City presents $137 million FY2026 proposed budget, highlights $81 million in capital projects

Finance director Scott Rathbun presented the Bloomington City Council with the city’s proposed FY2026 budget and a detailed review of $81.1 million in capital projects that account for roughly 25% of the proposed citywide budget.

Rathbun said the city must present its proposed budget by March 15 and described key changes since the February briefing: the addition of a $3.95 million “front and center” project increased citywide capital totals and altered the general‑fund transfer to the capital improvement fund. He told council that roughly $9.6 million — nearly 12% of the capital total — is expected from external sources such as grants and partner contributions.

Directors outlined major project categories: engineering described grant‑funded trail and sidewalk work, Constitution Trail extensions and DECO/ITEP projects; public works and water described Fox Creek Road and Hamilton Road phases; parks outlined Sunnyside Park sustainability and the Highland Park cart shed and clubhouse replacement; the water department presented multi‑year GIS and leak‑detection pilots and the planned PAC system purchase discussed separately.

Interim engineering director Jim Karch emphasized recent grant successes and a new infrastructure dashboard the city has launched to show project status and funding. He also said sidewalk complaint backlogs (about 489 at the time of the meeting) will be addressed in the FY2026 sidewalk contract.

Council members asked about grant funding variability, sidewalk and concrete repair priorities, the difference between grant‑funded increases and local taxpayer impact, and timing for stormwater and sanitary sewer projects. Karch said FEMA has indicated Bloomington is a strong candidate for a proposed 75% hazard‑mitigation grant that would cover phases 5 and 6 of the East Street (Baker Ash) detention basin modifications; council member questions noted that if awarded, the grant would materially accelerate flood‑mitigation work.

Rathbun said detailed project sheets and two budget books are available on the finance page and that the council will hold a public hearing at month’s end with final adoption targeted for April 14. He asked council to hold questions until the end of the presentation; councilors then raised several technical and timing points that directors said they would return with more detail on in upcoming Council meetings.

Why it matters: the capital projects include several multi‑year transportation and stormwater efforts that affect neighborhoods, flood risk and future development patterns. The budget presentation sets the public schedule for hearings and adoption and frames anticipated grant dependency for several large projects.