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Bloomington council approves continuation of 1% grocery tax to cover budget gap
Summary
The Bloomington City Council voted to maintain the municipal 1% grocery tax after staff said losing it would create about a $3 million budget hole and jeopardize planned capital projects. Opponents said the levy is regressive and urged alternatives; the ordinance passed after multiple motions and amendments.
The Bloomington City Council voted to approve an ordinance continuing the city's 1% grocery tax, preserving an estimated $3,000,000 in annual revenue the city says is needed to reduce an anticipated budget shortfall and fund capital needs.
City Manager Jeff Jurgens explained the legal and fiscal background before the council vote, saying the Illinois General Assembly repealed the state's municipal grocery tax in 2024 but allowed local governments to retain the levy. "This is not a new tax," Jurgens said, and staff estimated that losing the city's share would be "about a $3,000,000 hit to the city budget." Jurgens listed capital priorities that rely on that revenue, including the public works campus relocation (Owens Nursery), the East Re Basin flood project, downtown parking needs and police and fire facility space.
The city's Finance…
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