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Bloomington finance director reports FY2025 year‑end: online sales‑tax changes lift receipts, reserves project higher than budgeted use
Summary
Finance Director Scott Rathburn reported June 23 that sales‑tax receipts showed a positive variance driven by state legislative changes to online retail taxation, partially offsetting other revenue shortfalls; projected general‑fund reserves are higher than earlier budgeted use.
Finance Director Scott Rathburn presented the city’s second of three year‑end financial reports on June 23, reporting several notable year‑end developments for fiscal 2025.
Rathburn said sales‑tax receipts showed a $442,000 positive variance year‑to‑date after three months of gains tied to state legislation that required some online retailers to collect Bloomington’s home‑rule component beginning Jan. 1. “The first month we had a 14% increase over the prior year for both Home Rule and State Sales Tax. The second month it went down to 9.5%. Third month, it’s gone up to 27% positive variance over the prior year,” Rathburn said. He cautioned that month‑to‑month percentages varied and staff wanted one more month to confirm a sustained trend.
Rathburn said local use tax was about $615,000 under budget and that Personal Property Replacement Tax (PPRT) came in roughly $1.5 million under budget for fiscal 2025; the PPRT reduction has already been reflected in the FY2026 budget. He summarized reserve projections: beginning reserves were $49.8 million; the city had budgeted $8.7 million in reserve use for FY2025 but had revised that figure to a planned use of $14.7 million after midyear additions such as the Owens Nursery purchase; current projections show an expected use of $7.9 million, producing an estimated ending reserve of about $41.9 million.
Rathburn also reviewed enterprise funds. He said this was the first year of a 33% water‑rate increase and that water revenues are tracking to cover bonds and capital needs but that staff will monitor usage for elasticity or taste‑and‑odor impacts. Golf revenues exceeded budget at 115% of the projected amount.
Rathburn emphasized that the general fund remains heavily dependent on tax revenues — about 80% of the fund — and that the city will continue to monitor sales‑tax trends, PPRT and other major revenue sources as FY2026 budgeting continues.
Council members asked clarifying questions about timing and comparability to other jurisdictions; Rathburn said the city posts detailed financial reports and budget exhibits on its website and that the next monthly report will include final income‑statement details for the general fund.
The finance presentation did not include any council action; members received the report and asked questions.
