.  [Updated at 1:22 p.m. on Aug. 17, 2020. The proposed budget has now been posted to the city’s website.]

During Friday’s media preview of his proposed budget for next year, Hamilton reflected on this year’s numbers compared to the four budgets he presented in his first term as mayor. “This is my first non-balanced budget,” Hamilton said, “meaning the expenses are higher than the projected revenues.”

Controller Jeff Underwood was on the conference call, so Hamilton was quick to clarify, “in case Jeff falls out of his chair” that the city has sufficient revenues plus reserves to pay for the budget.

Hamilton is proposing to spend $4 million of reserves, in order to maintain basic services and to pay for a collection of initiatives to stimulate the local economy that he is calling “Recover Forward.” The first phase of that set of initiatives was approved by Bloomington’s city council last Wednesday as a roughly $2 million appropriation. Continue reading “COVID-19 impact: 2021 budget previewed by Bloomington mayor shows more expenses than revenues”

COVID-19 kindles financial caution as Monroe County council puts off some, not all spending

Monroe County’s council is already starting to weigh how the COVID-19 pandemic will impact future revenues.

Annotated Stacked Bar Chart for McKim 2020 LIT impact projection

A presentation from councilor Geoff McKim towards the start of Tuesday night’s regular monthly meeting considered some scenarios for revenue reductions that would, in just two years, wipe out the bulk of the county’s rainy day fund.

The county’s rainy day fund currently has a balance of $7.2 million.

President of the board of county commissioners, Julie Thomas briefed the seven-member council on about $157,000 that commissioners have already spent due to the COVID-19 emergency. Thomas ticked through two different $25,000 grants to social service agencies, and other expenses like electrostatic cleaners, laptops for work from home, licenses for Zoom video conferencing software, and repair to a sewage lift station.

That set the general stage for financial caution. But on a 5–2 split vote, councilors did wind up approving $50,000 in legal fees to support possible litigation over an environmental assessment done for a project planned in Hoosier National Forest.

When councilors were asked to make an additional appropriation of $343,000 to pay for some already budgeted items—like the refurbishment of the Alexander Memorial, parking deck maintenance, and some ADA work on the courthouse grounds—they unanimously agreed to postpone consideration until their May 12 meeting. Continue reading “COVID-19 kindles financial caution as Monroe County council puts off some, not all spending”

Bloomington city council hears from police officers about pay: They are “tired and fed up”

More than four dozen Bloomington police and their family members filled the city council’s chambers Wednesday night. They were there to support members of their collective bargaining team, who addressed the local lawmakers at their regular meeting on the topic of better pay.

The police department’s budget for next year was not on the city council’s agenda for Wednesday.

Still, the show of interest from the Bloomington Police Department (BPD) fit into a general timeframe of budget decisions for 2020. The city council will vote in early October on the budget after getting the final proposal on Sept. 25.

A city council chamber filled with police officers also fit the context of current collective bargain negotiations between the police union and the city. Paul Post, who’s president of the Fraternal Order of Police Lodge 88, told councilmembers on Wednesday that the 18-month long negotiations had reached a point when the city’s negotiating team declared an impasse and mediator was brought in.

The result of the mediation process, Post said, had produced a written proposal from the city’s team. Post delivered bad news. “Unfortunately, that proposal was not enough,” Post told councilmembers, adding that it was voted down by union membership, because, “it did not adequately meet the financial needs, nor was it designed to meet the recruiting and retention needs so many of you have recently pointed out.”

Responding to a query from The Beacon, the city administration says it’s putting together some material to add context to the Wednesday’s presentation to the city council given by the police union. Continue reading “Bloomington city council hears from police officers about pay: They are “tired and fed up””

$98.6 million proposed for Bloomington’s 2020 budget, includes 12 new positions

Bloomington’s city council isn’t scheduled to take a final vote on the adoption of Mayor John Hamilton’s proposed 2020 budget until Oct. 10. Single Bar Barchart of City Budget

But next Monday, Hamilton will appear at 6 p.m. in front of the council to deliver a speech that presents the $98.6 million proposal.

In their four-day schedule of departmental hearings starting after Hamilton’s speech, the city council is expected to take straw votes on each department’s proposal. That will give Hamilton’s administration a chance to make some final tweaks before the budget is given a first reading in front of the council on Sept. 25.

The $98.6 million covers all of the city’s 15 departments except for three—City of Bloomington Utilities ($44 million), Bloomington Transit ($14 million), and Bloomington Housing Commission ($13 million). The 15-department total adds up to around $170 million.

The proposed core budget of $98.6 million for 2020 is the fourth annual budget that Hamilton has presented since he was elected in November 2015. It continues the trend of his first three proposed budgets—year-to-year increases averaging about 8 percent. This year’s $98.6 million budget is more than one-third (36 percent) bigger than the last one approved for his predecessor, Mark Kruzan, in 2016.

Of the four basic categories in the budget—personnel, supplies, other services, and capital outlays—the biggest difference between the proposed 2020 budget and the one adopted in 2016 is in capital outlays. The $8.6 million for capital outlays in 2020 is almost three and a half times the $2.5 million in 2016.

Last year, on the occasion of the budget presentation, Hamilton spoke for a half hour.

Based on a press briefing last Friday, one topic he’s likely to address this year, beyond the nuts and bolts of the proposed budget, is climate change and how it affects budgeting. Climate change “is going to be part of our planning forever,” Hamilton said.

After the jump, this piece will tick through: some nuts and bolts of the proposed 2020 budget; the budget process up to now; the week’s four-day city council schedule starting with Monday’s mayoral address. Continue reading “$98.6 million proposed for Bloomington’s 2020 budget, includes 12 new positions”