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Finance committee reviews 2026 general fund forecast, plans $4.7M-plus capital transfers and flags insurance claim pressure
Summary
City budget presenter reviewed the 2026 general fund forecast showing revenues slightly under 2025 forecast, projected transfers out (~$5.125M) with about $4.7M to capital, and noted increased personnel and health insurance claim costs that add pressure to operations.
An unnamed city finance presenter reviewed the proposed 2026 general fund forecast and reconciliations, telling the committee the city expects revenues modestly below its 2025 forecast and is proposing transfers to support capital projects in 2026.
The presenter said the forecast shows roughly $34.8 million in revenues against about $31.5 million in operating spending in the baseline, producing an apparent excess before transfers. “We’re gonna spend on operating 31.5. That means we got about 3,400,000 in excess revenue,” the presenter said, and then explained planned transfers out total about $5,125,000. “Well, 4,700,000 of that is going to capital projects. 425,000 will go to our transportation program,” they added.
The presenter highlighted reserve levels and a transfer plan: ending days in cash are projected at approximately 237 days, which the presenter described as “very healthy” but near internal ordinance limits that set upper and lower targets for days-in-cash. The packet includes reconciliation sheets and further details the presenter said the committee can review in follow-up.
On budget assumptions, the presenter explained a 3% income-tax growth assumption for 2026 and conservative multi-year forecasts (2.5% compounded growth for revenues, 3% for expenditures) used to extend projections to 2030. The presenter also described contingency budgeting and added personnel costs, estimating about $1.4 million of additional budget pressure for overlapping hires and contractual wage increases.
Committee members asked about special funds and one member raised whether some services could be insourced; Joel (Speaker 6) and the presenter said Bloomington has a separate budget but the volume Bloomington physicians generate is reflected in hospital numbers. Joel also said the city has received opioid settlement funds (more than $600,000 received so far) and that total receipts are expected to approach $2 million over time; the presenter specified the opioid fund in the packet as fund number 126 (pages 240–241).
The committee did not take formal action at the meeting; members asked to schedule another finance committee meeting before the next council meeting to review outstanding items and packet reconciliation sheets.
