Bloomington council creates dedicated PSAP fund, approves transfers and closes dormant bond accounts

The Bloomington Common Council on April 2 unanimously adopted an ordinance creating a separate Public Safety Answering Point Local Income Tax (PSAP LIT) fund to isolate revenue for the Monroe County central 9‑1‑1 dispatch center and approved related transfers of cash and budget authority into the new fund.

Controller McClellan told the council the change is primarily accounting: "This is just a bookkeeping update," and said it "will be used exclusively to support the Monroe County Central Emergency Dispatch Center," adding that ‘‘there’s no new spending and no fiscal impact." He said the city had about $2,400,000 in cash set aside for dispatch and plans to transfer that balance into the new fund.

Why it matters: Indiana law requires that revenue from the local income tax earmarked for public safety be tracked and used for public safety purposes. Creating the PSAP LIT fund separates dispatch revenues from other public safety uses and, officials said, makes oversight and reporting clearer. Controller McClellan said the fund will receive monthly distributions from the state and that the city expects about $2,700,000 in annual PSAP‑eligible revenue based on the packet’s DLGF‑certified page.

The council also approved Appropriation Ordinance 20‑25‑03, moving revenue and appropriations tied to dispatch operations from the broader Public Safety Local Income Tax (PSLIT) fund into the new PSAP LIT fund. McClellan told the council the ordinance transfers $2,480,000 in cash and moves the 2025 dispatch center budget, "just over 4,400,000.0," into the PSAP LIT fund; he emphasized existing payroll and services would not be disrupted.

Council members asked whether community programs that provide non‑police emergency response could qualify for PSAP LIT expenditures. McClellan and Corporation Counsel Margie Rice said expenditures generally must be tied to a police, fire, probation, or court operation to qualify, and staff attorneys would review specific edge cases. "It would have to be tied to that operation, be operated, be part of their operations," McClellan said.

Votes at a glance: - Ordinance 20‑25‑09 (establish PSAP LIT fund): Adopted unanimously (recorded 8–0). - Appropriation Ordinance 20‑25‑03 (transfer PSLIT revenue/appropriations into PSAP LIT): Adopted (recorded 7–0). - Ordinance 20‑25‑10 (transfer remaining balances from dormant debt service funds to general fund): Adopted (recorded 7–0). - Appointments to the Community Advisory on Public Safety (Carson Nair, Berget Newman, Cale Orey): Approved unanimously.

Separately, the council adopted Ordinance 20‑25‑10 to close out four inactive debt service funds and transfer leftover balances — described by the controller as approximately $140,647 — into the city's general fund. McClellan described the balances as interest accrual and manual journal corrections rather than recent expenditures and said bond counsel reviewed the plan. "We will show a transfer of its cash balance into the general fund," he said.

The meeting also included public comment on unrelated community issues. Gerhard Gom thanked volunteer teams and two downtown churches for running an emergency winter shelter and warned that demand for services may grow if federal programs shrink; Erin Aquino, director of Exodus Refugee Immigration, described the nonprofit’s refugee resettlement work and asked the council to recognize World Refugee Day and consider financial support. One speaker raised broad political concerns unrelated to the ordinances on the agenda.

What happens next: The appropriation ordinances introduced for first reading (2025‑04 and 2025‑05) will be heard for second reading and public hearing at the council’s regular session on April 16. Council members also noted a special deliberation session next week to discuss 2026 budget priorities.

(Reporting note: Quotes and attributions come from the meeting record and from presentations by Controller McClellan, Corporation Counsel Margie Rice, Council member Isabel Piedmont Smith and public commenters.)